Dish Network 1997 Annual Report Download - page 53

ECHOSTAR COMMUNICATIONS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
See accompanying Notes to Consolidated Financial Statements.
F–6
Years Ended December 31,
1995 1996 1997
Cash Flows From Operating Activities:
Net loss ................................ ................................ ................................ ................................ ..................... $( 11,486) $(100,986) $(312,825)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation and amortization ................................ ................................ ................................ ............ 3,114 27,341 51,541
Amortization of subscriber acquisition costs ................................ ................................ ....................... –16,073 121,735
Deferred income tax benefit ................................ ................................ ................................ ................ ( 4,763) ( 50,365) ( 373)
Amortization of debt discount and deferred financing costs ................................ ............................... 23,528 61,695 83,221
Employee benefits funded by issuance of Class A Common Stock ................................ ................... 1,192 1,116 352
Change in reserve for excess and obsolete inventory ................................ ................................ .......... 1,212 2,866 ( 1,823)
Change in long-term deferred satellite services revenue and other long-term liabilities .................... –7,152 12,056
Other, net ................................ ................................ ................................ ................................ .............. ( 485) ( 3,854) 442
Changes in current assets and current liabilities:
Trade accounts receivable, net ................................ ................................ ................................ ........ ( 1,082) ( 4,337) ( 52,558)
Inventories ................................ ................................ ................................ ................................ ....... ( 19,654) ( 36,864) 51,597
Subscriber acquisition costs ................................ ................................ ................................ ............ –( 84,202) ( 72,475)
Other current assets ................................ ................................ ................................ ......................... ( 14,018) ( 6,513) 10,969
Trade accounts payable ................................ ................................ ................................ ................... 4,111 21,756 26,708
Deferred revenue ................................ ................................ ................................ ............................. ( 1,009) 103,511 18,612
Accrued expenses................................ ................................ ................................ ............................ ( 988) 18,186 62,864
Net cash flows from operating activities ................................ ................................ ................................ .. ( 20,328) ( 27,425) 43
Cash Flows From Investing Activities:
Purchases of marketable investment securities ................................ ................................ ........................ ( 25,230) (138,295) (308,006)
Sales of marketable investment securities ................................ ................................ ................................ 40,563 135,176 51,513
Purchases of restricted marketable investment securities ................................ ................................ ........ ( 15,000) ( 21,100) ( 1,145)
Funds released from escrow and restricted cash and marketable investment securities ......................... 122,149 235,052 120,215
Offering proceeds and investment earnings placed in escrow ................................ ................................ . ( 9,589) (193,972) (227,561)
Purchases of property and equipment ................................ ................................ ................................ ...... (133,554) (221,889) (232,058)
Payments received on convertible subordinated debentures from SSET ................................ ................ –6,445 834
Long-term notes receivable from DBSC ................................ ................................ ................................ ( 16,000) ( 30,000) –
Expenditures for FCC authorizations ................................ ................................ ................................ ....... ( 458) ( 55,419) –
Other ................................ ................................ ................................ ................................ ......................... ( 1,000) ( 3,640) ( 1,041)
Net cash flows from investing activities ................................ ................................ ................................ .. ( 38,119) (287,642) (597,249)
Cash Flows From Financing Activities:
Net proceeds from issuance of Class A Common Stock ................................ ................................ ......... 62,933 –63,250
Net proceeds from issuance of 1996 Notes ................................ ................................ .............................. –336,916 –
Net proceeds from issuance of 1997 Notes ................................ ................................ .............................. – – 362,500
Net proceeds from issuance of 12 1/8% Series B Senior Redeemable Exchangeable Preferred
Stock – – 193,000
Net proceeds from issuance of 6 3/4% Series C Cumulative Convertible Preferred Stock ..................... – – 96,677
Repayments of mortgage indebtedness and notes payable ................................ ................................ ...... ( 238) ( 6,631) ( 13,253)
Net proceeds from Class A Common Stock options exercised and Class A Common Stock issued to
Employee Stock Purchase Plan ................................ ................................ ................................ ........... –2,259 1,008
Net cash flows from financing activities ................................ ................................ ................................ .. 62,695 332,544 703,182
Net increase in cash and cash equivalents ................................ ................................ ................................ 4,248 17,477 105,976
Cash and cash equivalents, beginning of year ................................ ................................ ......................... 17,506 21,754 39,231
Cash and cash equivalents, end of year ................................ ................................ ................................ .... $ 21,754 $ 39,231 $ 145,207