Enom 2012 Annual Report Download - page 71

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66
In the future, we may utilize commercial financings, bonds, debentures, lines of credit and term loans with a syndicate of
commercial banks or other bank syndicates for general corporate purposes, including acquisitions and investing in our
intangible assets, platform and technologies.
We expect that our existing cash and cash equivalents, our revolving credit facility and our cash flows from operating
activities will be sufficient to fund our operations for at least the next 24 months. However, we may need to raise additional
funds through the issuance of equity, equity-related or debt securities or through additional credit facilities to fund our growing
operations, invest in new business opportunities and make potential acquisitions. We currently have an effective shelf
registration statement on file with the SEC which we may use to offer and sell debt or equity securities with an aggregate
offering price not to exceed $100 million.
The following table sets forth our major sources and (uses) of cash for each period as set forth below:
Year ended December 31,
2010 2011 2012
(In thousands)
Net cash provided by operating activities $ 61,624 $ 85,349 $ 90,983
Net cash used in investing activities (66,296)(98,539)(67,482)
Net cash provided by (used in) financing activities (10,537) 66,936 (6,566)
Cash Flow from Operating Activities
Year ended December 31, 2012
Net cash inflows from our operating activities was $91.0 million, an increase of 7% or $5.6 million compared to the prior
year. Our net income during the period was $6.2 million, which included non-cash charges of $93.4 million such as
depreciation, amortization, stock-based compensation and deferred taxes. The remainder of the movement in our cash flow
from operating activities was from changes in our working capital, including increases in deferred revenue, accounts payable
and accrued expenses of $10.6 million, offset in part by increases in accounts receivable and deferred registration costs of $21.0
million. The increases in our deferred revenue and deferred registry fees were primarily due to growth in our Registrar service
during the period. The increase in accrued expenses is reflective of increases in amounts due to certain vendors and our
employees resulting from growth in our business. The increase in our accounts receivable reflects growth in advertising
revenue including a higher mix of balances from brand advertising sales.
Year ended December 31, 2011
Net cash inflows from our operating activities was $85.3 million, an increase of 38% or $23.7 million compared to the
prior year. Our net loss during the period was $(18.5) million, which included non-cash charges of $100.4 million such as
depreciation, amortization, stock-based compensation and deferred taxes. The remainder of our sources of net cash flow from
operating activities was from changes in our working capital, including increases in deferred revenue, accounts payable and
accrued expenses of $14.8 million, offset in part by increases in accounts receivable, deferred registration costs and deposits
with registries of $13.3 million. The increases in our deferred revenue and deferred registry fees were primarily due to growth
in our Registrar service during the period. The increase in accrued expenses is reflective of increases in amounts due to certain
vendors and our employees resulting from growth in our business. The increase in our accounts receivable reflects growth in
advertising revenue including a higher mix of balances from brand advertising sales.
Year ended December 31, 2010
Net cash inflows from our operating activities of $61.6 million primarily resulted from improved operating performance.
Our net loss during the year was $5.3 million, which included non-cash charges of $64.3 million such as depreciation,
amortization, stock-based compensation and deferred taxes. The remainder of our sources of net cash inflows was from
changes in our working capital, including deferred revenue and accrued expenses of $17.6 million, offset by net cash outflows
from deferred registry fees and accounts receivable of $16.9 million. The increases in our deferred revenue and deferred
registry fees were primarily due to growth in our Registrar service during the period. The increase in accrued expenses is
reflective of significant amounts due to certain vendors and our employees. The increase in our accounts receivable reflects
growth in advertising revenue.