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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)
In Thousands
9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Operating activities:  
Net income$ 3,652$ 2,601
Adjustments to reconcile net income to cash provided by operating activities:  
Gain on redemption of senior preferred stock(230)(92)
Dividends of preferred stock as interest expense3,1253,183
Accretion of note payable1630
Depreciation and amortization1,7311,233
Amortization of debt issuance costs5497
Deferred income tax benefit(159)0
Other noncash items5874
Changes in other operating assets and liabilities2,683(4,979)
Cash provided by operating activities11,0772,117
Investing activities:  
Acquisition of ITL (Note 11)(8,000)0
Purchases of property and equipment(532)(709)
Cash used in investing activities(8,532)(709)
Financing activities:  
Proceeds from senior credit facility187,915183,105
Repayments of senior credit facility(187,121)(187,898)
Proceeds from term loan07,500
Decrease in book overdrafts2,1341,889
Repayments of term loan(281)(94)
Repayments of note payable(1,383)0
Payments under capital lease obligations(672)(612)
Redemption of senior preferred stock(2,070)(430)
Payment of senior subordinated notes0(4,179)
Payment of debt issuance costs0(75)
Distributions to Telos ID Class B membership unit - non-controlling interest(1,021)(612)
Cash used in financing activities(2,499)(1,406)
Effect of exchange rate changes on cash and cash equivalents05
Increase in cash and cash equivalents467
Cash and cash equivalents at beginning of period11678
Cash and cash equivalents at end of period16285
Cash paid during the period for:  
Interest1,2801,732
Income taxes3,8821,135
Noncash:  
Interest on redeemable preferred stock3,1253,183
Acquisition financed through issuance of notes payable$ 18,673$ 0