Etsy 2015 Annual Report Download - page 62

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
The amended Credit Agreement contains customary representations and warranties applicable to us and our subsidiaries and customary affirmative and
negative covenants applicable to us and our restricted subsidiaries. The negative covenants include restrictions on, among other things, indebtedness, liens,
investments, mergers, dispositions, transactions with affiliates and dividends and other distributions. These restrictions do not prohibit any of our subsidiaries
from making pro rata payments to us or any other person that owns an equity interest in any such subsidiary. The amended Credit Agreement contains a
financial covenant that requires us and our subsidiaries to maintain a total leverage ratio (defined as net debt to adjusted EBITDA) not to exceed 3.50 to 1.00.
As amended, the Credit Agreement includes customary events of default, including a change in control and a cross-default on our material indebtedness. Our
obligations under the amended Credit Agreement are secured by substantially all of our and our subsidiaries’ assets, and our obligations under the amended
Credit Agreement are guaranteed by certain of our subsidiaries.
As of March 1, 2016, no amounts have been drawn under the credit facility.






Cash provided by (used in):
Operating activities
$ 16,542
$ 12,087
$ 29,211
Investing activities
(15,025)
(20,723)
(23,283)
Financing activities
(103)
45,237
199,608

Our cash flows from operations are largely dependent on the amount of revenue generated on our platform. Net cash provided by operating activities in each
period presented has been influenced by changes in accounts receivable, funds receivable and customer accounts, prepaid expenses and other current assets,
accounts payable and accrued liabilities and funds payable and amounts due to customers.
Net cash provided by operating activities was $29.2 million in the year ended December 31, 2015, as a result of the net loss of $54.1 million, depreciation
and amortization expense, stock-based compensation expense, foreign exchange loss, amortization of deferred tax charges and other non-cash charges of
$74.0 million and changes in our operating assets and liabilities that provided $9.3 million in cash.
Net cash provided by operating activities was $12.1 million in the year ended December 31, 2014, as a result of net loss of 15.2 million, depreciation and
amortization expense, stock-based compensation expense and other non-cash charges of $27.9 million and changes in our operating assets and liabilities that
used $0.6 million in cash.
Net cash provided by operating activities was $16.5 million in the year ended December 31, 2013, as a result of net loss of $0.8 million, depreciation and
amortization expense, stock-based compensation expense and other non-cash charges of $18.3 million and changes in our operating assets and liabilities that
used $1.0 million in cash.

Our primary investing activities have consisted of capital expenditures, including investments in website development and internal-use software and
purchases of property and equipment to support our overall business growth. Investments in website development and internal-use software and purchases of
property and equipment may vary from period to period due to timing of the expansion of our operations. Additionally, we have invested some of our excess
cash balances in U.S. Government and agency bills.
Net cash used in investing activities was $23.3 million in the year ended December 31, 2015. This was primarily attributable to $20.8 million in capital
expenditures, including $11.1 million for purchases of property and equipment and $9.7 million for website development and internal-use software, and net
purchases of marketable securities of $2.5 million.
Net cash used in investing activities was $20.7 million in the year ended December 31, 2014. This was primarily attributable to $5.3 million in restricted cash
associated with the lease of our new Brooklyn, New York headquarters, $4.7 million in cash paid to acquire businesses, capital expenditures, including $8.3
million for website development and internal-use software and $1.3 million for purchases of property and equipment, and net purchases of marketable
securities of $1.1 million.
58