Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

e.l.f. Beauty, Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Net income	127,663)	61,530)	21,770)	6,232)	17,884)
Depreciation and amortization	35,913)	22,164)	27,083)	25,179)	22,843)
Restructuring expense (income)	—)	—)	50)	2,641)	(5,982)
Stock based compensation expense	40,625)	29,117)	19,646)	19,682)	15,488)
Amortization of debt issuance costs and discount on debt	430)	346)	394)	847)	747)
Deferred income taxes	(3,276)	(6,401)	(3,701)	(8,584)	2,443)
Impairment of equity investment	2,875)	—)	—)	—)	—)
Acquisition-related seller expenses	(10,549)	—)	—)	—)	—)
Loss on extinguishment of debt	—)	176)	460)	—)	—)
Other, net	1,227)	179)	496)	383)	873)
Accounts receivable	(49,598)	(22,432)	(5,597)	(10,529)	2,504)
Inventory	(93,930)	3,174)	(27,655)	(10,937)	(435)
Prepaid expenses and other assets	(55,182)	(24,553)	(10,555)	(9,659)	(6,500)
Accounts payable and accrued expenses	81,215)	42,995)	1,498)	17,472)	5,962)
Other liabilities	(6,259)	(4,412)	(4,376)	(3,252)	(11,514)
Changes in operating assets and liabilities	(123,754)	(5,228)	(46,685)	(16,905)	(9,983)
Adjustments to reconcile net income to net cash provided by operating activities	(56,509)	40,353)	(2,257)	23,243)	26,429)
Net cash provided by operating activities	71,154)	101,883)	19,513)	29,475)	44,313)
Acquisition, net of cash acquired	(274,973)	—)	—)	—)	(25,923)
Purchase of property and equipment	(8,659)	(1,723)	(4,818)	(6,474)	(9,422)
Investment contributions	(1,028)	—)	—)	—)	—)
Net cash used in investing activities	(284,660)	(1,723)	(4,818)	(6,474)	(35,345)
Proceeds from revolving line of credit	89,500)	—)	26,480)	20,000)	—)
Repayment of revolving line of credit	—)	—)	(26,480)	(20,000)	—)
Proceeds from long-term debt	115,000)	—)	25,581)	—)	—)
Repayment of long-term debt	(7,875)	(30,000)	(54,525)	(11,756)	(9,488)
Debt issuance costs paid	(665)	—)	(1,064)	(334)	—)
Repurchase of common stock	—)	—)	—)	—)	(7,904)
Cash received from issuance of common stock	5,561)	8,053)	1,677)	1,503)	1,488)
Other, net	(576)	(788)	(779)	(813)	(771)
Net cash provided by (used in) financing activities	200,945)	(22,735)	(29,110)	(11,400)	(16,675)
Effect of exchange rate changes on cash and cash equivalents	(34)	—)	—)	—)	—)
Net increase (decrease) in cash and cash equivalents	(12,595)	77,425)	(14,415)	11,601)	(7,707)
Cash and cash equivalents, beginning of period	120,778)	43,353)	57,768)	46,167)	53,874)
Cash and cash equivalents, end of period	108,183)	120,778)	43,353)	57,768)	46,167)

Based on: 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).

The financial data over the five fiscal years ending March 31 from 2020 through 2024 exhibits several key trends and shifts in operational performance, cash flows, and financing activities.

Profitability: Net income fluctuated significantly, beginning at $17.9 million in 2020, dipping to $6.2 million in 2021, then recovering sharply to $21.8 million in 2022, escalating substantially to $61.5 million in 2023 and reaching $127.7 million in 2024. This illustrates a strong upward trajectory in profitability, especially in the last two years.
Non-cash Expenses: Depreciation and amortization rose steadily from $22.8 million in 2020 to $35.9 million in 2024, indicating increasing capital asset base or changes in amortization policies. Stock-based compensation expenses also expanded markedly from $15.5 million in 2020 to $40.6 million in 2024. These items contribute to non-cash charges increasing over time, which may affect net income but not immediate cash flow negatively.
One-time and Other Expenses: Restructuring expenses showed volatility, with an income adjustment in 2020 (-$6 million), then minor expenses in subsequent years. There was a notable impairment of equity investment expense of $2.9 million in 2024, and acquisition-related seller expenses of $10.5 million as a cost in 2024, suggesting strategic transactions affecting results. Loss on debt extinguishment was minor and sporadic.
Working Capital Changes: There were significant swings in working capital components. Accounts receivable and prepaid expenses generally moved negatively, indicating increased collections and investments, while accounts payable and accrued expenses expanded substantially, especially in 2023 and 2024 (up to $81.2 million in 2024). This reflects aggressive management of payables possibly to support cash flow. The cumulative changes in operating assets and liabilities were quite negative in 2024 (-$123.8 million), impacting operating cash flow adjustments.
Operating Cash Flow: Net cash provided by operating activities showed a declining trend from $44.3 million in 2020 to $19.5 million in 2022, then surged impressively to $101.9 million in 2023 before decreasing to $71.2 million in 2024. This pattern follows the earnings trend but the 2024 decrease, despite record net income, suggests significant non-cash adjustments or working capital impacts.
Investing Activities: Cash used in investing activities was relatively stable and moderate from 2020 to 2023 (ranging from -$1.7 million to -$35.3 million), largely reflecting purchases of property and equipment. However, 2024 saw a dramatic increase in cash outflows (-$284.7 million), mainly due to a large acquisition expenditure (-$275 million). This represents a strategic investment impacting the cash position.
Financing Activities: Net cash flow from financing fluctuated, with negative outflows in 2020 through 2023, reaching -$29.1 million in 2022 and -$22.7 million in 2023, driven by debt repayments and stock repurchases. In 2024, financing activities generated large positive cash inflows ($201 million), primarily due to proceeds from long-term debt and revolving credit lines, indicating increased borrowing to fund acquisitions or operations. Common stock issuance provided moderate inflows yearly.
Liquidity: The cash and cash equivalents balance was volatile. Beginning balances decreased from $53.9 million in 2020 to $43.4 million in 2022, then jumped to $120.8 million in 2023 before retreating slightly to $108.2 million in 2024. Despite strong cash inflows from operations and financing in 2023, the large investing outflow in 2024 caused net cash decrease in that year.

In summary, the recent years show markedly improved profitability supported by increased non-cash expenses and working capital management. The company has engaged in significant acquisition and capital expenditure activities in the latest year, financed largely through debt issuance, resulting in elevated investing outflows and changing cash position. Operating cash generation remains robust but subject to working capital fluctuations. The financial strategy reflects growth orientation with increased leverage and investment in the business.

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e.l.f. Beauty, Inc. (NYSE:ELF)

Cash Flow Statement