Enom 2010 Annual Report Download - page 101

Table of Contents
Demand Media, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands)
Year ended December 31,
2008 2009 2010
Cash flows from operating activities
Net loss $(14,903)$(22,471)$ (5,325)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization 43,710 47,115 52,016
Deferred income taxes (5,085) 2,208 2,980
Stock-based compensation 5,071 7,171 9,329
Other 742 (311) 394
Change in operating assets and liabilities, net of effect of acquisitions
Accounts receivable, net (854) (4,172) (8,344)
Prepaid expenses and other current assets (665) 892 (181)
Deferred registration costs (3,719) (3,608) (8,600)
Other assets 900 1,345 545
Accounts payable 2,554 1,100 1,237
Accrued expenses and other liabilities (1,254) 4,247 6,886
Deferred revenue 9,445 5,715 10,687
Net cash provided by operating activities 35,942 39,231 61,624
Cash flows from investing activities
Purchases of property and equipment (20,103) (15,327) (21,400)
Purchases of intangible assets (19,317) (22,701) (47,196)
Purchases of marketable securities (68,701) (48,916) (975)
Proceeds from maturities and sales of marketable securities 88,837 64,069 3,275
Cash paid for acquisitions, net of cash acquired (60,128) (525) —
Other investing activities 550 609 —
Net cash used in investing activities (78,862) (22,791) (66,296)
Cash flows from financing activities
Proceeds from line of credit 55,000 37,000 —
Payments on line of credit — (82,000) (10,000)
Repayment of notes payable (4,000) (10,000) —
Capital lease obligation principal paid (24) (581) (546)
Proceeds from issuances of common stock, restricted
common stock and exercises of stock options 376 591 1,552
Windfall tax benefit from exercises of stock options — — 34
Proceeds from issuances of preferred stock 35,000 — —
Issuance costs related to debt and equity financings (208) — (1,577)
Net cash provided by (used in) financing activities 86,144 (54,990) (10,537)
Effect of foreign currency on cash and cash equivalents — 169 (61)
Change in cash and cash equivalents 43,224 (38,381) (15,270)
Cash and cash equivalents, beginning of period 42,765 85,989 47,608
Cash and cash equivalents, end of period $ 85,989 $ 47,608 $ 32,338
Supplemental disclosure of cash flows
Cash paid for interest $ 1,061 $ 2,129 $ 358
Cash paid for income taxes 64 175 452
Supplemental disclosure of noncash investing and financing activities
Issuance of common stock warrants in consideration for the LIVESTRONG.com license, services and endorsement rights 3,475 — —
Issuance of common stock warrants in consideration for the website development, endorsement and license agreement with
Tyra Banks — — 1,880
Issuance of promissory notes payable for acquisition of Pluck Corp. 10,000 — —
Deferred acquisition consideration 500 — —
Issuance of restricted stock purchase rights for acquisition of assets 18 — —
Exchange of warrants to purchase Convertible Series C Preferred Stock to common stock warrants 77 — —
Capitalized stock-based compensation 714 700 899
Property and equipment purchased through accounts payable and accrued expenses 239 709 448
Intangible assets purchased through accounts payable and accrued expenses 201 125 84