|
|
Year
Ended December 31, |
| (in
thousands) |
|
2001 |
|
2000 |
|
1999 |
 |
| Operating
Activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Net
income (loss) |
|
$ |
61,134 |
|
|
$ |
(2,854 |
) |
|
$ |
45,836 |
|
| Adjustments
to reconcile net income (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
| to
net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Provision
for bad debt expense |
|
|
701 |
|
|
|
373 |
|
|
|
2,079 |
|
| Depreciation
and amortization |
|
|
19,825 |
|
|
|
15,175 |
|
|
|
12,238 |
|
| Deferred
income taxes |
|
|
(961 |
) |
|
|
(7,792 |
) |
|
|
1,273 |
|
| Non-controlling
interest in subsidiary |
|
|
56 |
|
|
|
— |
|
|
|
— |
|
| Cumulative
effect of changes in accounting principles |
|
|
— |
|
|
|
50,576 |
|
|
|
678 |
|
| Changes
in operating assets and liabilities (net of acquisitions): |
|
|
|
|
|
|
|
|
|
|
|
|
| Service
fees receivable |
|
|
(23,961 |
) |
|
|
(13,549 |
) |
|
|
(27,491 |
) |
| Supplies
inventory |
|
|
(1,537 |
) |
|
|
889 |
|
|
|
(2,305 |
) |
| Prepaid
expenses and other |
|
|
(3,202 |
) |
|
|
(2,309 |
) |
|
|
(1,342 |
) |
| Amounts
payable to affiliated practices |
|
|
2,622 |
|
|
|
(4,404 |
) |
|
|
(3,036 |
) |
| Accounts
payable and other current liabilities |
|
|
(10,881 |
) |
|
|
7,368 |
|
|
|
(6,276 |
) |
|
| Net
cash provided by operating activities |
|
|
43,796 |
|
|
|
43,473 |
|
|
|
21,654 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Investing
Activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Purchases
of property, equipment and improvements |
|
|
(22,077 |
) |
|
|
(20,271 |
) |
|
|
(22,520 |
) |
| (Sales
of) proceeds from available-for-sale investments |
|
|
999 |
|
|
|
(16 |
) |
|
|
204 |
|
| Intangible
assets acquired |
|
|
(16,471 |
) |
|
|
(28,246 |
) |
|
|
(17,178 |
) |
| (Advances
to) payments from affiliated practices |
|
|
(7,924 |
) |
|
|
(3,829 |
) |
|
|
(3,581 |
) |
|
| Net
cash used in investing activities |
|
|
(45,473 |
) |
|
|
(52,362 |
) |
|
|
(43,075 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Financing
Activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Repayment
of notes payable to affiliated practices |
|
|
(1,035 |
) |
|
|
(500 |
) |
|
|
(6,742 |
) |
| Repayment
of long-term debt |
|
|
(26,911 |
) |
|
|
(6,030 |
) |
|
|
— |
|
| Proceeds
from long-term debt |
|
|
26,159 |
|
|
|
7,483 |
|
|
|
30,577 |
|
| Repayment
of loans from key employee program |
|
|
1,116 |
|
|
|
2,632 |
|
|
|
— |
|
| Issuance
of common stock |
|
|
14,821 |
|
|
|
4,299 |
|
|
|
1,807 |
|
|
| Net
cash provided by financing activities |
|
|
14,150 |
|
|
|
7,884 |
|
|
|
25,642 |
|
|
| Effect
of exchange rate changes on cash and cash equivalents |
|
|
(2,991 |
) |
|
|
(127 |
) |
|
|
— |
|
| Net
change in cash and cash equivalents |
|
|
9,482 |
|
|
|
(1,132 |
) |
|
|
4,221 |
|
| Cash
and cash equivalents at beginning of year |
|
|
4,690 |
|
|
|
5,822 |
|
|
|
1,601 |
|
|
| Cash
and cash equivalents at end of year |
|
$ |
14,172 |
|
|
$ |
4,690 |
|
|
$ |
5,822 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Supplemental
Cash Flow Information |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash
paid during the year for: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest |
|
$ |
6,012 |
|
|
$ |
4,271 |
|
|
$ |
2,499 |
|
| Income
taxes |
|
$ |
38,623 |
|
|
$ |
31,568 |
|
|
$ |
33,931 |
|
| Non-cash
investing and financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Notes
payable and common stock issued to obtain service agreements |
|
$ |
29,083 |
|
|
$ |
5,974 |
|
|
$ |
4,512 |
|
| Acquisition
of OrthAlliance: |
|
|
|
|
|
|
|
|
|
|
|
|
| Fair
value of assets acquired |
|
$ |
152,085 |
|
|
|
N/A |
|
|
|
N/A |
|
| Liabilities
assumed |
|
|
119,805 |
|
|
|
N/A |
|
|
|
N/A |
|
| Net
assets acquired |
|
$ |
32,280 |
|
|
|
N/A |
|
|
|
N/A |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| See
notes to consolidated financial statements. |
|
|
|
|
|
|
|
|
|
|
|
|
|
