Dish Network 1999 Annual Report Download - page 54

ECHOSTAR COMMUNICATIONS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
See accompanying Notes to Consolidated Financial Statements.
F–6
Year Ended December 31,
1997 1998 1999
Cash Flows From Operating Activities:
Net loss ........................................................................................................................................................ $(312,825) $(260,882) $(792,847)
Adjustments to reconcile net loss to net cash flows from operating activities:
Extraordinary charge for early retirement of debt.................................................................................. – – 268,999
Loss on impairment of satellite (Note 3)................................................................................................ – – 13,741
Loss on disposal of assets....................................................................................................................... – – 9,852
Gain on sale of investments.................................................................................................................... – – (24,439)
Deferred stock-based compensation recognized.................................................................................... – – 61,060
Depreciation and amortization ............................................................................................................... 51,541 83,767 113,228
Amortization of subscriber acquisition costs ......................................................................................... 121,735 18,869 –
Amortization of debt discount and deferred financing costs ................................................................. 83,221 125,724 13,678
Change in reserve for excess and obsolete inventory ............................................................................ (1,823) 1,341 (1,234)
Change in long-term deferred satellite services revenue and other long-term liabilities ...................... 12,056 13,856 10,173
Superstar exclusivity fee ......................................................................................................................... – – (10,000)
Other, net ................................................................................................................................................ 421 2,291 1,829
Changes in current assets and current liabilities:
Trade accounts receivable, net........................................................................................................... (52,558) (41,159) (52,452)
Inventories.......................................................................................................................................... 51,597 (55,056) (45,688)
Subscriber acquisition costs............................................................................................................... (72,475) – –
Other current assets............................................................................................................................ 10,969 (10,264) (4,091)
Trade accounts payable...................................................................................................................... 26,708 22,136 103,400
Deferred revenue................................................................................................................................ 18,612 10,275 48,549
Accrued expenses............................................................................................................................... 62,864 72,212 227,729
Net cash flows from operating activities..................................................................................................... 43 (16,890) (58,513)
Cash Flows From Investing Activities:
Purchases of marketable investment securities........................................................................................... (308,006) (570,096) (541,401)
Sales of marketable investment securities................................................................................................... 51,513 627,860 434,517
Purchases of restricted marketable investment securities........................................................................... (1,145) –(5,928)
Funds released from escrow and restricted cash and marketable investment securities ............................ 120,215 116,468 80,585
Offering proceeds and investment earnings placed in escrow.................................................................... (227,561) (6,343) –
Purchases of property and equipment ......................................................................................................... (232,058) (161,140) (91,152)
Advances from News Corporation and MCI for satellite payments .......................................................... – – 67,804
Issuance of notes receivable........................................................................................................................ –(17,666) –
Payments received on note receivable ........................................................................................................ –3,170 1,000
Investment in Eldon Technology Limited .................................................................................................. – – (5,639)
Other ............................................................................................................................................................ (207) (301) (2,612)
Net cash flows from investing activities ..................................................................................................... (597,249) (8,048) (62,826)
Cash Flows From Financing Activities:
Net proceeds from issuance of Class A Common Stock ............................................................................ 63,250 – –
Net proceeds from issuance of 1997 Notes................................................................................................. 362,500 – –
Proceeds from issuance of Seven Year Notes............................................................................................. – – 375,000
Proceeds for issuance of Ten Year Notes ................................................................................................... – – 1,625,000
Proceeds for issuance of Convertible Notes ............................................................................................... – – 1,000,000
Debt issuance costs and prepayment premiums ......................................................................................... – – (293,987)
Retirement of 1994 Notes ........................................................................................................................... – – (575,674)
Retirement of 1996 Notes ........................................................................................................................... – – (501,350)
Retirement of 1997 Notes ........................................................................................................................... – – (378,110)
Retirement of Senior Exchange Notes ........................................................................................................ – – (228,528)
Redemption of Series A Preferred Stock .................................................................................................... – – (90,934)
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 ............................................................... (13,253) (16,552) (22,201)
Net proceeds from Class A Common Stock options exercised.................................................................. 945 2,459 7,164
Net proceeds from Class A Common Stock issued for Employee Stock Purchase Plan and proceeds
from 6 3/4% Series C Cumulative Convertible Preferred Stock deposit account .................................. 63 371 1,751
Other ............................................................................................................................................................ – – 1,960
Net cash flows from financing activities..................................................................................................... 703,182 (13,722) 920,091
Net increase (decrease) in cash and cash equivalents................................................................................. 105,976 (38,660) 798,752
Cash and cash equivalents, beginning of year ............................................................................................ 39,231 145,207 106,547
Cash and cash equivalents, end of year....................................................................................................... $ 145,207 $ 106,547 $ 905,299