Years Ended March 31,

2001

2002

2003

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$13,222,000

$ 14,821,000

$ 16,584,000

Adjustments to reconcile net income

to net cash provided by operating activities:

Depreciation

6,759,000

8,414,000

10,839,000

Deferred income taxes

303,000

(40,000)

999,000

Tax benefits from stock options exercised

Loss on write down and (gain) on disposal of property and equipment

673,000

(45,000)

606,000

52,000

1,265,000

-

Changes in operating assets and liabilities:

Accounts receivable

1,558,000

1,276,000

(9,778,000)

Prepaid expenses and taxes

(534,000)

1,166,000

(516,000)

Accounts and taxes payable

(2,304,000)

426,000

(115,000)

Accrued liabilities

4,657,000

(27,000)

1,553,000

Goodwill and other assets

149,000

488,000

1,417,000

Net cash provided by operating activities

24,438,000

27,182,000

22,248,000

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of business, net of cash acquired

Purchases of property and equipment

-

(10,154,000)

-

(10,876,000)

(3,395,000)

(13,929,000)

Net cash used in investing activities

(10,154,000)

(10,876,000)

(17,324,000)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from employee stock purchase plan

Proceeds from exercise of stock options

687,000

2,790,000

788,000

1,287,000

952,000

2,423,000

Purchase of common stock

(13,947,000)

(15,237,000)

(14,987,000)

Net cash used in financing activities

(10,470,000)

(13,162,000)

(11,612,000)

Net increase (decrease) in cash and cash equivalents

3,814,000

3,144,000

(6,688,000)

Cash and cash equivalents at beginning of year

5,643,000

9,457,000

12,601,000

CASH AND CASH EQUIVALENTS AT END OF YEAR

$ 9,457,000

$ 12,601,000

$ 5,913,000