XM Radio 2000 Annual Report Download - page 33

CONSOLiDATED STATEMENTS OF CASH FLOWS
(In thousands)
Cash flows from operating activities:
Net loss .................................................................................. $ (16,167) $ (36,896) $ (51,873) $ (106,595)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization .......................................... 57 1,478 3,369 4,936
Amortization of deferred financing fees .............................. —509 — 509
Non-cash stock compensation .......................................... —4,210 2,743 6,953
Non-cash charge for beneficial conversion
feature of note issued to Parent .................................... —5,520 —5,520
Changes in operating assets and liabilities:
Increase in prepaid and other current assets .......................... (212) (905) (7,738) (8,815)
Increase (decrease) in other assets........................................ — 43 — (641)
Increase in accounts payable and accrued expenses .............. 1,701 7,519 16,051 32,733
Increase (decrease) in amounts due to related parties ............ 13,322 (1,316) 1 63
Increase (decrease) in accrued interest .................................. (2) 3,053 ——
Net cash used in operating activities.............................. (1,301) (16,785) (37,447) (65,337)
Cash flows from investing activities:
Purchase of property and equipment ........................................ (506) (2,008) (51,378) (53,974)
Additions to system under construction...................................... (43,406) (159,510) (414,889) (711,173)
Net purchase/maturity of short-term investments ...................... — (69,472) 69,472 —
Net purchase/maturity of restricted investments ........................ — — (106,338) (106,338)
Other investing activities .......................................................... —(3,422) (56,268) (56,268)
Net cash used in investing activities .............................. (43,912) (234,412) (559,401) (927,753)
Cash flows from financing activities:
Proceeds from sale of common stock and capital contribution ...... —114,428 133,235 256,816
Proceeds from issuance of Series B convertible
redeemable preferred stock .................................................. — — 96,472 96,472
Proceeds from issuance of senior
secured notes and warrants .................................................. — — 322,889 322,889
Proceeds from issuance of Series C convertible
redeemable preferred stock .................................................. —— 226,822 226,822
Proceeds from issuance of subordinated
convertible notes to related parties........................................ 45,920 22,966 — 157,866
Proceeds from the issuance of options ...................................... — — — 1,500
Proceeds from issuance of convertible notes .......................... — 250,000 — 250,000
Repayment of loan payable .................................................... — (75,000) — (75,000)
Payments for deferred financing costs .................................... (393) (10,725) (8,365) (19,372)
Other net financing activities .................................................. (5) (84) ——
Net cash provided by financing activities...................... 45,522 301,585 771,053 1,217,993
Net increase in cash and cash equivalents .................................. 309 50,388 174,205 224,903
Cash and cash equivalents at beginning of period ........................ 1 310 50,698 —
Cash and cash equivalents at end of period ................................ $ 310 $ 50,698 $ 224,903 $ 224,903
Supplemental cash flow disclosure:
Increase in FCC license, goodwill and intangibles .................... $ —$ 51,624 $ —$ 51,624
Liabilities exchanged for new convertible note to related parties...... —81,676 —81,676
Non-cash interest capitalized .................................................. 11,824 15,162 16,302 45,274
Interest converted into principal note balance .......................... 9,157 4,601 ——
Accrued expenses transferred to loan balance ........................ —7,405 — —
Accrued system milestone payments ...................................... 21,867 15,500 30,192 30,192
Property acquired through capital leases ................................ —470 1,688 2,075
Conversion of debt to equity .................................................. —353,315 —353,315
Use of deposit for terrestrial repeater contract ........................ ——3,422 —
See accompanying notes to consolidated financial statements.
December
15, 1992
(Date of
Inception) to
December 31,
2000
200019991998
RADiO TO THE POWER OF X
32 XM SATELLiTE RADiO 2000 Annual Report