Investing activities review the financial statements, Ask an Expert

Finance

Investing Activities. Review the financial statements, particularly the statement of cash flows in the 10-K and the accompanying notes and write a brief analysis of the significant investments you found there.

Web.com Group, Inc.
Consolidated Balance Sheets
(in thousands)
Year Ended December 31
	2015	2014
Current assets:
Cash and cash equivalents	$ 18,706	$ 22,485
Accounts receivable, net of allowance of $1,815 and
$1,705, respectively	12,892	16,932
Prepaid expenses	8,151	10,550
Deferred expenses	59,400	62,818
Deferred taxes (Note 2)	-	23,750
Other current assets	4,380	5,008
Total current assets	103,529	141,543

Property and equipment, net	41,963	44,000
Deferred expenses	50,113	50,901
Goodwill	639,145	639,564
Intangible assets, net	318,107	357,819
Other assets	4,482	3,752
Total assets	$ 1,157,339	$ 1,237,579

Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$ 9,974	$ 9,940
Accrued expenses	13,303	14,937
Accrued compensation and benefits	13,765	5,997
Deferred revenue	219,187	217,394
Current portion of debt	11,169	6,193
Deferred consideration	-	-
Other liabilities	3,802	5,069
Total current liabilities	271,200	259,530

Deferred revenue	191,426	185,338
Long-term debt	411,409	500,262
Deferred tax liabilities (Note 2)	37,840	111,503
Other long-term liabilities	7,287	6,856
Total liabilities	919,162	1,063,489
Stockholders' equity:
Common stock, $0.001 par value per share: 150,000,000
shares authorized, 50,683,717 and 52,108,719 shares issued
and outstanding at December 31, 2015 and December 31,
2014, respectively	51	52
Additional paid-in capital	565,648	552,991
Treasury stock at cost, 2,120,944 shares as of December
31, 2015, and 395,395 shares as of December 31, 2014	(44,750)	(6,975)
Accumulated other comprehensive loss	(2,148)	(1,393)
Accumulated deficit	(280,624)	(370,585)
Total stockholders' equity	238,177	174,090
Total liabilities and stockholders' equity	$ 1,157,339	$ 1,237,579

Web.com Group, Inc.
Consolidated Statements of Cash Flows
(in thousands)
Year Ended December 31
	2015	2014
Net income (loss)	$ 89,961	$ (12,458)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Gain on sale of equity method investment	-	-
Loss from debt extinguishment	-	1,249
Depreciation and amortization	56,345	74,779
Stock based compensation	20,064	19,567
Deferred income taxes	(50,242)	20,244
Amortization of debt issuance costs and other	11,392	10,932
Asset impairment	-	2,040
Changes in operating assets and liabilities:
Accounts receivable, net	4,000	821
Prepaid expenses and other assets	2,235	(2,255)
Deferred expenses	4,206	5,610
Accounts payable	(489)	(2,739)
Accrued expenses and other liabilities	(792)	1,394
Accrued compensation and benefits	8,065	(7,788)
Accrued restructuring costs	-	(1,139)
Deferred revenue	7,986	6,949
Net cash provided by operating activities	152,731	117,206
Cash flows from investing activities
Business acquisitions, net of cash acquired	(1,330)	(19,246)
Proceeds from sale of equity method investment	-	-
Capital expenditures	(14,747)	(15,166)
Other	-	-
Net cash used in investing activities	(16,077)	(34,412)
Cash flows from financing activities
Stock issuance costs	(104)	(98)
Common stock repurchased	(2,412)	(6,327)
Payments of long-term debt and revolving credit
facility	(95,250)	(367,328)
Proceeds from exercise of stock options	7,952	9,899
Proceeds from long-term debt issued	-	192,020
Proceeds from borrowings on revolving credit
facility	-	112,208
Debt issuance costs	-	(3,680)
Common stock purchases under repurchase plan	(50,617)	(10,785)
Net cash used in financing activities	(140,431)	(74,091)
Effect of exchange rate changes on cash	(2)	(24)
Net (decrease) increase in cash and cash
equivalents	(3,779)	8,679
Cash and cash equivalents, beginning of year	22,485	13,806
Cash and cash equivalents, end of year	$ 18,706	$ 22,485
Supplemental cash flow information
Interest paid	$ 8,761	$ 17,303
Income tax paid	$ 2,076	$ 1,134
Supplemental disclosure of non-cash transactions
Common stock issued for acquisition	$ -	$ 5,660

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92775372

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