Supplemental Consolidating Financial Information

3 Months Ended

12 Months Ended

Mar. 31, 2012

Dec. 31, 2011

Supplemental Consolidating Financial Information

Supplemental Consolidating Financial Information

13. Supplemental Consolidating Financial Information

Radiation Therapy Services, Inc. (RTS) payment obligations under the senior secured credit facility and senior subordinated notes are guaranteed by Radiation Therapy Services Holdings, Inc. (Parent) and certain domestic subsidiaries of RTS (Subsidiary Guarantors and, collectively with Parent, the “Guarantors”). The consolidated joint ventures and professional corporations of the Company are non-guarantors. Such guarantees are full, unconditional and joint and several. The following supplemental financial information sets forth, on an unconsolidated basis, balance sheets, statements of comprehensive income (loss), and statements of cash flows information for Parent, the Subsidiary Guarantors and the non-guarantor subsidiaries. The supplemental financial information reflects the investment of Parent and RTS and subsidiary guarantors using the equity method of accounting.

CONSOLIDATING BALANCE SHEETS (UNAUDITED)

AS OF MARCH 31, 2012

(in thousands)

	Parent			RTS			Subsidiary Guarantors		Subsidiary Non-Guarantors		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	114		$	53		$	1,874	$	10,366	$	—		$	12,407
Accounts receivable, net	—			—			53,813		47,356		—			101,169
Intercompany receivables	6,305			—			82,360		—		(88,665		)	—
Prepaid expenses	—			79			4,513		1,297		—			5,889
Inventories	—			—			4,388		539		—			4,927
Deferred income taxes	(35		)	(1,924		)	4,925		3		—			2,969
Other	6			872			2,624		955		—			4,457
Total current assets	6,390			(920		)	154,497		60,516		(88,665		)	131,818
Equity investments in joint ventures	139,037			867,212			113,675		49		(1,119,451		)	522
Property and equipment, net	—			—			208,977		35,315		—			244,292
Real estate subject to finance obligation	—			—			13,735		—		—			13,735
Goodwill	—			—			489,080		80,821		—			569,901
Intangible assets, net	—			2,782			20,901		22,126		—			45,809
Other assets	—			15,554			6,722		8,181		—			30,457
Intercompany note receivable	—			—			—		—		—			—
Total assets	$	145,427		$	884,628		$	1,007,587	$	207,008	$	(1,208,116	)	$	1,036,534
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	—		$	795		$	33,174	$	5,433	$	—		$	39,402
Intercompany payables	—			68,367			—		20,235		(88,602		)	—
Accrued expenses	(16		)	17,073			30,301		6,565		—			53,923
Income taxes payable	(126		)	1,624			2,325		1,661		—			5,484
Current portion of long-term debt	—			8,365			9,868		4,544		—			22,777
Current portion of finance obligation	—			—			184		—		—			184
Other current liabilities	—			—			2,518		2,856		—			5,374
Total current liabilities	(142		)	96,224			78,370		41,294		(88,602		)	127,144
Long-term debt, less current portion	—			660,268			19,463		2,254		—			681,985
Finance obligation, less current portion	—			—			14,133		—		—			14,133
Other long-term liabilities	—			1,041			15,512		6,589		—			23,142
Deferred income taxes	(3,882		)	(11,942		)	21,591		4,498		(6		)	10,259
Intercompany note payable	—			—			—		—		—			—
Total liabilities	(4,024		)	745,591			149,069		54,635		(88,608		)	856,663
Noncontrolling interests—redeemable	—			—			—		—		12,925			12,925
Total Radiation Therapy Services Holdings, Inc. shareholder’s equity	149,451			139,037			858,518		152,373		(1,149,929		)	149,450
Noncontrolling interests—nonredeemable	—			—			—		—		17,496			17,496
Total equity	149,451			139,037			858,518		152,373		(1,132,433		)	166,946
Total liabilities and equity	$	145,427		$	884,628		$	1,007,587	$	207,008	$	(1,208,116	)	$	1,036,534

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

THREE MONTHS ENDED MARCH 31, 2012

(in thousands)

	Parent			RTS			Subsidiary Guarantors		Subsidiary Non-Guarantors			Eliminations			Consolidated
Revenues:
Net patient service revenue	$	—		$	—		$	116,659	$	58,889		$	—		$	175,548
Other revenue	—			—			2,134		144			—			2,278
(Loss) income from equity investment	(10,340		)	6,772			957		12			2,218			(381		)
Intercompany revenue	—			31			17,690		—			(17,721		)	—
Total revenues	(10,340		)	6,803			137,440		59,045			(15,503		)	177,445
Expenses:
Salaries and benefits	95			—			72,095		21,653			—			93,843
Medical supplies	—			—			12,628		2,832			—			15,460
Facility rent expenses	—			—			8,123		1,467			—			9,590
Other operating expenses	—			—			6,097		2,604			—			8,701
General and administrative expenses	—			274			15,594		3,814			—			19,682
Depreciation and amortization	—			927			12,431		1,838			—			15,196
Provision for doubtful accounts	—			—			2,982		2,079			—			5,061
Interest expense, net	(1		)	16,788			655		113			—			17,555
Foreign currency transaction loss	—			—			—		49			—			49
Loss on foreign currency derivative contracts	—			594			—		—			—			594
Intercompany expenses	—			118			—		17,603			(17,721		)	—
Total expenses	94			18,701			130,605		54,052			(17,721		)	185,731
(Loss) income before income taxes	(10,434		)	(11,898		)	6,835		4,993			2,218			(8,286		)
Income tax expense	—			(1,891		)	92		1,916			(7		)	110
Net (loss) income	(10,434		)	(10,007		)	6,743		3,077			2,225			(8,396		)
Net income attributable to noncontrolling interests—redeemable and non-redeemable	—			—			—		—			(1,153		)	(1,153		)
Net (loss) income attributable to Radiation Therapy Services Holdings, Inc. shareholder	(10,434		)	(10,007		)	6,743		3,077			1,072			(9,549		)
Unrealized comprehensive loss:	—			(333		)	—		(528		)	—			(861		)
Comprehensive (loss) income	(10,434		)	(10,340		)	6,743		2,549			2,225			(9,257		)
Comprehensive income attributable to noncontrolling interests-redeemable and non-redeemable:	—			—			—		—			(1,177		)	(1,177		)
Comprehensive (loss) income attributable to Radiation Therapy Services Holdings, Inc. shareholder	$	(10,434	)	$	(10,340	)	$	6,743	$	2,549		$	1,048		$	(10,434	)

CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

THREE MONTHS ENDED MARCH 31, 2012

(in thousands)

	Parent			RTS			Subsidiary Guarantors			Subsidiary Non-Guarantors			Eliminations			Consolidated
Cash flows from operating activities
Net (loss) income	$	(10,434	)	$	(10,007	)	$	6,743		$	3,077		$	2,225		$	(8,396	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation	—			—			10,996			1,454			—			12,450
Amortization	—			927			1,435			384			—			2,746
Deferred rent expense	—			—			251			65			—			316
Deferred income taxes	—			10			38			(148		)	(6		)	(106		)
Stock-based compensation	95			—			—			—			—			95
Provision for doubtful accounts	—			—			2,982			2,079			—			5,061
Loss on the sale of property and equipment	—			—			90			—			—			90
Amortization of termination of interest rate swap	—			(84		)	—			—			—			(84		)
Loss on foreign currency transactions	—			—			—			9			—			9
Loss on foreign currency derivative contracts	—			594			—			—			—			594
Amortization of debt discount	—			218			—			—			—			218
Amortization of loan costs	—			1,334			—			—			—			1,334
Equity interest in net loss (earnings) of joint ventures	10,340			(6,772		)	(957		)	(12		)	(2,218		)	381
Distribution received from unconsolidated joint ventures	—			—			9			—			—			9
Changes in operating assets and liabilities:
Accounts receivable and other receivables	—			—			(12,854		)	(5,918		)	—			(18,772		)
Income taxes payable	—			71			(4		)	133			—			200
Inventories and other current assets	—			—			(227		)	(165		)	—			(392		)
Prepaid expenses	—			(27		)	765			(543		)	—			195
Intercompany payable / receivable	(53		)	(15,821		)	10,603			5,272			(1		)	—
Accounts payable	—			186			11,336			(206		)	—			11,316
Accrued deferred compensation	—			—			152			47			—			199
Accrued expenses	(16		)	9,271			1,953			166			—			11,374
Net cash (used in) provided by operating activities	(68		)	(20,100		)	33,311			5,694			—			18,837
Cash flows from investing activities
Purchases of property and equipment	—			—			(5,836		)	(1,066		)	—			(6,902		)
Acquisition of medical practices	—			—			(23,053		)	(50		)	—			(23,103		)
Proceeds from the sale of property and equipment	—			—			26			—			—			26
Loans to employees	—			—			(133		)	(3		)	—			(136		)
Intercompany notes to / from affiliates	—			—			—			—			—			—
Contribution of capital to joint venture entities	—			—			(225		)	—			—			(225		)
Distributions received from joint venture entities	—			406			1,529			—			(1,935		)	—
Payment of foreign currency derivative contracts	—			(292		)	—			—			—			(292		)
Premiums on life insurance policies	—			—			—			(155		)	—			(155		)
Change in other assets and other liabilities	(2		)	—			409			(252		)	—			155
Net cash (used in) provided by investing activities	(2		)	114			(27,283		)	(1,526		)	(1,935		)	(30,632		)
Cash flows from financing activities
Proceeds from issuance of debt	—			—			—			560			—			560
Net proceeds from revolving credit facility	—			20,000			—			—			—			20,000
Principal repayments of debt	—			—			(4,861		)	(738		)	—			(5,599		)
Repayments of finance obligation	—			—			(26		)	—			—			(26		)
Cash distributions to noncontrolling interest holders—redeemable and non-redeemable	—			—			—			—			(905		)	(905		)
Cash distributions to shareholders	—			—			—			(2,840		)	2,840			—
Net cash provided by (used in) financing activities	—			20,000			(4,887		)	(3,018		)	1,935			14,030
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(5		)	—			(5		)
Net (decrease) increase in cash and cash equivalents	(70		)	14			1,141			1,145			—			2,230
Cash and cash equivalents, beginning of period	184			39			733			9,221			—			10,177
Cash and cash equivalents, end of period	$	114		$	53		$	1,874		$	10,366		$	—		$	12,407

CONSOLIDATING BALANCE SHEETS

AS OF DECEMBER 31, 2011

(in thousands)

	Parent			RTS			Subsidiary Guarantors		Subsidiary Non-Guarantors		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	184		$	39		$	733	$	9,221	$	—		$	10,177
Accounts receivable, net	—			—			44,135		42,959		—			87,094
Intercompany receivables	6,335			—			91,477		—		(97,812		)	—
Prepaid expenses	—			52			4,968		711		—			5,731
Inventories	—			—			4,140		168		—			4,308
Deferred income taxes	(35		)	(1,924		)	4,925		3		—			2,969
Other	4			814			4,397		810		—			6,025
Total current assets	6,488			(1,019		)	154,775		53,872		(97,812		)	116,304
Equity investments in joint ventures	149,377			778,355			123,310		42		(1,050,392		)	692
Property and equipment, net	—			—			201,806		34,605		—			236,411
Real estate subject to finance obligation	—			—			13,719		—		—			13,719
Goodwill	—			82,491			384,001		90,055		—			556,547
Intangible assets, net	—			3,710			15,936		22,747		—			42,393
Other assets	—			17,248			7,089		8,189		—			32,526
Intercompany note receivable	—			—			—		—		—			—
Total assets	$	155,865		$	880,785		$	900,636	$	209,510	$	(1,148,204	)	$	998,592
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	—		$	609		$	21,838	$	5,301	$	—		$	27,748
Intercompany payables	—			84,272			—		13,473		(97,745		)	—
Accrued expenses	—			7,802			28,337		6,457		—			42,596
Income taxes payable	(126		)	1,553			2,329		1,554		—			5,310
Current portion of long-term debt	—			—			9,923		4,022		—			13,945
Current portion of finance obligation	—			—			161		—		—			161
Other current liabilities	—			—			3,886		2,729		—			6,615
Total current liabilities	(126		)	94,236			66,474		33,536		(97,745		)	96,375
Long-term debt, less current portion	—			648,415			13,757		2,916		—			665,088
Finance obligation, less current portion	—			—			14,105		—		—			14,105
Other long-term liabilities	—			708			15,460		6,491		—			22,659
Deferred income taxes	(3,882		)	(11,951		)	21,553		4,623		—			10,343
Intercompany note payable	—			—			—		—		—			—
Total liabilities	(4,008		)	731,408			131,349		47,566		(97,745		)	808,570
Noncontrolling interests—redeemable	—			—			—		—		12,728			12,728
Total Radiation Therapy Services Holdings, Inc. shareholder’s equity	159,873			149,377			769,287		161,944		(1,080,608		)	159,873
Noncontrolling interests—nonredeemable	—			—			—		—		17,421			17,421
Total equity	159,873			149,377			769,287		161,944		(1,063,187		)	177,294
Total liabilities and equity	$	155,865		$	880,785		$	900,636	$	209,510	$	(1,148,204	)	$	998,592

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

THREE MONTHS ENDED MARCH 31, 2011

(in thousands)

	Parent			RTS			Subsidiary Guarantors			Subsidiary Non-Guarantors			Eliminations			Consolidated
Revenues:
Net patient service revenue	$	—		$	—		$	113,665		$	41,418		$	—		$	155,083
Other revenue	—			—			1,459			245			—			1,704
(Loss) income from equity investment	(2,657		)	11,629			1,726			(1		)	(10,947		)	(250		)
Intercompany revenue	—			206			19,677			—			(19,883		)	—
Total revenues	(2,657		)	11,835			136,527			41,662			(30,830		)	156,537
Expenses:
Salaries and benefits	680			—			68,999			11,220			—			80,899
Medical supplies	—			—			11,788			703			—			12,491
Facility rent expenses	—			—			7,006			817			—			7,823
Other operating expenses	—			—			6,019			1,439			—			7,458
General and administrative expenses	5			399			15,782			1,650			—			17,836
Depreciation and amortization	—			—			11,327			1,128			—			12,455
Provision for doubtful accounts	—			—			2,282			1,519			—			3,801
Interest expense, net	(2		)	14,087			513			(105		)	—			14,493
Gain on fair value adjustment of previously held equity investment	—			—			(234		)	—			—			(234		)
Foreign currency transaction loss	—			—			—			10			—			10
Loss on foreign currency derivative contracts	—			116			—			—			—			116
Intercompany expenses	7			—			—			19,876			(19,883		)	—
Total expenses	690			14,602			123,482			38,257			(19,883		)	157,148
(Loss) income before income taxes	(3,347		)	(2,767		)	13,045			3,405			(10,947		)	(611		)
Income tax (benefit) expense	—			1,186			1,120			16			144			2,466
Net (loss) income	(3,347		)	(3,953		)	11,925			3,389			(11,091		)	(3,077		)
Net income attributable to noncontrolling interests—redeemable and non-redeemable	—			—			—			—			(1,439		)	(1,439		)
Net (loss) income attributable to Radiation Therapy Services Holdings, Inc. shareholder	(3,347		)	(3,953		)	11,925			3,389			(12,530		)	(4,516		)
Unrealized comprehensive income (loss):	—			1,296			—			(155		)	—			1,141
Comprehensive (loss) income	(3,347		)	(2,657		)	11,925			3,234			(11,091		)	(1,936		)
Comprehensive income attributable to noncontrolling interests-redeemable and non-redeemable:	—			—			—			—			(1,411		)	(1,411		)
Comprehensive (loss) income attributable to Radiation Therapy Services Holdings, Inc. shareholder	$	(3,347	)	$	(2,657	)	$	11,925		$	3,234		$	(12,502	)	$	(3,347	)

CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

THREE MONTHS ENDED MARCH 31, 2011

(in thousands)

	Parent			RTS			Subsidiary Guarantors			Subsidiary Non-Guarantors			Eliminations			Consolidated
Cash flows from operating activities
Net (loss) income	$	(3,347	)	$	(3,953	)	$	11,925		$	3,389		$	(11,091	)	$	(3,077	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation	—			—			9,816			1,013			—			10,829
Amortization	—			—			1,511			115			—			1,626
Deferred rent expense	—			—			229			60			—			289
Deferred income taxes	—			527			1,209			188			44			1,968
Stock-based compensation	680			—			—			—			—			680
Provision for doubtful accounts	—			—			2,282			1,519			—			3,801
Gain on the sale of property and equipment	—			—			(8		)	—			—			(8		)
Gain on fair value adjustment of previously held equity investment	—			—			(234		)	—			—			(234		)
Loss on foreign currency transactions	—			—			—			49			—			49
Loss on foreign currency derivative contracts	—			116			—			—			—			116
Amortization of debt discount	—			192			—			—			—			192
Amortization of loan costs	—			1,014			—			—			—			1,014
Equity interest in net loss (earnings) of joint ventures	2,657			(11,629		)	(1,726		)	1			10,947			250
Changes in operating assets and liabilities:
Accounts receivable and other receivables	—			—			(10,863		)	(4,734		)	—			(15,597		)
Income taxes payable	—			635			(89		)	(814		)	(69		)	(337		)
Inventories and other current assets	—			—			(681		)	4			—			(677		)
Prepaid expenses	—			(57		)	806			16			—			765
Intercompany payable / receivable	(276		)	2,393			(5,776		)	3,490			169			—
Accounts payable	—			(237		)	3,715			(634		)	—			2,844
Accrued expenses	—			10,776			3,213			(102		)	—			13,887
Net cash (used in) provided by operating activities	(286		)	(223		)	15,329			3,560			—			18,380
Cash flows from investing activities
Purchases of property and equipment	—			—			(10,878		)	(535		)	—			(11,413		)
Acquisition of medical practices	—			—			(47,500		)	5,396			—			(42,104		)
Proceeds from the sale of property and equipment	—			—			5			—			—			5
Repayments from (loans to) employees	—			—			147			(12		)	—			135
Intercompany notes to / from affiliates	—			—			—			—			—			—
Contribution of capital to joint venture entities	—			(47,500		)	—			—			47,500			—
Distributions received from joint venture entities	—			372			1,728			—			(1,800		)	300
Proceeds from sale of equity interest in a joint venture	—			—			312			—			—			312
Payment of foreign currency derivative contracts	—			(552		)	—			—			—			(552		)
Change in other assets and other liabilities	5			3			(100		)	32			—			(60		)
Net cash provided by (used in) investing activities	5			(47,677		)	(56,286		)	4,881			45,700			(53,377		)
Cash flows from financing activities
Proceeds from issuance of debt (net of original issue discount of $625)	—			49,375			—			26			—			49,401
Principal repayments of debt	—			—			(2,433		)	(23		)	—			(2,456		)
Repayments of finance obligation	—			—			(13		)	—			—			(13		)
Proceeds from equity contribution	3			—			47,500			—			(47,500		)	3
Cash distributions to noncontrolling interest holders—redeemable and non-redeemable	—			—			—			—			(923		)	(923		)
Payments of loan costs	—			(1,534		)	—			—			—			(1,534		)
Cash distributions to shareholders	—			—			—			(2,723		)	2,723			—
Net cash provided by (used in) financing activities	3			47,841			45,054			(2,720		)	(45,700		)	44,478
Effect of exchange rate changes on cash and cash equivalents	—			—			—			(3		)	—			(3		)
Net (decrease) increase in cash and cash equivalents	(278		)	(59		)	4,097			5,718			—			9,478
Cash and cash equivalents, beginning of period	279			80			8,637			4,981			—			13,977
Cash and cash equivalents, end of period	$	1		$	21		$	12,734		$	10,699		$	—		$	23,455

(20) Supplemental Consolidating Financial Information

        Radiation Therapy Services, Inc. (RTS) payment obligations under the senior secured credit facility and senior subordinated notes are guaranteed by Parent and certain domestic subsidiaries of RTS (Subsidiary Guarantors and, collectively with Parent, the "Guarantors"). The consolidated joint ventures and professional corporations of the Company are non-guarantors. Such guarantees are full, unconditional and joint and several. The following supplemental financial information sets forth, on an unconsolidated basis, balance sheets, statements of operations, and statements of cash flows information for Parent, the Subsidiary Guarantors and the non-guarantor subsidiaries. The supplemental financial information reflects the investment of Parent and RTS and subsidiary guarantors using the equity method of accounting.

CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2011
(in thousands)

	Parent			RTS			Subsidiary Guarantors		Subsidiary Non-Guarantors		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	184		$	39		$	733	$	9,221	$	—		$	10,177
Accounts receivable, net		—			—			44,135		42,959		—			87,094
Intercompany receivables		6,335			—			91,477		—		(97,812	)		—
Prepaid expenses		—			52			4,968		711		—			5,731
Inventories		—			—			4,140		168		—			4,308
Deferred income taxes		(35	)		(1,924	)		4,925		3		—			2,969
Other		4			814			4,397		810		—			6,025
Total current assets		6,488			(1,019	)		154,775		53,872		(97,812	)		116,304
Equity investments in joint ventures		149,377			778,355			123,310		42		(1,050,392	)		692
Property and equipment, net		—			—			201,806		34,605		—			236,411
Real estate subject to finance obligation		—			—			13,719		—		—			13,719
Goodwill		—			82,491			384,001		90,055		—			556,547
Intangible assets, net		—			3,710			15,936		22,747		—			42,393
Other assets		—			17,248			7,089		8,189		—			32,526
Intercompany note receivable		—			—			—		—		—			—
Total assets	$	155,865		$	880,785		$	900,636	$	209,510	$	(1,148,204	)	$	998,592
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	—		$	609		$	21,838	$	5,301	$	—		$	27,748
Intercompany payables		—			84,272			—		13,473		(97,745	)		—
Accrued expenses		—			7,802			28,337		6,457		—			42,596
Income taxes payable		(126	)		1,553			2,329		1,554		—			5,310
Current portion of long-term debt		—			—			9,923		4,022		—			13,945
Current portion of finance obligation		—			—			161		—		—			161
Other current liabilities		—			—			3,886		2,729		—			6,615
Total current liabilities		(126	)		94,236			66,474		33,536		(97,745	)		96,375
Long-term debt, less current portion		—			648,415			13,757		2,916		—			665,088
Finance obligation, less current portion		—			—			14,105		—		—			14,105
Other long-term liabilities		—			708			15,460		6,491		—			22,659
Deferred income taxes		(3,882	)		(11,951	)		21,553		4,623		—			10,343
Intercompany note payable		—			—			—		—		—			—
Total liabilities		(4,008	)		731,408			131,349		47,566		(97,745	)		808,570
Noncontrolling interests—redeemable		—			—			—		—		12,728			12,728
Total Radiation Therapy Services Holdings, Inc. shareholder's equity		159,873			149,377			769,287		161,944		(1,080,608	)		159,873
Noncontrolling interests—nonredeemable		—			—			—		—		17,421			17,421
Total equity		159,873			149,377			769,287		161,944		(1,063,187	)		177,294
Total liabilities and equity	$	155,865		$	880,785		$	900,636	$	209,510	$	(1,148,204	)	$	998,592

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
YEAR ENDED DECEMBER 31, 2011
(in thousands)

	Parent			RTS			Subsidiary Guarantors			Subsidiary Non-Guarantors			Eliminations			Consolidated
Revenues:
Net patient service revenue	$	—		$	—		$	435,258		$	203,432		$	—		$	638,690
Other revenue		—			1			6,574			488			—			7,063
(Loss) income from equity investment		(363,552	)		(342,738	)		2,633			(6	)		702,627			(1,036	)
Intercompany revenue		—			742			80,897			2			(81,641	)		—
Total revenues		(363,552	)		(341,995	)		525,362			203,916			620,986			644,717
Expenses:
Salaries and benefits		1,461			—			263,483			61,838			—			326,782
Medical supplies		—			—			46,590			5,248			—			51,838
Facility rent expenses		—			—			28,902			4,473			—			33,375
Other operating expenses		—			—			23,768			10,224			—			33,992
General and administrative expenses		6			1,929			68,500			11,253			—			81,688
Depreciation and amortization		—			928			46,764			6,392			—			54,084
Provision for doubtful accounts		—			—			11,276			4,841			—			16,117
Interest expense, net		(6	)		58,433			2,482			(253	)		—			60,656
Impairment loss		—			—			359,857			782			—			360,639
Loss (gain) on investments		—			—			251			(1	)		—			250
Gain on fair value adjustment of previously held equity investment		—			—			(234	)		—			—			(234	)
Foreign currency transaction loss		—			—			—			106			—			106
Loss on forward currency derivative contracts		—			672			—			—			—			672
Intercompany expenses		—			—			2			81,639			(81,641	)		—
Total expenses		1,461			61,962			851,641			186,542			(81,641	)		1,019,965
(Loss) income before income taxes		(365,013	)		(403,957	)		(326,279	)		17,374			702,627			(375,248	)
Income tax expense		(9,735	)		(37,977	)		16,547			5,800			—			(25,365	)
Net (loss) income		(355,278	)		(365,980	)		(342,826	)		11,574			702,627			(349,883	)
Net income attributable to noncontrolling interests—redeemable and non-redeemable		—			—			—			—			(3,558	)		(3,558	)
Net (loss) income attributable to Radiation Therapy Services Holdings, Inc. shareholder		(355,278	)		(365,980	)		(342,826	)		11,574			699,069			(353,441	)
Unrealized comprehensive income (loss):		—			2,428			—			(4,909	)		—			(2,481	)
Comprehensive (loss) income		(355,278	)		(363,552	)		(342,826	)		6,665			702,627			(352,364	)
Comprehensive income attributable to noncontrolling interests—redeemable and non-redeemable:		—			—			—			—			(2,914	)		(2,914	)
Comprehensive (loss) income attributable to Radiation Therapy Services Holdings, Inc. shareholder	$	(355,278	)	$	(363,552	)	$	(342,826	)	$	6,665		$	699,713		$	(355,278	)

CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2011
(in thousands)

	Parent			RTS			Subsidiary Guarantors			Subsidiary Non-Guarantors			Eliminations			Consolidated
Cash flows from operating activities
Net (loss) income	$	(355,278	)	$	(365,980	)	$	(342,826	)	$	11,574		$	702,627		$	(349,883	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation		—			—			40,822			5,150			—			45,972
Amortization		—			928			5,942			1,242			—			8,112
Deferred rent expense		—			—			1,069			202			—			1,271
Deferred income taxes		(2,141	)		(38,285	)		11,220			403			425			(28,378	)
Stock-based compensation		1,461			—			—			—			—			1,461
Provision for doubtful accounts		—			—			11,276			4,841			—			16,117
Loss on the sale of property and equipment		—			—			235			—			—			235
Termination of a derivative interest rate swap agreement		—			(1,880	)		—			—			—			(1,880	)
Impairment loss		—			—			359,857			782			—			360,639
Loss on investments		—			—			251			(1	)		—			250
Gain on fair value adjustment of previously held equity investment		—			—			(234	)		—			—			(234	)
Loss on foreign currency transactions		—			—			—			98			—			98
Loss on forward currency derivative contracts		—			672			—			—			—			672
Amortization of debt discount		—			847			—			—			—			847
Amortization of loan costs		—			4,524			—			—			—			4,524
Equity interest in net loss (earnings) of joint ventures		363,552			342,738			(2,633	)		6			(702,627	)		1,036
Distribution received from unconsolidated joint ventures		—			—			52			—			—			52
Changes in operating assets and liabilities:
Accounts receivable and other receivables		—			—			(11,807	)		(8,973	)		—			(20,780	)
Income taxes payable		(568	)		5,533			(7,076	)		(1,684	)		(598	)		(4,393	)
Inventories and other current assets		—			—			(1,552	)		(100	)		—			(1,622	)
Prepaid expenses		—			(7	)		2,536			310			—			2,839
Intercompany payable / receivable		(7,177	)		61,149			(56,738	)		2,593			173			—
Accounts payable		—			(15	)		4,338			(1,515	)		—			2,808
Accrued expenses		—			1,424			2,432			1,145			—			5,001
Net cash (used in) provided by operating activities		(151	)		11,648			17,194			16,073			—			44,764
Cash flows from investing activities
Purchases of property and equipment		—			—			(30,733	)		(5,879	)		—			(36,612	)
Acquisition of medical practices		—			—			(63,843	)		3,957			—			(59,886	)
Proceeds from the sale of property and equipment		—			—			6			—			—			6
Repayments from (loans to) employees		—			—			346			(8	)		—			338
Intercompany notes to / from affiliates		—			—			—			—			—			—
Contribution of capital to joint venture entities		—			(57,647	)		(299	)		—			57,147			(799	)
Distributions received from joint venture entities		—			1,379			6,442			—			(7,240	)		581
Proceeds from sale of equity interest in a joint venture		—			—			4,432			—			(4,120	)		312
Proceeds from sale of investments		—			—			1,035			—			—			1,035
Purchase of investments		—			—			—			(79	)		—			(79	)
Payment of foreign currency derivative contracts		—			(1,486	)		—			—			—			(1,486	)
Change in other assets and other liabilities		3			(1	)		(233	)		39			—			(192	)
Net cash provided by (used in) investing activities		3			(57,755	)		(82,847	)		(1,970	)		45,787			(96,782	)

CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2011 (Continued)
(in thousands)

	Parent			RTS			Subsidiary Guarantors			Subsidiary Non-Guarantors			Eliminations			Consolidated
Cash flows from financing activities
Proceeds from issuance of debt		—			97,375			11,408			2,422			—			111,205
Principal repayments of debt		—			(46,500	)		(10,711	)		(566	)		—			(57,777	)
Repayments of finance obligation		—			—			(95	)		—			—			(95	)
Proceeds from equity contribution		3			—			57,147			—			(57,147	)		3
Payments of notes receivable from shareholder		50			—			—			—			—			50
Proceeds from issuance of noncontrolling interest		—			—			—			—			4,120			4,120
Cash distributions to noncontrolling interest holders—redeemable and non-redeemable		—			—			—			—			(4,428	)		(4,428	)
Consolidation of noncontrolling interest		—			—			—			(33	)		—			(33	)
Payments of loan costs		—			(4,809	)		—			—			—			(4,809	)
Cash distributions to shareholders		—			—			—			(11,668	)		11,668			—
Net cash provided by (used in) financing activities		53			46,066			57,749			(9,845	)		(45,787	)		48,236
Effect of exchange rate changes on cash and cash equivalents		—			—			—			(18	)		—			(18	)
Net (decrease) increase in cash and cash equivalents		(95	)		(41	)		(7,904	)		4,240			—			(3,800	)
Cash and cash equivalents, beginning of period		279			80			8,637			4,981			—			13,977
Cash and cash equivalents, end of period	$	184		$	39		$	733		$	9,221		$	—		$	10,177

CONSOLIDATING BALANCE SHEETS
AS OF DECEMBER 31, 2010
(in thousands)

	Parent			RTS			Subsidiary Guarantors		Subsidiary Non-Guarantors			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	279		$	80		$	8,637	$	4,981		$	—		$	13,977
Accounts receivable, net		—			—			43,901		19,670			—			63,571
Intercompany receivables		—			—			71,519		—			(71,519	)		—
Income taxes receivable		—			—			—		—			—			—
Prepaid expenses		—			45			6,549		375			—			6,969
Inventories		—			—			2,579		68			—			2,647
Deferred income taxes		(517	)		1,553			1,240		—			—			2,276
Other		7			—			1,507		799			—			2,313
Total current assets		(231	)		1,678			135,932		25,893			(71,519	)		91,753
Equity investments in joint ventures		496,340			1,028,910			44,011		—			(1,549,125	)		20,136
Property and equipment, net		—			—			207,250		22,415			—			229,665
Real estate subject to finance obligation		—			—			8,100		—			—			8,100
Goodwill		—			114,064			644,699		12,135			—			770,898
Intangible assets, net		—			12,978			71,783		475			—			85,236
Other assets		—			16,963			4,420		9,159			—			30,542
Intercompany note receivable		—			—			—		—			—			—
Total assets	$	496,109		$	1,174,593		$	1,116,195	$	70,077		$	(1,620,644	)	$	1,236,330
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	—		$	624		$	17,880	$	3,384		$	—		$	21,888
Intercompany payables		841			59,758			—		11,037			(71,636	)		—
Accrued expenses		—			6,378			26,260		3,127			—			35,765
Income taxes payable		442			(3,980	)		9,405		(471	)		598			5,994
Current portion of long-term debt		—			—			8,780		—			—			8,780
Current portion of finance obligation		—			—			53		—			—			53
Other current liabilities		—			—			197		—			—			197
Total current liabilities		1,283			62,780			62,575		17,077			(71,038	)		72,677
Long-term debt, less current portion		—			580,645			9,406		—			—			590,051
Finance obligation, less current portion		—			—			8,515		—			—			8,515
Other long-term liabilities		—			4,966			10,002		1,013			—			15,981
Deferred income taxes		(2,223	)		29,862			6,648		(335	)		(425	)		33,527
Intercompany note payable		—			—			—		—			—			—
Total liabilities		(940	)		678,253			97,146		17,755			(71,463	)		720,751
Noncontrolling interests—redeemable		—			—			—		—			7,371			7,371
Total Radiation Therapy Services Holdings, Inc. shareholder's equity		497,049			496,340			1,019,049		52,322			(1,567,711	)		497,049
Noncontrolling interests—nonredeemable		—			—			—		—			11,159			11,159
Total equity		497,049			496,340			1,019,049		52,322			(1,556,552	)		508,208
Total liabilities and equity	$	496,109		$	1,174,593		$	1,116,195	$	70,077		$	(1,620,644	)	$	1,236,330

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
YEAR ENDED DECEMBER 31, 2010
(in thousands)

	Parent			RTS			Subsidiary Guarantors			Subsidiary Non-Guarantors			Eliminations			Consolidated
Revenues:
Net patient service revenue	$	—		$	—		$	391,643		$	144,270		$	—		$	535,913
Other revenue		—			—			6,377			672			—			7,049
(Loss) income from equity investment		(113,441	)		(48,528	)		4,354			—			158,616			1,001
Intercompany revenue		—			569			81,966			—			(82,535	)		—
Total revenues		(113,441	)		(47,959	)		484,340			144,942			76,081			543,963
Expenses:
Salaries and benefits		1,030			—			244,692			36,580			—			282,302
Medical supplies		—			—			40,779			2,248			—			43,027
Facility rent expenses		—			—			25,166			2,719			—			27,885
Other operating expenses		—			—			23,965			3,138			—			27,103
General and administrative expenses		2			2,669			59,567			3,560			—			65,798
Depreciation and amortization		—			—			42,864			3,482			—			46,346
Provision for doubtful accounts		—			—			3,566			5,265			—			8,831
Interest expense, net		(9	)		54,934			4,011			(431	)		—			58,505
Loss on sale of assets of a radiation treatment center		—			—			1,903			—			—			1,903
Early extinguishment of debt		—			10,947			—			—			—			10,947
Impairment Loss		—			—			97,916			—			—			97,916
Intercompany expenses		—			—			—			82,703			(82,703	)		—
Total expenses		1,023			68,550			544,429			139,264			(82,703	)		670,563
(Loss) income before income taxes		(114,464	)		(116,509	)		(60,089	)		5,678			158,784			(126,600	)
Income tax (benefit) expense		(454	)		(1,389	)		(11,142	)		6			169			(12,810	)
Net (loss) income		(114,010	)		(115,120	)		(48,947	)		5,672			158,615			(113,790	)
Net income attributable to noncontrolling interests—redeemable and non-redeemable		—			—			—			—			(1,698	)		(1,698	)
Net (loss) income attributable to Radiation Therapy Services Holdings, Inc. shareholder		(114,010	)		(115,120	)		(48,947	)		5,672			156,917			(115,488	)
Unrealized comprehensive income (loss):		—			1,679			(201	)		—			—			1,478
Comprehensive (loss) income		(114,010	)		(113,441	)		(49,148	)		5,672			158,615			(112,312	)
Comprehensive income attributable to noncontrolling interests-redeemable and non-redeemable:		—			—			—			—			(1,698	)		(1,698	)
Comprehensive (loss) income attributable to Radiation Therapy Services Holdings, Inc. shareholder	$	(114,010	)	$	(113,441	)	$	(49,148	)	$	5,672		$	156,917		$	(114,010	)

CONSOLIDATING STATEMENTS OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2010
(in thousands)

	Parent			RTS			Subsidiary Guarantors			Subsidiary Non-Guarantors			Eliminations			Consolidated
Cash flows from operating activities
Net (loss) income	$	(114,010	)	$	(115,120	)	$	(48,947	)	$	5,672		$	158,615		$	(113,790	)
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation		—			—			35,581			3,430			—			39,011
Amortization		—			—			7,283			52			—			7,335
Deferred rent expense		—			—			895			285			—			1,180
Deferred income tax provision (benefit)		(1,627	)		(1,335	)		(15,976	)		(335	)		(425	)		(19,698	)
Stock-based compensation		1,030			—			—			—			—			1,030
Impairment Loss		—			—			97,916			—			—			97,916
Provision for doubtful accounts		—			—			3,566			5,265			—			8,831
Loss on the sale of property and equipment		—			—			734			—			—			734
Loss on sale of assets of a radiation treatment center		—			—			1,903			—			—			1,903
Write off of pro-rata debt discount		—			494			—			—			—			494
Write off of loan costs		—			1,593			—			—			—			1,593
Early Extinguishment of debt		—			10,947			—			—			—			10,947
Amortization of debt discount		—			791			—			—			—			791
Amortization of loan costs		—			3,350			—			—			—			3,350
Equity interest in net earnings of joint ventures		113,441			48,528			(4,354	)		—			(158,616	)		(1,001	)
Distribution received from unconsolidated joint ventures		—			—			980			—			—			980
Changes in operating assets and liabilities:
Accounts receivable and other receivables		—			—			(11,660	)		(4,406	)		—			(16,066	)
Income taxes receivable / payable		442			1,220			4,178			39			598			6,477
Inventories		—			—			103			4			—			107
Prepaid expenses		—			(1	)		4,214			212			—			4,425
Intercompany payable / receivable		732			10,900			(9,804	)		(1,656	)		(172	)		—
Accounts payable		—			379			8,071			4			—			8,454
Accrued expenses		—			(4,483	)		8,632			(163	)		5			3,991
Net cash provided by (used in) operating activities		8			(42,737	)		83,315			8,403			5			48,994
Cash flows from investing activities
Purchases of property and equipment		—			—			(43,260	)		(521	)		—			(43,781	)
Acquisition of radiation centers		—			—			(43,388	)		—			—			(43,388	)
Purchase of joint venture interests		—			(1,000	)		—			—			—			(1,000	)
Proceeds from the sale of property and equipment		—			—			1,693			—			—			1,693
Repayments from (loans to) employees		—			—			457			—			—			457
Intercompany notes to / from affiliates		—			500			—			(500	)		—			—
Contribution of capital to joint venture entities		—			(8,000	)		(3,711	)		—			8,000			(3,711	)
Proceeds from sale of equity interest in joint venture		—			—			300			308			(608	)		—
Distributions received from joint venture		—			1,166			4,140			—			(5,279	)		27
Change in other assets and other liabilities		—			(2,005	)		(826	)		28			(5	)		(2,808	)
Net cash provided by (used in) investing activities		—			(9,339	)		(84,595	)		(685	)		2,108			(92,511	)
Cash flows from financing activities
Proceeds from issuance of debt (net of original issue discount of $1,950)		—			316,550			—			—			—			316,550
Principal repayments of debt		—			(260,667	)		(10,628	)		—			—			(271,295	)
Repayments of finance obligation		—			—			(302	)		—			—			(302	)
Payment of call premium on senior subordinated notes		—			(5,250	)		—			—			—			(5,250	)
Proceeds from equity contribution		156			—			8,000			—			(8,000	)		156
Payments of notes receivable from shareholder		50			—			—			—			—			50
Proceeds from issuance of noncontrolling interest		—			—			—			—			608			608
Cash distributions to noncontrolling interest holders—redeemable and non-redeemable		—			—			—			—			(3,176	)		(3,176	)
Deconsolidation of noncontrolling interest		—			—			—			(14	)		—			(14	)
Payments of loan costs		—			(12,791	)		—			—			—			(12,791	)
Cash distributions to shareholders		—			—			—			(8,455	)		8,455			—
Net cash provided by (used in) financing activities		206			37,842			(2,930	)		(8,469	)		(2,113	)		24,536
Net increase (decrease) in cash and cash equivalents		214			(14,234	)		(4,210	)		(751	)		—			(18,981	)
Cash and cash equivalents, beginning of period		65			14,314			12,847			5,732			—			32,958
Cash and cash equivalents, end of period	$	279		$	80		$	8,637		$	4,981		$	—		$	13,977

CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
YEAR ENDED DECEMBER 31, 2009
(in thousands)

	Parent			RTS			Subsidiary Guarantors			Subsidiary Non-Guarantors			Eliminations			Consolidated
Revenues:
Net patient service revenue	$	—		$	—		$	369,728		$	147,918		$	—		$	517,646
Other revenue		—			—			4,755			1,203			—			5,958
(Loss) income from equity investment		(6,795	)		52,672			4,614			—			(49,611	)		880
Intercompany revenue		—			845			86,862			—			(87,707	)		—
Total revenues		(6,795	)		53,517			465,959			149,121			(137,318	)		524,484
Expenses:
Salaries and benefits		962			—			219,734			38,836			—			259,532
Medical supplies		—			—			43,913			1,448			—			45,361
Facility rent expenses		—			—			19,964			2,142			—			22,106
Other operating expenses		—			—			21,268			3,130			—			24,398
General and administrative expenses		2			739			50,653			3,143			—			54,537
Depreciation and amortization		—			—			43,605			2,811			—			46,416
Provision for doubtful accounts		—			—			8,526			4,345			—			12,871
Interest expense, net		(10	)		53,831			9,031			(350	)		—			62,502
Impairment loss		—			—			3,470			4			—			3,474
Intercompany expenses		—			—			—			87,707			(87,707	)		—
Total expenses		954			54,570			420,164			143,216			(87,707	)		531,197
(Loss) income before income taxes		(7,749	)		(1,053	)		45,795			5,905			(49,611	)		(6,713	)
Income tax (expense) benefit		—			7,680			(6,460	)		(218	)		—			1,002
Net (loss) income		(7,749	)		(8,733	)		52,255			6,123			(49,611	)		(7,715	)
Net income attributable to noncontrolling interests—redeemable and non-redeemable		—			—			—			—			(1,835	)		(1,835	)
Net (loss) income attributable to Radiation Therapy Services Holdings, Inc. shareholder		(7,749	)		(8,733	)		52,255			6,123			(51,446	)		(9,550	)
Unrealized comprehensive income (loss):		—			1,938			(137	)		—			—			1,801
Comprehensive (loss) income		(7,749	)		(6,795	)		52,118			6,123			(49,611	)		(5,914	)
Comprehensive income attributable to noncontrolling interests-redeemable and non-redeemable:		—			—			—			—			(1,835	)		(1,835	)
Comprehensive (loss) income attributable to Radiation Therapy Services Holdings, Inc. shareholder	$	(7,749	)	$	(6,795	)	$	52,118		$	6,123		$	(51,446	)	$	(7,749	)

CONSOLIDATING STATEMENTS OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2009
(in thousands)

	Parent			RTS			Subsidiary Guarantors			Subsidiary Non-Guarantors			Eliminations			Consolidated
Cash flows from operating activities
Net (loss) income	$	(7,749	)	$	(8,733	)	$	52,255		$	6,123		$	(49,611	)	$	(7,715	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation		—			—			29,211			2,626			—			31,837
Amortization		—			—			14,394			185			—			14,579
Deferred rent expense		—			—			2,170			1,029			—			3,199
Deferred income tax provision		(34	)		(6,825	)		5,524			—			—			(1,335	)
Stock-based compensation		962			—			—			—			—			962
Impairment loss		—			—			3,470			4			—			3,474
Provision for doubtful accounts		—			—			8,526			4,345			—			12,871
Loss on the sale of property and equipment		—			—			1,345			(4	)		—			1,341
Write-off of acquisition-related costs		—			—			812			—			—			812
Amortization of debt discount		—			1,208			—			—			—			1,208
Amortization of loan costs		—			2,850			—			—			—			2,850
Equity interest in net earnings of joint ventures		6,795			(52,672	)		(4,614	)		—			49,611			(880	)
Changes in operating assets and liabilities:
Accounts receivable		—			—			(58	)		(3,732	)		—			(3,790	)
Income taxes receivable and other receivables		—			10,910			2,776			(545	)		—			13,141
Inventories		—			—			14			(4	)		—			10
Prepaid expenses		—			(2	)		1,670			338			—			2,006
Intercompany payable / receivable		58			64,302			(64,057	)		(303	)		—			—
Accounts payable		—			(98	)		(1,464	)		597			—			(965	)
Accrued expenses		—			(627	)		(1,280	)		(300	)		(6	)		(2,213	)
Net cash provided by (used in) operating activities		32			10,313			50,694			10,359			(6	)		71,392
Cash flows from investing activities
Purchases of property and equipment		—			—			(33,838	)		(1,605	)		—			(35,443	)
Acquisition of radiation centers		—			—			(2,449	)		—			—			(2,449	)
Restricted cash associated with earn-out provisions of acquisitions		—			—			2,269			—			—			2,269
Purchase of joint venture interests		—			—			(13,593	)		—			—			(13,593	)
Proceeds from the sale of property and equipment		—			—			39			105			—			144
Repayments from (loans to) employees		—			—			451			27			—			478
Contribution of capital to joint venture entities		—			—			(2,665	)		—			279			(2,386	)
Proceeds from sale of equity interest in joint venture		—			—			250			385			(635	)		—
Distributions received from joint venture		—			1,142			3,959			—			(5,101	)		—
Change in other assets and other liabilities		3			(1,976	)		(1,464	)		239			6			(3,192	)
Net cash provided by (used in) investing activities		3			(834	)		(47,041	)		(849	)		(5,451	)		(54,172	)
Cash flows from financing activities
Principal repayments of debt		—			(18,768	)		(10,925	)		—			—			(29,693	)
Repayments of finance obligation		—			—			(1,242	)		—			—			(1,242	)
Payments of notes receivable from shareholder		25			—			—			—			—			25
Proceeds from issuance of noncontrolling interest		—			—			—			—			356			356
Cash distributions to noncontrolling interest holders—redeemable and non-redeemable		—			—			—			—			(2,876	)		(2,876	)
Cash distributions to shareholders		—			—			—			(7,977	)		7,977			—
Net cash provided by (used in) financing activities		25			(18,768	)		(12,167	)		(7,977	)		5,457			(33,430	)
Net increase (decrease) in cash and cash equivalents		60			(9,289	)		(8,514	)		1,533			—			(16,210	)
Cash and cash equivalents, beginning of period		5			23,603			21,361			4,199			—			49,168
Cash and cash equivalents, end of period	$	65		$	14,314		$	12,847		$	5,732			—		$	32,958