(amounts in millions of Canadian dollars)

2007

2006

2005

Operating Activities

Restated

Restated

(Note 1)

(Note 1)

Net earnings (loss)

$

127.4

$

63.6

$

(199.6)

Results of discontinued operations (Note 4)

1.7

6.0

(104.8)

Earnings (loss) from continuing operations

129.1

69.6

(304.4)

Adjustments to reconcile earnings to cash flows from operating activities:

Impairment of goodwill, tangible and intangible assets (Note 5)

–

–

443.3

Depreciation

55.0

52.5

55.1

Amortization of deferred financing costs

0.8

2.2

7.2

Amortization and write down of intangible and other assets

15.8

22.9

19.7

Future income taxes

(14.2)

5.1

(114.1)

Investment tax credits

19.3

(11.8)

(29.2)

Stock-based compensation plans (Note 17)

24.6

12.2

5.5

Employee future benefit – net

(0.9)

(2.0)

0.9

Other

(10.4)

(3.9)

11.2

Changes in non-cash working capital (Note 19)

20.2

79.1

84.2

Net cash provided by continuing operating activities

239.3

225.9

179.4

Net cash provided by discontinued operating activities

–

2.1

21.6

Net cash provided by operating activities

239.3

228.0

201.0

Investing Activities

Business acquisitions (net of cash and cash equivalents acquired) (Note 2)

(4.4)

2.6

(13.8)

Proceeds from disposal of discontinued operations

(3.8)

(net of cash and cash equivalents disposed) (Note 4, 19)

(4.9)

239.4

Capital expenditures

(158.1)

(130.1)

(118.0)

Proceeds from sale and leaseback of assets

–

–

43.8

Deferred development costs

(3.0)

(1.8)

(9.9)

Deferred pre-operating costs

(5.9)

(0.7)

(1.7)

Other

(2.9)

( 9.9)

4.2

Net cash (used in) provided by continuing investing activities

(178.1)

(144.8)

144.0

Net cash used in discontinued investing activities

–

(2.3)

(5.8)

Net cash (used in) provided by investing activities

(178.1)

(147.1)

138.2

Financing Activities

Net borrowing under revolving unsecured credit facilities (Note 12)

(0.6)

(30.7)

(273.7)

Proceeds from long-term debt (Note 12)

45.8

32.1

3.4

Reimbursement of long-term debt (Note 12)

(39.8)

(65.7)

(50.5)

Dividends paid

(9.8)

(9.7)

(24.0)

Common stock issuance (Note 15)

10.0

8.0

3.6

Other

(2.1)

11.6

0.7

Net cash provided by (used in) continuing financing activities

3.5

(54.4)

(340.5)

Net cash provided by discontinued financing activities

–

1.2

3.2

Net cash provided by (used in) financing activities

3.5

(53.2)

(337.3)

Effect of foreign exchange rate changes on cash and cash equivalents

4.4

(8.1)

(2.3)

Net increase (decrease) in cash and cash equivalents

69.1

19.6

(0.4)

Cash and cash equivalents at beginning of year

81.1

61.5

61.9

Cash and cash equivalents at end of year

$

150.2

$

81.1

$

61.5

Cash and cash equivalents related to:

Continuing operations

$

150.2

$

81.1

$

57.1

Discontinued operations (Note 4)

–

–

4.4

$

150.2

$

81.1

$

61.5