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This excerpt taken from the ELN 6-K filed Mar 30, 2009. Cash
and Cash Equivalents, Liquid and Capital Resources
Our liquid resources and shareholders’ deficit at
31 December were as follows:
We have historically financed our operating and capital resource
requirements through cash flows from operations, sales of
investment securities and borrowings. We consider all highly
liquid deposits with an original maturity of three months or
less to be cash equivalents. Our primary sources of funds at
31 December 2008 consisted of cash and cash equivalents of
$375.3 million, which excludes current restricted cash of
$20.2 million and current
available-for-sale
investments of $30.5 million. Cash and cash equivalents
primarily consist of bank deposits and holdings in
U.S. Treasuries funds.
At 31 December 2008, our shareholders’ deficit was
$223.4 million, compared to $388.4 million at
31 December 2007. The decrease is primarily due to the
recognition of deferred tax benefits in shareholders’
equity that exceed cumulative share-based compensation expense,
the share-based compensation cost recorded in 2008 and
adjustments to share premium relating to shares issues,
partially offset by the net loss incurred during the year. The
net loss for the year ended 31 December 2008 included an
income tax benefit of $270.1 million, which primarily
resulted from the recognition of deferred tax benefits. Our debt
covenants do not require us to maintain or adhere to any
specific financial ratios. Consequently, the shareholders’
deficit has no impact on our ability to comply with our debt
covenants. Our recorded shareholders’ deficit is
substantially lower than our market capitalisation, in
particular because we believe the carrying values of our
intangible assets do not fully reflect the value created through
our R&D activities.
For information regarding liquidity risk, refer to page 81
in the “Financial Risk Management” section of this
Financial Review.
Table of Contents
This excerpt taken from the ELN 20-F filed Feb 26, 2009. Cash
and Cash Equivalents, Liquid and Capital Resources
Our liquid and capital resources at December 31 were as follows
(in millions):
We have historically financed our operating and capital resource
requirements through cash flows from operations, sales of
investment securities and borrowings. We consider all highly
liquid deposits with an original maturity of three months or
less to be cash equivalents. Our primary sources of funds as of
December 31, 2008 consisted of cash and cash equivalents of
$375.3 million, which excludes current restricted cash of
$20.2 million, and current investment securities of
$30.5 million. Cash and cash equivalents primarily consist
of bank deposits and holdings in U.S. Treasuries funds.
At December 31, 2008, our shareholders’ deficit was
$232.2 million, compared to $234.7 million at
December 31, 2007. The decrease is primarily due to
adjustments to additional
paid-in-capital
relating to stock issued and share-based compensation expense,
offset by the net loss incurred during the year. The net loss at
December 31, 2008 included the recognition of a net DTA of
$236.6 million as of December 31, 2008. Our debt
covenants do not require us to maintain or adhere to any
specific financial ratios. Consequently, the shareholders’
deficit has no impact on our ability to comply with our debt
covenants.
We believe that we have sufficient current cash, liquid
resources, realizable assets and investments to meet our
liquidity requirements for at least the next 12 months.
Longer term liquidity requirements and debt repayments will need
to be met out of available cash resources, future operating cash
flows, financial and other asset realizations and future
financing. However, events, including a material deterioration
in our operating performance as a result of our inability to
sell significant amounts of Tysabri, material adverse
legal judgments, fines, penalties or settlements arising from
litigation or governmental investigations, failure to
successfully develop and receive marketing approval for products
under development (in particular, bapineuzumab) or the
occurrence of other circumstances or events described under
Item 3.D. “Risk Factors,” could materially and
adversely affect our ability to meet our longer term liquidity
requirements.
Table of Contents
We commit substantial resources to our R&D activities,
including collaborations with third parties such as Biogen Idec
for the development of Tysabri and Wyeth for
Alzheimer’s disease. We expect to commit significant cash
resources to the development and commercialization of products
in our development pipeline.
We continually evaluate our liquidity requirements, capital
needs and availability of resources in view of, among other
things, alternative uses of capital, debt service requirements,
the cost of debt and equity capital and estimated future
operating cash flow. We may raise additional capital;
restructure or refinance outstanding debt; repurchase material
amounts of outstanding debt (including the 7.75% Notes and
the Floating Rate Notes due 2011 and the 8.875% Notes and
the Floating Rate Notes due 2013); consider the sale of
interests in subsidiaries, investment securities or other assets
or the rationalization of products; or take a combination of
such steps or other steps to increase or manage our liquidity
and capital resources. Any such actions or steps, including any
repurchase of outstanding debt, could be material. In the normal
course of business, we may investigate, evaluate, discuss and
engage in future company or product acquisitions, capital
expenditures, investments and other business opportunities. In
the event of any future acquisitions, capital expenditures,
investments or other business opportunities, we may consider
using available cash or raising additional capital, including
the issuance of additional debt.
On January 13, 2009, we announced that the board of
directors had engaged an investment bank to conduct, in
conjunction with executive management and other external
advisors, a review of our strategic alternatives. The purpose of
the engagement is to secure access to financial resources and
commercial infrastructure that would enable us to accelerate the
development and commercialization of our extensive pipeline and
product portfolio while maximizing the ability of our
shareholders to participate in the resulting longer term value
creation. The range of alternatives that will be assessed could
include a minority investment, strategic alliance, or a merger
or sale. We are committed to completing the review of potential
alternatives as promptly as practicable. However, there can be
no assurances that any particular alternative will be pursued or
that any transaction will occur, or on what terms.
This excerpt taken from the ELN 6-K filed Mar 31, 2008. Cash
and Cash Equivalents, Liquid and Capital Resources
Our liquid resources and shareholders’ equity/(deficit) at
31 December were as follows:
We have historically financed our operating and capital resource
requirements through cash flows from operations, sales of
investment securities and borrowings. We consider all highly
liquid deposits with an original maturity of three months or
less to be cash equivalents. Our primary source of funds at
31 December 2007 consisted of cash and cash equivalents of
$423.5 million, which excludes current restricted cash of
$20.1 million and current available-for-sale investments of
$276.9 million.
At 31 December 2007, all of Elan’s liquid investments
were invested in bank deposits and funds. In December 2007, due
to dislocations in the capital markets, one of these funds was
closed. As a result, the amount invested in this fund on the
closure date of $305.9 million (31 December 2007:
$274.8 million) no longer qualified as cash and cash
equivalents and was reclassified as an investment. Since
31 December 2007, Elan has reduced the amount invested in
this fund to approximately $90 million and has moved
approximately $185 million into bank deposits and
U.S. treasury funds.
At 31 December 2007, our shareholders’ deficit was
$388.4 million, compared to shareholders’ equity of
$204.8 million at 31 December 2006. The decrease is
due primarily to the net loss incurred during the year. Our debt
covenants do not require us to maintain or adhere to any
specific financial ratios. Consequently, the shareholders’
deficit has no impact on our ability to comply with our debt
covenants. Our recorded shareholders’ equity/(deficit) is
substantially lower than our market capitalisation, in
particular because the carrying values of our intangible assets
do not fully reflect the value created through our R&D
activities.
For additional information regarding our liquidity and capital
resources, refer to Note 26 to the Consolidated Financial
Statements.
This excerpt taken from the ELN 20-F filed Feb 28, 2008. Cash
and Cash Equivalents, Liquid and Capital Resources
Our liquid and capital resources at December 31 were as follows
(in millions):
We have historically financed our operating and capital resource
requirements through cash flows from operations, sales of
investment securities and borrowings. We consider all highly
liquid deposits with an original maturity of three months or
less to be cash equivalents. Our primary sources of funds as of
December 31, 2007 consisted of cash and cash equivalents of
$423.5 million, which excludes restricted cash of
$20.1 million, and current investment securities of
$276.9 million.
At December 31, 2007, our shareholders’ deficit was
$234.7 million, compared to shareholders’ equity of
$85.1 million at December 31, 2006. The decrease is
primarily due to the net loss incurred during the year. Our debt
covenants do not require us to maintain or adhere to any
specific financial ratios. Consequently, the shareholders’
deficit has no impact on our ability to comply with our debt
covenants.
This excerpt taken from the ELN 6-K filed Mar 30, 2007. Cash
and Cash Equivalents, Liquid and Capital Resources
Our liquid and capital resources at 31 December were as
follows:
We have historically financed our operating and capital resource
requirements through cash flows from operations, sales of equity
securities and borrowings. We consider all highly liquid
deposits with an original maturity of three months or less to be
cash equivalents. Our primary source of funds at
31 December 2006 consisted of cash and cash equivalents of
$1,510.6 million, which excludes $23.2 million of
restricted cash.
At 31 December 2006, our shareholders’ equity was
$204.8 million, compared to $308.4 million at
31 December 2005. The decrease is due primarily to the net
loss incurred in the period, partially offset by the conversion
of the 6.5% Convertible Notes and proceeds from employee share
option exercises.
Elan Corporation, plc 2006 Annual
Report 43
Table of Contents
This excerpt taken from the ELN 20-F filed Feb 28, 2007. Cash
and Cash Equivalents, Liquid and Capital Resources
Our liquid and capital resources at December 31 were as
follows (in millions):
We have historically financed our operating and capital resource
requirements through cash flows from operations, sales of equity
securities and borrowings. We consider all highly liquid
deposits with an original maturity of three months or less to be
cash equivalents. Our primary source of funds as of
December 31, 2006 consisted of cash and cash equivalents of
$1,510.6 million, which excludes restricted cash of
$23.2 million, and current investment securities of
$11.2 million.
At December 31, 2006, our shareholders’ equity was
$85.1 million, compared to $16.9 million at
December 31, 2005. The increase is due primarily to the
conversion of convertible debt and proceeds from employee stock
issuances, offset by the net loss incurred during the year.
This excerpt taken from the ELN 6-K filed Mar 31, 2006. Cash and Cash Equivalents, Liquid and
Capital Resources
Our liquid and capital resources at 31 December were as
follows:
We have historically financed our operating and capital resource
requirements through cash flows from operations, sales of equity
securities and borrowings. We consider all highly liquid
deposits with an original maturity of three months or less to be
cash equivalents. Our primary source of funds at
31 December 2005 consisted of cash and cash equivalents of
$1,080.7 million.
Restricted cash at 31 December 2005 includes
$24.9 million pledged cash to secure certain letters of
credit. The restricted cash at 31 December 2004 of
$192.7 million consisted of $124.3 million held by
EPIL III that was reserved until the repayment of the final
$39.0 million of the EPIL III Notes in March 2005,
$40.0 million reserved in escrow for our estimate of the
ultimate cost to settle the shareholder class action lawsuit,
which was settled in February 2005, and $28.4 million of
pledged cash to secure certain letters of credit.
At 31 December 2005, our shareholders’ equity was
$308.4 million, compared to $538.0 million at
31 December 2004. The decrease is due primarily to the
adjustments to opening retained earnings at 1 January 2005
upon adoption of IAS 32 and IAS 39; in particular, the fair
valuing of the conversion option component of our
6.5% Convertible Notes, offset by the net income earned
during the year and the conversion of convertible debt and
proceeds from stock option exercises.
Elan Corporation, plc 2005 Annual Report 49
Table of Contents
This excerpt taken from the ELN 20-F filed Mar 30, 2006. Cash
and Cash Equivalents, Liquid and Capital Resources
Our liquid and capital resources at December 31 were as
follows (in millions):
We have historically financed our operating and capital resource
requirements through cash flows from operations, sales of equity
securities and borrowings. We consider all highly liquid
deposits with an original maturity of three months or less to be
cash equivalents. Our primary source of funds as of
December 31, 2005 consisted of cash and cash equivalents of
$1,080.7 million, which excludes restricted cash of
$24.9 million (current and non-current), and short-term
marketable securities of $10.0 million.
At December 31, 2005, our shareholders’ equity was
$16.9 million, compared to $205.0 million at
December 31, 2004. The decrease is due primarily to the net
loss incurred during the year, offset by the conversion of
convertible debt and proceeds from stock option exercises.
This excerpt taken from the ELN 6-K filed Apr 11, 2005. Cash and Cash Equivalents, Liquid and Capital Resources Our liquid and capital resources at 31 December were as follows:
We have historically financed our operating and capital resource requirements through cash flows from operations, sales of equity securities and borrowings. We consider all highly liquid deposits with an original maturity of three months or less to be cash equivalents. Our primary source of funds as at 31 December 2004 consisted of cash and cash equivalents of $1,540.3 million. Cash and cash equivalents at 31 December 2004 includes restricted cash of $192.7 million (2003: $33.1 million), of which $124.3 million is held by EPIL III and was reserved for the repayment of EPIL III Notes of $39.0 million due and repaid in full in March 2005. Following this debt repayment, the residual cash in EPIL III can be used for general corporate purposes. Restricted cash at 31 December 2004 also includes $40.0 million reserved in escrow for our estimate of the ultimate cost to settle the shareholder class action lawsuit and $28.4 million of pledged cash to secure certain letters of credit. The restricted cash as at 31 December 2003 of $33.1 million primarily consisted of $21.1 million held by EPIL II and EPIL III and $12.0 million of pledged cash to secure certain letters of credit. At 31 December 2004, our shareholders’ equity was $524.2 million, compared to $825.4 million at 31 December 2003. The decrease is due primarily to our significant net loss from operations incurred during the year, offset by the proceeds from the exercise of share options in 2004.
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