Restoration Hardware 2014 Annual Report Download - page 79

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RESTORATION HARDWARE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended
January 31,
2015
February 1,
2014
February 2,
2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 91,002 $ 18,195 $ (12,789)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization 34,463 27,654 26,748
Impairment of long-lived assets — 1,385 —
Amortization of debt discount 7,969 — —
Excess tax benefit from exercise of stock options (16,421) (3,685) —
Stock-based compensation expense 17,072 67,622 116,183
Release of valuation allowance — — (57,185)
Deferred income taxes 2,693 5,602 (4,686)
Amortization of deferred financing fees and debt issuance costs 1,342 671 863
Change in assets and liabilities:
Accounts receivable (3,991) (4,995) (5,282)
Merchandise inventories (106,036) (100,937) (107,454)
Prepaid expenses 15,123 (22,819) (24,454)
Other assets (6,030) (3,129) (371)
Accounts payable and accrued expenses 25,470 57,318 36,154
Deferred revenue and customer deposits 19,955 8,750 16,223
Other current liabilities (3,131) 28,883 2,690
Deferred rent and lease incentives 3,574 7,196 10,923
Other non-current obligations (563) (190) (1,427)
Net cash provided by (used in) operating activities 82,491 87,521 (3,864)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (110,359) (93,868) (49,058)
Construction related deposits (9,250) — —
Purchase of trademarks and domain names (453) — (310)
Purchase of investments (91,604) — —
Maturities of investments 11,118 — —
Net cash used in investing activities (200,548) (93,868) (49,368)
CASH FLOWS FROM FINANCING ACTIVITIES
Gross borrowings under revolving line of credit 749,945 1,670,876 1,344,468
Gross repayments under revolving line of credit (835,370) (1,667,952) (1,369,469)
Repayment of term loan — — (15,000)
Revolving line of credit deferred financing fees (2,133) — (426)
Proceeds from issuance of convertible senior notes 350,000 — —
Proceeds from issuance of warrants 40,390 — —
Purchase of convertible notes hedges (73,325) — —
Debt issuance costs related to convertible senior notes (5,385) — —
Borrowings under build-to-suit lease transactions 1,776 — —
Payments on capital leases (1,803) (2,555) (4,214)
Proceeds from exercise of stock options 16,400 7,629 —
Excess tax benefit from exercise of stock options 16,421 3,685 —
Tax withholdings related to issuance of stock-based awards (3,116) (178) —
Proceeds from issuance of common stock—net of issuance costs — — 97,693
Net cash provided by financing activities 253,800 11,505 53,052
Effects of foreign currency exchange rate translation (198) (123) 22
Net increase (decrease) in cash and cash equivalents 135,545 5,035 (158)
Cash and cash equivalents
Beginning of period 13,389 8,354 8,512
End of period $ 148,934 $ 13,389 $ 8,354
Cash paid for interest $ 8,611 $ 5,038 $ 5,382
Cash paid for taxes 60,121 1,521 1,861
Non-cash transactions:
Building acquired under capital lease 6,798 — —
Property and equipment acquired under capital lease 38 238 —
Property and equipment acquired under build-to-suit lease transactions 89,829 33,494 —
Property and equipment additions in accounts payable and accrued expenses at period-end 10,875 4,204 3,505
Issuance of non-current notes payable related to share repurchases from former employees 16,575 2,710 —
The accompanying notes are an integral part of these Consolidated Financial Statements.
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