Tucows 2012 Annual Report Download - page 56

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51
$1.2 million was used to fund principal repayments under our loan agreements. These uses were partially offset by the
proceeds of $0.4 million we received on the exercise of options by directors and employees of the Company.
Year ended December 31, 2011
Net cash used in financing activities during Fiscal 2011 totaled $0.4 million which arose out of our using our
credit facilities with the Bank. During Fiscal 2011, we fully repaid the remaining $1.3 million that was outstanding on
the non-revolving, reducing demand loan facility we utilized to acquire Innerwise Inc. in July 2007. In addition, in July
2011, we utilized $2.5 million of our non-revolving, reducing demand loan facility to fund the acquisition of EPAG and
over the balance of the fiscal year repaid $1.7 million of this loan.
Year ended December 31, 2010
Net cash used in financing activities during Fiscal 2010 totaled $11.6 million. Of this $11.6 million,
$9.7 million was used to fund share repurchases and $1.9 million was used for principal repayments under our non-
revolving, reducing demand loan facility in connection with the 2007 Innerwise Inc. acquisition.
Under our share repurchase programs we used $7.3 million to repurchase 10.3 million of our shares pursuant to
the terms of two Dutch auction tender offers completed during January 2010 and October 2010, and $2.4 million to
repurchase 3.4 million of our shares under the terms of our stock repurchase program announced in February 2010.
These initiatives have resulted in a 20% reduction in our issued and outstanding shares as compared to our issued and
outstanding shares at December 31, 2009.
Cash Flow from Investing Activities
Year ended December 31, 2012
Investing activities during Fiscal 2012 used net cash of $0.5 million; $1.0 million was used to acquire additional
property and equipment, which was partially offset by the selling of certain intangible assets with no book value for
$0.5 million during Fiscal 2012.
Year ended December 31, 2011
Investing activities during Fiscal 2011 used net cash of $3.2 million; $2.4 million was used to fund the EPAG
Domainservices GmbH acquisition and $0.8 million to acquire additional property and equipment.
Year ended December 31, 2010
Investing activities during Fiscal 2010 used $0.6 million to acquire additional property and equipment.
Subsequent events
On January 7, 2013, the Company announced that it successfully concluded a modified “Dutch auction tender
offer” that was previously announced on November 21, 2012. Under the terms of the offer, the Company repurchased an
aggregate of 4,114,437 shares of its common stock at a purchase price of $1.50 per share, for a total of $6,171,656,
excluding transaction costs of approximately $110,000. The purchase price and all transaction costs were funded from
available cash and an additional advance under its Amended Credit Facility from the Bank in the amount of $5.2 million.
All shares purchased in the tender offer received the same price and all shares repurchased were immediately retired. As
a result of the completion of the tender offer, as of January 31, 2013, the Company had 40,226,875 shares issued and
outstanding.
On March 1, 2013 the Company announced the commencement of a Stock Buyback Program, which authorized
the repurchase of up to $10 million of its common stock through the NYSE Amex Exchange. All shares repurchased
under this program are to be immediately retired. The Stock Buyback Program will terminate on February 28, 2014.
Off Balance Sheet Arrangements and Contractual Obligations
We have not entered into any off balance sheet financial arrangements and have not established any special
purpose entities as of December 31, 2012 nor have we guaranteed any debt or commitment of other entities. As such, we
are not materially exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in such
relationships.