Juno 2013 Annual Report Download - page 72

Table of Contents
Based on our current projections, we expect to continue to generate positive cash flows from operations, at least for the next twelve months. We
may use our existing cash balances and future cash generated from operations to fund, among other things, long-term growth initiatives, which may
include optimizing our current product offerings to enhance our consumer value proposition, expanding new product development efforts to drive new
revenue growth, and pursuing new strategic partnerships and other opportunities to expand our scope and reach; the repurchase of our common stock
underlying restricted stock units to pay the minimum statutory employee withholding taxes due on vested restricted stock units; the repurchase of our
common stock under the Program; future capital expenditures; and future acquisitions of intangible assets, including rights, content and intellectual
property.
We are now a substantially smaller company than we were prior to the consummation of the FTD Spin-Off Transaction, and we anticipate that our
consolidated cash flows will be substantially lower when compared to periods prior to the FTD Spin-Off Transaction.
If we need to raise additional capital through public or private debt or equity financings, strategic relationships or other arrangements, this capital
might not be available to us in a timely manner, on acceptable terms, or at all. Our failure to raise sufficient capital when needed could severely constrain
or prevent us from, among other factors, long-term growth initiatives, which may include optimizing our current product offerings to enhance our
consumer value proposition, expanding new product development efforts to drive new revenue growth, and pursuing new strategic partnerships and
other opportunities to expand our scope and reach; the repurchase of our common stock underlying restricted stock units to pay the minimum statutory
employee withholding taxes due on vested restricted stock units; the repurchase of our common stock under the Program; future capital expenditures;
and future acquisitions of intangible assets, including rights, content and intellectual property, and have a material adverse effect on our business,
financial position, results of operations, and cash flows, as well as impair our ability to pay future dividends and our ability to service our debt
obligations. If additional funds were raised through the issuance of equity or convertible debt securities, the percentage of stock owned by the then-
current stockholders could be reduced. Furthermore, such equity or any debt securities that we issue might have rights, preferences or privileges senior
to holders of our common stock. In addition, trends in the securities and credit markets may restrict our ability to raise any such additional funds, at least
in the near term.
Year Ended December 31, 2012 compared to Year Ended December 31, 2011
Net cash provided by operating activities from continuing operations decreased by $27.0 million, or 49%, for the year ended December 31, 2012,
compared to the year ended December 31, 2011. Net cash provided by operating activities is driven by our income (loss) from continuing operations
adjusted for non-cash items and changes in working capital, including, but not limited to, depreciation and amortization, stock-based compensation, loss
on extinguishment of debt, impairment of goodwill, intangible assets and long-lived assets, and deferred taxes. The decrease in net cash provided by
operating activities was due to a $47.4 million decrease in income from continuing operations. This decrease was partially offset by a $14.1 million
increase in non-cash items, which consisted of a $26.9 million goodwill and intangible asset impairment charge related to our MyPoints reporting unit,
partially offset by an $8.2 million decrease in deferred taxes, and decrease of $4.5 million in stock-based compensation. Additionally, net cash provided
by operating activities was impacted by a $6.3 million favorable change in working capital. Changes in working capital can cause variation in our cash
flows provided by operating activities due to seasonality, timing and other factors.
Net cash used for investing activities from continuing operations increased by $1.2 million, or 6%, for the year ended December 31, 2012,
compared to the year ended December 31, 2011. The increase was primarily due to $7.4 million of cash paid, net of cash acquired, for the acquisition of
schoolFeed during the year ended December 31, 2012. This increase was partially offset by a $5.1 million decrease in cash paid for purchases of
property and equipment and a $1.2 million decrease in cash paid for
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