Dish Network 1998 Annual Report Download - page 53

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ECHOSTAR COMMUNICATIONS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
See accompanying Notes to Consolidated Financial Statements.
F–6
Year Ended December 31,
1996 1997 1998
Cash Flows From Operating Activities:
Net loss ..................................................................................................................................................... $(100,986) $(312,825) $(260,882)
Adjustments to reconcile net loss to net cash flows from operating activities:
Depreciation and amortization ............................................................................................................ 27,341 51,541 83,767
Amortization of subscriber acquisition costs....................................................................................... 16,073 121,735 18,869
Deferred income tax benefit ................................................................................................................ (50,365) (373) –
Amortization of debt discount and deferred financing costs............................................................... 61,695 83,221 125,724
Employee benefits funded by issuance of Class A Common Stock ................................................... 1,116 352 2,291
Change in reserve for excess and obsolete inventory.......................................................................... 2,866 (1,823) 1,341
Change in long-term deferred satellite services revenue and other long-term liabilities.................... 7,152 12,056 13,856
Other, net.............................................................................................................................................. (3,854) 442 –
Changes in current assets and current liabilities:
Trade accounts receivable, net ........................................................................................................ (4,337) (52,558) (41,159)
Inventories ....................................................................................................................................... (36,864) 51,597 (55,056)
Subscriber acquisition costs ............................................................................................................ (84,202) (72,475) –
Other current assets ......................................................................................................................... (6,513) 10,969 (10,264)
Trade accounts payable................................................................................................................... 21,756 26,708 22,136
Deferred revenue............................................................................................................................. 103,511 18,612 10,275
Accrued expenses............................................................................................................................ 18,186 62,864 72,212
Net cash flows from operating activities.................................................................................................. (27,425) 43 (16,890)
Cash Flows From Investing Activities:
Purchases of marketable investment securities ........................................................................................ (138,295) (308,006) (570,096)
Sales of marketable investment securities................................................................................................ 135,176 51,513 627,860
Purchases of restricted marketable investment securities ........................................................................ (21,100) (1,145) –
Funds released from escrow and restricted cash and marketable investment securities ......................... 235,052 120,215 116,468
Offering proceeds and investment earnings placed in escrow................................................................. (193,972) (227,561) (6,343)
Purchases of property and equipment ...................................................................................................... (221,889) (232,058) (161,140)
Issuance of notes receivable ..................................................................................................................... (30,000) –(17,666)
Payments received on note receivable ..................................................................................................... – – 3,170
Expenditures for FCC authorizations....................................................................................................... (55,419) – –
Other ......................................................................................................................................................... 2,805 (207) (301)
Net cash flows from investing activities .................................................................................................. (287,642) (597,249) (8,048)
Cash Flows From Financing Activities:
Net proceeds from issuance of Class A Common Stock ......................................................................... –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 other notes payable............................................................. (6,631) (13,253) (16,552)
Net proceeds from Class A Common Stock options exercised and Class A Common Stock issued to
Employee Stock Purchase Plan ........................................................................................................... 2,259 1,008 2,830
Net cash flows from financing activities.................................................................................................. 332,544 703,182 (13,722)
Net increase (decrease) in cash and cash equivalents .............................................................................. 17,477 105,976 (38,660)
Cash and cash equivalents, beginning of year ......................................................................................... 21,754 39,231 145,207
Cash and cash equivalents, end of year.................................................................................................... $ 39,231 $ 145,207 $ 106,547