Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net loss $ (236,599,000) $ (357,114,000) $ (112,932,000)
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation and amortization 100,346,000 89,854,000 57,158,000
Amortization of content library 11,678,000 15,813,000 14,932,000
Non-cash interest expense, net 21,546,000 6,449,000 1,916,000
Stock-based compensation 12,817,000 7,585,000 10,747,000
Loss on extinguishment of debt 0 14,389,000 0
Issuance of shares for legal settlements 0 0 13,705,000
Impairment of goodwill 0 167,000,000 64,000,000
Impairment of internally developed software 0 0 4,069,000
Impairment of related party loan 0 0 4,353,000
Proceeds from equity method investments 1,429,000 6,798,000 0
(Gain) loss on equity method investments including impairment losses 46,310,000 12,424,000 (3,829,000)
Loss on disposal of fixed assets 528,000 443,000 0
Change in fair value of derivatives (97,000) (3,510,000) (25,515,000)
Provision for bad debt 1,227,000 2,788,000 2,624,000
Deferred income taxes (7,905,000) (16,913,000) (60,369,000)
Other (1,299,000) (2,944,000) (1,488,000)
Changes in operating assets and liabilities:      
Accounts receivable 8,974,000 4,159,000 (8,032,000)
Inventories (11,620,000) (5,637,000) 2,123,000
Prepaid expenses 4,687,000 4,172,000 (4,382,000)
Other current assets 14,280,000 (115,000) 16,366,000
Content library (8,876,000) (15,539,000) (18,614,000)
Other non-current assets (4,386,000) (1,064,000) 2,695,000
Accounts payable and accrued expenses (26,012,000) 7,880,000 14,854,000
Deferred revenue 1,142,000 (919,000) (12,891,000)
Other current liabilities (2,280,000) (3,536,000) (790,000)
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES (74,110,000) (67,537,000) (39,300,000)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Acquisitions of companies, net of cash acquired 0 0 (75,989,000)
Purchases of property and equipment (43,451,000) (74,994,000) (54,173,000)
Issuance of loan to related party 0 0 (4,400,000)
Settlement received related to EMC Acquisition 0 1,250,000 0
NET CASH USED IN INVESTING ACTIVITIES (43,451,000) (73,744,000) (134,562,000)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from issuance of Second Lien Notes and equity warrants 150,000,000 0 0
Proceeds from issuance of debt, net of $15,000 discount 0 485,000,000 0
Issuance costs (6,968,000) (20,927,000) 0
Repayment of long-term debt (13,484,000) (423,018,000) (3,806,000)
Repayment of revolving credit facility (80,585,000) 0 0
Proceeds from borrowings on line of credit 56,600,000 78,000,000 27,500,000
Payment of contingent consideration 0 (1,599,000) 0
Repurchase of common stock warrants 0 0 (5,219,000)
Proceeds from exercise of stock options and warrants 0 0 (450,000)
Other financing activities, net 0 0 (4,127,000)
Borrowings from related party 0 6,370,000 0
NET CASH PROVIDED BY FINANCING ACTIVITIES 105,563,000 123,826,000 13,898,000
Effects of exchange rate changes on cash and cash equivalents 85,000 645,000 655,000
Net decrease in cash and cash equivalents (11,913,000) (16,810,000) (159,309,000)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR [1] 51,868,000 68,678,000 227,987,000
CASH AND CASH EQUIVALENTS AT END OF YEAR [1] 39,955,000 51,868,000 68,678,000
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:      
Cash paid for taxes 7,779,000 7,863,000 12,562,000
Cash paid for interest 54,291,000 36,018,000 19,249,000
SIGNIFICANT NON-CASH INVESTING AND FINANCING ACTIVITIES:      
Issuance of common stock in connection with acquisition of business 0 25,000,000 40,607,000
Deferred consideration liabilities incurred in connection with acquisition of business 0 0 25,000,000
Release of restricted cash held in escrow to former owners of MTN 0 15,483,000 0
Conversion of PIK interest on our Second Lien Notes to additional principal 8,450,000 0 0
Purchases of property, plant and equipment held in accounts payable 4,057,000 9,390,000 13,500,000
Distributions from equity method investee to offset demand promissory note $ 7,350,000 $ 0 $ 0
[1] December 31, 2018 figures have been recast to include the impact of the adoption of ASU 2016-18. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies.