Liquidity and Capital Resources (continued)
Shareholders’ Equity
| (in millions of dollars) | ||||||
| 2007 | 2006 | $ (decrease) | ||||
| $ | 171.9 | $ | 227.0 | $ | (55.1) | |
- Shareholders’ equity decreased primarily due to dividend payments totaling $103.5 million and the repurchase during 2007 of 2,399,862 common shares at a cost of $107.6 million under our NCIB. The decrease was partially offset by net income of $148.7 million in 2007, including net income from NGX of $4.3 million in 2007, as compared with net income from NGX of $4.7 million in 2006. NGX’s net income decreased reflecting increased General and administration costs associated with our arrangement with ICE, which was somewhat offset by higher revenue.
- Under the NCIB, we announced that we intend to repurchase up to 6,841,051 of our common shares of which 2,399,862 were repurchased in 2007. These purchases, carried out through the facilities of Toronto Stock Exchange and made in accordance with its requirements, will terminate on August 6, 2008 or such earlier date as we complete our purchases. Effective December 10, 2007, we terminated our pre-defined plan with our appointed broker that permitted us to repurchase our common shares at times when we would not ordinarily be active in the market.
- At December 31, 2007 there were 66,278,370 common shares issued and outstanding. In 2007, 256,968 common shares were issued on the exercise of share options. At December 31, 2007, 4,421,950 common shares were reserved for issuance upon the exercise of options granted under the share option plan. At December 31, 2007, there were 973,522 options outstanding.
- We have obtained approval from Toronto Stock Exchange to issue up to 1.5 million common shares in connection with the purchase price payable for NTP if we exercise our right to acquire NTP from Enbridge and Circuit Technology. In addition, we have obtained conditional approval from Toronto Stock Exchange to issue up to 15.5 million common shares in connection with the amalgamation with MX.
- At January 29, 2008, there were 66,283,370 common shares issued and outstanding and 967,818 options outstanding under the share option plan.
Cash Flows from Operating Activities
| (in millions of dollars) | ||||||
| 2007 | 2006 | Increase in cash | ||||
| Cash Flows from Operating Activities | $ | 221.7 | $ | 189.5 | $ | 32.2 |
Cash Flows from Operating Activities were $32.2 million higher in 2007 compared with 2006 due to:
| (in millions of dollars) | ||||||
| Increase/(decrease) | ||||||
| 2007 | 2006 | in cash | ||||
| Net Income | $ | 148.7 | $ | 131.5 | $ | 17.2 |
| Amortization | $ | 15.8 | $ | 13.0 | $ | 2.8 |
| Increase/(decrease) in future tax asset | $ | (3.1) | $ | (12.6) | $ | 9.5 |
| Increase in accounts receivable and prepaid expenses | $ | (15.2) | $ | (6.1) | $ | (9.1) |
| Net increase in accounts payable and accrued liabilities | $ | 7.0 | $ | 0.6 | $ | 6.4 |
| Increase in deferred revenue that results from not recognizing a | ||||||
| portion of listing fees billed in the year | $ | 78.0 | $ | 67.3 | $ | 10.7 |
| (Decrease) in income taxes payable | $ | (11.5) | $ | (7.4) | $ | (4.1) |
| Net increase in other items | $ | 2.0 | $ | 3.2 | $ | (1.2) |
| Cash Flows from Operating Activities | $ | 221.7 | $ | 189.5 | $ | 32.2 |