Our annuity-based business model yields strong and stable cash generation and earnings growth.
Through our annuity-based business model, we deliver significant cash generation and have a strong foundation upon which we can expand earnings.
The fundamentals of our business rest upon an annuity model that drives significant recurring revenue and cash generation. Over 80% of our 2010 total revenue was annuity-based revenue that includes contracted services, equipment maintenance and consumable supplies, among other elements. Some of the key indicators of annuity revenue growth include:
Approximately 82% of our revenue, annuity includes revenues from services, maintenance, supplies, rentals and financing.
18% Equipment Sales
The remaining 18% of our revenue comes from equipment sales, from either lease arrangements that qualify as sales for accounting purposes or outright cash sales.
The combination of consistently strong cash flow from operations and modest capital investments enabled us in 2010 to pay down a significant amount of the debt associated with the ACS acquisition. Cash generation in the future will continue to provide a return to shareholders through:
We will expand our operating margin and future earnings through: