Metro PCS 2007 Annual Report Download - page 106

F-7
MetroPCS Communications, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2007, 2006 and 2005
(in thousands)
2007 2006 2005
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income.................................................................................................................. $ 100,403 $ 53,806 $ 198,677
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ................................................................................... 178,202 135,028 87,895
Provision for uncollectible accounts receivable ......................................................... 129 31 129
Deferred rent expense ................................................................................................ 13,745 7,464 4,407
Cost of abandoned cell sites....................................................................................... 6,704 3,783 725
Stock-based compensation expense ........................................................................... 28,024 14,472 2,596
Non-cash interest expense.......................................................................................... 3,259 6,964 4,285
Loss (gain) on disposal of assets ................................................................................ 655 8,806 (218,203)
Loss on extinguishment of debt ................................................................................. — 51,518 46,448
Gain on sale of investments ....................................................................................... (10,506) (2,385) (190)
Impairment loss on investment securities................................................................... 97,800 — —
Accretion of asset retirement obligation..................................................................... 1,439 769 423
Accretion of put option in majority-owned subsidiary............................................... 1,003 770 252
Deferred income taxes................................................................................................ 118,524 32,341 125,055
Changes in assets and liabilities:
Inventories ................................................................................................................. (16,275) (53,320) (5,717)
Accounts receivable ................................................................................................... (3,797) (12,143) (7,056)
Prepaid charges .......................................................................................................... (6,887) (6,538) (2,613)
Deferred charges ........................................................................................................ (8,126) (13,239) (4,045)
Other assets ................................................................................................................ (11,345) (9,231) (5,580)
Accounts payable and accrued expenses.................................................................... 63,884 108,492 41,204
Deferred revenue........................................................................................................ 30,013 33,957 16,071
Other liabilities........................................................................................................... 2,458 3,416 (1,547)
Net cash provided by operating activities.................................................................... 589,306 364,761 283,216
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment......................................................................... (767,709) (550,749) (266,499)
Change in prepaid purchases of property and equipment........................................... (19,992) (5,262) (11,800)
Proceeds from sale of property and equipment .......................................................... 3,759 3,021 146
Purchase of investments............................................................................................. (3,358,427) (1,269,919) (739,482)
Proceeds from sale of investments ............................................................................. 3,625,648 1,272,424 386,444
Change in restricted cash and investments ................................................................. 294 2,406 (107)
Purchases of and deposits for FCC licenses ............................................................... — (1,391,586) (503,930)
Proceeds from sale of FCC licenses........................................................................... — — 230,000
Microwave relocation costs........................................................................................ (661) — —
Net cash used in investing activities............................................................................ (517,088) (1,939,665) (905,228)
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in book overdraft........................................................................................... 4,111 11,368 (565)
Payment upon execution of cash flow hedging derivative ......................................... — — (1,899)
Proceeds from bridge credit agreements .................................................................... — 1,500,000 540,000
Proceeds from Senior Secured Credit Facility............................................................ — 1,600,000 —
Proceeds from 9¼% Senior Notes Due 2014 ............................................................. 423,500 1,000,000 —
Proceeds from credit agreements ............................................................................... — — 902,875
Proceeds from initial public offering.......................................................................... 862,500 — —
Cost of raising capital ................................................................................................ (44,234) — —
Debt issuance costs .................................................................................................... (3,091) (58,789) (29,480)
Repayment of debt ..................................................................................................... (16,000) (2,437,985) (754,662)
Proceeds from minority interest in majority-owned subsidiary.................................. — 2,000 —
Proceeds from termination of cash flow hedging derivative ...................................... — 4,355 —
Proceeds from repayment of subscriptions receivable................................................ — — 103
Proceeds from issuance of preferred stock, net of issuance costs............................... — — 46,662
Proceeds from exercise of stock options and warrants ............................................... 9,706 2,744 9,210
Net cash provided by financing activities.................................................................... 1,236,492 1,623,693 712,244
INCREASE IN CASH AND CASH EQUIVALENTS............................................ 1,308,710 48,789 90,232
CASH AND CASH EQUIVALENTS, beginning of year....................................... 161,498 112,709 22,477
CASH AND CASH EQUIVALENTS, end of year ................................................. $ 1,470,208 $ 161,498 $ 112,709
The accompanying notes are integral part of these consolidated financial statements.