Juno 2012 Annual Report Download - page 92

Table of Contents
in cash paid for purchases of rights, content and intellectual property related to our online nostalgia services. In April 2012, we completed the
acquisition of the Gifts Division of Flying Brands Limited and paid $3.9 million in cash upon closing. In June 2012, we completed the acquisition of
schoolFeed for $7.5 million in cash upon closing and a maximum of $27.5 million of contingent consideration payments payable upon the achievement
of certain performance objectives. The contingent consideration will be measured based on three annual earnout periods ending June 30, 2013, 2014 and
2015 and will be paid out on an annual basis shortly after the closing of each annual earnout period.
Capital expenditures for the year ended December 31, 2012 totaled $17.8 million. At December 31, 2012, we had $3.0 million of property and
equipment that was not yet paid for and was included in accounts payable and other liabilities in the consolidated balance sheets. We currently anticipate
that our total capital expenditures for 2013 will be in the range of $21 million to $25 million, which includes the aforementioned $3.0 million of
purchases on account at December 31, 2012. The actual amount of future capital expenditures may fluctuate due to a number of factors, including,
without limitation, potential future acquisitions and new business initiatives, which are difficult to predict and which could change significantly over
time. Additionally, technological advances may require us to make capital expenditures to develop or acquire new equipment or technology in order to
replace aging or technologically obsolete equipment.
Net cash used for financing activities increased by $8.6 million, or 19%, for the year ended December 31, 2012, compared to the year ended
December 31, 2011. In June 2011, we refinanced the 2008 Credit Agreement and, in connection with the refinancing, we received net proceeds of
$261.3 million, which along with FTD's available cash, were used to repay the outstanding balance on the 2008 Credit Agreement of $264.6 million. In
the year ended December 31, 2012, we repaid $17.7 million on the outstanding Credit Agreement. In addition, repurchases of common stock for the
year ended December 31, 2012 decreased by $5.1 million, compared to the year ended December 31, 2011.
The payment of dividends and dividend equivalents is a cash outflow from financing activities. In January, April, August, and October 2012,
United Online, Inc.'s Board of Directors declared a quarterly cash dividend of $0.10 per share of common stock. The dividends were paid on
February 29, 2012, May 31, 2012, August 31, 2012, and November 30, 2012 and totaled $9.3 million, $9.4 million, $9.4 million, and $9.4 million,
respectively, including dividend equivalents paid on nonvested restricted stock units. In January 2013, United Online, Inc.'s Board of Directors declared
a quarterly cash dividend of $0.10 per share of common stock. The record date for the dividend was February 14, 2013 and the dividend, which totaled
$9.4 million, including dividend equivalents paid on nonvested restricted stock units, was paid on February 28, 2013. The payment of future dividends
is discretionary and is subject to determination by United Online, Inc.'s Board of Directors each quarter following its review of our financial
performance and other factors.
Future cash flows from financing activities may also be affected by our repurchases of our common stock. United Online, Inc.'s Board of
Directors authorized a common stock repurchase program (the "Program") that allows us to repurchase shares of our common stock through open
market or privately negotiated transactions based on prevailing market conditions and other factors. From August 2001 through December 31, 2010, we
repurchased a total of $150.2 million of our common stock under the Program, leaving $49.8 million of authorization remaining under the Program. In
February 2011, the Board of Directors extended the Program through December 31, 2011 and authorized an increase in the $49.8 million authorization
remaining to $80 million. In December 2011, the Board of Directors extended the Program through December 31, 2012. In January 2013, the Board of
Directors approved and ratified the extension of the Program through December 31, 2013. We did not make any repurchases under the Program during
the year ended December 31, 2012 and, at December 31, 2012, the authorization remaining under the Program was $80.0 million.
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