Virgin Media 2007 Annual Report Download - page 91

VIRGIN MEDIA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Year ended December 31,
2007 2006 2005
Operating activities
Net (loss) income ...................................................... £ (463.5) £ (533.9) £ 421.0
Cumulative effect of changes in accounting principle .................................. — 32.6 —
Income from discontinued operations ........................................... — (7.9) (662.7)
Loss from continuing operations .............................................. (463.5) (509.2) (241.7)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization .............................................. 1,238.2 1,045.7 651.2
Non-cash interest ..................................................... 2.7 99.1 (8.4)
Non-cash compensation .................................................. 17.5 36.7 9.8
Income from equity accounted investments, net of dividends received ....................... (10.8) (9.5) —
Income taxes ........................................................ 14.3 (14.8) 20.8
Loss on extinguishment of debt ............................................. 3.2 32.8 2.0
Amortization of original issue discount and deferred finance costs ......................... 23.1 32.4 24.2
Unrealized foreign currency transaction (gain) loss .................................. (2.7) 46.5 (62.8)
Loss (gain) on derivative instruments .......................................... 2.5 (1.3) (0.9)
Gain on disposal of investments ............................................. (8.1) — —
Loss (gain) on disposal of assets ............................................. 18.8 (1.7) 0.8
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)
Accounts receivable .................................................... 4.6 (69.7) 15.5
Inventory .......................................................... (10.2) (22.0) —
Prepaid expenses and other current assets ....................................... 8.6 (22.4) (13.3)
Other assets ........................................................ 4.2 (3.6) (1.0)
Accounts payable ..................................................... (0.8) 27.6 45.5
Deferred revenue (current) ................................................ (17.4) 11.0 (6.3)
Accrued expenses and other current liabilities ..................................... (103.9) 35.6 (11.1)
Deferred revenue and other long term liabilities ................................... (4.3) (23.0) (82.4)
Net cash provided by operating activities ...................................... 716.0 786.1 263.6
Investing activities
Purchase of fixed assets .................................................. (526.7) (544.8) (288.1)
Purchase of intangible assets ............................................... (9.5) (10.0) —
Principal repayments on loans to equity investments ................................. 16.4 15.7 0.7
Proceeds from the sale of fixed assets .......................................... 3.3 2.4 1.8
Proceeds from sale of investments ............................................ 9.8 — —
Purchase of investments ................................................. (2.0) — —
Acquisitions, net of cash acquired ............................................ (1.0) (2,423.1) —
(Increase) decrease in restricted cash .......................................... (0.1) 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 ................................. (509.8) (2,954.0) 1,172.0
Financing activities
New borrowings, net of financing fees ......................................... 874.5 8,935.6 —
Proceeds from employee stock option exercises .................................... 15.0 38.7 5.0
Purchase of stock ..................................................... — — (114.0)
Principal payments on long term debt ......................................... (1,137.6) (7,053.4) (782.0)
Capital lease payments .................................................. (33.2) (47.2) (4.6)
Dividends paid ....................................................... (21.2) (8.5) —
Net cash (used in) provided by financing activities ................................. (302.5) 1,865.2 (895.6)
Cash flow from discontinued operations
Net cash used in operating activities ............................................ — — (14.3)
Net cash used in investing activities ............................................ — — (4.1)
Net cash used in discontinued operations ....................................... — — (18.4)
Effect of exchange rate changes on cash and cash equivalents ............................. (0.8) (14.0) 88.4
(Decrease) increase in cash and cash equivalents .................................... (97.1) (316.7) 610.0
Cash and cash equivalents at beginning of year ..................................... 418.5 735.2 125.2
Cash and cash equivalents at end of year ......................................... £ 321.4 £ 418.5 £ 735.2
Supplemental disclosure of cash flow information
Cash paid during the year for interest exclusive of amounts capitalized ........................ £ 486.9 £ 327.1 £ 216.8
Income taxes paid ...................................................... 0.6 7.7 2.2
See accompanying notes.
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