Vonage 2010 Annual Report Download - page 61

VONAGE HOLDINGS CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS
D
ecem
b
er
3
1
,
(
In thousands
)
20
1
0 2009 2008
C
ash flows from operating activities:
N
et
l
os
s
$
(83,665) $(42,598) $ (64,576
)
A
djustments to reconcile net loss to net cash provided by operatin
g
activities:
D
epreciation and amortization and impairment char
g
es 51,928 52,072 45,79
6
Amortization of intangible
s
1
,
14
5
1
,
319 2
,
816
C
han
g
e in fair value of embedded features in notes payable and stock warrant 99,338 49,933 –
L
oss on extinguishment o
f
note
s
31,023
(
4,041
)
30,570
Be
n
e
fi
c
i
a
l
co
nv
e
r
s
i
o
n
o
n int
e
r
es
t in kin
do
n
co
nv
e
rti
b
l
e
n
o
t
es
––1
08
Am
o
rtiz
a
ti
o
n
of d
i
scou
nt
o
nn
o
t
es
4,
732 5
,
469 88
2
A
ccrue
di
nterest pa
id i
n-
ki
n
d
13,232 17,154 2,900
All
o
w
a
n
ce fo
r
doub
t
fu
l
accou
nt
s
(
711
)(
193
)
20
7
Allowance
f
or obsolete inventory 2,213 2,514 1,519
Amortization of debt related cost
s
1
,
402 2
,7
08 3
,
237
L
oss on dis
p
osal o
ff
ixed asset
s
–
–
12
S
hare-based expense
8
,255 8,473 12,238
C
han
g
es in operatin
g
assets and liabilities
:
A
ccounts rece
i
va
ble
573 2,930 2,028
I
nventory
(
568) 203 7,47
2
P
re
p
aid ex
p
enses and other current assets 21,322
(
22,053
)
50
1
D
eferred customer acquisition costs 15,505 21,523 13,32
2
D
ue
f
rom related
p
arties
–
–
2
O
ther assets
9
,118
(
1,510
)(
7,498
)
A
ccounts pa
y
a
ble
25,606 (22,595) (22,029
)
Accrued ex
p
enses 19,966
(
4,764
)(
10,507
)
D
eferred revenue (19,446) (22,153) (10,124
)
O
ther liabilitie
s
(
6,756
)(
5,995
)(
5,321
)
N
et cas
h
prov
id
e
db
y operat
i
ng act
i
v
i
t
i
es 194,212 38,396 3,55
5
C
ash flows from investing activities
:
C
apital expenditures
(
17,674
)(
23,724
)(
11,386
)
Purchase o
f
intan
g
ible assets
–(
1,250
)(
560
)
Purchase of marketable securitie
s
–
– (21,375
)
Ma
t
u
riti
es a
n
dsa
l
es of
m
a
rk
e
t
ab
l
e secu
riti
es
–
–
101,31
7
A
cquisition and development of software assets (22,712) (21,654) (26,530)
Decrease
(
increase
)
in restricted cas
h
35,700
(
3,937
)(
980
)
Net cash (used in) provided by investing activities (4,686) (50,565) 40,48
6
C
ash flows from financing activities:
Principal payments on capital lease obligations (1,500) (1,251) (1,036
)
Principal pa
y
ments on notes
(
41,792
)(
1,809
)(
326
)
Proceeds
f
rom issuance o
f
notes payabl
e
200,000 – 220,300
Discount on notes pa
y
abl
e
(
6,000
)
–
(
7,167
)
Extin
g
uishment o
f
notes
(
290,660
)
–
(
253,460
)
D
e
b
tre
l
ate
d
costs
(
5,430) (252) (26,799
)
Proceeds
f
rom subscri
p
tion receivable, net
–
–
9
Proceeds from directed share program, ne
t
–
–62
Proceeds from exercise of stock o
p
tion
s
1,620
5
947
Net cash used in financin
g
activities
(
143,762
)(
3,253
)(
68,370
)
Effect of exchange rate changes on cas
h
9
57 1,501 (1,079)
N
et chan
g
e in cash and cash equivalents
4
6,721
(
13,921
)(
25,408
)
Cash and cash equivalents, beginning of period 32,213 46,134 71,542
C
ash and cash e
q
uivalents, end of
p
eriod $ 78,934 $ 32,213 $ 46,134
S
u
pp
lemental disclosures of cash flow information:
Cash paid during the periods for
:
Int
e
r
est
$
63
,
814
$
28
,
671
$
20
,
519
In
co
m
e
t
a
x
es
$
544 $ 1
,
206 $ 1
,
18
1
N
on-cash financin
g
transactions durin
g
the periods for
:
C
onversion of convertible notes into common stock
:
Third lien convertible notes, net of discount and debt related costs $ 4,497 $ 9,361 $
–
Embedded conversion option within third lien convertible notes $ 32,358 $ 57,050 $ –
T
he accompanyin
g
notes are an inte
g
ral part of these financial statement
s
F-6
VO
NA
G
E ANN
U
AL REP
O
RT 2010