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Exhibit a-5
HERITABLE FINANCE LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN THOUSANDS)
FOR THE YEAR ENDED FOR THE 6 MONTHS
------------------------------------------ ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, ---------------------
1993 1994 1995 JUNE 30, JUNE 30,
------------ ------------ ------------ 1995 1996
--------- ---------
(UNAUDITED) (UNAUDITED)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss)......................... $ (285) $ 3,162 $ 4,808 $ 2,392 $ 23,856
Adjustments to reconcile net earnings
to net cash provided by (used in)
operating activities:
Depreciation and amortization....... 324 262 59 73 42
Income taxes payable................ 27 301 1,071 758 12,122
Provision for losses................ (1,141) 2,236 797 1,403 (4,330)
(Gain) loss on disposal of fixed
assets............................ 49 (20) 13 7 (16)
Net changes in operating assets and
liabilities:
Other............................... 328 (2,683) (566) 5,032 (23,239)
(Increase) decrease in accrued
interest receivable............... 193 (952) (115) (167) (92)
-
----------- ----------- ------------ ----------- -----------
Net cash provided by (used in)
operating activities........... (505) 2,306 6,067 9,498 8,343
-
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Cash flows from investing activities:
Payment for acquisition of former
associate................................ -- (912) -- -- --
(Increase) decrease in mortgage loans held
for investment........................... 24,038 (8,359) (13,693) (16,747) 137,531
Net purchases of equipment.................. (249) (224) (376) (197) (230)
-
----------- ----------- ------------ ----------- -----------
Net cash (used in) provided by investing
activities............................... 23,789 (9,495) (14,069) (16,944) 137,301
-
----------- ----------- ------------ ----------- -----------
Cash flows from financing activities:
Dividends paid.............................. -- (3,911) -- -- --
Increase (decrease) in amounts due to: The
Heritable and General Investment Bank
Limited.................................. (23,265) 10,720 7,991 6,343 (171,028)
City Mortgage Corporation................ -- -- -- -- 26,718
-
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Net cash provided by (used in) financing
activities.................................. (23,265) 6,809 7,991 6,343 (144,310)
-
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Net increase (decrease) in cash............... 19 (380) (11) (1,103) 1,334
Cash at the beginning of the period........... 419 438 58 58 47
-
----------- ----------- ------------ ----------- -----------
Cash at the end of the period................. $ 438 $ 58 $ 47 $ (1,045) $ 1,381
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Supplemental disclosure of cash flow
information:
Income taxes paid (recovered)............... $ (951) $ 342 $ 1,479 -- --
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Interest paid............................... $ 11,339 $ 7,644 $ 12,278 $ 5,914 $ 5,357
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See accompanying notes to consolidated financial statements.
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