LifeCare Holdings, Inc. Announces Third Quart...(Provision for doubtful accounts ...),Health

Impairment charges 24,600 3,834

Gain on early extinguishment of debt (1,329) -

Equity in loss of joint venture - 448

Deferred income taxes (2,933) 2,087

Equity compensation amortization 467 519

Changes in operating assets and liabilities:

Patient accounts receivable (10,622) (7,409)

Other current assets 15,590 (3,123)

Other assets (1,429) (131)

Estimated third-party payer settlements 12,209 (7,884)

Accounts payable and accrued expenses (398) 3,322

Other liabilities 6,295 1,509

Net cash provided by (used in)

operating activities 35,225 (12,801)

Cash used in investing activities:

Purchases of property and equipment (16,000) (37,252)

Sale leaseback proceeds 788 26,669

Net cash used in investing activities (15,212) (10,583)

Cash flows provided by (used in) financing activities:

Deferred financing costs - (1,089)

Lease financing obligation proceeds - 10,466

Payments of notes payable and long-term debt (3,443) (2,550)

Payments on obligations under capital leases (4,212) (3,122)

Net cash provided by (used in)

financing activities (7,655) 3,705

Net increase (decrease) in cash and

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