CONSOLIDATED STATEMENT OF CASH FLOWS
UNITED ASSET MANAGEMENT CORPORATION
YEAR ENDED DECEMBER 31, 1995 1994 1993
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Cash flow from operating activities:
Net income $ 67,317,000 $ 59,012,000 $ 53,287,000
Adjustments to reconcile net income to net cash flow
from operating activities:
Amortization of cost assigned to contracts acquired 93,192,000 55,121,000 48,493,000
Depreciation 6,151,000 4,592,000 4,172,000
Other amortization 1,695,000 1,261,000 1,445,000
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Net income plus amortization and depreciation 168,355,000 119,986,000 107,397,000
Changes in assets and liabilities:
Increase in investment advisory fees receivable (46,819,000) (1,758,000) (8,038,000)
Decrease (increase) in other current assets 27,000 (7,276,000) (103,000)
Increase in accounts payable and accrued expenses 28,993,000 7,649,000 11,290,000
Increase in accrued compensation 37,765,000 27,615,000 2,172,000
Increase in deferred income taxes 7,321,000 3,629,000 4,751,000
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Net cash flow from operating activities 195,642,000 149,845,000 117,469,000
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Cash flow used in investing activities:
Purchase of fixed assets (13,576,000) (8,747,000) (4,508,000)
Cash additions to cost assigned to contracts
acquired (43,582,000) (161,649,000) (30,499,000)
Change in other assets (1,115,000) (4,099,000) (2,045,000)
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Net cash flow used in investing activities (58,273,000) (174,495,000) (37,052,000)
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Cash flow from (used in) financing activities:
Purchase of treasury shares (48,819,000) (14,883,000) (4,166,000)
Reductions in long-term debt (295,188,000) (140,280,000) (114,736,000)
Additions to long-term debt 266,500,000 224,500,000 64,500,000
Issuance or reissuance of equity securities 10,494,000 8,153,000 9,590,000
Dividends declared (35,275,000) (28,123,000) (20,304,000)
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Net cash flow from (used in) financing activities (102,288,000) 49,367,000 (65,116,000)
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Effect of foreign exchange rate changes on cash flow (363,000) 1,526,000 (562,000)
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Net increase in cash and cash equivalents 34,718,000 26,243,000 14,739,000
Cash and cash equivalents at beginning of year 89,050,000 62,807,000 48,068,000
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Cash and cash equivalents at end of year $ 123,768,000 $ 89,050,000 $ 62,807,000
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See Notes to Consolidated Financial Statements.
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