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