Under Armour 2006 Annual Report Download - page 53

Under Armour, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)
Year Ended December 31,
2006 2005 2004
Cash flows from operating activities
Net income ..................................................................... $38,979 $ 19,719 $16,322
Adjustments to reconcile net income to net cash provided by (used in) operating activities
Depreciationandamortization.................................................. 9,824 6,546 3,174
Unrealized foreign exchange rate loss ............................................ 161 — —
Loss on disposal of fixed assets ................................................. 115 58 591
Stock-based compensation ..................................................... 1,982 1,177 —
Deferred income taxes ........................................................ (6,721) (331) (3,341)
Changes in reserves for doubtful accounts, returns, discounts and inventories ............ 3,832 3,150 4,610
Changes in operating assets and liabilities:
Accounts receivable ...................................................... (20,828) (17,552) (18,811)
Inventories ............................................................. (26,504) (5,669) (27,195)
Prepaid expenses and other current assets ..................................... (3,674) (2,723) (615)
Other non-current assets .................................................. (323) (157) (69)
Accounts payable ........................................................ 8,203 11,074 9,747
Accrued expenses and other liabilities ....................................... 10,681 1,990 5,504
Income taxes payable and receivable ......................................... (5,026) (1,487) 1,232
Net cash provided by (used in) operating activities .......................... 10,701 15,795 (8,851)
Cash flows from investing activities
Purchase of property and equipment ................................................. (15,115) (10,887) (8,724)
Proceeds from sale of property and equipment ......................................... — 54 41
Purchases of short-term investments ................................................. (89,650) — —
Proceeds from sales of short-term investments ......................................... 89,650 — —
Net cash used in investing activities ..................................... (15,115) (10,833) (8,683)
Cash flows from financing activities
Proceeds from long-term debt ...................................................... 2,119 3,944 450
Payments on long-term debt ....................................................... (2,413) (26,711) (524)
Payments on capital lease obligations ................................................ (1,840) (2,330) (1,424)
Net (payments) proceeds from revolving credit facility .................................. — (13,748) 19,457
Payments of common stock dividends ............................................... — (5,000) —
Excess tax benefits from stock-based compensation arrangements ......................... 11,260 — —
Proceeds from exercise of stock options and other stock issuances ......................... 3,544 990 78
Payments of debt financing costs ................................................... (260) (1,061) (50)
Payments received on notes from stockholders ......................................... 169 229 17
Proceeds from sale of Class A Common Stock ......................................... — 123,500 —
Payments of stock issue costs ...................................................... — (10,824) —
Redemption of Series A Preferred Stock .............................................. — (12,000) —
Net cash provided by financing activities ................................. 12,579 56,989 18,004
Effect of exchange rate changes on cash and cash equivalents ................. (487) (59) (52)
Net increase in cash and cash equivalents ................................. 7,678 61,892 418
Cash and cash equivalents
Beginning of year ............................................................... 62,977 1,085 667
End of year ..................................................................... $70,655 $ 62,977 $ 1,085
Non-cash financing and investing activities
Fair market value of shares withheld in consideration of employee tax obligations relative to
stock-based compensation ....................................................... $ 734 $ — $ —
Accretion of and cumulative preferred dividends on Series A Preferred Stock ................ — 5,307 1,994
Purchase of equipment through debt obligations ........................................ 2,700 2,103 5,156
Issuance of warrants in partial consideration for intangible asset ........................... 8,500 — —
Settlement of outstanding accounts receivable with property and equipment .................. 350 — —
Reversal of unearned compensation and additional paid in capital due to adoption of
SFAS 123R .................................................................. 715 — —
Exercise of stock-based compensation arrangements through stockholders’ notes receivable ..... — 262 —
Transfer of revolving credit facility to term debt ....................................... 25,000 —
Unpaid declared common stock dividends ............................................ — — 5,000
Other supplemental information
Cash paid for income taxes ........................................................ 20,522 15,204 9,775
Cashpaidforinterest............................................................. 531 2,866 1,281
See accompanying notes.
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