Enom 2010 Annual Report Download - page 82

Table of Contents
Significant acquisitions made during the year ended December 31, 2008 included Pluck for total purchase consideration of $56.3 million (excluding
$10.0 million in one year promissory notes) and The Daily Plate, LLC, or the Daily Plate, for total purchase consideration of $5.0 million. Pluck became the
basis of our social media applications, and the Daily Plate became a product feature on our LIVESTRONG.com website.
Cash Flow from Financing Activities
Years Ended December 31, 2008, 2009 and 2010
Net cash used in financing activities was $10.5 million and $55.0 million during the years ended December 31, 2010 and 2009, respectively, as compared
to net cash provided by financing activities of $86.1 million during the year ended December 31, 2008.
In late 2008 and early 2009, we decided to borrow funds under our revolving credit facility as a result of instability in the financial markets. During the
year ended December 31, 2009, we borrowed $37.0 million from our credit facility with a syndicate of commercial banks, and used $10.0 million of these
borrowings to pay down promissory notes issued in conjunction with the acquisition of Pluck in March 2008. During the second half of 2009, we paid down
$82.0 million of the $92.0 million outstanding under our revolving credit facility, and during the year ended December 31, 2010 we paid down the remaining
$10.0 million outstanding under our revolving credit facility as we believed our operations were generating sufficient cash flow to support our operating and
investing activities at such time and we had sufficient cash on our balance sheet to do so. During the year ended December 31, 2008, gross borrowings under
our revolving credit facility were $55.0 million and were primarily used to finance the acquisition of Pluck in March 2008.
During the year ended December 31, 2008, we repaid certain promissory notes of $4.0 million associated with the acquisition of Hillclimb Media in
August 2006.
During the year ended December 31, 2008, we sold 5,833,334 shares of Series D Convertible Preferred Stock at $6.00 per share, for total proceeds of
$35.0 million and issuance costs of $0.2 million. Upon the completion of our initial public offering in January 2011, all shares of our convertible preferred
stock outstanding converted into 61.7 million shares of our common stock.
To date, proceeds from employee stock option exercises have not been significant. From time to time, we expect to receive cash from the exercise of
employee stock options and warrants in our common stock. Proceeds from the exercise of employee stock options and warrants outstanding will vary from
period to period based upon, among other factors, fluctuations in the market value of our common stock relative to the exercise price of such stock options
and warrants.
Off Balance Sheet Arrangements
As of December 31, 2010, we did not have any off balance sheet arrangements.
Capital Expenditures
For the years ended December 31, 2008, 2009 and 2010, we used $20.1 million, $15.3 million and $21.4 million in cash to fund capital expenditures to
create internally developed software and purchase equipment. We currently anticipate making aggregate capital expenditures between $20.0 million and
$30.0 million through the year ended December 31, 2011.
79