iRobot 2014 Annual Report Download - page 109

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36
The balance of cash, cash equivalents and short-term investments of $222.1 million at December 27, 2014 is primarily the
result of our increased profitability, as well as our on-going focus on managing working capital. In 2014, we generated $40.6
million of cash from operations. As of December 27, 2014, we did not have any borrowings outstanding under our working
capital line of credit and had $3.2 million in letters of credit outstanding under our revolving letter of credit facility.
Discussion of Cash Flows
Comparison of Years Ended December 27, 2014 and December 28, 2013
Net cash provided by operating activities for the fiscal year ended December 27, 2014 was $40.6 million, a decrease of
$1.3 million compared to the $41.9 million of net cash provided by operating activities for the fiscal year ended December 28,
2013. The decrease in net cash provided by operating activities was primarily driven by a decrease in cash of $23.9 million
resulting from an increase in accounts receivable (including unbilled revenues) of $33.5 million in 2014 compared to an
increase of $9.6 million in 2013, primarily due to an increase in 2014 revenue, normal billing and collection activities and
timing of the billing in the respective periods, and a decrease in cash of $11.1 million resulting from a decrease in accrued
compensation of $3.4 million in 2014 compared to an increase in accrued compensation of $7.8 million in 2013 reflecting a
higher accrual for incentive compensation in 2013 compared to the prior year and to the accrual in 2014. These decreases were
partially offset by an increase in cash of $10.2 million resulting from net income of $37.8 million in 2014 compared to net
income of $27.6 million in 2013, an increase in cash of $18.0 million resulting from an increase in accounts payable of $16.2
million in 2014 compared to a decrease in accounts payable of $1.7 million in 2013 as a result of normal purchasing and vendor
payment activities, and an increase in cash of $7.0 million resulting from an increase in inventory of $2.4 million in 2014
compared to an increase of $9.4 million in 2013, primarily due to an increase in 2014 revenue and a decrease in the days of
inventory on hand to 53 days in 2014 from 63 days in 2013.
Net cash used in investing activities for the fiscal year ended December 27, 2014 was $28.7 million, an increase of
$10.7 million compared to the $18.1 million of net cash used in investing activities for the fiscal year ended December 28,
2013. This increase in net cash used in investing activities was primarily due to an increase in the purchase of property and
equipment of $6.9 million, with purchases of $13.8 million, including $3.5 million for leasehold improvements in our Bedford,
Massachusetts office, compared to purchases of $6.8 million in 2013, and an increase in the net purchase of marketable
securities of $4.8 million, with net purchase of marketable securities of $14.7 million in 2014 compared to the net purchase of
marketable securities of $9.9 million in 2013. This increase was partially offset by a decrease in cash paid for acquisitions and
strategic investments of $1.8 million, with a strategic investment of $250 thousand in the preferred shares of Paracosm, Inc. in
2014 compared to $2.0 million paid for the purchase of the preferred shares of InTouch Technologies, Inc. in 2013.
Net cash provided by financing activities for the fiscal year ended December 27, 2014 was $8.7 million, a decrease of
$6.1 million compared to the $14.8 million of net cash provided by financing activities for the fiscal year ended December 28,
2013. The decrease is due primarily to a decrease in the proceeds from stock option exercises of $4.7 million and an increase in
funds used for the repurchase of shares, with repurchases of $1.7 million in 2014 compared to zero in 2013.
Comparison of Years Ended December 28, 2013 and December 29, 2012
Net cash provided by operating activities for the fiscal year ended December 28, 2013 was $41.9 million, an increase of
$4.0 million compared to the $37.9 million of net cash provided by operating activities for the fiscal year ended December 29,
2012. The increase in net cash provided by operating activities was primarily driven by an increase in cash of $10.3 million
resulting from net income of $27.6 million in 2013 compared to net income of $17.3 million in 2012, an increase in cash of
$13.9 million resulting from an increase in accrued compensation of $7.8 million in 2013 compared to a decrease in accrued
compensation of $6.1 million in 2012 reflecting a higher accrual for incentive compensation in 2013, an increase in cash of
$6.9 million resulting from a decrease in accounts payable of $1.7 million in 2013 compared to a decrease in accounts payable
of $8.7 million in 2012 as a result of normal purchasing and vendor payment activities, an increase in cash of $4.9 million
resulting from a decrease in other assets of $2.0 million in 2013 compared to an increase in other assets of $2.9 million in 2012,
resulting primarily from a decrease in prepaid income taxes in 2013 compared to an increase in prepaid income taxes in 2012,
and an increase in cash of $3.0 million resulting from an increase in deferred income taxes of $0.8 million in 2013 compared to
an increase of $3.8 million in 2012, resulting primarily from the addition of deferred tax assets associated with the acquisition
of Evolution Robotics in 2012 and the net effect of changes in deferred tax assets and liabilities associated with operating assets
and liabilities. These increases were partially offset by a decrease in cash of $25.5 million resulting from an increase in
accounts receivable (including unbilled revenue) of $9.9 million in 2013 compared to a decrease of $15.6 million in 2012,
primarily due to an increase in 2013 revenue and an increase in the DSO (days sales outstanding) to 29 days in 2013 from 28
days in 2012, and a decrease in cash of $8.6 million resulting from an increase in inventory of $9.4 million in 2013 compared to
an increase of $0.8 million in 2012, primarily due to an increase in 2013 revenue and an increase in the days of inventory on
hand to 63 days in 2013 from 61 days in 2012.
Net cash used in investing activities for the fiscal year ended December 28, 2013 was $18.1 million, representing a
decrease of $64.3 million compared to the $82.4 million of net cash used in investing activities for the fiscal year ended
Form 10-K