PTC Inc.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (in thousands)

Three Months Ended

Six Months Ended

March 31,

March 31,

March 31,

March 31,

2022

2021

2022

2021

Cash flows from operating activities:

     Net income

$

89,679

$

109,262

$

135,768

$

132,777

     Stock-based compensation

37,921

44,740

83,863

90,828

     Depreciation and amortization

21,380

21,334

43,468

40,169

     Amortization of right-of-use lease assets

8,676

9,565

17,536

18,956

     Accounts receivable

(45,006)

(20,169)

12,310

(9,854)

     Accounts payable and accruals

(55,744)

(4,025)

(39,932)

(896)

     Deferred revenue

60,708

53,061

47,012

52,210

     Income taxes

2,049

(49,481)

(6,279)

(4,944)

     Other

22,662

(42,595)

(13,685)

(83,792)

Net cash provided by operating activities

142,325

121,692

280,061

235,454

Capital expenditures

(2,148)

(5,385)

(5,510)

(8,242)

Acquisition of businesses, net of cash acquired ⁽¹⁾

-

(717,198)

-

(717,198)

Borrowings (payments) on debt, net

(175,000)

520,000

(175,000)

502,000

Repurchases of common stock

(5,261)

-

(125,000)

-

Net proceeds associated with issuance of common stock

10,857

10,484

10,857

10,484

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

(1,430)

(2,742)

(50,595)

(27,242)

Net proceeds from marketable securities ⁽²⁾

-

-

-

58,469

Net proceeds from sale of investments ⁽³⁾

42,693

-

42,693

-

Other financing & investing activities

831

5,556

6,615

(3,632)

Foreign exchange impact on cash

(2,078)

(5,010)

(3,739)

543

Net change in cash, cash equivalents, and restricted cash

10,789

(72,603)

(19,618)

50,636

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

296,639

399,199

327,046

275,960

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

$

307,428

$

326,596

$

307,428

$

326,596

Three Months Ended

Six Months Ended

March 31,

March 31,

March 31,

March 31,

2022

2021

2022

2021

Cash provided by operating activities

$

142,325

$

121,692

$

280,061

$

235,454

     Capital expenditures

(2,148)

(5,385)

(5,510)

(8,242)

Free cash flow

140,177

116,307

274,551

227,212

     Restructuring and other related payments

17,840

4,463

28,351

11,729

     Acquisition & transaction-related payments

432

8,195

432

11,075

     Non-ordinary course tax payment ⁽⁴⁾

-

971

-

971

Adjusted free cash flow

$

158,449

$

129,936

$

303,334

$

250,987

(1) In the second quarter of 2021, we acquired Arena for approximately $715 million, net of cash acquired.

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

(3) In the second quarter of 2022, we sold an equity investment in a publicly-traded company.

(4) In the second quarter of 2021, we made $1.0 million of un-forecasted payments related to a prior period tax exposure from a non-U.S. tax dispute.