3 months			12 months
(in thousands of $)	2006	2005	% Change	2006	2005	% Change
Cash flow from continuing operations(1)	43,632	40,380	8%	145,143	130,836	11%
Capital expenditures
Television	3,810	1,992	91%	12,895	4,977	159%
Radio	1,261	2,316	-46%	3,844	5,726	-33%
Outdoor Advertising	809	1,428	-43%	2,984	4,240	-30%
Corporate	87	199	-56%	626	925	-32%
Total capital expenditures	5,967	5,935	1%	20,349	15,868	28%

(1) See "Supplementary Measures".

The increase in cash flow from continuing operations is attributable to increased earnings from continuing operations and the Company expects this trend to continue in Fiscal 2007.

The most significant capital expenditures pertain to computer hardware and software, broadcasting and other equipment and advertising structures. In Fiscal 2006, the increase in the Company's capital expenditures related mainly to equipment acquired in preparation for the launch of high-definition programming which amounted to $4.2 million. Capital spending in Fiscal 2007 is estimated at $19.2 million, mainly for the same types of assets, including broadcast equipment requirements and high-definition television programming equipment.

The Company's strong cash flow from continuing operations enabled it to increase its cash, cash equivalents and short-term investments balances to $113.7 million as at August 31, 2006 from $100.9 million as at August 31, 2005, after using $92.4 million during Fiscal 2006 ($24.2 million in the fourth quarter) to repurchase 2,798,339 Class A non-voting shares of the Company ("Class A shares") (663,900 Class A shares in the fourth quarter) under the Company's normal course issuer bids. The Company also used $16.1 million for dividend payments. In Fiscal 2007, the Company will use approximately $48.0 million to finance the acquisition of an additional 10% interest in TELETOON Canada Inc. ("TELETOON"). See "Business Developments".

The Company has sufficient liquidities to cover its known operating requirements, its renewed normal course issuer bid⁽²⁾ and its increased dividend payment⁽²⁾ . In addition, the Company has operating revolving credit facilities of $29.2 million, which are renewable annually, in order to meet its current operating requirements. The Company believes it is able to obtain additional resources to finance business acquisitions which support its growth strategy.

(2) See "Financial Condition".