Metro PCS 2008 Annual Report Download - page 109

F-7
MetroPCS Communications, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2008, 2007 and 2006
(in thousands)
2008 2007 2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income.................................................................................................................. $ 149,438 $ 100,403 $ 53,806
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ................................................................................... 255,319 178,202 135,028
Provision for uncollectible accounts receivable ......................................................... 8 129 31
Deferred rent expense ................................................................................................ 20,646 13,745 7,464
Cost of abandoned cell sites ....................................................................................... 8,592 6,704 3,783
Stock-based compensation expense ........................................................................... 41,142 28,024 14,472
Non-cash interest expense.......................................................................................... 2,550 3,259 6,964
Loss on disposal of assets .......................................................................................... 18,905 655 8,806
Loss on extinguishment of debt ................................................................................. — — 51,518
Gain on sale of investments ....................................................................................... — (10,506) (2,385)
Impairment loss on investment securities................................................................... 30,857 97,800 —
Accretion of asset retirement obligation..................................................................... 3,542 1,439 769
Accretion of put option in majority-owned subsidiary............................................... 1,258 1,003 770
Deferred income taxes................................................................................................ 124,347 118,524 32,341
Changes in assets and liabilities, net of impact of acquisitions:
Inventories ................................................................................................................. (46,816) (16,275) (53,320)
Accounts receivable ................................................................................................... (2,865) (3,797) (12,143)
Prepaid charges .......................................................................................................... (15,102) (6,887) (6,538)
Deferred charges ........................................................................................................ (15,081) (8,126) (13,239)
Other assets ................................................................................................................ (43,556) (11,345) (9,231)
Accounts payable and accrued expenses.................................................................... (119,166) 63,884 108,492
Deferred revenue........................................................................................................ 31,294 30,013 33,957
Other liabilities........................................................................................................... 2,178 2,458 3,416
Net cash provided by operating activities.................................................................... 447,490 589,306 364,761
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment......................................................................... (954,612) (767,709) (550,749)
Change in prepaid purchases of property and equipment........................................... 15,645 (19,992) (5,262)
Proceeds from sale of property and equipment .......................................................... 856 3,759 3,021
Purchase of investments............................................................................................. — (3,358,427) (1,269,919)
Proceeds from sale of investments ............................................................................. 37 3,625,648 1,272,424
Change in restricted cash and investments................................................................. — 294 2,406
Purchases of and deposits for FCC licenses ............................................................... (328,519) — (1,391,586)
Cash used in business acquisitions............................................................................. (25,162) — —
Microwave relocation costs........................................................................................ (2,520) (661) —
Net cash used in investing activities............................................................................ (1,294,275) (517,088) (1,939,665)
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in book overdraft........................................................................................... 79,353 4,111 11,368
Proceeds from bridge credit agreements .................................................................... — — 1,500,000
Proceeds from Senior Secured Credit Facility............................................................ — — 1,600,000
Proceeds from 9¼% Senior Notes Due 2014 ............................................................. — 423,500 1,000,000
Proceeds from initial public offering.......................................................................... — 862,500 —
Cost of raising capital ................................................................................................ — (44,234) —
Debt issuance costs .................................................................................................... — (3,091) (58,789)
Repayment of debt ..................................................................................................... (16,000) (16,000) (2,437,985)
Payments on capital lease obligations ........................................................................ (1,410) — —
Proceeds from minority interest in majority-owned subsidiary.................................. — — 2,000
Proceeds from termination of cash flow hedging derivative ...................................... — — 4,355
Proceeds from exercise of stock options and warrants ............................................... 12,582 9,706 2,744
Net cash provided by financing activities.................................................................... 74,525 1,236,492 1,623,693
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS .................. (772,260) 1,308,710 48,789
CASH AND CASH EQUIVALENTS, beginning of year....................................... 1,470,208 161,498 112,709
CASH AND CASH EQUIVALENTS, end of year ................................................. $ 697,948 $ 1,470,208 $ 161,498
The accompanying notes are integral part of these consolidated financial statements.