ServiceMagic 2013 Annual Report Download - page 43

Table of Contents
the related receivable from Google was $ 105.7 million and $ 70.5 million at December 31, 2011 and 2010, respectively. While our Match,
Media and HomeAdvisor businesses experienced strong growth, the accounts receivable at these businesses are principally credit card
receivables and, accordingly, are not significant in relation to the revenue of these businesses.
Net cash used in investing activities attributable to continuing operations in 2011 includes cash consideration used in acquisitions and
investments of $368.7 million primarily related to the acquisitions of Meetic and OkCupid and the investment in Zhenai Inc. and capital
expenditures of $ 40.0 million primarily related to the internal development of software to support our products and services, partially offset by
net maturities and sales of marketable debt securities and sales of long-term investments of $396.2 million .
Net cash used in financing activities attributable to continuing operations in 2011 includes $ 507.8 million for the repurchase of
13.6 million shares of common stock at an average price of $38.20 per share and $10.7 million related to the payment of cash dividends to IAC
shareholders, partially offset by proceeds related to the issuance of common stock, net of withholding taxes, of $ 132.8 million , and excess tax
benefits from stock-based awards of $ 22.2 million . Included in the proceeds related to the issuance of common stock are proceeds of
$76.0 million from the exercise of warrants to acquire 3.2 million shares of IAC common stock. The weighted average strike price of the
warrants was $26.90 per share.
The Company's principal sources of liquidity are its cash and cash equivalents and marketable securities as well as its cash flows generated
from operations. The Company has a $300.0 million revolving credit facility, which expires on December 21, 2017, and is available as an
additional source of financing. At December 31, 2013, there were no outstanding borrowings under the revolving credit facility.
The Company anticipates that it will need to make capital and other expenditures in connection with the development and expansion of its
operations. The Company expects that 2014 capital expenditures will be lower than 2013. At December 31, 2013, IAC had 8.6 million shares
remaining in its share repurchase authorization. IAC may purchase shares over an indefinite period of time on the open market and in privately
negotiated transactions, depending on those factors IAC management deems relevant at any particular time, including, without limitation, market
conditions, share price and future outlook. On February 4, 2014, IAC declared a quarterly cash dividend of $0.24 per share of common and Class
B common stock outstanding payable on March 1, 2014 to stockholders of record on February 15, 2014. Future declarations of dividends are
subject to the determination of IAC's Board of Directors.
The Company believes its existing cash, cash equivalents and marketable securities, together with its expected positive cash flows
generated from operations and available borrowing capacity under its $300.0 million revolving credit facility, will be sufficient to fund its
normal operating requirements, including capital expenditures, share repurchases, quarterly cash dividends, and investing and other
commitments for the foreseeable future. Our liquidity could be negatively affected by a decrease in demand for our products and services. The
Company may make acquisitions and investments that could reduce its cash, cash equivalents and marketable securities balances and as a result,
the Company may need to raise additional capital through future debt or equity financing to provide for greater financial flexibility. Additional
financing may not be available at all or on terms favorable to us.
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