Stamps.com 2002 Annual Report Download - page 32

Table of Contents
in the aggregate. We regularly invest excess funds in short and long term government and corporate securities as well as money market funds
and commercial paper and do not engage in hedging or speculative activities.
In May 1999, we entered into a facility lease agreement for the corporate headquarters with aggregate lease payments of approximately
$4.8million through May 2004. In March 2000 we entered into a facility lease agreement for a Bellevue, Washington facility with aggregate
lease payments of approximately $17.0million. 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. The Company continues to sublet building spaces vacated as a
result of the reduction in workforce and is currently marketing vacated space. Management believes that tenants will be secured for unoccupied
facilities that will reduce operating lease expenses by $1.0million and $323,000 for years 2003 and 2004, respectively.
Net cash provided by operating activities was $1.4million for the year ended December31, 2002 as compared to net cash used by operating
activities of $38.8million for the year ended December31, 2001. The increase in net cash provided by operating activities resulted primarily
from cost-cutting activities, including the reduction in employees in 2001 and continued significant reduction and redeployment of our sales and
marketing expenses to those programs that have demonstrated higher returns on investment.
Net cash used in investing activities was $16.9million for the year ended December31, 2002 as compared to net cash provided by investing
activities of $78.7million for the year ended December31, 2001. The increase in net cash used in investing activities resulted primarily from the
purchase of long-term investments in 2002.
Net cash used in financing activities was $21.4million and $7.8million for the years ended December31, 2002 and 2001, respectively. The
increase in net cash used in financing activities resulted primarily from the repurchase of common stock during 2002.
In April 2002, the Board of Directors authorized the repurchase of up to $20.0million of our common stock over the following six months, and
we repurchased 1.3 million shares of common stock for $5.6million under that program. In October 2002, the Board authorized a second stock
repurchase program for up to $30million of our common stock for an additional six month period. Subsequently, during the fourth quarter, we
repurchased approximately 4.4million shares for $17.5million. During 2002, we repurchased a total of 5.7million shares, a reduction of over
11% of our shares outstanding from April 2002.
The following table is a schedule of our contractual obligations and commercial commitments which is comprised of the future minimum lease
payments under operating leases at December31, 2002 (in thousands):
Operating
Years ending December 31:
2003 $ 1,743
2004 632
$ 2,375
In consideration of our current business plan, we anticipate that our current working capital will be sufficient to fund our operations through
2002 and beyond.
Recent Accounting Pronouncements
In June 2001, the the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standard (SFAS) No.141,
“Business Combinations” and SFAS No.142, “Goodwill and Other Intangible Assets”. SFAS No.141 requires business combinations initiated
after June30, 2001 to be accounted
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2003. EDGAR Online, Inc.