LILLIAN VERNON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
Fiscal Years Ended
February 23,
2002
February 24,
2001
February 26,
2000
Cash flows from operating activities:
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
(9,089)
$
(1,378)
$
6,289
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities (net of
effects from purchase of Rue de France, Inc.)
Cumulative effect of accounting change . . . . . . . . . . .
640
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,838
4,021
4,321
Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,690
827
250
Restructuring, net of cash payments . . . . . . . . . . . . . .
301
1,690
Loss (gain) on disposal of assets. . . . . . . . . . . . . . . . .
89
(81)
(Increase) decrease in accounts receivable . . . . . . . . .
4,527
2,981
(1,310)
(Increase) decrease in merchandise inventories. . . . . .
5,326
4,229
(7,226)
(Increase) decrease in prepayments and other
current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2,499)
(508)
5,430
(Increase) decrease in deferred catalog costs. . . . . . . .
2,352
(1,442)
568
(Increase) decrease in other assets . . . . . . . . . . . . . . .
715
(56)
593
Increase (decrease) in trade accounts payable and
accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . .
(3,668)
1,752
879
Decrease in customer deposits . . . . . . . . . . . . . . . . . .
(1,686)
(377)
(57)
(3,116)
2,404
Increase (decrease) in other liabilities . . . . . . . . . . . . .
700
353
(120)
Increase (decrease) in deferred income taxes . . . . . . .
(978)
569
54
Net cash provided by operating activities . . . . . . . .
1,529
10,274
11,994
Cash flows from investing activities:
Purchases of property, plant and equipment . . . . . . . . . . .
(1,096)
(2,703)
(1,621)
Purchases of software . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3,936)
(518)
(606)
Purchase of assets of Rue de France, Inc. (net of
acquired cash). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2,753)
Proceeds from sale of assets . . . . . . . . . . . . . . . . . . . . . . .
100
Net cash used in investing activities . . . . . . . . . . . .
(5,032)
(5,974)
(2,127)
Cash flows from financing activities:
Increase (decrease) in cash overdrafts . . . . . . . . . . . . . . . .
(812)
543
(1,162)
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2,346)
(2,780)
(2,922)
Payments to acquire treasury stock . . . . . . . . . . . . . . . . . .
(3,220)
(3,914)
(3,332)
Reissuance of treasury stock for stock options and
employee benefit plans . . . . . . . . . . . . . . . . . . . . . . . . .
595
666
1,070
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
9
Net cash used in financing activities . . . . . . . . . . . .
(5,783)
(5,484)
(6,337)
Net increase (decrease) in cash and cash
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9,286)
(1,184)
3,530
Cash and cash equivalents at beginning of period . . . . . . . . .
34,180
35,364
31,834
Cash and cash equivalents at end of period . . . . . . . . . . . . .
$
24,894
$
34,180
$
35,364
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
542
$
3,707
$
1,612
Supplemental schedule of noncash investing and financing activities:
The Company purchased the assets of Rue de France, Inc. as of
April 1, 2000 for $2,823 (less acquired cash of $70).
In conjunction with the acquisition, liabilities were assumed as follows:
Fair value of assets acquired. . . . . . . . . . . . . . . . . . . .
$
3,932
Cash paid for assets acquired . . . . . . . . . . . . . . . . . . .
(2,823)
Liabilities assumed. . . . . . . . . . . . . . . . . . . . . . . .
$
1,109
See Notes to Consolidated Financial Statements.
F-5
L I L L I A N V E R N O N
