Metro PCS 2009 Annual Report Download - page 119

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F-5
MetroPCS Communications, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2009, 2008 and 2007
(in thousands)
2009 2008 2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income...................................................................................................................... $ 176,844 $ 149,438 $ 100,403
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization ....................................................................................... 377,856 255,319 178,202
Provision for uncollectible accounts receivable ............................................................. 199 8 129
Deferred rent expense .................................................................................................... 24,222 20,646 13,745
Cost of abandoned cell sites........................................................................................... 8,286 8,592 6,704
Stock-based compensation expense ............................................................................... 47,783 41,142 28,024
Non-cash interest expense.............................................................................................. 11,309 2,550 3,259
(Gain) loss on disposal of assets..................................................................................... (4,683) 18,905 655
Gain on sale of investments ........................................................................................... (644) — (10,506)
Impairment loss on investment securities....................................................................... 2,386 30,857 97,800
Accretion of asset retirement obligation......................................................................... 5,111 3,542 1,439
Accretion of put option in majority-owned subsidiary................................................... 1,567 1,258 1,003
Deferred income taxes.................................................................................................... 110,161 124,347 118,524
Changes in assets and liabilities, net of impact of acquisitions:
Inventories ..................................................................................................................... 8,554 (46,816) (16,275)
Accounts receivable ....................................................................................................... (17,056) (2,865) (3,797)
Prepaid charges .............................................................................................................. (8,438) (15,102) (6,887)
Deferred charges ............................................................................................................ (9,698) (15,081) (8,126)
Other assets .................................................................................................................... 23,318 (43,556) (11,345)
Accounts payable and accrued expenses........................................................................ 128,167 (119,166) 63,884
Deferred revenue............................................................................................................ 35,779 31,294 30,013
Other liabilities............................................................................................................... (21,674) 2,178 2,458
Net cash provided by operating activities........................................................................ 899,349 447,490 589,306
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment............................................................................. (831,674) (954,612) (767,709)
Change in prepaid purchases of property and equipment............................................... (33,115) 15,645 (19,992)
Proceeds from sale of property and equipment .............................................................. 5,330 856 3,759
Purchase of investments................................................................................................. (486,645) — (3,358,427)
Proceeds from sale and maturity of investments ............................................................ 262,500 37 3,625,648
Change in restricted cash and investments ..................................................................... (15,113) — 294
Purchases of and deposits for FCC licenses ................................................................... (15,517) (328,519) —
Proceeds from exchange of FCC licenses ...................................................................... 949 — —
Cash used in business acquisitions................................................................................. — (25,162) —
Microwave relocation costs............................................................................................ (3,669) (2,520) (661)
Net cash used in investing activities................................................................................ (1,116,954) (1,294,275) (517,088)
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in book overdraft............................................................................................... (20,314) 79,353 4,111
Proceeds from 9¼% Senior Notes Due 2014 ................................................................. 492,250 — 423,500
Proceeds from initial public offering.............................................................................. — — 862,500
Cost of raising capital .................................................................................................... — — (44,234)
Debt issuance costs ........................................................................................................ (11,925) — (3,091)
Repayment of debt ......................................................................................................... (16,000) (16,000) (16,000)
Payments on capital lease obligations ............................................................................ (3,599) (1,410) —
Proceeds from exercise of stock options ........................................................................ 8,626 12,582 9,706
Net cash provided by financing activities........................................................................ 449,038 74,525 1,236,492
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS....................... 231,433 (772,260) 1,308,710
CASH AND CASH EQUIVALENTS, beginning of year ........................................... 697,948 1,470,208 161,498
CASH AND CASH EQUIVALENTS, end of year ..................................................... $ 929,381 $ 697,948 $ 1,470,208
The accompanying notes are integral part of these consolidated financial statements.