<< AOL's CF is reportedly negative. >>
No mystery to it. Here it is from AOL's 10-K:
(I'm guessing this won't come out clearly on the web, but here goes)
I see: Receivables going down, payables going up, and the company staying afloat by issuing more stock, which won't work well in a declining market - AOL dipped below the 52-week low today.
Cash flows from operating activities:
Net income (loss) $ 29,816
Adjustments:
Depreciation and amortization 33,366
Amortization of subscriber acquisition costs 126,072
Loss on sale of property and equipment 44
Charge for acquired R&D 16,981
Changes in assets and liabilities:
Trade accounts receivable (10,435)
Other receivables (18,293)
Prepaid expenses and other current (43,305)
Deferred subscriber acquisition costs (363,024)
Other assets (26,938)
Trade accounts payable 21,150
Accrued personnel costs 12,856
Other accrued expenses and liabilities 104,531
Deferred revenue 17,929
Deferred income taxes 32,523
Total adjustments (96,543)
Net cash (used in) provided by
operating activities (66,727)
Cash flows from investing activities:
Short-term investments 7,960
Purchase of property and equipment (50,262)
Product development costs (32,631)
Purchase costs of acquired businesses (4,133)
Net cash used in investing activities (79,066)
Cash flows from financing activities:
Proceeds from common stock, 189,359
Proceeds from issuance of preferred 28,315
Existing Line of credit and long-term debt (935)
New Line of creit issuance of long-term debt 3,000
Principal payments on capital leases (1,402)
Net cash provided by financing activities 218,337
Net increase in cash and cash equivalents 72,544 |
