Sonic 2005 Annual Report Download - page 36

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Year ended August 31,
2005 2004 2003
(In thousands)
Cash flows from operating activities
Net income $ 75,381 $ 63,015 $ 52,261
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 35,435 32,060 28,542
Amortization 386 468 681
(Gains) losses on dispositions of assets (1,115) (868) (1,149)
Amortization of franchise and development fees (4,130) (4,839) (4,675)
Franchise and development fees collected 6,015 4,974 4,791
Provision for deferred income taxes 1,315 3,509 1,277
Provision for impairment of long-lived assets 387 675 727
Tax benefit related to exercise of employee stock options 6,174 4,106 3,312
Other 500 145 (141)
(Increase) decrease in operating assets:
Accounts and notes receivable (2,481) (737) (3,291)
Inventories and prepaid expenses (1,371) (1,691) 1,666
Increase (decrease) in operating liabilities:
Accounts payable 3,962 2,567 1,098
Accrued and other liabilities 11,822 3,274 5,112
Total adjustments 56,899 43,643 37,950
Net cash provided by operating activities 132,280 106,658 90,211
Cash flows from investing activities
Purchases of property and equipment (85,905) (57,728) (54,417)
Acquisition of businesses, net of cash received (820) (8,518) (35,557)
Investments in direct financing leases (320) (539) (654)
Collections on direct financing leases 1,266 1,124 1,074
Proceeds from dispositions of assets 8,882 18,505 9,151
(Increase) decrease in intangibles and other assets (1,053) 434 (4,395)
Net cash used in investing activities (77,950) (46,722) (84,798)
Cash flows from financing activities
Proceeds from long-term borrowings 127,415 76,421 171,523
Payments on long-term debt (149,390) (141,978) (141,310)
Purchases of treasury stock (42,324) (3,067) (34,348)
Payments on capital lease obligations (2,139) (1,839) (1,793)
Exercises of stock options 10,546 5,310 4,774
Net cash used in financing activities (55,892) (65,153) (1,154)
Net increase (decrease) in cash and cash equivalents (1,562) (5,217) 4,259
Cash and cash equivalents at beginning of the year 7,993 13,210 8,951
Cash and cash equivalents at end of the year $ 6,431 $ 7,993 $ 13,210
Supplemental cash flow information
Cash paid during the year for:
Interest (net of amounts capitalized of $604, $338 and $481, respectively) $ 7,144 $ 7,739 $ 7,996
Income taxes (net of refunds) 27,377 29,869 24,002
Additions to capital lease obligations 877 16,098 16,783
Accounts and notes receivable and decrease in capital lease
obligations from property and equipment sales 1,063 1,656 1,352
Stock options exercised by stock swap 262 304 904
Store acquisitions financed through long-term notes –8,139 –
See accompanying notes.
Consolidated Statements of Cash Flows
26