Nutrisystem 2005 Annual Report Download - page 45

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NUTRISYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended December 31
2005 2004 2003
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ........................................................ $21,015 $ 1,019 $ 812
Adjustments to reconcile net income to net cash provided by (used in) operating
activities—
Equity in losses of affiliate ........................................——157
Depreciation and amortization ..................................... 983 268 223
Deferred tax (benefit) expense ..................................... (3,005) 110 (3,397)
Loss on disposal of fixed assets .................................... 59 — 152
Stock—based costs .............................................. 137 322 220
Tax benefit from stock option exercises ............................. 16,105 571 —
Accrued interest income .......................................... (266) — —
Imputed interest expense ......................................... 23 1 —
Changes in operating assets and liabilities excluding the effects of acquisition—
Restricted cash ................................................. — 250 75
Trade receivables ............................................... (6,489) (580) (47)
Inventories .................................................... (30,474) 845 (1,639)
Other assets ................................................... (3,148) (585) 198
Accounts payable ............................................... 21,527 828 1,946
Accrued payroll and related benefits ................................ 595 179 47
Deferred revenue ............................................... 545 27 (493)
Other liabilities ................................................. (54) (460) (174)
Net cash provided by (used in) operating activities ................. 17,553 2,795 (1,920)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of marketable securities .................................. (41,800) — —
Capital additions ................................................ (5,436) (688) (528)
Cash paid for acquisition of a business .............................. — (1,562) —
Investment in affiliates ........................................... — — (93)
Net cash used in investing activities ............................ (47,236) (2,250) (621)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common shares, net of offering costs ...................... 25,399 — 2,300
Exercise of stock options and warrants .............................. 4,135 972 25
Payment on note payable ......................................... (150) — —
Treasury stock purchases, at cost ................................... — — (105)
Net cash provided by financing activities ........................ 29,384 972 2,220
NET CHANGE IN CASH AND CASH EQUIVALENTS ................... (299) 1,517 (321)
CASH AND CASH EQUIVALENTS, beginning of year .................... 4,201 2,684 3,005
CASH AND CASH EQUIVALENTS, end of year ......................... $ 3,902 $ 4,201 $ 2,684
The accompanying notes are an integral part of these consolidated financial statements.
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