2019 BBNC Annual Report | Page 38

SIGNIFICANT SOURCES AND USES OF CAPITAL The following table displays sources/uses of cash and capital structure for the fiscal year ended (in thousands): FISCAL YEAR 2019 2018 2017 69,097 45,687 94,985 Cash flows from investing activities (29,942) (30,080) (53,726) Cash flows from financing activities (50,590) (76,151) (28,427) $ (11,435) (60,544) 12,832 $ 12,662 39,577 97,483 509,624 480,031 397,315 522,286 519,608 494,798 2.48% 8.24% 24.54% SOURCES/USES OF CAPITAL Cash flows from operating activities Increase (decrease) in cash and cash equivalents $ CAPITAL STRUCTURE Short- and long-term debt Total shareholders’ equity Total capital Debt-to-equity ratio $ OPERATING ACTIVITIES The operating activity section of the statement of cash flows reconciles net income to the amount of cash pro- vided by operating transactions. For FY2019, cash flows from operating activities was $69.0 million which was primarily comprised of net income of $53.5 million plus depreciation and amortization expense of $20.5 million less $6.2 million of gains on sale of marketable securities and $14.2 million in deferred tax expenses. For FY2018, cash flows from operating activities was $45.7 million which was primarily comprised of net income of $103.2 million plus depreciation and amortization expense of $22.6 million and other changes in working capital. For FY2017, cash flows from operating activities was $95.0 million which was primarily comprised of net income of $41.1 million plus depreciation and amortization expense of $24.1 million and other changes in working capital. INVESTING ACTIVITIES Net cash activity from investment activity is typically con- sistent unless significant acquisition activity occurs during a fiscal year. FY2019, FY2018 and FY2017 are reflective of the Corporation’s normalized uses of cash for investing activities on a year-to-year basis. FINANCING ACTIVITIES Financing activities include transactions involving share- holder dividends and contributions to settlement trusts, noncontrolling interests and borrowings and repayments of debt. Cash used by financing activities in FY2019 includes shareholder dividends and contributions to settlement trusts of $23.8 million. FY2019 had increased cash flows used in financing activities due to increased payment on the line of credit compared to previous years. 36 BBNC FY2019 ANNUAL REPORT Our total capital structure consists of the original monies received by the Corporation under ANCSA on behalf of its shareholders, funds provided by debt financing arrange- ments and accumulated earnings that have not been paid out in dividends and contributions to settlement trusts. The overall increase in total capital in FY2019 is comprised of the fiscal year earnings offset by dividends paid and contributions to settlement trusts.