American Medical Systems Holdings, Inc.
Condensed Statements of Cash Flows
(In thousands)
(Unaudited)
(In thousands)
(Unaudited)
| Twelve Months Ended | ||||||||
| December 30, 2006 | December 31, 2005 | |||||||
| Cash flows from continuing operating activities | ||||||||
| Net (loss) income | ($49,317 | ) | $ | 39,275 | ||||
| Loss from discontinued operations | (5,435 | ) | — | |||||
| (Loss) earnings from continuing operations | (43,882 | ) | 39,275 | |||||
| Adjustments to reconcile net income to net cash provided by continuing operating activities: | ||||||||
| Depreciation | 4,695 | 5,135 | ||||||
| Loss on asset disposals | 385 | 601 | ||||||
| Amortization of intangibles, including deferred financing costs | 13,740 | 7,884 | ||||||
| In-process research and development charges | 94,035 | 9,220 | ||||||
| Financing charges on credit facility | 6,955 | — | ||||||
| Excess tax benefit from exercise of stock options | (1,674 | ) | — | |||||
| Tax benefit on exercised stock option arrangements | 5,911 | 5,413 | ||||||
| Change in net deferred income taxes | 560 | 882 | ||||||
| Stock-based compensation | 9,830 | 189 | ||||||
| Changes in operating assets and liabilities | (16,501 | ) | 2,981 | |||||
| Net cash provided by continuing operating activities | 74,054 | 71,580 | ||||||
| Cash flows from investing activities of continuing operations | ||||||||
| Purchase of property, plant and equipment | (21,923 | ) | (5,110 | ) | ||||
| Purchase of business, net of cash acquired | (745,637 | ) | (81,516 | ) | ||||
| Purchase of investments in technology | (31,935 | ) | (1,620 | ) | ||||
| Purchase of license agreements/other intangibles | (2,050 | ) | — | |||||
| Purchase of short term investments | (155 | ) | (33,774 | ) | ||||
| Sale of short term investments | 15,189 | 33,743 | ||||||
| Net cash used in investing activities of continuing operations | (786,511 | ) | (88,277 | ) | ||||
| Cash flows from financing activities of continuing operations | ||||||||
| Proceeds from issuance of long term debt | 361,185 | — | ||||||
| Proceeds from senior secured credit facility | 352,660 | — | ||||||
| Proceeds from issuance of common stock and exercised stock options | 9,934 | 11,539 | ||||||
| Excess tax benefit from exercise of stock options | 1,674 | — | ||||||
| Proceeds from short term borrowings | 25,000 | — | ||||||
| Repayments on senior secured credit facility | (913 | ) | — | |||||
| Repayment of short term borrowings | (25,000 | ) | — | |||||
| Financing charges on credit facility | (6,955 | ) | — | |||||
| Net cash provided by financing activities of continuing operations | 717,585 | 11,539 | ||||||
| Cash used in discontinued operations | ||||||||
| Operating activities | (5,435 | ) | — | |||||
| Cash used in discontinued operations | (5,435 | ) | — | |||||
| Effect of exchange rates | (1,527 | ) | 354 | |||||
| Net decrease in cash and cash equivalents | (1,834 | ) | (4,804 | ) | ||||
| Cash and cash equivalents at beginning of period | 30,885 | 35,689 | ||||||
| Cash and cash equivalents at end of period | $ | 29,051 | $ | 30,885 | ||||
Supplemental disclosure | ||||||||
| Cash paid for interest | $ | 8,376 | $ | 147 | ||||
| Cash paid for taxes | $ | 14,445 | $ | 15,036 | ||||