1
Exhibit A-5
HERITABLE FINANCE LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN THOUSANDS)
FOR THE YEAR ENDED FOR THE
------------------------------------------ THREE MONTHS ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, ---------------------
1993 1994 1995 MARCH 31, MARCH 31,
------------ ------------ ------------ 1995 1996
---------
(UNAUDITED) (UNAUDITED)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss)......................... $ (285) $ 3,162 $ 4,808 $ 963 $ 1,435
Adjustments to reconcile net earnings
to net cash provided by (used in)
operating activities:
Depreciation and amortization....... 324 262 59 (14) (12)
Income taxes payable................ 27 301 1,071 242 918
Provision for losses................ (1,141) 2,236 797 1,483 548
(Gain) loss on disposal of fixed
assets............................ 49 (20) 13 (4) --
Net changes in operating assets and
liabilities:
Other............................... 328 (2,683) (566) 9,238 (234)
(Increase) decrease in accrued
interest receivable............... 193 (952) (115) (179) (57)
----------- ----------- ------------ --------- ---------
Net cash provided by (used in)
operating activities........... (505) 2,306 6,067 11,729 2,598
----------- ----------- ------------ --------- ---------
Cash flows from investing activities:
Payment for acquisition of former
associate................................ -- (912) -- -- --
Mortgage originations....................... -- (31,995) (47,145) (17,945) (13,277)
Mortgage repayments......................... 24,038 23,636 33,452 1,942 9,430
Net purchases of equipment.................. (249) (224) (376) (102) (95)
----------- ----------- ------------ --------- ---------
Net cash (used in) provided by investing
activities............................... 23,789 (9,495) (14,069) (16,105) (3,942)
----------- ----------- ------------ --------- ---------
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 3,663 387
----------- ----------- ------------ --------- ---------
Net cash provided by (used in) financing
activities.................................. (23,265) 6,809 7,991 3,663 387
----------- ----------- ------------ --------- ---------
Net increase (decrease) in cash............... 19 (380) (11) (713) (957)
Cash at the beginning of the period........... 419 438 58 58 47
----------- ----------- ------------ --------- ---------
Cash at the end of the period................. $ 438 $ 58 $ 47 $ (655) $ (910)
=========== =========== ============ =========== ============
Supplemental disclosure of cash flow
information:
Income taxes paid (recovered)............... $ (951) $ 342 $ 1,479 -- --
=========== =========== ============ =========== ============
Interest paid............................... $ 11,339 $ 7,644 $ 12,278 $ 2,843 $ 2,859
=========== =========== ============ =========== ============
See accompanying notes to consolidated financial statements.