2016 - Q4 Ag Growth International

Ag Growth International Inc.
Consolidated statements of cash flows
[in thousands of Canadian dollars]
Year ended December 31
2016 2015
$ $
Operating activities
Profit (loss) from continuing operations before income taxes for the year 29,815 (6,611)
Add (deduct) items not affecting cash
Depreciation of property, plant and equipment 10,923 8,188
Amortization of intangible assets 11,061 8,329
Translation loss (gain) on foreign exchange (4,864) 30,360
Non-cash component of interest expense 4,363 3,090
Share-based compensation expense 6,891 3,004
Impairment charge 7,839 —
Loss (gain) on sale of property, plant and equipment (98) 3,249
Gain on disposal of asset held for sale (16) (46)
Employer contribution to defined benefit plan (419) (245)
Dividends receivable on equity swap (100) —
Defined benefit plan expense 627 517
Non-cash movement in derivative instruments (9,210) —
Non-cash investment tax credit (68) (412)
Dividends on share-based compensation (55) (962)
Contingent consideration (1,712) —
54,977 48,461
Net change in non-cash working capital balances related to
continuing operations [note 16] (261) 34,449
Income tax paid (9,720) (2,613)
Cash provided by operating activities from continuing operations 44,996 80,297
Investing activities
Acquisition of property, plant and equipment (40,203) (39,398)
Acquisition of Entringer, net of cash acquired [note 6[d]] (10,981) —
Acquisition of NuVision [note 6[e]] (6,000) —
Acquisition of Mitchell [note 6[f]] (16,300) —
Acquisition of European subsidiary [note 6[b]] (8,775) —
Acquisition of Westeel, net of cash acquired [note 6[b]] — (205,993)
Acquisition of Yargus, net of cash acquired [note 6[g]] (53,195) —
Acquisition of Vis [note 6[c]] — (10,000)
Changes to deposits related to property, plant and equipment — 2,252
Transfer to cash held in trust and restricted cash (5,093) —
Proceeds from sale of property, plant and equipment 665 3,557
Proceeds from disposal of assets held for sale 1,202 1,147
Proceeds from disposal of business [note 7] 7,209 —
Development and purchase of intangible assets (2,938) (2,346)
Transaction costs paid and payable 4,744 (420)
Cash used in investing activities from continuing operations (129,665) (251,201)
Financing activities
Repayment of long-term debt (33,507) (63,394)
Repayment of obligation under finance leases (353) (36)
Issuance of long-term debt 93,821 174,731
Costs related to issuance of long-term debt (194) —
Issuance of convertible unsecured subordinated debentures — 71,491
Common share issuance — 51,766
Subscription receipts commission payable — (1,036)
Subscription receipts financing costs — (123)
Dividends paid in cash [note 21[d]] (30,079) (29,453)
Dividend reinvestment plan costs incurred — (16)
Cash provided by financing activities from continuing operations 29,688 203,930
Net increase (decrease) in cash and cash equivalents
from continuing operations (54,981) 33,026
Net decrease in cash and cash equivalents from discontinued operations [note 7] (479) (87)
Net increase (decrease) in cash and cash equivalents during the year (55,460) 32,939
Cash and cash equivalents, beginning of year 58,234 25,295
Cash and cash equivalents, end of year 2,774 58,234
Supplemental cash flow information
Interest paid 19,903 15,739
See accompanying notes
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