Sprouts Farmers Market 2015 Annual Report Download - page 70

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SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
Year Ended
January 3,
2016
December 28,
2014
December 29,
2013
Cash flows from operating activities
Net income ............................................................................................................... $ 128,991 $ 107,692 $ 51,326
A
djustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense............................................................. 69,169 60,362 47,217
Accretion of asset retirement obligation and closed store reserve .................... 344 844 322
Amortization of financing fees and debt issuance costs .................................... 742 1,494 2,482
Loss on disposal of property and equipment ..................................................... 1,512 1,087 449
Gain on sale of intangible assets ....................................................................... —(100)(19 )
Equity-based compensation............................................................................... 8,018 5,355 5,780
Non-cash loss on extinguishment of debt .......................................................... 5,481 1,138 18,513
Deferred income taxes....................................................................................... 15,581 16,432 13,731
Changes in operating assets and liabilities:
Accounts receivable..................................................................................... (5,622 )(4,424 )(1,521)
Inventories ................................................................................................... (22,641)(24,537)(19,875 )
Prepaid expenses and other current assets ................................................ (12,042)(3,127 )(3,738)
Other assets................................................................................................. (481 )(5,157)(4,114)
Accounts payable......................................................................................... 19,387 (4,721) 31,996
Accrued salaries and benefits...................................................................... 1,030 7,400 890
Other accrued liabilities................................................................................ 7,395 8,426 5,397
Other long-term liabilities ............................................................................. 23,034 13,054 11,752
Net cash provided by operating activities .............................................. 239,898 181,218 160,588
Cash flows from investing activities
Purchases of property and equipment ..................................................................... (125,313)(127,065)(87,463)
Proceeds from disposal of property and equipment................................................. 2,708 294 1,000
Proceeds from sale of intangible assets .................................................................. — 100 172
Purchase of leasehold interests ............................................................................... (5,707) — —
Net cash used in investing activities...................................................... (128,312)(126,671)(86,291)
Cash flows from financing activities
Proceeds from revolving credit facility...................................................................... 260,000 — —
Payments on revolving credit facility ........................................................................ (100,000) — —
Borrowings on term loan, net of financing costs ...................................................... — — 688,127
Payments on term loan ............................................................................................ (261,250 )(57,000)(786,850)
Payments on Senior Subordinated Notes ................................................................ — — (35,000)
Payments on capital lease obligations ..................................................................... (662)(585 )(412)
Payments on financing lease obligations ................................................................. (3,480)(3,006)(2,868)
Payment of deferred financing costs........................................................................ (1,896) — (1,370)
Payments of IPO costs............................................................................................. — — (4,212)
Cash from landlord related to financing lease obligations........................................ 419 577 4,581
Payment to stockholders and optionholders ............................................................ — — (295,921)
Excess tax benefit for exercise of options and antidilution payment to
optionholders......................................................................................................... 20,009 47,261 17,826
Proceeds from the issuance of shares..................................................................... — — 348,536
Proceeds from exercise of stock options ................................................................. 6,565 11,067 3,820
Repurchase of common stock.................................................................................. (25,735) — (113)
Net cash used in financing activities...................................................... (106,030)(1,686)(63,856)
Net increase in cash and cash equivalents ........................................... 5,556 52,861 10,441
Cash and cash equivalents at beginning of the period ............................................ 130,513 77,652 67,211
Cash and cash equivalents at the end of the period ................................................ $ 136,069 $ 130,513 $ 77,652
Supplemental disclosure of cash flow information
Cash paid for interest ............................................................................................... $ 17,455 $ 23,768 $ 38,091
Cash paid for income taxes...................................................................................... 40,656 8,250 1,276
Supplemental disclosure of non-cash investing and financing activities
Property and equipment in accounts payable.......................................................... $ 16,196 $ 13,993 $ 7,873
Property acquired through capital and financing lease obligations.......................... 10,125 34,140 10,660
The accompanying notes are an integral part of these consolidated financial statements.