Virgin Media 2006 Annual Report Download - page 85

VIRGIN MEDIA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Year ended December 31,
2006 2005 2004
Operating activities
Net (loss) income £ (533.9) £ 421.0 £ (484.9)
Cumulative effect of changes in accounting principles 32.6 — —
Income from discontinued operations (7.9) (662.7) (24.5)
Loss from continuing operations (509.2) (241.7) (509.4)
Adjustments to reconcile net (loss) income to net cash provided
by operating activities:
Depreciation and amortization 1,045.7 651.2 699.1
Non−cash compensation 36.7 9.8 14.3
Share of income from equity investments (9.5) — 0.1
Deferred income taxes (14.8) 20.8 4.0
Loss on extinguishment of debt 32.8 2.0 162.2
Amortization of original issue discount and deferred finance
costs 32.4 24.2 9.4
Minority interest (1.0) 1.0 —
Changes in operating assets and liabilities, net of effect from
business acquisitions and dispositions:
Marketable securities 96.9 (79.3) (12.1)
Accounts receivable (69.7) 15.5 (15.8)
Inventory (22.0) — —
Prepaid expenses and other current assets (22.4) (13.3) 4.1
Other assets (3.6) (1.0) 7.4
Accounts payable 27.6 45.5 (28.5)
Accrued expenses and other current liabilities 189.2 (26.7) (53.5)
Deferred revenue and other long term liabilities (23.0) (82.4) (32.0)
Net cash provided by operating activities 786.1 325.6 249.3
Investing activities
Purchase of fixed assets (544.8) (288.1) (274.5)
Purchase of intangible assets (10.0) — —
Income from equity investments 15.7 0.7 1.0
Proceeds from the sale of fixed assets 2.4 2.6 1.3
Acquisitions, net of cash acquired (2,423.1) — (18.8)
Decrease in restricted cash 5.8 12.4 —
Proceeds from the sale of Broadcast operations, net — 1,229.0 —
Proceeds from the sale of Ireland operations, net — 216.2 —
Net cash (used in) provided by investing activities (2,954.0) 1,172.8 (291.0)
Financing activities
New borrowings, net of financing fees 8,935.6 — 2,902.0
Proceeds from employee stock option exercises 38.7 5.0 4.4
Purchase of stock — (114.0) —
Principal payments on long term debt (7,053.4) (782.0) (3,287.6)
Capital lease payments (47.2) (4.6) (1.1)
Dividends paid (8.5) — —
Net cash provided by (used in) financing activities 1,865.2 (895.6) (382.3)
Cash flow from discontinued operations
Net cash (used in) provided by operating activities — (14.3) 127.5
Net cash used in investing activities — (4.1) (21.1)
Net cash (used in) provided by discontinued operations — (18.4) 106.4
Effect of exchange rate changes on cash and cash equivalents (14.0) 25.6 (3.3)
(Decrease) increase in cash and cash equivalents (316.7) 610.0 (320.9)
Cash and cash equivalents at beginning of year 735.2 125.2 446.1
Cash and cash equivalents at end of year £ 418.5 £ 735.2 £ 125.2
Supplemental disclosure of cash flow information
Cash paid during the year for interest exclusive of amounts
capitalized £ 327.1 £ 216.8 £ 298.5
Income taxes paid 7.7 2.2 0.2
See accompanying notes.
F−5
Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007