LeapFrog 2015 Annual Report Download - page 40

On February 10, 2014, our board of directors approved a stock repurchase program authorizing us to
repurchase up to an aggregate of $30.0 million of our common stock through December 31, 2014. During the
three months ended June 30, 2014, the number of shares we repurchased was insignificant. The repurchased
shares were retired upon repurchase. This stock repurchase program expired on December 31, 2014.
We believe that cash on hand, cash flow from operations and amounts available under our revolving credit
facility will provide adequate funds for our working capital needs and planned capital expenditures over the
next twelve months. Our ability to fund our working capital needs and planned capital expenditures, as well as
our ability to comply with all of the financial covenants of our revolving credit facility, depend on our future
operating performance and cash flows.
Cash Sources and Uses
The table below shows our sources and uses of cash for the years ended March 31, 2015 and 2014, and
the years ended December 31, 2013 and 2012:
Years Ended March 31, Years Ended December 31,
% Change
2015 vs. 2014
% Change
2014 vs. 20132015
2014
(unaudited) 2013 2012
(Dollars in millions)
Net cash provided by (used in):
Operating activities ........ $ (64.6) $ 71.5 $ 76.1 $ 67.9 (190)% 12%
Investing activities ......... (39.9) (33.2) $(32.2) $(22.6) (20)% (42)%
Financing activities ........ 0.9 4.1 $ 4.6 $ 2.5 (79)% 88%
Effect of exchange rate changes
on cash ............... (1.2) (0.1) $ (0.5) $ 0.4 (1197)% (215)%
Net change in cash and
cash equivalents ...... $(104.8) $ 42.3 $ 48.1 $ 48.1 (348)% —%
Years Ended March 31, 2015 and 2014
Net cash used in operations for the year ended March 31, 2015 increased $136.1 million as compared to the
year ended March 31, 2014 primarily due to the increased net loss related to operating activities and higher
inventory levels at the end of the year.
Net cash used in investing activities for the year ended March 31, 2015 increased $6.7 million as compared to
the year ended March 31, 2014 primarily due to an increase in investments to upgrade our internal business
systems and to develop more complex new products.
Net cash provided by financing activities for the year ended March 31, 2015 decreased $3.2 million as
compared to the year ended March 31, 2014 primarily due to a decrease in proceeds from stock option
exercises and the employee stock purchase plan.
Years Ended December 31, 2013 and 2012
Cash flow provided by operations for 2013 increased $8.2 million compared to 2012, primarily driven by an
increase in cash provided by accounts receivable collection, partially offset by reduced net income related to
operating activities, a lower accounts payable balance attributable to timing and volume of purchases, higher
inventory levels and higher incentive compensation payouts.
Net cash used in investing activities for 2013 increased $9.6 million compared to 2012, primarily due to an
increase in computer hardware and software purchases to upgrade our information technology capabilities.
Net cash provided by financing activities for 2013 increased $2.1 million as compared to 2012, due to
increases in stock option exercises and employee stock purchase plan purchases, partially offset by lower
payroll taxes related to a decrease in employee restricted stock units released in 2013 as compared to 2012.
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