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DREAMWORKS ANIMATION SKG, INC. | |||
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CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
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(Unaudited) | |||
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Nine Months Ended | ||
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September 30, | ||
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2014 |
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2013 |
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(in thousands) | ||
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Operating activities |
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Net (loss) income |
$ (46,480) |
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$ 38,441 |
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Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: |
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Amortization and write-off of film and other inventory costs(1) |
298,096 |
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254,489 |
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Amortization of intangible assets |
10,516 |
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7,341 |
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Stock-based compensation expense |
8,387 |
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14,483 |
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Amortization of deferred financing costs |
865 |
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182 |
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Depreciation and amortization |
3,654 |
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3,420 |
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Change in fair value of contingent consideration |
(9,675) |
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- |
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Revenue earned against deferred revenue and other advances |
(43,143) |
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(71,489) |
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Income related to investment contributions |
(6,662) |
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(14,033) |
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Loss from equity method investees |
7,939 |
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4,110 |
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Deferred taxes, net |
(19,658) |
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15,372 |
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Changes in operating assets and liabilities, net of the effects of acquisitions: |
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Trade accounts receivable |
2,830 |
|
878 |
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Receivables from distributors |
(2,011) |
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50,507 |
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Film and other inventory costs |
(354,003) |
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(323,967) |
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Intangible assets |
- |
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1,015 |
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Prepaid expenses and other assets |
(21,145) |
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(6,587) |
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Accounts payable and accrued liabilities |
(46,553) |
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11,269 |
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Payable to former stockholder |
1,770 |
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(14,645) |
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Income taxes payable/receivable, net |
2,510 |
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3,115 |
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Deferred revenue and other advances |
72,117 |
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96,538 |
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Net cash (used in) provided by operating activities |
(140,646) |
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70,439 |
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Investing activities |
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Investments in unconsolidated entities |
(18,154) |
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(14,720) |
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Purchases of property, plant and equipment |
(26,263) |
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(26,669) |
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Acquisitions of character and distribution rights |
(51,000) |
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- |
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Acquisitions, net of cash acquired |
(12,605) |
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(30,093) |
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Net cash used in investing activities |
(108,022) |
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(71,482) |
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Financing activities |
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Proceeds from stock option exercises |
261 |
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- |
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Deferred financing costs |
- |
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(7,718) |
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Purchase of treasury stock |
(3,580) |
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(28,170) |
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Borrowings from revolving credit facility |
215,000 |
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68,000 |
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Repayments of borrowings from revolving credit facility |
(10,000) |
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(233,000) |
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Borrowings from senior unsecured notes |
- |
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300,000 |
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Net cash provided by financing activities |
201,681 |
|
99,112 |
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Effect of exchange rate changes on cash and cash equivalents |
586 |
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(889) |
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(Decrease) increase in cash and cash equivalents |
(46,401) |
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97,180 |
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Cash and cash equivalents at beginning of period |
95,467 |
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59,246 |
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Cash and cash equivalents at end of period |
$ 49,066 |
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$ 156,426 |
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Non-cash investing activities: |
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Contingent consideration portion of business acquisition purchase price |
$ - |
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$ 95,000 |
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Intellectual property and technology licenses granted in exchange for equity interest |
6,057 |
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12,007 |
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Services provided in exchange for equity interest |
682 |
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2,026 |
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Total non-cash investing activities |
$ 6,739 |
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$ 109,033 |
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Supplemental disclosure of cash flow information: |
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Cash paid (refunded) during the period for income taxes, net |
$ 70 |
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$ (1,182) |
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Cash paid during the period for interest, net of amounts capitalized |
$ 14,039 |
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$ - |
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(1) Included within this amount is depreciation and amortization, interest expense and stock-based compensation previously capitalized to "Film and other inventory costs." During the nine months ended September 30, 2014 and 2013, these amounts totaled $24,574 and $24,932, respectively. |
