Vistaprint 2008 Annual Report Download - page 58

deferred taxes, and $1.3 million of tax benefits derived from share base compensation. Working capital
and other activities primarily consisted of an increase of $13.5 million in accrued expenses and other
liabilities and an increase of $2.4 million in accounts payable. This was partially offset by an increase of
$2.2 million in prepaid expenses and other assets, an increase of $1.3 million in accounts receivable
and an increase of $1.3 million in inventory.
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 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.
Investing Activities. Cash used in investing activities in fiscal 2008 of $58.1 million was
attributable primarily to capital expenditures of $62.7 million, net sales of marketable securities of $11.6
million, and capitalized software and website development costs of $5.7 million. Capital expenditures of
$23.8 million were related to the purchase of production equipment for our Canadian and Dutch
production facilities, $22.0 million were related to construction and land acquisition costs at our printing
facilities and $16.9 million were related to purchases of information technology and facility related
assets.
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 production equipment for our Canadian and Dutch production facilities,
$15.9 million were related to construction and land acquisition costs at our production facilities and
$11.6 million were related to purchases of information technology and facility related assets.
Financing Activities. Cash provided by financing activities in fiscal 2008 of $3.0 million was
primarily attributable to the issuance of common shares pursuant to share option exercises of $8.3
million and $1.3 million of tax benefits derived from share based compensation, offset by net payments
in connection with our equipment loan facilities of $3.3 million associated with the purchase of
production assets for our Canadian and Dutch printing facilities and the use of $3.4 million to pay
minimum withholding taxes related to the vesting of restricted share units (“RSUs”) granted and
common shares withheld under equity incentive plans.
Cash provided by financing activities in fiscal 2007 of $12.7 million was primarily attributable to
the issuance of common shares pursuant to share option exercises of $13.7 million, offset by net
payments in connection with our equipment loan facilities of $1.0 million associated with the purchase
of production assets for our Canadian and Dutch facilities.
We do not have any off-balance sheet arrangements or relationships with unconsolidated entities
or financial partnerships, such as entities often referred to as structured finance or special purpose
entities, which are typically established for the purpose of facilitating off-balance sheet arrangements or
other contractually narrow or limited purposes.
54