VALH's Cash Flow for 2000:
2000 1999 1998
------ ------ ------
Cash flows from operating
activities:
Net income (loss) $ 1,960,566 $ 743,365 $(2,896,746)
Adjustment to reconcile
net income (loss) from
operations to net cash
(used in) operations:
Write-off of fixed and
intangible assets relating
to licensing agreement -0- 130,463 -0-
Write-off investment
unconsol. subsidiary -0- 3,994 -0-
Shares issued for services 7,500 -0- -0-
Gain on sale of licensing
agreement (1,145,833) -0- -0-
Provision for doubtful
accounts 547,362 541,502 -0-
Write down marketable
securities 144,488 3,259 -0-
Write down obsolete
inventory -0- 74,911 -0-
Loss on disposition
capital asset -0- 5,926 -0-
Deferred income taxes 131,631 40,180 -0-
Depreciation 369,827 213,117 52,979
Amortization, intangible
assets and goodwill 563,161 424,854 202,168
Amortization consulting
agreements 47,499 179,232 (156,731)
Equity in earnings of
unconsol. subsidiary -0- -0- 210,278
Write-down investment in
equity-method Investee -0- -0- 1,758,094
Provision for losses in
affiliate -0- -0- 571,000
Expenses paid by issuance
of common stock -0- -0- 355,000
Changes in operating assets
and liabilities
(Increase) decrease in current
assets:
Accounts receivable (3,822,246) (6,165,871) (1,170)
Marketable securities (270,127) (214,317) -0-
Inventory (11,134,845) (3,257,510) -0-
Prepaid expenses and
other assets (716,653) (242,481) (10,835)
Income taxes receivable (139,230) -0- -0-
Increase(decrease) in current
liabilities:
Accounts payable 4,031,440 1,690,034 (14,316)
Accrued liabilities -0- 1,609 (67,888)
Other -0- (103,152) (330,970)
---------- ---------- ---------
Net cash used in operating
activities (9,425,460) (5,930,885) (329,137)
---------- ---------- --------
Cash flows from investing
activities:
Acquisition of property
and equipment (2,039,282) (582,080) -0-
Sale of license agreement 1,330,000 -0- -0-
Goodwill acquired (4,746,783) -0- -0-
Increase in Notes
Receivable (1,511,593) (204,304) -0-
Advances to related
companies -0- (10,000) (26,800)
---------- --------- --------
Net cash used in financing
activities (6,967,658) (794,384) (26,800)
----------- --------- --------
Cash flows from financing
activities:
Proceeds from convertible
debentures 2,000,000 -0- -0-
Proceeds (repayments)
stockholders borrowings (1,247,773) (115,553) 58,518
Proceeds from related
party -0- -0- 304,707
Repayment of borrowings
from affiliates (191,250) -0- -0-
Dividends paid (192,088) (87,775) -0-
Proceeds (payments) debt,
net of currency exchange 16,200,343 6,626,476 (27,750)
---------- ---------- --------
Net cash provided by
financing activities 16,569,232 6,423,148 335,475
---------- ---------- --------
Net increase (decrease)
in cash prior to effect
of exchange rate on cash 176,114 (304,121) (20,462)
Effect of exchange rate
on cash (130,334) 335,965 -0-
--------- --------- --------
Increase (decrease) in
cash 45,780 31,844 (20,462)
Cash at beginning of year 31,844 -0- 20,462
--------- --------- --------
Cash at end of year $ 77,624 $ 31,844 $ -0-
========= ========= ========
Supplemental disclosure of cash flow
information:
Cash paid during the year
for interest $ 3,075,287 $ 743,112 $ 35,246
Cash paid for taxes 91,009 -0- -0-
Non-cash investing and
financing activities
Stock issued for consulting
services:
Officer/stockholder/
director $ -0- $ 250,000 $ 355,000
Other 7,500 -0- -0-
Stock issued for dividends -0- 218,000 -0-
Stock issued for
acquisitions 337,240 -0- -0-
Subsidiary stock issued for
acquisition -0- 5,832,536 -0-
Acquisitions of subsidiaries
Liabilities assumed (8,248,496) (7,626,758) -0-
Fair value of assets
acquired 8,248,496 7,626,758 -0- |
