Redbox 2005 Annual Report Download - page 31

Download and view the complete annual report

Please find page 31 of the 2005 Redbox annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 68

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68

Contractual Obligations
The tables below summarize our contractual obligations and other commercial commitments as of
December 31, 2005:
Payments Due by Period
Contractual Obligations
As of December 31, 2005 Total
Less than 1
year
1-3
years
4-5
years
After 5
years
(in thousands)
Long-term debt ...................... $205,764 $ 2,089 $ 4,178 $4,178 $195,319
Capital lease obligations(1) ............. 5,135 2,133 2,604 398 —
Operating leases(2) ................... 20,033 8,191 8,677 2,261 904
Purchase obligations(3) ................ 8,562 8,562 — — —
Total contractual cash obligations ........ $239,494 $20,975 $15,459 $6,837 $196,223
(1) Capital lease obligations represent gross minimum lease payments, which includes interest.
(2) One of our lease agreements is a triple net operating lease. Accordingly, we are responsible for other obligations including, but not
limited to, taxes, insurance, utilities and maintenance as incurred.
(3) Purchase obligations consist of outstanding purchase orders issued in the ordinary course of our business.
Amount of Commitment Expiration Per Period
Other Commercial Commitments
As of December 31, 2005 Total
Less than 1
year
1-3
years
4-5
years
After 5
years
(in thousands)
Letters of credit ............................... $16,436 $16,436 $— $— $—
Total commercial commitments .................. $16,436 $16,436 $— $— $—
We believe our existing cash, cash equivalents and amounts available to us under our credit facility will be
sufficient to fund our cash requirements and capital expenditure needs for at least the next 12 months. After that
time, the extent of additional financing needed, if any, will depend on the success of our business. If we
significantly increase installations beyond planned levels, or if coin-counting machine volumes generated or
entertainment services machine plays are lower than historical levels, our cash needs may increase. Furthermore,
our future capital requirements will depend on a number of factors, including cash required by future
acquisitions, our consumer usage, the timing and number of machine installations, the number of available
installable machines held, the type and scope of service enhancements and the cost of developing potential new
product and service offerings and enhancements.
27