Exhibit 99.2
BLUE NILE, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(in thousands)
Year to date ended | ||||||||
July 1, | July 2, | |||||||
2007 | 2006 | |||||||
Operating activities: | ||||||||
Net income | $ | 6,944 | $ | 5,487 | ||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
Depreciation and amortization | 776 | 952 | ||||||
(Gain) loss on disposal of fixed assets | (6 | ) | 2 | |||||
Stock-based compensation | 2,723 | 1,859 | ||||||
Deferred income taxes | (563 | ) | 2,009 | |||||
Tax benefit from exercise of stock options | 2,974 | 592 | ||||||
Excess tax benefit from exercise of stock options | (320 | ) | (34 | ) | ||||
Changes in assets and liabilities: | ||||||||
Receivables, net | 62 | 1,056 | ||||||
Inventories | (53 | ) | 553 | |||||
Prepaid federal income taxes | (1,596 | ) | — | |||||
Other prepaid expenses and assets | (246 | ) | 57 | |||||
Accounts payable | (24,124 | ) | (22,475 | ) | ||||
Accrued liabilities | (3,134 | ) | (1,919 | ) | ||||
Deferred rent | (95 | ) | (118 | ) | ||||
Net cash used in operating activities | (16,658 | ) | (11,979 | ) | ||||
Investing activities: | ||||||||
Purchases of property and equipment | (2,066 | ) | (1,182 | ) | ||||
Proceeds from the sale of property and equipment | 8 | 1 | ||||||
Purchases of marketable securities | (20,230 | ) | (25,195 | ) | ||||
Proceeds from the maturity of marketable securities | 40,000 | 53,000 | ||||||
Transfers of restricted cash | 120 | — | ||||||
Net cash provided by investing activities | 17,832 | 26,624 | ||||||
Financing activities: | ||||||||
Repurchase of common stock | (13,532 | ) | (46,370 | ) | ||||
Proceeds from stock option exercises | 2,668 | 1,087 | ||||||
Excess tax benefit from exercise of stock options | 320 | 34 | ||||||
Net cash used in financing activities | (10,544 | ) | (45,249 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (5 | ) | — | |||||
Net decrease in cash and cash equivalents | (9,375 | ) | (30,604 | ) | ||||
Cash and cash equivalents, beginning of period | 78,540 | 71,921 | ||||||
Cash and cash equivalents, end of period | $ | 69,165 | $ | 41,317 | ||||