Metro PCS 2010 Annual Report Download - page 92

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82
Year Ended December 31,
2010 2009 2008
(In Thousands)
Calculation of Consolidated Ad
j
usted EBITDA:
Net income ............................................................................................................ $ 193,415 $ 176,844 $ 149,438
Adjustments:
Depreciation and amortization............................................................................. 449,732 377,856 255,319
(Gain) loss on disposal of assets .......................................................................... (38,812) (4,683) 18,905
Stoc
k
-
b
ased compensation expense(1) ................................................................ 46,537 47,783 41,142
Interest expense ................................................................................................... 263,125 270,285 179,398
Interest income .................................................................................................... (1,954) (2,870) (22,947)
Other expense, net ............................................................................................... 1,807 1,808 1,035
Impairment loss on investment securities ............................................................
—
2,386 30,857
Loss on extinguishment of debt ........................................................................... 143,626
—
—
Provision for income taxes................................................................................... 118,879 86,835 129,986
Consolidated Ad
j
usted EBITDA ....................................................................... $ 1,176,355 $ 956,244 $ 783,133
_______________________
(1) Represents a non-cash expense, as defined by our senior secured credit facility.
In addition, for further information, the following table reconciles consolidated Adjusted EBITDA, as defined in
our senior secured credit facility, to cash flows from operating activities for the years ended December 31, 2010,
2009 and 2008.
Year Ended December 31,
2010 2009 2008
(In Thousands)
Reconciliation of Net Cash Provided by Operating Activities to
Consolidated Ad
j
usted EBITDA:
Net cash provided by operating activities ............................................................. $ 994,500 $ 899,349 $ 447,490
Adjustments:
Interest expense ................................................................................................... 263,125 270,285 179,398
Non-cash interest expense.................................................................................... (13,264) (11,309) (2,550)
Interest income .................................................................................................... (1,954) (2,870) (22,947)
Other expense, net ............................................................................................... 1,807 1,808 1,035
Other non-cash expense ....................................................................................... (1,929) (1,567) (1,258)
Provision for uncollectible accounts receivable ................................................... (2) (199) (8)
Deferred rent expense .......................................................................................... (21,080) (24,222) (20,646)
Cost of abandoned cell sites ................................................................................. (2,633) (8,286) (8,592)
Accretion of asset retirement obligation .............................................................. (3,063) (5,111) (3,542)
Gain on sale and maturity of investments ............................................................ 566 644
—
Provision for income taxes................................................................................... 118,879 86,835 129,986
Deferred income taxes ......................................................................................... (115,478) (110,161) (124,347)
Changes in working capital .................................................................................. (43,119) (138,952) 209,114
Consolidated Ad
j
usted EBITDA ....................................................................... $ 1,176,355 $ 956,244 $ 783,133
Operating Activities
Cash provided by operating activities increased approximately $95.2 million to $994.5 million during the year
ended December 31, 2010 from $899.3 million for the year ended December 31, 2009. The increase is primarily
attributable to an increase in operating income during the year ended December 31, 2010, partially offset by a
decrease in cash flows provided by changes in working capital during the year ended December 31, 2010 compared
to the same period in 2009.
Cash provided by operating activities increased approximately $451.9 million to approximately $899.3 million
during the year ended December 31, 2009 from $447.5 million for the year ended December 31, 2008. The increase
was primarily attributable to an increase in cash flows from working capital changes and an increase in operating
income during the year ended December 31, 2009 compared to the same period in 2008.
Cash provided by operating activities decreased $141.8 million to $447.5 million during the year ended
December 31, 2008 from $589.3 million for the year ended December 31, 2007. The decrease was primarily
attributable to a decrease in working capital during the year ended December 31, 2008 compared to the same period
in 2007, partially offset by an increase in operating income as a result of the growth experienced over the last twelve
months.