Financial Condition, Cash Flow and Liquidity

Our main sources of liquidity are parliamentary appropriations for operating, capital and working capital requirements, and self-generated revenue such as selling advertising on our various platforms. As a result of Federal Budget 2012, our annual appropriations are being reduced by $115.0 million by 2014—2015. Additionally, $47.1 million in funding from the Local Programming Improvement Fund (LPIF) will be phased out by August 31, 2014 and a salary inflation funding freeze will be reintroduced for fiscal years 2014—2015 and 2015—2016.

In response to these reductions, new financial pressures on our self-generated revenue, and other funding pressures (as discussed under Section 1.5 Business Model), we are in the process of developing our next strategic plan as we plan fundamental changes based on a much different funding and revenue model.

Our cash flows from operating, investing and financing activities for the year are summarized below. Our cash balance at March 31, 2014 was $62.0 million, compared to $51.5 million on March 31, 2013.

Cash Position

(in thousands of Canadian dollars)	For the year ended March 31
	2014	2013	% change
Cash - beginning of the year	51,459	64,277	(19.9)
Cash from operating activities	24,418	4,134	490.7
Cash used in financing activities	(58,906)	(58,389)	0.9
Cash from investing activities	45,003	41,437	8.6
Net change	10,515	(12,818)	(182.0)
Cash - end of the year	61,974	51,459	20.4

 

Cash from operating activities

Cash from operating activities was $24.4 million this year, an increase of $20.3 million compared to last year. This increase was consistent with the current year’s positive results on a current operating basis, net of changes in working capital levels.

Cash used in financing activities

Cash outflows for financing activities were consistent with last year. Cash used of $58.9 million this year and $58.4 million last year was for interest payments, repayments of the Toronto Broadcasting Centre bonds, payments of notes payable, and payments made to meet obligations under finance leases.

Cash from investing activities

Investing activities generated cash of $45.0 million this year, higher than last year by $3.6 million. Spending on property, equipment, and intangible acquisitions was lower this year by $28.0 million. Current year investing activities also included dividends received of $7.1 million from our investment in Sirius XM, an increase of $2.7 million compared to last year. On the other hand, last year’s investing activities included $17.3 million more in proceeds relative to the current year from property and equipment disposals, largely a result of land sales in Calgary and Edmonton, as well as proceeds from business divestitures of $9.7 million for the sale of the bold specialty channel.