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SIRI » Topics » Cash Flows for the Nine Months Ended September 30, 2006 Compared with the Nine Months Ended September 30, 2005This excerpt taken from the SIRI 10-Q filed Nov 8, 2006. Cash Flows for the Nine Months Ended September 30, 2006 Compared with the Nine Months Ended September 30, 2005 As of September 30, 2006, we had $317,876 in cash and cash equivalents compared with $810,333 as of September 30, 2005. 29
Net cash used in operating activities increased $197,928 to $456,056 for the nine months ended September 30, 2006 from $258,128 for the nine months ended September 30, 2005. Such increase in the net outflows of cash was attributable to the following: the pay down of accruals in 2006 primarily for subscriber acquisition costs due to the 101% increase in gross subscriber activations from 1,252,623 for the nine months ended September 30, 2005 to 2,523,587 for the nine months ended September 30, 2006; new programming and distribution partner arrangements entered into in 2006; and higher purchases of inventory to support production needs of our next generation SIRIUS radios and higher sales volumes through our direct to consumer distribution channel. These negative impacts to cash flow were offset by the effects of a decrease in accounts receivable for the pay down of receivable balances generated for activations in the fourth quarter of 2005, which were paid in the first quarter of 2006. Net cash provided by investing activities was $7,895 for the nine months ended September 30, 2006 compared with net cash used in investing activities of $131,943 for the nine months ended September 30, 2005. The $139,838 increase was primarily a result of sales of auction rate securities in 2006, offset by an increase in capital expenditures from $17,949 for the nine months ended September 30, 2005 to $94,368 for the nine months ended September 30, 2006 primarily as a result of costs associated with our satellite construction and launch vehicle. We will incur significant capital expenditures to construct and launch our new satellite and to improve our terrestrial repeater network and broadcast and administrative infrastructure. These capital expenditures will support the resiliency of our operations and the growth we are experiencing, as well as support the delivery of new revenue streams in the future. Net cash provided by financing activities decreased $442,483 to $4,030 for the nine months ended September 30, 2006 from $446,513 for the nine months ended September 30, 2005. The decrease was primarily a result of the offering of $500,000 in aggregate principal amount of our 95/8% Senior Notes due 2013 in August 2005 resulting in net proceeds to us of $493,005. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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