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KCPC HOLDINGS, INC. and SUBSIDIARIES <br />CONSOLIDATED STATEMENTS OF CASH FLOWS <br />Amounts in thousands <br />Cash flows from operating activities: <br />Net loss <br />Loss from discontinued operations <br />Loss from continuing operations <br />Adjustments to reconcile loss from continuing operations to net cash (used in) <br />provided by operating activities - continuing operations: <br />Depreciation and amortization <br />Settlement of notes receivable <br />Bad debt expense <br />Equity in earnings of partnerships and joint ventures <br />Distributions from partnerships and joint ventures <br />Property-related losses (gains), net <br />Long-lived asset impairment <br />Goodwill and indefinite-lived asset impairment <br />Stock-based compensation <br />Deferred income taxes <br />Changes in operating assets and liabilities: <br />Management accounts receivable <br />Accounts receivable <br />Prepaid expenses and other assets <br />Accounts payable, accrued expenses and other liabilities <br />Management accounts payable <br />Refundable income taxes <br />Income taxes payable <br />Net cash provided by (used in) operating activities - continuing <br />operations <br />Net cash provided by operating activities - discontinued operations <br />Net cash provided by (used in) operating activities <br />Cash flows from investing activities: <br />(Payments) proceeds from disposal of property and equipment <br />Change in restricted cash <br />Purchases ofequipment and leasehold improvements <br />Purchases of contract rights and developed technology <br />Advances under notes receivable <br />Other investing activities <br />Net cash (used in) provided by investing activities - continuing <br />operations <br />Net cash provided by investing activities - discontinued operations <br />Net cash (used in) provided by investing activities <br />Cash flows from financing activities: <br />Borrowings under revolving credit agreement <br />Repayments under revolving credit agreement <br />Proceeds from issuance of notes payable <br />Debt issuance costs <br />Principal repayments on long-term debt <br />Repurchase of common stock <br />Repurchase of rollover options <br />Redemption of subordinated debentures <br />Payment to noncontrolling interests <br />Net cash (used in) provided by financing activities - continuing <br />operations <br />Net cash used in financing activities - discontinued operations <br />Net cash (used in) provided by financing activities <br />Effect of exchange rate changes on cash <br />Net increase (decrease) in cash and cash equivalents <br />Cash and cash equivalents at beginning of period <br />Cash and cash equivalents at end of period <br />September 30, September 30, September 30, <br />2011 2010 2009 <br />$ (66,404) S (100,391) S (6,479) <br />3.267 377 1-431 <br />(63,137) (100,014) (5,048) <br />30,472 30,256 35,274 <br />- 1,235 - <br />708 2,031 501 <br />(1,513) (1,257) (1,264) <br />2,254 1,081 1,207 <br />1,510 506 (5,114) <br />61,956 3,982 6,922 <br />20,588 81,580 - <br />531 262 (553) <br />(38,540) (12,589) (18,407) <br />4,764 (2,664) 689 <br />970 183 7,476 <br />(3,945) 968 1,096 <br />(2,608) 16,722 202 <br />1,515 (2,046) 12,333 <br />7,934 (12,756) (4,504) <br />(2968) (16.287) (7-740) <br />21,091 (8,807) 23,070 <br />3.940 <br />25.031 1159 <br />(6.648) 4.046 <br />27.116 <br />(214) 167 14,109 <br />1,462 (1,643) 5,377 <br />(6,531) (10,798) (11,235) <br />- (391) - <br />(255) (473) (628) <br />17 66 (63) <br />(5,521) (13,072) 7,560 <br />655 3 14.151 <br />(4.866) (13.069) 21 711 <br />123,000 152,000 95,000 <br />(126,000) (131,000) (101,000) <br /> 271 <br />(1,100) (5,371) - <br />(3,621) (8,556) (19,799) <br />(150) <br />- (1,356) - <br />(387) (336) (677) <br />(1.881) (675) (7321 <br />(10,139) 4,706 (26,937) <br />- (24541) <br />(10.139) 4.706 <br />( (51.478) <br /> <br />10,026 52) <br />(15,063) 58 <br />(2,593) <br />15.946 <br />25.972 31.009 <br />11946 S 33.602 <br />aim <br />(continued) <br />Page 7 of 25 <br />25F-89