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Liquidity
9 Months Ended
Sep. 30, 2012
Liquidity [Abstract]  
Liquidity
Liquidity

For the nine months ended September 30, 2012 and 2011, the Company incurred losses from continuing operations of $10.9 million and $3.0 million, respectively, which include losses from operations, and restructuring charges.  The Company has managed its liquidity through a series of cost reduction and accounts receivable collection initiatives.

At September 30, 2012, the Company had $8.2 million in cash and cash equivalents and no outstanding debt.  The Company's net cash (used in) provided by operating activities of continuing operations for the nine months ended September 30, 2012 and 2011 was $(5.1) million and $0.2 million, respectively.

As discussed in Note 8, the Company has a loan and security agreement (the "Loan and Security Agreement") with TD Bank, N.A. ("TD Bank") which expires on March 8, 2013. The Company is currently exploring future funding alternatives and options in anticipation of the expiration of the Loan and Security Agreement. There can be no assurance that the Company will be able to obtain such funding or, if funding could be obtained, that it would be on terms acceptable to the Company.

The Company is obligated to maintain a Fixed Charge Coverage Ratio on a rolling 12 month basis of not less than 1.1 to 1.0 as of any fiscal quarter ending after September 30, 2011 if, for any one or more day(s) following any such fiscal quarter end, (a) the outstanding balance of cash advances under the Loan and Security Agreement is greater than $0 and (b) the amount of the Company's cash on deposit with TD Bank is less than $6 million.

    
    

 As of September 30, 2012, both because the Company's cash on deposit with TD Bank exceeded $6 million and the Company's outstanding balance of cash advances under the Loan and Security Agreement was $0, compliance with the Fixed Charge Coverage Ratio is not applicable. However, if this covenant did apply, the Fixed Charge Coverage Ratio measured as specified in the Loan and Security Agreement as of September 30, 2012 was (17.9) to 1. As such, the Company would fail this financial covenant and therefore would have no borrowing capability under the terms of its Loan and Security Agreement.

In June 2012, the Company restructured its Portamedic service line, which included the deployment of a new model for delivering paramedical exam services. The restructure resulted in, among other things, the closure of branch offices, headcount reductions, the elimination of both fixed and variable costs and the consolidation of certain services into centralized customer service centers. For the three and nine months ended September 30, 2012, the Company's consolidated revenues totaled $33.7 million and $107.9 million, respectively, representing declines of 11.8% and 7.5%, respectively, from the prior year periods which were primarily attributable to the Portamedic service line.  Management is monitoring the impact of the new Portamedic delivery model and believes it is too soon to determine the model's ultimate impact on revenues. Nonetheless, in response to the declining revenues, subsequent to September 30, 2012, the Company has taken additional actions to reduce its costs and cash outflows, including headcount reductions and a reduction in capital expenditures and operating expenses, and is evaluating additional cash flow measures, including alternative sources of financing.  The actions taken are expected to reduce or delay expenses and uses of cash during the remainder of 2012 and thereafter.

If the new Portamedic delivery model is not successful and revenues continue to decline, operating losses will continue, assets may become impaired and the Company will be required to take additional actions to further reduce or delay expenses and uses of cash. This would also reduce the Company's cash reserves and potentially require the Company to seek alternative sources of financing, including but limited to new credit facilities and the sale of assets and service lines. There is no guarantee that the Portamedic delivery model will reverse the decline in revenues or that the Company's cost reduction actions will generate the savings necessary to offset revenue declines, operating losses and uses of cash.

If the Company is unsuccessful in reducing and reversing past revenue declines and cost reduction initiatives cannot be implemented to offset revenue declines, these factors would adversely affect the Company's liquidity and the Company may be required to obtain additional sources of liquidity in order to meet its obligations through at least September 30, 2013. Such sources of liquidity may not be available at terms acceptable to the Company.