NMHC Reports Fourth Quarter and Fiscal Year 2007 Financi...(1912 1462 Other income net ...),Health

Other income, net 39 29 60 9

541 370 1,456 1,158

(Loss) income before (benefit)

provision for income taxes (4,404) 3,122 1,290 16,672

(Benefit) provision for income

taxes (1,141) 1,238 1,198 7,015

Net (loss) income (3,263) 1,884 92 9,657

Redeemable convertible

preferred stock cash dividends 1,396 1,396 5,600 5,600

Accretion of transaction

expenses 119 119 475 475

Net (loss) income available to

common stockholders $(4,778) $369 $(5,983) $3,582

Earnings (loss) per common

share:

Basic $(0.87) $0.07 $(1.10) $0.70

Diluted $(0.87) $0.07 $(1.10) $0.67

Weighted-average number of

common shares outstanding:

Basic 5,489 5,291 5,454 5,143

Diluted 5,489 5,413 5,454 5,311

NATIONAL MEDICAL HEALTH CARD SYSTEMS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Years ended

June 30,

2007 2006 2005

Cash flows from operating activities:

Net income $92 $9,657 $12,381

Adjustments to reconcile net

income to net cash

provided by operating

activities:

Depreciation and amortization 9,777 7,470 6,300

Stock-based c
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