WD-40 Company
Consolidated Statements of Cash Flows
For the Fiscal Years Ended August 31, 2007, 2006 and 2005
| 2007 | 2006 | 2005 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash flows from operating activities: Net income |
$ | 31,534,000 | $ | 28,112,000 | $ | 27,798,000 | |||||
| Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization |
3,649,000 | 3,467,000 | 3,007,000 | ||||||||
| Gains on sales and disposals of property and equipment | (23,000 | ) | (38,000 | ) | (24,000 | ) | |||||
| Deferred income tax expense | 2,336,000 | 1,396,000 | 3,474,000 | ||||||||
| Tax benefit from exercise of stock options | — | — | 377,000 | ||||||||
| Excess tax benefits from exercise of stock options | (741,000 | ) | (503,000 | ) | — | ||||||
| Distributions received and equity (earnings) losses from related party, net | (43,000 | ) | 140,000 | (180,000 | ) | ||||||
| Stock-based compensation | 1,919,000 | 1,836,000 | 22,000 | ||||||||
| Changes in assets and liabilities: Trade accounts receivable |
(1,365,000 | ) | 1,146,000 | (3,635,000 | ) | ||||||
| Product held at contract packagers | (62,000 | ) | 429,000 | 161,000 | |||||||
| Inventories | 2,392,000 | (6,889,000 | ) | (1,655,000 | ) | ||||||
| Other assets | 1,362,000 | 1,976,000 | (970,000 | ) | |||||||
| Accounts payable and accrued expenses | 10,388,000 | (1,621,000 | ) | 3,262,000 | |||||||
| Accounts payable to related party | 1,043,000 | (1,481,000 | ) | 14,000 | |||||||
| Income taxes payable | (984,000 | ) | 147,000 | (125,000 | ) | ||||||
| Deferred employee benefits and other long-term liabilities | 246,000 | 80,000 | 38,000 | ||||||||
| Net cash provided by operating activities | 51,651,000 | 28,197,000 | 31,564,000 | ||||||||
| Cash flows from investing activities: Purchases of short-term investments |
(224,675,000 | ) | (31,675,000 | ) | — | ||||||
| Sales of short-term investments | 224,675,000 | 31,675,000 | — | ||||||||
| Proceeds from collections on note receivable | 25,000 | 125,000 | 50,000 | ||||||||
| Capital expenditures | (2,561,000 | ) | (2,947,000 | ) | (3,101,000 | ) | |||||
| Proceeds from sales of property and equipment | 319,000 | 267,000 | 162,000 | ||||||||
| Net cash used in investing activities | (2,217,000 | ) | (2,555,000 | ) | (2,889,000 | ) | |||||
| Cash flows from financing activities: Repayments of long-term debt |
(10,714,000 | ) | (10,714,000 | ) | (10,000,000 | ) | |||||
| Proceeds from issuance of common stock | 9,754,000 | 7,018,000 | 2,839,000 | ||||||||
| Excess tax benefits from exercise of stock options | 741,000 | 503,000 | — | ||||||||
| Treasury stock purchases | (17,320,000 | ) | — | — | |||||||
| Dividends paid | (16,609,000 | ) | (14,760,000 | ) | (13,967,000 | ) | |||||
| Net cash used in financing activities | (34,148,000 | ) | (17,953,000 | ) | (21,128,000 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | 586,000 | 397,000 | 140,000 | ||||||||
| Increase in cash and cash equivalents | 15,872,000 | 8,086,000 | 7,687,000 | ||||||||
| Cash and cash equivalents at beginning of year | 45,206,000 | 37,120,000 | 29,433,000 | ||||||||
| Cash and cash equivalents at end of year | $ | 61,078,000 | $ | 45,206,000 | $ | 37,120,000 | |||||
| Supplemental disclosure of cash flow information: Cash paid for interest and bank fees |
$ | 4,118,000 | $ | 4,813,000 | $ | 5,993,000 | |||||
| Cash paid for income taxes, net of tax refunds received | $ | 13,501,000 | $ | 11,016,000 | $ | 10,366,000 | |||||
The accompanying notes are an integral part of these consolidated financial statements.