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SEC
10-Q
BIOTELEMETRY, INC. filed this Form 10-Q on 10/31/2018
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2017, we also recorded an income tax benefit. After considering benefits from the exercise of stock options, we expect our 2018 annual effective tax rate to be in the range of 2% to 5%, absent changes in tax laws or significant changes in uncertain tax positions.

Liquidity and Capital Resources
The following table highlights certain information related to our liquidity and capital resources:
(in thousands, except ratios)
September 30,
2018
 
December 31,
2017
Cash and cash equivalents
$
63,118

 
$
36,022

Healthcare accounts receivable, net of allowance for doubtful accounts
36,414

 
25,190

Other accounts receivable, net of allowance for doubtful accounts
14,609

 
13,296

Availability under revolving credit facility
50,000

 
50,000

 
 
 
 
Working capital
$
83,907

 
$
39,153

Current ratio
2.7

 
1.8

 
 
 
 
Total capital lease obligations
$
2,504

 
$
5,509

Total debt
$
198,751

 
$
199,356

The following table highlights certain cash flow activities:
 
Nine Months Ended
(in thousands)
September 30,
2018
 
September 30,
2017
Net income/(loss)
$
31,481

 
$
(642
)
Non-cash adjustments to net income
49,782

 
29,791

Cash used for working capital
(36,976
)
 
(18,488
)
Cash provided by operating activities
44,287

 
10,661

 
 
 
 
Cash used in investing activities
(17,498
)
 
(179,996
)
 
 
 
 
Cash provided by financing activities
$
500

 
$
172,490

For the nine months ended September 30, 2018, non-cash adjustments to income primarily relate to bad debt, depreciation, amortization and stock compensation expense, offset slightly by the non-cash tax benefit. Our non-cash adjustments increased compared to the comparative prior year period due primarily to $7.9 million of increased bad debt expense, $7.6 million of increased amortization and $6.1 million of increased depreciation, predominantly related to the full-period impact of the acquisition of LifeWatch, offset partially by a $3.6 million increase in the non-cash tax benefit. The increase in cash used for working capital was due primarily to increased receivables resulting from rapid revenue growth and the timing of cash receipts and cash payments.
In conjunction with the LifeWatch acquisition in 2017, we established a new credit agreement with SunTrust Bank and lenders named therein in the form of a $205.0 million term loan and a $50.0 million revolving credit facility and extinguished our previous credit agreement. For further details regarding these agreements, please see “Part II; Item 8. Financial Statements and Supplementary Data; Notes to Consolidated Financial Statements; Note 10. Credit Agreement” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017. As of September 30, 2018, our revolving credit facility remains undrawn.

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