Cash provided by our operating activities, after noncontrolling interest, was $16,311,000 for the period ended
March 31, 2010 and $15,775,000 for the period ended March 31, 2009. From 2009 to 2010, fee and other revenue
collected increased by $7,918,000 due primarily to increased revenues from our acquisitions as well as timing of
the collections of accounts receivable. Cash paid to employees, suppliers of goods and others increased by
$7,278,000 in 2010. This fluctuation is primarily attributable to increased operating expenses from our
acquisitions and timing of payments, primarily related to certain Endocare related severance payments and our
annual bonus program payments.
Cash used by our investing activities for the three months ended March 31, 2010, was $1,305,000. We purchased
equipment and leasehold improvements totaling $1,707,000 in the first quarter of 2010. Cash used by our
investing activities for the period ended March 31, 2009, was $2,181,000. We purchased equipment and leasehold
improvements totaling $2,214,000 in the first quarter of 2009.
Cash used in our financing activities for the three months ended March 31, 2010, was $17,800,000, primarily due
to distributions to noncontrolling interests of $14,041,000 and payments on notes payable of $5,665,000 partially
offset by borrowings on notes payable of $1,784,000. Cash used in our financing activities for the three months
ended March 31, 2009, was $22,677,000, primarily due to distributions to noncontrolling interests of $18,183,000
and payments on notes payable of $4,686,000 partially offset by borrowings on notes payable of $203,000.
Accounts receivable as of March 31, 2010 has decreased $1,364,000 from December 31, 2009. This decrease relates
primarily to the timing of collections.
Inventory as of March 31, 2010 totaled $11,216,000 and decreased $1,282,000 from December 31, 2009.
Senior Credit Facility
In March 2005, we refinanced our then existing revolving credit facility with a $175 million senior credit
facility comprised of a five year $50 million revolver due in March 2010 and a $125 million senior secured term
loan B (term loan B), due 2011. This loan bore interest at a variable rate equal to LIBOR + 1.25 to
2.25% or prime + .25 to 1.25%. We repaid the term loan B in July 2006 in full. In April 2008, we increased the
revolving line of credit from $50 million to $60 million. In December 2009, we amended and restated our senior
The amended and restated credit agreement extended the maturity date of the revolver to December 31, 2012,
increased the borrowing rate, eliminated the interest coverage ratio covenant and replaced it with a fixed charge
coverage ratio covenant, increased the dollar limit on stock repurchases by us from $10 million to $20 million
(but making repurchases subject to our maintaining a total leverage ratio of 2.00 to 1.00), and other minor
amendments. Except as described above, the terms of our original senior credit facility remain in effect under
the amended and restated credit agreement.