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This excerpt taken from the ELN 6-K filed Mar 31, 2008. Cash
Flows
The results of our cash flow activities for 2007 and 2006 are
described below.
2007
Net cash used in operating activities was $157.2 million in
2007. The primary components of cash used in operating
activities were the net loss (adjusted to exclude non-cash
charges and benefits) and changes in working capital accounts.
Changes in working capital accounts provided a net cash inflow
of $18.2 million and include the increase in accounts
receivable of $30.1 million, the decrease in prepayments
and other assets of $55.4 million (principally
$49.8 million arbitration award, which
Elan Corporation, plc 2007 Annual
Report 47
Table of Contents
was paid by King in January 2007),
the increase in inventory of $7.4 million, and the net
increase of $0.3 million in accounts payable and accrued
and other liabilities.
Net cash used in investing activities was $326.6 million in
2007. 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.
Net cash used in investing activities in 2007 also includes
$12.3 million related to the purchase of investments and
$26.1 million related to the purchase of property, plant
and equipment, offset by net proceeds of $31.3 million from
the sale of investments. As of 31 December 2007, we did not
have any significant commitments to purchase property, plant and
equipment, except for contracted additional capital expenditures
of $12.7 million.
Net cash used in financing activities totalled
$601.5 million in 2007, primarily reflecting the repayment
of loans and finance lease obligations of $629.6 million
(principally the redemption of $613.2 million of the Athena
Notes), offset by $28.2 million of net proceeds from
employee stock issuances.
We believe that our current liquid asset position will be
sufficient to meet our needs for the foreseeable future.
2006
Net cash used in operating activities was $225.0 million in
2006. The primary components of cash used in operating
activities were the net loss (adjusted to exclude non-cash
charges and benefits) and changes in working capital accounts.
The changes in working capital accounts include the net increase
in accounts receivables and prepayments and other assets of
$85.4 million (principally $49.8 million arbitration
award entered in our favour and against King in December 2006,
which was paid by King in January 2007), the increase in
inventory of $6.0 million, and the net increase of
$20.2 million in accounts payable and accrued and other
liabilities.
Net cash provided by investing activities was $23.0 million
in 2006. The major component of cash generated from investing
activities includes net proceeds of $14.1 million from the
disposal of investments and $54.2 million from the sale of
the European rights to Prialt, partially offset by
$29.9 million for capital expenditures and
$18.6 million for the purchase of intangible and other
assets.
Net cash provided by financing activities totalled
$627.3 million in 2006, primarily reflecting the net
proceeds of $602.8 million from the issuances of
$465.0 million of the 8.875% Notes and
$150.0 million of the Floating Rate Notes due 2013, and
$29.8 million of net proceeds from employee stock
issuances, offset by $5.7 million related to the repayment
of loans and finance lease obligations.
This excerpt taken from the ELN 6-K filed Mar 30, 2007. Cash
Flows
The results of our cash flow activities for 2006 and 2005 are
described below.
2006
Net cash used in operating activities was $222.2 million in
2006. The primary components of cash used in operating
activities were the net loss (adjusted to exclude non-cash
charges and benefits) and changes in working capital accounts.
The changes in working capital accounts include the net increase
in accounts receivables and prepaid and other assets of
$82.0 million (principally $49.8 million arbitration
award entered in our favour and against King in December 2006,
which was paid by King in January 2007), the increase in
inventory of $6.0 million, and the net increase of
$20.2 million in accounts payable and accrued and other
liabilities.
Net cash provided by investing activities was $20.2 million
in 2006. The major component of cash generated from investing
activities includes net proceeds of $14.1 million from the
disposal of investments and $54.2 million from the sale of
the European rights to Prialt, partially offset by
$29.9 million for capital expenditures and
$18.6 million for the purchase of intangible and other
assets. As of 31 December 2006, we did not have any
significant commitments to purchase property, plant and
equipment, except for contracted additional capital expenditures
of $5.6 million.
Net cash provided by financing activities totalled
$627.3 million in 2006, primarily reflecting the net
proceeds of $602.8 million from the issuances of
$465.0 million of the 8.875% Notes and
$150.0 million of the Floating Rate Notes due 2013, and
$29.8 million of net proceeds from employee stock
issuances, offset by $5.7 million related to the repayment
of loans and finance lease obligations.
We believe that our current liquid asset position will be
sufficient to meet our needs for the foreseeable future.
2005
Net cash used in operating activities was $283.5 million in
2005. The primary components of cash used in operating
activities were the net income (adjusted to exclude non-cash
charges and benefits) and changes in working capital accounts.
The most significant non-cash benefit in 2005 related to the
fair value gain of $1,136.1 million on the conversion
option component of the 6.5% Convertible Notes. The changes in
working capital accounts include the net decrease in accounts
receivables and prepaid and other assets of $159.6 million
(principally related to the release of restricted cash of
$168.9 million), the decrease in inventory of
$3.7 million, and the net decrease of $110.3 million
in accounts payable and accrued and other liabilities.
Net cash provided by investing activities was
$120.9 million in 2005. The major component of cash
generated from investing activities includes net proceeds of
$62.7 million from the disposal of investments and
$108.8 million from business disposals (primarily Zonegran
and the European business), partially offset by
$43.7 million for capital expenditures.
Net cash used in financing activities totalled
$99.7 million in 2005, primarily reflecting
$39.0 million for the repayment of Elan Pharmaceutical
Investments III Ltd. Series B and C guaranteed
notes (collectively, EPIL III Notes) and $87.8 million
for the early retirement of $36.8 million of the Athena
Notes and early conversion of $206.0 million in aggregate
principal amount of the 6.5% Convertible Notes, offset by
$23.8 million net proceeds from employee stock option
exercises and $4.0 million of proceeds from government
grants.
44 Elan
Corporation, plc 2006 Annual Report
Table of Contents
Financial Review
This excerpt taken from the ELN 6-K filed Mar 31, 2006. Cash Flows
The results of our cash flow activities for 2005 and 2004 are
described below.
2005
Net cash used in operating activities was $283.5 million in
2005. The primary components of cash used in operating
activities were the net income (adjusted to exclude non-cash
charges and benefits) and changes in working capital accounts.
The most significant non-cash benefit in 2005 related to the
fair value gain of $1,136.1 million on the conversion
option component of the 6.5% Convertible Notes. The changes
in working capital accounts include the net decrease in accounts
receivables and prepaid and other assets of $159.6 million
(principally related to the release of restricted cash of
$168.9 million), the decrease in inventory of
$3.7 million, and the net decrease of $110.3 million
in accounts payable and accrued and other liabilities.
Net cash provided by investing activities was
$120.9 million in 2005. The major component of cash
generated from investing activities includes net proceeds of
$62.7 million from the disposal of investments and
$108.8 million from business disposals (primarily Zonegran
and the European business), partially offset by
$43.7 million for capital expenditures. As of
31 December 2005, we did not have any significant
commitments to purchase property, plant and equipment, except
for committed additional capital expenditures of
$7.1 million.
Net cash used in financing activities totalled
$99.7 million in 2005, primarily reflecting
$39.0 million for the repayment of EPIL III Notes and
$87.8 million for the early retirement of
$36.8 million of the Athena Notes and early conversion of
$206.0 million in aggregate principal amount of the
6.5% Convertible Notes, offset by $23.8 million net
proceeds from employee stock option exercises and
$4.0 million of proceeds from government grants.
We believe that our current liquid asset position will be
sufficient to meet our needs for the foreseeable future.
2004
Net cash used in operating activities was $349.4 million in
2004. The primary components of cash used in operating
activities were the net loss (adjusted to exclude non-cash
charges and benefits) and changes in working capital accounts.
The changes in working capital accounts include the net decrease
in accounts receivables and other assets of $13.4 million,
the decrease in inventory of $17.1 million, and the net
decrease of $37.0 million in accounts payable and accrued
and other liabilities.
Net cash provided by investing activities was
$533.9 million in 2004. The major component of cash
generated from investing activities includes net proceeds of
$315.2 million from the disposal of investments,
$274.6 million from business disposals (primarily the
European business, Zonegran and Frova), and $44.2 of proceeds
from the disposals of property, plant and equipment, partially
offset by $55.2 million for capital expenditures and
$43.8 million for the purchase of intangible and other
assets.
Net cash provided by financing activities totalled
$383.3 million in 2004, primarily reflecting
$1,125.1 million from the issuance of 7.75% Notes and
Floating Rate Notes in November 2004 and $70.6 million of
net proceeds from employee stock option exercises, partially
offset by $351.0 million for the repayment of EPIL III
Notes and $450.0 million for the repayment of the
EPIL II Notes.
50 Elan Corporation, plc 2005 Annual Report
Table of Contents
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