IAR » Topics » Year Ended December 31, 2007 Compared to Year Ended December 31, 2006

These excerpts taken from the IAR 10-K filed Mar 12, 2009.

Year Ended December 31, 2007 Compared to Year Ended December 31, 2006

        The following table sets forth a summary of cash flows for the years ended December 31, 2007 and 2006:

 
  2007   2006   Change  
 
  (in millions)
 

Cash Flows Provided By (Used In):

                   

Operating activities

  $ 369   $ 993   $ (624 )

Investing activities

    (246 )   (41 )   (205 )

Financing activities

    (247 )   (780 )   533  
               

Increase (Decrease) In Cash and Cash Equivalents

  $ (124 ) $ 172   $ (296 )
               

        Our primary source of funds in 2007 was cash generated from operations. In 2007, cash provided by operating activities decreased $624 million, or 62.8%, compared to 2006, primarily due to interest payments of $691 million on debt incurred, transition costs associated with the spin-off, higher bad debt write-offs, and an anticipated increase in accounts receivable resulting from our decision to transfer billing from Verizon to our own direct billing platform.

        Cash used in investing activities increased $205 million in 2007 compared to 2006, primarily due the $227 million acquisition of Switchboard.com, offset by lower capital expenditures, the Inceptor acquisition in 2006 and proceeds from the sales of assets.

        Cash used in financing activities decreased $533 million, or 68.3%, in 2007, compared to 2006. In 2007, long-term debt payments were $47 million and dividends paid to stockholders were $200 million. In 2006, dividends, returns of capital, and final distribution transactions paid to our former parent of $2,733 million were partially offset by the proceeds from issuance of long-term debt of $1,953 million.

Year Ended December 31, 2007 Compared to Year Ended December 31, 2006

        The following table sets forth a summary of cash flows for the years ended December 31, 2007 and 2006:

 
  2007   2006   Change  
 
  (in millions)
 

Cash Flows Provided By (Used In):

                   

Operating activities

  $ 369   $ 993   $ (624 )

Investing activities

    (246 )   (41 )   (205 )

Financing activities

    (247 )   (780 )   533  
               

Increase (Decrease) In Cash and Cash Equivalents

  $ (124 ) $ 172   $ (296 )
               

        Our primary source of funds in 2007 was cash generated from operations. In 2007, cash provided by operating activities decreased $624 million, or 62.8%, compared to 2006, primarily due to interest payments of $691 million on debt incurred, transition costs associated with the spin-off, higher bad debt write-offs, and an anticipated increase in accounts receivable resulting from our decision to transfer billing from Verizon to our own direct billing platform.

        Cash used in investing activities increased $205 million in 2007 compared to 2006, primarily due the $227 million acquisition of Switchboard.com, offset by lower capital expenditures, the Inceptor acquisition in 2006 and proceeds from the sales of assets.

        Cash used in financing activities decreased $533 million, or 68.3%, in 2007, compared to 2006. In 2007, long-term debt payments were $47 million and dividends paid to stockholders were $200 million. In 2006, dividends, returns of capital, and final distribution transactions paid to our former parent of $2,733 million were partially offset by the proceeds from issuance of long-term debt of $1,953 million.

Year Ended December 31, 2007 Compared to Year Ended December 31, 2006





        The following table sets forth a summary of cash flows for the years ended December 31, 2007 and 2006:
























































































































 
 2007  2006  Change  
 
 (in millions)
 

Cash Flows Provided By (Used In):

          

Operating activities

 $369 $993 $(624)

Investing activities

  (246) (41) (205)

Financing activities

  (247) (780) 533 
        

Increase (Decrease) In Cash and Cash Equivalents

 $(124)$172 $(296)
        




        Our
primary source of funds in 2007 was cash generated from operations. In 2007, cash provided by operating activities decreased $624 million, or 62.8%, compared to 2006,
primarily due to interest payments of $691 million on debt incurred, transition costs associated with the spin-off, higher bad debt write-offs, and an anticipated
increase in accounts receivable resulting from our decision to transfer billing from Verizon to our own direct billing platform.



        Cash
used in investing activities increased $205 million in 2007 compared to 2006, primarily due the $227 million acquisition of Switchboard.com, offset by lower capital
expenditures, the Inceptor acquisition in 2006 and proceeds from the sales of assets.



        Cash
used in financing activities decreased $533 million, or 68.3%, in 2007, compared to 2006. In 2007, long-term debt payments were $47 million and dividends
paid to stockholders were
$200 million. In 2006, dividends, returns of capital, and final distribution transactions paid to our former parent of $2,733 million were partially offset by the proceeds from issuance
of long-term debt of $1,953 million.



Year Ended December 31, 2007 Compared to Year Ended December 31, 2006





        The following table sets forth a summary of cash flows for the years ended December 31, 2007 and 2006:
























































































































 
 2007  2006  Change  
 
 (in millions)
 

Cash Flows Provided By (Used In):

          

Operating activities

 $369 $993 $(624)

Investing activities

  (246) (41) (205)

Financing activities

  (247) (780) 533 
        

Increase (Decrease) In Cash and Cash Equivalents

 $(124)$172 $(296)
        




        Our
primary source of funds in 2007 was cash generated from operations. In 2007, cash provided by operating activities decreased $624 million, or 62.8%, compared to 2006,
primarily due to interest payments of $691 million on debt incurred, transition costs associated with the spin-off, higher bad debt write-offs, and an anticipated
increase in accounts receivable resulting from our decision to transfer billing from Verizon to our own direct billing platform.



        Cash
used in investing activities increased $205 million in 2007 compared to 2006, primarily due the $227 million acquisition of Switchboard.com, offset by lower capital
expenditures, the Inceptor acquisition in 2006 and proceeds from the sales of assets.



        Cash
used in financing activities decreased $533 million, or 68.3%, in 2007, compared to 2006. In 2007, long-term debt payments were $47 million and dividends
paid to stockholders were
$200 million. In 2006, dividends, returns of capital, and final distribution transactions paid to our former parent of $2,733 million were partially offset by the proceeds from issuance
of long-term debt of $1,953 million.



These excerpts taken from the IAR 10-K filed Feb 29, 2008.
Year Ended December 31, 2007 Compared to Year Ended December 31, 2006
 
The following table sets forth a summary of cash flows for the years ended December 31, 2007 and 2006:
 
                         
 
  2007     2006     Change  
    (In millions)  
 
Cash Flow Provided By (Used In):
                       
Operating activities
  $ 369     $ 993     $ (624 )
Investing activities
    (246 )     (41 )     (205 )
Financing activities
    (247 )     (780 )     533  
                         
Increase (Decrease) In Cash and Cash Equivalents
  $ (124 )   $ 172     $ (296 )
                         
 
Our primary source of funds continues to be cash generated from operations. Net cash provided by operating activities of $369 million in 2007 decreased $624 million, compared to $993 million in 2006, primarily due to interest payments on debt incurred of $691 million, transition costs associated with the spin-off, higher bad debt write-offs, and an anticipated increase in accounts receivable resulting from our decision to transfer billing from Verizon to our own direct billing platform. In the past, amounts billed and collected by Verizon were received well in advance of normal customer payment experience. Now that we are direct billing all customers, the new higher account receivable balance represents actual customer collection experience. These unfavorable items are partially offset by lower income tax payments and other working capital items.
 
Our 2007 payments for other post-employment benefit costs were $28 million. Our anticipated 2008 cash outflow associated with these benefits are anticipated to be approximately $23 million. We expect to experience similar cash outflows in the future. See Note 11 to our consolidated financial statements included in this report for additional information.
 
Net cash used in investing activities of $246 million in 2007 increased $205 million, compared to $41 million of net cash used in investing activities in 2006. The increase was primarily due to the $227 million acquisition of Switchboard.com, offset by lower capital expenditures, the Inceptor asset acquisition in 2006 and proceeds from the sales of assets.
 
Cash used in financing activities decreased $533 million, or 68.3%, in 2007 compared to 2006. In 2007, long-term debt payments were $47 million and dividends paid to stockholders were $200 million. In 2006, dividends, returns of capital, and final distribution transactions paid to our former parent of $2,733 million were partially offset by the proceeds from issuance of long-term debt of $1,953 million.
 
We believe the net cash provided by our operating activities, supplemented if necessary with borrowings under the revolving credit facility, and existing cash and cash equivalents will provide sufficient resources to meet our working capital requirements, estimated principal and interest debt service requirements and other cash needs in 2008.


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Year
Ended December 31, 2007 Compared to Year Ended
December 31, 2006



 



The following table sets forth a summary of cash flows for the
years ended December 31, 2007 and 2006:


 


















































































































































                         


 


 

2007

 

 

2006

 

 

Change

 

 

 

(In millions)

 
 


Cash Flow Provided By (Used In):


 

 

 

 

 

 

 

 

 

 

 

 


Operating activities


 

$

369

 

 

$

993

 

 

$

(624

)


Investing activities


 

 

(246

)

 

 

(41

)

 

 

(205

)


Financing activities


 

 

(247

)

 

 

(780

)

 

 

533

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Increase (Decrease) In Cash and Cash Equivalents


 

$

(124

)

 

$

172

 

 

$

(296

)

 

 

 

 

 

 

 

 

 

 

 

 

 






 



Our primary source of funds continues to be cash generated from
operations. Net cash provided by operating activities of
$369 million in 2007 decreased $624 million, compared
to $993 million in 2006, primarily due to interest payments
on debt incurred of $691 million, transition costs
associated with the spin-off, higher bad debt write-offs, and an
anticipated increase in accounts receivable resulting from our
decision to transfer billing from Verizon to our own direct
billing platform. In the past, amounts billed and collected by
Verizon were received well in advance of normal customer payment
experience. Now that we are direct billing all customers, the
new higher account receivable balance represents actual customer
collection experience. These unfavorable items are partially
offset by lower income tax payments and other working capital
items.


 



Our 2007 payments for other post-employment benefit costs were
$28 million. Our anticipated 2008 cash outflow associated
with these benefits are anticipated to be approximately
$23 million. We expect to experience similar cash outflows
in the future. See Note 11 to our consolidated financial
statements included in this report for additional information.


 



Net cash used in investing activities of $246 million in
2007 increased $205 million, compared to $41 million
of net cash used in investing activities in 2006. The increase
was primarily due to the $227 million acquisition of
Switchboard.com, offset by lower capital expenditures, the
Inceptor asset acquisition in 2006 and proceeds from the sales
of assets.


 



Cash used in financing activities decreased $533 million,
or 68.3%, in 2007 compared to 2006. In 2007, long-term debt
payments were $47 million and dividends paid to
stockholders were $200 million. In 2006, dividends, returns
of capital, and final distribution transactions paid to our
former parent of $2,733 million were partially offset by
the proceeds from issuance of long-term debt of
$1,953 million.


 



We believe the net cash provided by our operating activities,
supplemented if necessary with borrowings under the revolving
credit facility, and existing cash and cash equivalents will
provide sufficient resources to meet our working capital
requirements, estimated principal and interest debt service
requirements and other cash needs in 2008.





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