|
|
Years Ended December
31, |
 |
|
| |
|
2002 |
|
|
2001 |
|
|
2000 |
|
|
|
|
|
|
| |
(In thousands) |
As Revised
(See Note 1) |
| CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
| Net income |
$ |
60,844 |
|
$ |
14,327 |
|
$ |
42,445 |
Adjustments to reconcile
net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
| Depreciation
and amortization |
|
11,251 |
|
|
12,452 |
|
|
11,623 |
| Non-cash
interest and other investment income |
|
(2,128) |
|
|
(4,219) |
|
|
(15,170) |
| Provision
for bad debts |
|
1,256 |
|
|
476 |
|
|
(585) |
| Non-cash
stock compensation and other charges |
|
1,666 |
|
|
2,210 |
|
|
787 |
| Equity
in net losses of affiliates |
|
71 |
|
|
16,436 |
|
|
12,071 |
| Impairment
of Friendly investment |
|
— |
|
|
22,713 |
|
|
— |
| Write-off
of deferred financing costs |
|
— |
|
|
650 |
|
|
— |
| Loss
on early prepayment of Sunburst note |
|
— |
|
|
— |
|
|
6,520 |
| Changes in assets and
liabilities, net of acquisitions: |
|
|
|
|
|
|
|
|
| Receivables
|
|
(5,360) |
|
|
6,465 |
|
|
(2,245) |
| Prepaid
expenses and other current assets |
|
— |
|
|
— |
|
|
30 |
| Receivable—marketing
and reservation fees, net |
|
17,219 |
|
|
20,267 |
|
|
(14,532) |
| Current
liabilities |
|
(4,054) |
|
|
9,381 |
|
|
1,714 |
| Income
taxes payable/receivable and other assets |
|
5,391 |
|
|
6,361 |
|
|
(278) |
| Deferred
income taxes and other liabilities |
|
12,881 |
|
|
(5,807) |
|
|
11,499 |
|
|
|
|
|
|
| Net
cash provided by operating activities |
|
99,037 |
|
|
101,712 |
|
|
53,879 |
|
|
|
|
|
|
| CASH FLOWS FROM
INVESTING ACTIVITIES |
|
|
| Investment in property
and equipment |
|
(12,233) |
|
|
(13,532) |
|
|
(16,590) |
| Investment in Flag
Choice Hotels |
|
(2,173) |
|
|
— |
|
|
— |
| Proceeds from Sunburst
note |
|
— |
|
|
101,954 |
|
|
— |
| Other items, net |
|
(296) |
|
|
(684) |
|
|
(27) |
|
|
|
|
|
|
| Net
cash (used in) provided by investing activities |
|
(14,702) |
|
|
87,738 |
|
|
(16,617) |
|
|
|
|
|
|
| CASH FLOWS FROM
FINANCING ACTIVITIES |
|
|
| Proceeds from long-term
debt |
|
314,400 |
|
|
772,028 |
|
|
85,500 |
| Principal payments
of long-term debt |
|
(288,220) |
|
|
(790,795) |
|
|
(95,757) |
| Purchase of treasury
stock |
|
(120,931) |
|
|
(185,807) |
|
|
(20,893) |
| Proceeds from exercise
of stock options |
|
5,772 |
|
|
12,294 |
|
|
1,739 |
|
|
|
|
|
|
| Net
cash used in financing activities |
|
(88,979) |
|
|
(192,280) |
|
|
(29,411) |
|
|
|
|
|
|
| Net change in cash
and cash equivalents |
|
(4,644) |
|
|
(2,830) |
|
|
7,851 |
| Cash and cash equivalents
at beginning of period |
|
16,871 |
|
|
19,701 |
|
|
11,850 |
|
|
|
|
|
|
| Cash and cash equivalents
at end of period |
$ |
12,227 |
|
$ |
19,701 |
|
$ |
19,701 |
|
|
|
|
|
|
|
|
|
|
|
|
| Supplemental disclosure
of cash flow information |
|
|
|
|
|
|
|
|
| Cash
payments during the year for: |
|
|
|
|
|
|
|
|
| Income
taxes, net of refunds |
$ |
14,674 |
|
$ |
15,674
|
|
$ |
15,674 |
| Interest |
|
14,132 |
|
|
18,039 |
|
|
22,145 |
| Non-cash
investing activities: |
|
|
|
|
|
|
|
|
| Conversion
of note receivable into Flag equity interest |
$ |
1,061 |
|
$ |
— |
|
$ |
— |
| Properties
assumed through the restructuring of Sunburst note |
|
— |
|
|
1,475 |
|
|
— |
| Properties
assumed through put/call transaction |
|
— |
|
|
— |
|
|
12,233 |
| Reduction
in Sunburst note from put/call transaction |
|
— |
|
|
— |
|
|
16,333 |
| Non-cash
financing activities: |
|
|
|
|
|
|
|
|
| Income
tax benefit realized from employee stock options exercised. |
$ |
1,762 |
|
$ |
3,895 |
|
$ |
1,602 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
