Stamps.com 2001 Annual Report Download - page 33

years ended December 31, 2000 and 1999 were $18.4 million and $2.5 million, respectively. This increase is due to earnings on a higher
average cash equivalent balance as a result of our initial public offering in June 1999 and our follow-on public offering in December 1999.
Liquidity and Capital Resources
As of December 31, 2001 and 2000, we had approximately $192.9 million and $247.9 million cash, restricted cash and short-term and
long-term investments, respectively. In June 1999, we completed our initial public offering in which the underwriters sold to the public
5,750,000 shares of common stock at $11.00 per share. The net proceeds from the offering were $10.23 per share, or $58.8 million in the
aggregate. In December 1999, we completed a follow-on public offering in which the underwriters sold to the public 5,750,000 shares of
common stock at $65.00 per share. Our net proceeds from the offering were $61.83 per share, or $355.5 million in the aggregate. We regularly
invest excess funds in short-term money market funds and commercial paper and do not engage in hedging or speculative activities.
In the first quarter of 2000, our majority-owned subsidiary, EncrypTix, raised approximately $34.8 million in private financing from a group of
financial and strategic investors. The proceeds of this financing were used by EncrypTix for research and development, sales and marketing and
general working capital purposes. On March 12, 2001, EncrypTix ceased operations and effected a general assignment of its assets for the
benefit of its creditors. EncrypTix took this action due to its inability to secure additional funding. We do not expect to be impacted by any of
EncrypTix's resulting liabilities. Additionally, we terminated our license agreement with EncrypTix and maintain limited licenses to various
EncrypTix intellectual property.
In May 1999, we entered into a facility lease agreement for the corporate headquarters with aggregate lease payments of approximately $4.8
million through May 2004. In March 2000 we entered into a facility lease agreement for a Bellevue, Washington facility with aggregate lease
payments of approximately $17.0 million. In January 2002, we exited the Bellevue, Washington facility lease with exit payments of
approximately $555,000 in December 2001 and $647,000 in January 2002. We are continuing to actively market all remaining excess space
that resulted from our restructuring in 2000 and 2001.
Net cash used in operating activities was $38.8 million and $123.3 million for the years ended December 31, 2001 and 2000, respectively. The
decrease in net cash used in operating activities resulted primarily from cost-cutting activities, including the reduction in employees and
significant reduction and redeployment of our sales and marketing expenses to those programs that have demonstrated higher returns on
investment.
Net cash provided by investing activities was $78.7 million for the years ended December 31, 2001 as compared to net cash used by investing
activities of $163.3 million for the years ended December 31, 2000. The increase in net cash provided by investing activities resulted primarily
from the sale of short-term investments and decreased capital expenditures in 2001.
Net cash used in financing activities was $7.8 million for the years ended December 31, 2001 as compared to net cash provided by financing
activities of $29.3 million for the years ended December 31, 2000. The increase in net cash used in financing activities resulted primarily from
the issuance of redeemable preferred stock of a subsidiary during the first quarter of 2000.
We anticipate that our current cash balances will be sufficient to fund our operations through 2002. However, we may require substantial
working capital to fund our business and may need to raise additional capital. We cannot be certain that additional funds will be available on
satisfactory terms when needed, if at all.
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2002. EDGAR Online, Inc.