Sonic 2002 Annual Report Download - page 26

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Sonic 02 24
Consolidated Statements of Cash Flows
Year ended August 31,
2002 2001 2000
(In thousands)
Cash flows from operating activities
Net income $ 47,692 $ 38,956 $ 32,627
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 25,531 21,186 18,369
Amortization 547 2,669 1,918
(Gains) losses on dispositions of assets (179) (936) 63
Amortization of franchise and development fees (4,020) (4,408) (3,705)
Franchise and development fees collected 4,116 4,702 3,930
Provision (benefit) for deferred income taxes 2,895 (1,471) 881
Provision for impairment of long-lived assets 1,261 792 951
Tax benefit related to exercises of employee stock options 3,474 2,814 767
Other 380 212 (19)
(Increase) decrease in operating assets:
Accounts and notes receivable (1,152) (1,228) (2,245)
Inventories and prepaid expenses (2,530) (308) (690)
Increase (decrease) in operating liabilities:
Accounts payable (1,235) 590 2,342
Accrued and other liabilities 6,703 2,129 1,420
Total adjustments 35,791 26,743 23,982
Net cash provided by operating activities 83,483 65,699 56,609
Cash flows from investing activities
Purchases of property and equipment (50,572) (61,499) (35,151)
Acquisition of businesses, net of cash received (20,505) (29,120) –
Investments in direct financing leases (893) (862) (2,713)
Collections on direct financing leases 810 850 1,353
Proceeds from dispositions of assets 4,072 2,911 933
Increase in intangibles and other assets (1,234) (2,183) (2,036)
Net cash used in investing activities (68,322) (89,903) (37,614)
Cash flows from financing activities
Proceeds from long-term borrowings 115,275 238,685 124,155
Payments on long-term debt (115,083) (213,929) (112,674)
Purchases of treasury stock (17,137) (1,843) (29,799)
Payments on capital lease obligations (887) (744) (725)
Exercises of stock options 4,651 5,529 1,913
Net cash provided by (used in) financing activities (13,181) 27,698 (17,130)
Net increase in cash and cash equivalents 1,980 3,494 1,865
Cash and cash equivalents at beginning of the year 6,971 3,477 1,612
Cash and cash equivalents at end of the year $ 8,951 $ 6,971 $ 3,477
Supplemental cash flow information
Cash paid during the year for:
Interest (net of amounts capitalized of $433, $732 and
$316, respectively) $ 7,641 $ 6,339 $ 6,147
Income taxes (net of refunds) 19,190 22,203 18,649
Additions to capital lease obligations 137 7,346 294
Accounts and notes receivable and decrease in capital lease
obligations from property and equipment sales 1,650 945 1,742
Obligation to acquire treasury stock 8,729 ––
Stock options exercised by stock swap 177 304 –
See accompanying notes.