Earthlink 2015 Annual Report Download - page 50

Table of Contents
us to make capital expenditures to develop or acquire new equipment or technology in order to replace aging or obsolete equipment.
• Investments in our growth products and services. We expect to invest cash in sales and marketing efforts and other resources required to support our
strategy related to our growth products and services.
•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 acquire or invest in other companies or to repurchase common stock. We also expect to use cash for current restructuring
liabilities. Payments for restructuring liabilities incurred to date will be funded through operating cash flows. 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.
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, 2013, 2014 and 2015 , we generated $124.2 million , $140.0 million and $167.4 million in cash from operations, respectively. As of December 31, 2015 , we
had $91.3 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.
We also 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,
2015 , $35.0 million was 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 borrowings available under our 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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