ANNUAL REPORT & ACCOUNTS - Somero Enterprises

Consolidated Statements of Cash Flows
For the years ended 31 December 2007 and 2008
Year ended Year ended
31 December 31 December
2007 2008
US$ 000 US$ 000
Cash flows from operating activities:
Net income 6,927 1,657
Adjustments to reconcile net income to net cash provided
by operating activities:
Deferred taxes 91 (100)
Depreciation and amortization 2,762 2,705
Amortization of deferred financing costs 1,380 42
(Loss)/gain on sale of assets (5) 10
Share based compensation 418 415
Working capital changes:
Accounts receivable (178) 1,439
Inventories (2,036) 222
Prepaid expenses and other assets (276) 1
Other assets (22) 60
Accounts payable and other liabilities 686 (2,416)
Income taxes 587 (511)
Net cash provided by operating activities 10,334 3,524
Cash flows from investing activities:
Proceeds from sale of property and equipment 25 680
Property and equipment disposals 78 0
Property and equipment purchases (491) (575)
Net cash (used) in investing activities (388) 105
Cash flows from financing activities:
Borrowings from additional financing 22,254 5,837
Payment for financing costs (125) 0
Repayment of notes payable (28,325) (10,311)
Payment of capital lease (657) 0
Payment of dividends (1,142) (2,057)
Net cash used in financing activities (7,995) (6,531)
Effect of exchange rates on cash and cash equivalents (4) (151)
Net increase (decrease) in cash and cash equivalents 1,947 (3,053)
Cash and cash equivalents:
Beginning of period 1,895 3,842
End of period 3,842 789
See notes to consolidated financial statements.
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