Invacare 2013 Annual Report Download - page 59

Download and view the complete annual report

Please find page 59 of the 2013 Invacare annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

I-53
CASH FLOWS
Cash flows provided by operating activities were $10,054,000 in 2013, compared to $62,291,000 in the previous year. The
decline in operating cash flows in 2013 was primarily attributable to a decline in net earnings excluding the gain on the sale of
businesses in 2013, which more than offset the net positive cash flow impact of working capital items with declines in inventory
and receivables partially offset by increased accounts payable.
Cash flows provided by investing activities were $175,345,000 in 2013, compared to cash flows used for investing activities
of $29,442,000 in 2012. Cash flows provided by investing activities in 2013 were principally driven by the proceeds from sale of
business of $187,552,000. Cash flows used for investing activities in 2012 were primarily related to the purchase of property and
equipment and contingent consideration payments related to an acquisition of $9,000,000.
Cash flows required by financing activities in 2013 were $194,488,000 compared to $29,768,000 in 2012. The increase in
cash used was primarily attributable to repayment of debt.
During 2013, the Company generated free cash flow of $6,254,000 compared to free cash flow of $49,094,000 in 2012. The
decrease is due primarily to a decrease in net earnings excluding the impact of the gain on the sale of businesses in 2013. Free
cash flow is a non-GAAP financial measure that is comprised of net cash provided by operating activities, excluding net cash
impact related to restructuring activities, less net purchases of property and equipment, net of proceeds from sales of property and
equipment. Management believes that this financial measure provides meaningful information for evaluating the overall financial
performance of the Company and its ability to repay debt or make future investments (including acquisitions, etc.).
The non-GAAP financial measure is reconciled to the GAAP measure as follows (in thousands):
Twelve Months Ended
December 31,
2013 2012
Net cash provided by operating activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,054 $ 62,291
Plus: Net cash impact related to restructuring activities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,473 6,735
Less: Purchases of property and equipment—net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13,273)(19,932)
Free Cash Flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,254 $ 49,094
CONTRACTUAL OBLIGATIONS
The Company’s contractual obligations as of December 31, 2013 are as follows (in thousands):
Payments due by period
Total Less than
1 year 1-3 years 3-5 years More than
5 years
4.125% Convertible Senior Subordinated
Debentures due 2027 . . . . . . . . . . . . . . . . . . . . . $ 20,577 $ 551 $ 1,101 $ 1,101 $ 17,824
Revolving Credit Agreement due 2015 . . . . . . . 28,354 13,293 15,061 — —
Operating lease obligations . . . . . . . . . . . . . . . . 47,953 19,187 19,912 6,602 2,252
Capital lease obligations . . . . . . . . . . . . . . . . . . 8,061 1,450 2,869 2,176 1,566
Purchase obligations (primarily computer
systems contracts) . . . . . . . . . . . . . . . . . . . . . . . 29,819 7,600 11,985 9,812 422
Product liability . . . . . . . . . . . . . . . . . . . . . . . . . 20,368 3,183 8,278 3,901 5,006
Supplemental Executive Retirement Plan . . . . . 27,440 391 2,068 2,640 22,341
Other, principally deferred compensation . . . . . 11,735 56 304 484 10,891
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 194,307 $ 45,711 $ 61,578 $ 26,716 $ 60,302
The table does not include any payments related to liabilities recorded for uncertain tax positions as the Company cannot
make a reasonably reliable estimate as to any other payments. See Income Taxes in the Notes to the Consolidated Financial
Statements included in this report.