Letters of Credit and Other Commitments
The Company also has a
$10.0 millionfacility for advance payment guarantees and letters of credit through the Bank of Montreal for use solely in conjunction with guarantees fully insured by EDC (the " Bank of Montreal Facility"). The Bank of Montreal Facilityis unsecured and includes typical affirmative and negative covenants, including delivery of annual consolidated financial statements within 120 days of the end of the fiscal year. The Bank of Montreal Facilityis subject to periodic annual reviews. As at June 30, 2013, the Company had letters of credit and advance payment guarantees outstanding of $0.4 millionunder the Bank of Montreal Facilityas compared to $0.9 millionas at December 31, 2012. 75
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Cash and Cash Equivalents
June 30, 2013, the Company's principal sources of liquidity included cash and cash equivalents of $20.8 million, the Credit Facility, anticipated collection from trade accounts receivable of $62.7 millionincluding receivables from theaters under joint revenue sharing arrangements and DMR agreements with studios, anticipated collection from financing receivables due in the next 12 months of $17.8 millionand payments expected in the next 12 months on existing backlog deals. As at June 30, 2013, the Company had drawn down $18.0 millionon the Credit Facility (with remaining availability of $182.0 million). There were $nil letters of credit and advance payment guarantees outstanding under the Credit Facility and $0.4 millionunder the Bank of Montreal Facility. During the six months ended June 30, 2013, the Company's operations provided cash of $8.0 million. The Company used cash of $16.6 millionto fund capital expenditures, principally to build equipment for use in joint revenue sharing arrangements, to purchase other intangible assets, including costs to develop the Company's new ERP system, and to purchase property, plant, and equipment. Based on management's current operating plan for 2013, the Company expects to continue to use cash to deploy additional theater systems under joint revenue sharing arrangements and to fund DMR agreements with studios. Cash flows from joint revenue sharing arrangements are derived from the theater box office and concession revenues and the Company invested directly in the roll out of 22 new theater systems under joint revenue sharing arrangements during the six months ended June 30, 2013. The Company believes that cash flow from operations together with existing cash and borrowing available under the Credit Facility will be sufficient to fund the Company's business operations, including its strategic initiatives relating to existing joint revenue sharing arrangements for the next 12 months. The Company's operating cash flow will be adversely affected if management's projections of future signings for theater systems and film performance, theater installations and film productions are not realized. In addition, as a result of the implementation of the Company's new ERP system certain invoicing and collections were delayed during the first quarter of the year. The Company has made significant progress in resolving these delays and anticipates that the impact will be substantially resolved in the remainder of 2013. The Company believes these amounts, the majority of which have now been billed, are collectible. The Company forecasts its short-term liquidity requirements on a quarterly and annual basis. Since the Company's future cash flows are based on estimates and there may be factors that are outside of the Company's control (see "Risk Factors" in Item 1A in the Company's 2012 Form 10-K), there is no guarantee that the Company will continue to be able to fund its operations through cash flows from operations. Under the terms of the Company's typical sale and sales-type lease agreement, the Company receives substantial cash payments before the Company completes the performance of its obligations. Similarly, the Company receives cash payments for some of its film productions in advance of related cash expenditures.