PTC Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Three Months Ended

Nine Months Ended

June 30,

June 27,

June 30,

June 27,

2021

2020

2021

2020

Cash flows from operating activities:

Net income

$

51,203

$

34,678

$

183,980

$

77,289

Stock-based compensation

43,068

25,185

133,896

73,605

Depreciation and amortization

22,501

20,484

62,670

60,677

Amortization of right-of-use lease assets

9,075

10,324

28,031

29,467

Accounts receivable

5,744

34,475

(4,110)

54,662

Accounts payable and accruals

16,851

3,179

15,955

5,133

Deferred revenue

(21,477)

(14,036)

30,733

3,357

Income taxes and other

(38,931)

(9,784)

(127,667)

(104,356)

Net cash provided by operating activities

88,034

104,505

323,488

199,834

Capital expenditures

(3,420)

(5,169)

(11,662)

(15,412)

Acquisition of businesses, net of cash acquired ⁽¹⁾

(581)

-

(717,779)

(468,520)

Purchase of intangible assets

-

(11,050)

(550)

(11,050)

Borrowings (payments) on debt, net

(30,000)

(510,125)

472,000

464,875

Net proceeds associated with issuance of common stock

-

-

10,484

8,980

Payments of withholding taxes in connection with vesting of stock-based awards

(14,973)

(9,661)

(42,215)

(33,232)

Debt issuance costs

-

(817)

-

(17,083)

Debt early redemption premium

-

(15,000)

-

(15,000)

Net proceeds from (purchases of) marketable securities ⁽²⁾

-

(115)

58,469

(295)

Other financing & investing activities

(488)

(3,929)

(3,570)

(1,729)

Foreign exchange impact on cash

1,103

1,613

1,646

(4,127)

Net change in cash, cash equivalents, and restricted cash

39,675

(449,748)

90,311

107,241

Cash, cash equivalents, and restricted cash, beginning of period

326,596

827,678

275,960

270,689

Cash, cash equivalents, and restricted cash, end of period

$

366,271

$

377,930

$

366,271

$

377,930

Three Months Ended

Nine Months Ended

June 30,

June 27,

June 30,

June 27,

2021

2020

2021

2020

Cash provided by operating activities

$

88,034

$

104,505

$

323,488

$

199,834

Capital expenditures

(3,420)

(5,169)

(11,662)

(15,412)

Free cash flow ⁽³⁾

$

84,614

$

99,336

$

311,826

$

184,422

(1)

In the second quarter of 2021, we acquired Arena for approximately $715 million, net of cash acquired. In the first quarter of 2020, we acquired Onshape for $469 million, net of cash acquired.

(2)

In the first quarter of 2021, we sold all of our available-for-sale securities.

(3)

Free cash flow includes $2.0 million and $13.7 million of restructuring payments in the three and nine months ended June 30, 2021, respectively, compared with $12.5 million and $33.8 million in the three and nine months ended June 27, 2020.  Free cash flow includes $3.8 million and $14.8 million of acquisition-related payments for the three and nine months ended June 30, 2021, respectively, compared with $0.2 million and $8.8 million in the three and nine months ended June 27, 2020. Free cash flow includes $17.0 million and $17.9 million in un-forecasted payments related to the prior period tax exposure from a non-U.S. tax dispute in the three and nine months ended June 30, 2021, respectively.