We believe CFFO is useful to investors in evaluating our liquidity for the following reasons:
-- It provides an assessment of our ability to facilitate meeting
current financial and liquidity goals.
-- To assess our ability to:
(i) service our outstanding indebtedness;
(ii) pay dividends; and
(iii) make regular recurring capital expenditures to maintain
and improve our facilities.
The table below reconciles CFFO from net cash provided by operating activities for the three months ended March 31, 2009 and 2008 (in thousands):
Three Months Ended March 31,
----------------------------
2009(1) 2008(1)
------- -------
Net cash provided by operating activities $68,757 $40,629
Changes in operating assets and liabilities (11,933) 4,695
Refundable entrance fees received(2) 3,638 3,492
Entrance fee refunds disbursed (5,836) (3,632)
Recurring capital expenditures, net (2,655) (6,037)
Lease financing debt amortization with
fair market value or no purchase options (1,780) (1,625)
Reimbursement of operating expenses and other - 1,063
------- -------
Cash From Facility Operations $50,191 $38,585
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