Vistaprint 2009 Annual Report Download - page 65

Liquidity and Capital Resources
Consolidated Statements of Cash Flows Data:
Years Ended June 30,
2009 2008 2007
(in thousands)
Consolidated Statements of Cash Flows Data:
Capital expenditures ............................................ $(76,286) $(62,740) $(62,845)
Development of software and website ............................ (7,168) (5,696) (4,189)
Depreciation and amortization ................................... 35,713 25,193 14,874
Cash flows provided by operating activities ........................ 120,051 87,731 54,240
Cash flows used in investing activities ............................ (57,595) (58,056) (62,177)
Cash flows (used in) provided by financing activities ............... (31,243) 2,980 12,716
At June 30, 2009, we had $134.0 million of cash and cash equivalents. Historically, we have
financed our operations through internally generated cash flows from operations, proceeds from the
issuance 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 operating activities in fiscal 2009 was $120.1 million and
consisted of net income of $55.7 million, positive adjustments for non-cash items of $42.9 million and $21.4
million provided by working capital and other activities. Adjustments for non-cash items included $35.7
million of depreciation and amortization expense on property and equipment and software and website
development costs, $19.5 million of share-based compensation expense and $1.9 million of loss on
disposal or impairment of long-lived assets, offset by $4.5 million of deferred taxes, and $9.6 million of tax
benefits derived from share-base compensation. Working capital and other activities primarily consisted of
an increase of $24.8 million in accrued expenses and other liabilities, an increase of $3.1 million in
accounts payable, and a decrease of $0.3 million in accounts receivable. This was partially offset by an
increase of $4.9 million in prepaid expenses and other assets and an increase of $1.9 million in inventory.
Cash provided by operating activities in fiscal 2008 was $87.7 million and consisted of net income
of $39.8 million, positive adjustments for non-cash items of $36.7 million and $11.2 million provided by
working capital and other activities. Adjustments for non-cash items included $25.2 million of
depreciation and amortization expense on property and equipment and software and website
development costs, $14.8 million of share-based compensation expense, $2.0 million of deferred
taxes, and $1.3 million of tax benefits derived from share-based 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.
Investing Activities. Cash used in investing activities in fiscal 2009 of $57.6 million was
attributable primarily to capital expenditures of $76.3 million and by capitalized software website
development costs of $7.2 million, offset by net sales of marketable securities of $25.9 million. Capital
expenditures of $30.9 million were related to the purchase of production equipment for our printing
facilities, $34.9 million were related to construction and land acquisition costs at our production
facilities and $10.5 million were related to purchases of information technology and facility related
assets.
Cash used in investing activities in fiscal 2008 of $58.1 million was attributable primarily to capital
expenditures of $62.7 million and capitalized software and website development costs of $5.7 million,
Form 10-K
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