Papa Johns 2006 Annual Report Download - page 61

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58
Papa John’s International, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands) Year Ended
December 31, December 25, December 26,
2006 2005 2004
Operating activities
Net income 63,375$ 46,056$ 23,221$
Results from discontinued operations (net of income taxes) (389) (1,788) (3,184)
Adjustments to reconcile net income to net cash provided by operating activities:
Restaurant closure, impairment and disposition gains (260) (2,039) (203)
Goodwill impairment - 1,050 -
Provision for uncollectible accounts and notes receivable 3,445 4,367 2,799
Depreciation and amortization 27,208 28,750 31,159
Deferred income taxes 3,191 4,385 (16,280)
Stock-based compensation expense 4,517 2,358 2,057
Excess tax benefit related to exercise of non-qualified stock options (6,533) - -
Other 5,158 6,266 2,548
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable (6,020) (231) (10,476)
Inventories (583) (3,811) (5,927)
Prepaid expenses (2,148) 3,124 (2,538)
Other current assets (630) (409) (709)
Other assets and liabilities (7,211) (2,971) (795)
Accounts payable (2,168) (5,860) 6,082
Income and other taxes (1,726) (408) 5,199
Accrued expenses 5,655 4,230 3,348
Unearned franchise and development fees 306 (952) 2,298
Net cash provided by operating activities from continuing operations 85,187 82,117 38,599
Operating cash flows from discontinued operations 414 2,168 3,183
Net cash provided by operating activities 85,601 84,285 41,782
Investing activities
Purchase of property and equipment (39,352) (17,546) (20,950)
Proceeds from sale of property and equipment 286 61 3,648
Purchase of investments (2,014) (8,565) (6,049)
Proceeds from sale or maturity of investments 6,983 10,880 5,014
Loans issued (6,181) (5,875) (3,648)
Loan repayments 9,339 7,434 4,144
Acquisitions (31,943) (4,475) -
Proceeds from divestitures of restaurants 1,300 11,000 78
Net cash from continuing operations used in investing activities (61,582) (7,086) (17,763)
Proceeds from divestiture of discontinued operations 8,020 - -
Net cash used in investing activities (53,562) (7,086) (17,763)
Financing activities
Net proceeds (repayments) from line of credit facility 47,500 (29,500) 17,500
Net proceeds (repayments) from short-term debt - variable interest entities (5,575) (7,975) 14,032
Payments on long-term debt - - (253)
Proceeds from issuance of common stock - 1,001 -
Excess tax benefit related to exercise of non-qualified stock options 6,533 - -
Proceeds from exercise of stock options 15,214 42,095 18,186
Acquisition of Company common stock (106,292) (75,325) (68,911)
Proceeds from formation of joint venture - - 2,500
Other 1,293 300 (31)
Net cash used in financing activities (41,327) (69,404) (16,977)
Effect of exchange rate changes on cash and cash equivalents 169 (395) 331
Change in cash and cash equivalents (9,119) 7,400 7,373
Cash resulting from consolidation of variable interest entities - - 254
Cash and cash equivalents at beginning of year 22,098 14,698 7,071
Cash and cash equivalents at end of year 12,979$ 22,098$ 14,698$
See accompanying notes.