Sally Beauty Supply 2013 Annual Report Download - page 108

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SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Fiscal Years ended September 30, 2013, 2012 and 2011
(In thousands)
2013 2012 2011
Cash Flows from Operating Activities:
Net earnings ............................................ $261,151 $ 233,064 $ 213,725
Adjustments to reconcile net earnings to net cash provided by operating
activities:
Depreciation and amortization ............................ 72,192 64,698 59,722
Share-based compensation expense ......................... 19,201 16,852 15,560
Amortization of deferred financing costs ..................... 3,587 5,202 6,846
Excess tax benefit from share-based compensation ............... (15,385) (14,390) (3,712)
Net loss on disposal of property and equipment ................ 72 89 327
Net loss on extinguishment of debt ......................... 220 38,376 2,765
Deferred income taxes .................................. 10,480 2,388 459
Changes in (exclusive of effects of acquisitions):
Trade accounts receivable .............................. 3,053 4,288 (4,163)
Accounts receivable, other .............................. 3,306 (8,018) (3,971)
Income taxes receivable ............................... 18,803 (23,734) —
Inventory ......................................... (70,282) (55,815) (47,930)
Prepaid expenses .................................... 2,855 (2,559) (3,262)
Other assets ....................................... (581) 5,176 2,145
Accounts payable and accrued liabilities .................... (7,059) 16,725 51,332
Income taxes payable ................................. 8,786 17,254 1,041
Other liabilities ..................................... 55 (2,014) 957
Net cash provided by operating activities ................. 310,454 297,582 291,841
Cash Flows from Investing Activities:
Capital expenditures ...................................... (84,879) (69,086) (59,955)
Proceeds from sales of property and equipment .................... 120 108 384
Acquisitions, net of cash acquired ............................. (22,218) (43,535) (87,164)
Net cash used by investing activities .................... (106,977) (112,513) (146,735)
Cash Flows from Financing Activities:
Proceeds from issuances of long-term debt ....................... 365,500 2,101,489 428,605
Repayments of long-term debt ............................... (291,451) (1,921,284) (577,911)
Repurchases of common stock ............................... (509,704) (200,000) —
Debt issuance costs ....................................... (1,998) (31,297) (5,397)
Proceeds from exercises of stock options ......................... 25,493 28,020 10,942
Excess tax benefit from share-based compensation .................. 15,385 14,390 3,712
Net cash used by financing activities ..................... (396,775) (8,682) (140,049)
Effect of foreign exchange rate changes on cash and cash equivalents ..... 193 352 (1,070)
Net (decrease) increase in cash and cash equivalents .......... (193,105) 176,739 3,987
Cash and cash equivalents, beginning of year ...................... 240,220 63,481 59,494
Cash and cash equivalents, end of year .......................... $ 47,115 $ 240,220 $ 63,481
Supplemental Cash Flow Information:
Interest paid(a) ........................................ $105,638 $ 110,005 $ 102,059
Income taxes paid ...................................... $111,422 $ 135,591 $ 123,749
(a) For the fiscal year ended September 30, 2012, interest paid includes $24.4 million in call premiums paid upon the
redemption of outstanding notes.
The accompanying notes to consolidated financial statements are an integral part of these financial
statements.
F-6