Comfort Inn 2002 Annual Report Download - page 25

CHOICE HOTELS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
2002 2001 2000
(In thousands)
As Revised
(See Note 1)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ..................................................... $ 60,844 $ 14,327 $ 42,445
Adjustments to reconcile net income to net cash provided by operating
activities: .....................................................
Depreciation and amortization .................................. 11,251 12,452 11,623
Non-cash interest and other investment income ..................... (2,128) (4,219) (15,170)
Provision for bad debts ........................................ 1,256 476 (585)
Non-cash stock compensation and other charges .................... 1,666 2,210 787
Equity in net losses of affiliates ................................. 71 16,436 12,071
Impairment of Friendly investment .............................. —22,713 —
Write-off of deferred financing costs ............................. —650 —
Loss on early prepayment of Sunburst note ........................ —— 6,520
Changes in assets and liabilities, net of acquisitions:
Receivables ................................................. (5,360) 6,465 (2,245)
Prepaid expenses and other current assets ......................... ——30
Receivable—marketing and reservation fees, net .................... 17,219 20,267 (14,532)
Current liabilities ............................................ (4,054) 9,381 1,714
Income taxes payable/receivable and other assets ................... 5,391 6,361 (278)
Deferred income taxes and other liabilities ........................ 12,881 (5,807) 11,499
Net cash provided by operating activities ........................ 99,037 101,712 53,879
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in property and equipment ................................ (12,233) (13,532) (16,590)
Investment in Flag Choice Hotels .................................... (2,173) ——
Proceeds from Sunburst note ....................................... —101,954 —
Other items, net .................................................. (296) (684) (27)
Net cash (used in) provided by investing activities ................ (14,702) 87,738 (16,617)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt ....................................... 314,400 772,028 85,500
Principal payments of long-term debt ................................. (288,220) (790,795) (95,757)
Purchase of treasury stock .......................................... (120,931) (185,807) (20,893)
Proceeds from exercise of stock options ............................... 5,772 12,294 1,739
Net cash used in financing activities ............................ (88,979) (192,280) (29,411)
Net change in cash and cash equivalents ............................ (4,644) (2,830) 7,851
Cash and cash equivalents at beginning of period ..................... 16,871 19,701 11,850
Cash and cash equivalents at end of period .......................... $ 12,227 $ 16,871 $ 19,701
Supplemental disclosure of cash flow information
Cash payments during the year for:
Income taxes, net of refunds ................................ $ 14,674 $ 29,013 $ 15,674
Interest ................................................. 14,132 18,039 22,145
Non-cash investing activities:
Conversion of note receivable into Flag equity interest ........... $ 1,061 $—$—
Properties assumed through the restructuring of Sunburst note ..... —1,475 —
Properties assumed through put/call transaction ................. —— 12,233
Reduction in Sunburst note from put/call transaction ............. —— 16,333
Non-cash financing activities:
Income tax benefit realized from employee stock options exercised . $ 1,762 $ 3,895 $ 1,602
The accompanying notes are an integral part of these consolidated financial statements.
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