Stamps.com 2003 Annual Report Download - page 29

Table of Contents
Net cash used in investing activities was $32.8 million and $16.9 million for the years ended December 31, 2003 and 2002, respectively.
The increase in net cash used in investing activities resulted primarily from the purchase of short and long-term investments in 2003.
Net cash used in financing activities was $1.9 million and $21.4 million for the years ended December 31, 2003 and 2002, respectively. The
decrease in net cash used in financing activities resulted primarily from the decreased level of our stock repurchase during 2003.
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 continue to sublet building spaces vacated as a result of the
reduction in workforce, and we recently exited a lease of approximately 12,000 square feet of unoccupied space with the payment of a
$112,000 termination fee. In November 2003, we entered into a facility lease agreement commencing on March 2004 for our new corporate
headquarters with aggregate lease payments of approximately $4.0 million through February 2009.
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 December 31, 2003 (in thousands):
On January 28, 2004 the Board of Directors declared a one-time return of capital cash dividend of $1.75 per share to shareholders of record
as of the close of business on February 9, 2004, paid on February 23, 2004. Based on 45,045,514 common shares outstanding, less treasury
stock of approximately 648,000 on the date of record, February 9, 2004, the total cash dividend was approximately $78 million and our cash,
restricted cash, and short and longterm investments aggregated approximately $83 million following the payment of this dividend.
In consideration of our current business plan, we anticipate that our current working capital will be sufficient to fund our operations through
2004 and beyond.
Recent Accounting Pronouncements
In June 2001, 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 June 30, 2001 to be accounted for using the purchase method of accounting, and broadens the criteria for recording intangible assets
separate from goodwill. SFAS No. 142 requires the use of a non-amortization approach to account for purchased goodwill and certain
intangibles. Under a non-amortization approach, goodwill and certain intangibles will not be amortized into results of operations, but instead
would be reviewed for impairment and written down and charged to results of operations only in the periods in which the recorded value of
goodwill and certain intangibles is more than its fair value. The adoption of SFAS No. 141 and SFAS No. 142 on January 1, 2002 did not have
a material impact on our financial position or results of operations.
The FASB also recently issued SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets" , applicable to financial
statements issued for fiscal years beginning after December 15, 2001. The FASB’s
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Operating
Years ending December 31:
2004
$
1,030
2005
569
2006
590
2007
694
2008
751
Thereafter
920
$
4,554