Vistaprint 2007 Annual Report Download - page 57

Liquidity and Capital Resources
Consolidated Statements of Cash Flows Data:
Year Ended June 30,
2007 2006 2005
(in thousands)
Capital expenditures............................................. $(62,845) $(24,929) $(18,629)
Development of software and website ............................. (4,189) (2,656) (1,908)
Depreciation and amortization .................................... 14,874 7,786 5,902
Cash flows from operating activities ............................... 54,240 34,637 (6,671)
Cash flows from investing activities ............................... (62,177) (71,410) (20,537)
Cash flows from financing activities ............................... 12,716 74,851 33,534
As a result of our IPO in September 2005, we raised approximately $61.4 million of proceeds, net
of underwriters’ discount, which we received on October 5, 2005. At June 30, 2007, we had $108.0
million of cash, cash equivalents and marketable securities. Cash equivalents and marketable
securities are comprised of money market funds, asset-backed securities, investment-grade corporate
bonds, U.S. government agency issues and municipal auction rate securities. Historically, we have
financed our operations through internally generated cash flows from operations, private and public
sales of common and preferred shares and the use of bank loans. We believe that our available cash
and cash flows generated from operations will be sufficient to satisfy our working capital, long-term
debt and capital expenditure requirements for the foreseeable future.
Operating Activities. Cash provided by (used in) operating activities primarily consists of net
income (loss) adjusted for certain non-cash items including depreciation and amortization, loss on
disposal of equipment, impairment loss on equipment, share-based compensation costs, deferred
taxes, and the effect of changes in working capital and other activities. Cash provided by operating
activities in fiscal 2007 was $54.2 million and consisted of net income of $27.1 million, positive
adjustments for non-cash items of $26.3 million and $0.8 million provided by working capital and other
activities. Adjustments for non-cash items included $14.9 million of depreciation and amortization
expense on property and equipment and software and website development costs, a loss on the
disposal of equipment of $0.4 million, an impairment loss on equipment of $0.9 million, $8.8 million of
share-based compensation expense and $1.3 million of deferred taxes. Working capital and other
activities primarily consisted of an increase of $7.0 million in accrued expenses and other current
liabilities. This was partially offset by an increase of $3.2 million in prepaid expenses and other assets
and an increase of $3.1 million in accounts receivable.
Cash provided by operating activities in fiscal 2006 was $34.6 million and consisted of net income
of $19.2 million, positive adjustments for non-cash items of $12.8 million and $2.6 million provided by
working capital and other activities. Adjustments for non-cash items included $7.8 million of
depreciation and amortization expense on property and equipment and software and website
development costs, $4.8 million of share-based compensation expense and $0.2 million of deferred
taxes. Working capital and other activities primarily consisted of an increase of $4.2 million in accrued
expenses and other current liabilities and an increase of $1.7 million in accounts payable. This was
partially offset by an increase of $1.7 million in prepaid expenses and other assets and an increase of
$1.0 million in inventory.
Investing Activities. Cash used in investing activities in fiscal 2007 of $62.2 million was
attributable primarily to capital expenditures of $62.8 million, net sales of marketable securities of $4.6
million, and capitalized software and website development costs of $4.2 million. Capital expenditures of
$35.5 million were related to the purchase of print production equipment for our Canadian and Dutch
Form 10-K
53