Earthlink 2014 Annual Report Download - page 49

Table of Contents
In October 2014, our Board of Directors authorized management to repurchase up to $30.0 million of our outstanding Senior Secured Notes or
Senior Notes, so long as it is in compliance with our indenture and credit agreement covenants. In November 2014, we amended our Credit
Agreement to permit the repurchase of up to $30.0 million of our Senior Secured Notes or Senior Notes, as long as such purchases otherwise
comply with the terms of our credit agreement and the terms of the applicable indentures.
Future sources of cash
Our principal sources of liquidity are our cash and cash equivalents, as well as the cash flow we generate from our operations. During the years
ended December 31, 2012, 2013 and 2014 , we generated $191.1 million , $124.2 million and $140.0 million
in cash from operations,
respectively. As of December 31, 2014 , we had $134.1 million
in cash and cash equivalents. Our cash and cash equivalents are subject to
general credit, liquidity, market, and interest rate risks, which may be exacerbated by unfavorable economic conditions.
Another source of liquidity is our revolving credit facility. We have a credit agreement providing for a senior secured revolving credit facility
with aggregate revolving commitments of $135.0 million. Our senior secured revolving credit facility terminates in May 2017, and at that time
any amounts outstanding thereunder shall be due and payable in full. As of December 31, 2014
, no amounts had been drawn or were
outstanding under our senior secured revolving credit facility.
Our available cash and cash equivalents, together with our results of operations, are expected to be sufficient to meet our operating expenses,
debt service payments, capital requirements and other obligations for at least the next 12 months. However, to increase available liquidity or to
fund acquisitions or other strategic activities, we may seek additional financing. We have no commitments for any additional financing and have
no lines of credit or similar sources of financing, other than the $135.0 million credit facility. We cannot be sure that we can obtain additional
financing on favorable terms, if at all, through the issuance of equity securities or the incurrence of additional debt. Additional equity financing
may dilute our stockholders, and debt financing, if available, may restrict our ability to repurchase common stock or debt, declare and pay
dividends and raise future capital. If we are unable to obtain additional needed financing, it may prohibit us from refinancing existing
indebtedness and making acquisitions, capital expenditures and/or investments, which could materially and adversely affect our business.
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Dividends
. We have historically used cash for dividends. The decision to declare future dividends is made at the discretion of the Board
of Directors and will depend on, among other things, our results of operations, financial condition, cash requirements, investment
opportunities, restrictions on dividends under the agreements governing our indebtedness and other factors the Board of Directors may
deem relevant.
• Other
. We may also use cash to invest in or acquire other companies, to repurchase common stock or to repurchase or redeem debt. We
expect to use cash for current restructuring liabilities. Payments will primarily be paid in 2015 and will be funded through operating
cash flows. In addition, we continue to evaluate our business, including evaluating ways to reduce the cost structure of our business, and
may use cash for additional restructuring activities.