F-7
TeleCommunication Systems, Inc.
Consolidated Statements of Cash Flows
(amounts in thousands)
Year ended December 31,
2013
2012
2011
Operating activities:
Net income (loss) ................................................................................................................... $ (58,597) $ (97,988) $
7,004
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
Impairment of goodwill and long-lived assets..............................................................
31,977 125,703
—
Depreciation and amortization of property and equipment ..........................................
14,853
14,245
12,135
Amortization of software development costs ...............................................................
7,466
7,660
10,771
Stock-based compensation expense..............................................................................
7,036
9,021
9,672
Amortization of acquired intangible assets...................................................................
4,570
4,374
5,535
Deferred tax provision (benefit) ...................................................................................
16,046 (15,691)
4,428
Excess tax deficit (benefit) from share-based payment arrangements..........................
—
1,510
(4,746)
Amortization of investment premiums and accretion of discounts, net........................
246
425
931
Loss (gain) on early retirement of debt.........................................................................
178
(431)
—
Amortization of deferred financing fees.......................................................................
3,403
757
798
Other non-cash adjustment ...........................................................................................
(1,339)
968
1,539
Changes in operating assets and liabilities:
Accounts receivable, net .....................................................................................
37,202 (16,062) (10,258)
Unbilled receivables............................................................................................
7,086
8,768
1,111
Inventory.............................................................................................................
1,194
(3,941)
(1,703)
Deferred project costs and other current assets ...................................................
108
1,376
(2,251)
Other assets .........................................................................................................
(2,772)
1,316
3,882
Accounts payable and accrued expenses............................................................. (13,464) (10,441)
779
Accrued payroll and related liabilities ................................................................
(4,028)
1,063
2,804
Deferred revenue.................................................................................................
(1,718)
5,184
(5,893)
Other liabilities....................................................................................................
(1,254)
108
(4,890)
Subtotal – Changes in operating assets and liabilities............................................................
22,354 (12,629) (16,419)
Net cash provided by operating activities ..............................................................................
48,193
37,924
31,648
Investing activities:
Acquisitions, net of cash acquired .........................................................................................
— (20,786) (16,066)
Purchases of property and equipment .................................................................................... (10,736) (17,761) (21,090)
Purchases of marketable securities......................................................................................... (12,697)
(6,630) (24,104)
Proceeds from sale and maturity of marketable securities .....................................................
7,316
10,587
40,250
Capitalized software development costs ................................................................................
(1,954)
(1,881)
(2,478)
Net cash used in investing activities ...................................................................................... (18,071) (36,471) (23,488)
Financing activities:
Payments on bank borrowings, notes payable, and capital lease obligations......................... (91,066) (55,664) (25,024)
Proceeds from bank and other borrowings.............................................................................
66,500
54,500
9,500
Excess tax (deficit) benefit from share-based payment arrangements ...................................
—
(1,510)
4,746
Earn-out payment related to 2009 acquisition........................................................................
—
(3,863)
(3,213)
Payments of tax withholdings on restricted stock ..................................................................
(457)
—
—
Proceeds from exercise of employee stock options and sale of stock ....................................
182
809
1,509
Net cash used in financing activities ...................................................................................... (24,841)
(5,728) (12,482)
Net increase (decrease) in cash
............................................................................................
5,281
(4,275)
(4,322)
Cash and cash equivalents at the beginning of the year .........................................................
36,623
40,898
45,220
Cash and cash equivalents at the end of the year
.............................................................. $ 41,904 $ 36,623 $ 40,898
See accompanying Notes to Consolidated Financial Statements.
