Nutrisystem 2011 Annual Report Download - page 51

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NUTRISYSTEM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended December 31,
2011 2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income .............................................................. $12,261 $ 33,637 $ 28,790
Adjustments to reconcile net income to net cash provided by operating activities:
Loss on discontinued operations .......................................... 0 242 4,083
Depreciation and amortization ........................................... 12,068 11,773 11,177
(Gain) loss on disposal of fixed assets ..................................... (62) 120 113
Share–based compensation expense ....................................... 9,758 10,951 9,382
Deferred income tax (benefit) expense ..................................... (384) 4,118 (2,531)
Equity and impairment loss ............................................. 0 0 4,000
Realized loss on sales of marketable securities .............................. 34 0 0
Changes in operating assets and liabilities:
Receivables .......................................................... (1,942) 3,682 4,308
Inventories, net ....................................................... (2,767) 23,265 (929)
Supplier advances ..................................................... 12,333 (15,240) 0
Other assets .......................................................... 2,980 (1,086) (2,499)
Accounts payable ..................................................... 6,777 (6,766) 1,221
Accrued payroll and related benefits ...................................... (4,195) 3,784 (1,029)
Deferred revenue ...................................................... (1,572) 778 (1,125)
Income taxes ......................................................... 2,151 (2,525) 2,475
Other accrued expenses and liabilities ..................................... (111) 200 (824)
Net cash provided by operating activities of continuing operations .......... 47,329 66,933 56,612
Net cash (used in) provided by operating activities of discontinued
operations ..................................................... 0 (316) 852
Net cash provided by operating activities .............................. 47,329 66,617 57,464
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities ........................................ (10,067) (540) (30,344)
Proceeds from sales of marketable securities ................................ 20,897 10,000 0
Capital additions ...................................................... (8,041) (19,594) (8,184)
Proceeds from the sale of fixed assets ..................................... 122 22 125
Net cash provided by (used in) investing activities of continuing operations . . . 2,911 (10,112) (38,403)
Net cash provided by (used in) investing activities of discontinued
operations ..................................................... 0 112 (168)
Net cash provided by (used in) investing activities ....................... 2,911 (10,000) (38,571)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under credit facility .......................................... 30,000 30,000 0
Repayments of borrowings under credit facility ............................. (30,000) 0 0
Debt issuance costs .................................................... (991) 0 0
Exercise of stock options ............................................... 129 124 563
Taxes related to equity compensation awards, net ............................ (2,842) (3,079) (2,170)
Repurchase and retirement of common stock ................................ 0 (74,997) (1,939)
Payment of dividends .................................................. (19,318) (20,662) (21,421)
Net cash used in financing activities .................................. (23,022) (68,614) (24,967)
Effect of exchange rate changes on cash and cash equivalents .............. 0 9 (193)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ................ 27,218 (11,988) (6,267)
CASH AND CASH EQUIVALENTS, beginning of year .............................. 20,376 32,364 38,631
CASH AND CASH EQUIVALENTS, end of year ................................... 47,594 20,376 32,364
LESS CASH AND CASH EQUIVALENTS OF DISCONTINUED OPERATIONS, end of
year ...................................................................... 0 0 166
CASH AND CASH EQUIVALENTS OF CONTINUING OPERATIONS, end of year ...... $47,594 $ 20,376 $ 32,198
The accompanying notes are an integral part of these consolidated financial statements.
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