Juno 2013 Annual Report Download - page 71

Table of Contents
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 from continuing operations decreased by $7.7 million, or 21%. The decrease in net cash used for financing
activities was due to a $6.5 million decrease in payments of dividends and dividend equivalents on nonvested restricted stock units and a $5.1 million
increase in proceeds from exercises of stock options, partially offset by a $1.7 million increase in repurchases of common stock. In addition, in the year
ended December 31, 2013, we paid $3.4 million for contingent consideration related to the acquisition of schoolFeed.
The payment of dividends and dividend equivalents is a cash outflow from financing activities. In January, April, and July 2013, United
Online, Inc.'s Board of Directors declared a quarterly cash dividend of $0.70 per share of common stock, as adjusted to reflect the one-for-seven reverse
stock split. In November 2013, United Online, Inc.'s Board of Directors declared a quarterly cash dividend of $0.15 per share of common stock. The
dividends were paid on February 28, 2013, May 31, 2013, August 30, 2013, and November 30, 2013 and totaled $9.4 million, $9.7 million,
$9.7 million and $2.2 million, respectively, including dividend equivalents paid on nonvested restricted stock units. In January 2014, we announced that
United Online, Inc.'s Board of Directors determined to discontinue cash dividend payments in order to provide financial flexibility to support anticipated
long-term growth initiatives.
On an ongoing basis, we assess opportunities for improved operational effectiveness and efficiency. We recorded restructuring and other exit costs
totaling $2.5 million in the year ended December 31, 2013 in our Content & Media segment, which consisted of $2.3 million of employee termination
costs and $0.2 million of contract termination costs. During the year ended December 31, 2013, we paid $2.3 million of restructuring and other exit
costs, and, at December 31, 2013, accrued restructuring and other exit costs totaled $0.2 million, which will be paid over the next 12 months.
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 United Online, Inc. to repurchase shares of its common stock
through open market or privately negotiated transactions based on prevailing market conditions and other factors. United Online, Inc.'s Board of
Directors has approved and ratified the Program through December 31, 2014. There were no repurchases under the Program in the years ended
December 31, 2013 or 2012. At December 31, 2013, the authorization remaining under the Program was $80.0 million.
Cash flows from financing activities may also be negatively impacted by the withholding of a portion of shares underlying the restricted stock units
we grant to employees. In general, we currently do not collect the minimum statutory employee withholding taxes from employees upon vesting of
restricted stock units. Instead, we automatically withhold, from the restricted stock units that vest, the portion of those shares with a fair market value
equal to the amount of the minimum statutory employee withholding taxes due. We then pay the minimum statutory withholding taxes in cash. The
withholding of these shares, although accounted for as a common stock repurchase, does not reduce the amount available under the Program. Similar to
repurchases of common stock under the Program, the net effect of such withholding will adversely impact our cash flows from financing activities. The
amounts remitted in the year ended December 31, 2013 and 2012 were $4.3 million and $2.6 million, respectively, for which we withheld 0.3 million
and 0.1 million shares of common stock, respectively, that were underlying the restricted stock units that vested. The amount we pay in future periods
will vary based on our stock price and the number of applicable restricted stock units vesting during the period. In August 2013, we paid a $3.4 million
contingent consideration payment for the earnout period ended June 30, 2013 related to the schoolFeed acquisition. We do not expect any contingent
consideration will be earned for either of the remaining earnout periods.
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