Redbox 2006 Annual Report Download - page 34

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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, consumer usage of our services, the timing and number of machine installations, the number of
available installable machines, the type and scope of service enhancements and the cost of developing potential
new product and service offerings and enhancements.
Off-Balance Sheet Arrangements
As of December 31, 2006, off-balance sheet arrangements are comprised of obligations under our interest
rate hedge disclosed in Note 6 to our Consolidated Financial Statements and our operating leases and letters of
credit disclosed in Note 7 to our Consolidated Financial Statements. We have no other off-balance sheet
arrangements that have had or are reasonably likely to have a material current or future effect on our financial
condition or consolidated financial statements.
Contractual Obligations
The tables below summarize our contractual obligations and other commercial commitments as of
December 31, 2006:
Payments Due by Period
Contractual Obligations
As of December 31, 2006 Total
Less than 1
year
1-3
years
4-5
years
After 5
years
(in thousands)
Long-term debt (1) ............................... $186,952 $ 1,917 $ 3,834 $181,201 $ —
Capital lease obligations (2) ....................... 13,477 6,567 6,203 707 —
Operating leases (3) .............................. 10,660 4,928 3,989 1,251 492
Purchase obligations (4) .......................... 16,140 16,140 — — —
Asset retirement obligations (5) ..................... 1,610 — — — 1,610
Total contractual cash obligations ................... $228,839 $29,552 $14,026 $183,159 $2,102
(1) Long-term debt does not include contractual interest payments as they are variable in nature.
(2) Capital lease obligations represent gross minimum lease payments, which includes interest.
(3) 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.
(4) Purchase obligations consist of outstanding purchase orders issued in the ordinary course of our business.
(5) Asset retirement obligations represent the fair value of a liability related to the machine removal costs following a contract expiration.
Amount of Commitment Expiration Per Period
Other Commercial Commitments
As of December 31, 2006 Total
Less than 1
year
1-3
years
4-5
years
After 5
years
(in thousands)
Letters of credit ......................................... $10,882 $10,882 $— $— $—
Total commercial commitments ............................ $10,882 $10,882 $— $— $—
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