Frontier Communications 2007 Annual Report Download - page 58

Download and view the complete annual report

Please find page 58 of the 2007 Frontier Communications annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For The Years Ended December 31, 2007, 2006 And 2005
($ in thousands)
2007 2006 2005
Cash flows provided by (used in) operating activities:
Net income ................................................................ $ 214,654 $ 344,555 $ 202,375
Deduct: Gain on sale of discontinued operations, net of tax ...................... — (71,635) (1,167)
Income from discontinued operations, net of tax .............................. — (18,912) (13,266)
Adjustments to reconcile income to net cash provided by operating activities:
Depreciation and amortization expense ...................................... 545,856 476,487 520,204
Stock based compensation expense ......................................... 9,022 10,340 8,427
Loss on debt exchange ................................................... — 2,433 3,175
Loss on extinguishment of debt ............................................ 20,186 — —
Investment gain ........................................................ — (61,428) (492)
Other non-cash adjustments ............................................... (7,598) 5,191 22,438
Deferred income taxes ................................................... 81,011 132,031 100,636
Legal settlement ........................................................ (7,905) — —
Change in accounts receivable ............................................. (4,714) 15,333 8,782
Change in accounts payable and other liabilities ............................... (36,257) (3,064) (37,257)
Change in other current assets ............................................. 7,428 (2,148) 1,609
Net cash provided by continuing operating activities ............................... 821,683 829,183 815,464
Cash flows provided from (used by) investing activities:
Capital expenditures .................................................... (315,793) (268,806) (259,448)
Cash paid for acquisitions (net of cash acquired) .............................. (725,548) — —
Proceeds from sales of assets, net of selling expenses .......................... — — 24,195
Proceeds from sale of discontinued operations ................................ — 255,305 43,565
Other assets (purchased) distributions received, net ............................ 6,629 67,050 973
Net cash (used by) provided from investing activities .............................. (1,034,712) 53,549 (190,715)
Cash flows provided from (used by) financing activities:
Repayment of customer advances for construction and contributions in aid of
construction ......................................................... (942) (264) (1,662)
Long-term debt borrowings ............................................... 950,000 550,000 —
Debt issuance costs ..................................................... (12,196) (6,948) —
Long-term debt payments ................................................ (946,070) (227,693) (6,299)
Premium paid to retire debt ............................................... (20,186) — —
Issuance of common stock ................................................ 13,808 27,200 47,550
Common stock repurchased ............................................... (250,000) (135,239) (250,000)
Dividends paid ......................................................... (336,025) (323,671) (338,364)
Net cash used by financing activities ............................................ (601,611) (116,615) (548,775)
Cash flows of discontinued operations:
Operating cash flows .................................................... — 17,833 27,500
Investing cash flows .................................................... — (6,593) (11,388)
Financing cash flows .................................................... — — (134)
Net cash provided by discontinued operations .................................... — 11,240 15,978
(Decrease) increase in cash and cash equivalents .................................. (814,640) 777,357 91,952
Cash and cash equivalents at January 1, ......................................... 1,041,106 263,749 171,797
Cash and cash equivalents at December 31, ...................................... $ 226,466 $1,041,106 $ 263,749
Cash paid during the period for:
Interest ............................................................... $ 364,381 $ 332,204 $ 318,638
Income taxes .......................................................... $ 54,407 $ 5,365 $ 4,711
Non-cash investing and financing activities:
Change in fair value of interest rate swaps ................................... $ 18,198 $ (1,562) $ (13,193)
Conversion of EPPICS .................................................. $ 3,339 $ 15,925 $ 29,979
Conversion of Commonwealth notes ........................................ $ 36,731 $ — $ —
Debt-for-debt exchange .................................................. $ — $ 2,433 $ 3,175
Shares issued for Commonwealth acquisition ................................. $ 247,435 $ — $ —
Acquired debt ......................................................... $ 244,570 $ — $ —
Other acquired liabilities ................................................. $ 112,194 $ — $ —
The accompanying Notes are an integral part of these Consolidated Financial Statements.
F-8