our laboratory internal revenue growth , adjusted for differences in billing days , was 13.5 % and 15.2 % in 2007 and 2006 , respectively . our animal hospital same-store revenue growth , adjusted for differences in business days , was 5.2 % and 5.8 % in 2007 and 2006 , 22 respectively . our medical technology segment also experienced growth through the sale of its digital radiography imaging equipment . our acquisition of independent animal hospitals for the last three years was augmented by the acquisition of two animal hospital chains including : healthy pet corp. ( healthy pet ) in 2007 and pet 's choice , inc. ( pet 's choice ) in 2005 , both of which are discussed in greater detail below . acquisitions and facilities our annual growth strategy includes the acquisition of independent animal hospitals . in 2007 , we acquired 29 independent animal hospitals with annual revenue of $ 57.0 million . in addition , we also evaluate the acquisition of animal hospital chains , laboratories or related businesses if favorable opportunities are presented . the following table summarizes the changes in the number of facilities operated by our laboratory and animal hospital segments : replace_table_token_5_th replace_table_token_6_th acquisition of healthy pet on june 1 , 2007 , we acquired healthy pet , which operated at the time of its acquisition , 44 animal hospitals and a small laboratory , which primarily serviced its own animal hospitals . at the time of the acquisition , healthy pet had estimated annualized revenue of approximately $ 80.0 million . this acquisition allowed us to expand our animal hospital operations , particularly in massachusetts , connecticut , virginia and georgia . our consolidated financial statements reflect the operating results of healthy pet since june 1 , 2007. the total purchase price for this acquisition was $ 185.0 million , consisting of : $ 153.7 million in cash paid to holders of healthy pet 's stock and debt ; $ 17.7 million in assumed debt ; $ 12.3 million in assumed liabilities ; and $ 1.3 million paid for professional and other outside services . in addition , we incurred integration costs of $ 1.6 million in 2007 , primarily to operate healthy pet 's corporate office , which was closed in november 2007. these costs were expensed as incurred and are included in corporate selling , general and administrative expense . 23 acquisition of pet 's choice on july 1 , 2005 , we acquired pet 's choice , which operated 46 animal hospitals as of the acquisition date . this acquisition allowed us to expand our animal hospital operations , particularly in texas and washington . at the time of the acquisition , pet 's choice had estimated annualized revenue of approximately $ 70.0 million . our consolidated financial statements include the operating results of pet 's choice since july 1 , 2005. the total purchase price for this acquisition was $ 78.8 million , consisting of : $ 51.1 million in cash paid to holders of pet 's choice stock and debt ; $ 14.1 million in assumed debt ; $ 12.8 million in assumed liabilities ; and $ 833,000 paid for professional and other outside services . in addition , we incurred integration costs of $ 1.2 million in 2005 primarily to operate pet 's choice 's corporate office , which was closed in october 2005. these costs were expensed as incurred and are included in corporate selling , general and administrative expense . critical accounting policies we believe that the application of the following accounting policies , which are important to our financial position and results of operations , require significant judgments and estimates on the part of management . for a summary of all our accounting policies , including the accounting policies discussed below , see note 2 . , summary of significant accounting policies , in our consolidated financial statements of this annual report on form 10-k. revenue laboratory and animal hospital revenue we recognize revenue when persuasive evidence of a sales arrangement exists , delivery of goods has occurred or services have been rendered , the sales price or fee is fixed or determinable and collectibility is reasonably assured . medical technology revenue our medical technology segment generates a majority of its revenue from the sale of digital radiography and ultrasound imaging equipment . we also generate revenue from : ( i ) licensing software ; ( ii ) providing technical support and product updates related to our software , otherwise known as maintenance ; ( iii ) providing professional services related to our equipment and software , including installations , on-site training , education services and extended warranty programs ; and ( iv ) providing mobile imaging services . we frequently sell equipment and license our software in multiple element arrangements in which the customer may choose a combination of our products and services . the accounting for the sale of equipment is substantially governed by the requirements of staff accounting bulletin ( sab ) no . 104 , revenue recognition ( sab no . 104 ) , and the sale of software licenses and related items is governed by statement of position ( sop ) no . 97-2 , software revenue recognition ( sop no . 97-2 ) , as amended . the determination of the amount of software license , maintenance and professional service revenue to be recognized in each accounting period requires us to exercise judgment and use estimates . in determining whether or not to recognize revenue , we evaluate each of these criteria : evidence of an arrangement : we consider a non-cancelable agreement signed by the customer and us to be evidence of an arrangement . delivery : we consider delivery to have occurred when the ultrasound imaging equipment is delivered . story_separator_special_tag we use both an internal review process and an independent third-party actuarial review to estimate claim liability based on actual and expected claims incurred and the estimated ultimate cost to settle the claims . periodically , we review our assumptions and the valuations provided by independent third-party actuaries to determine the adequacy of our self-insured liabilities . during the fourth quarter of 2007 , based upon information received from our actuaries , combined with our own internal review , we revised our estimate of our claims liability resulting in a $ 2.2 million favorable impact to our net earnings for the period . 28 health insurance with the exception of california employees enrolled in hmo plans , we are effectively self-insuring our employee health care benefit by retaining claims liability risk up to $ 150,000 per incident and an aggregate claim limit based on the number of employees enrolled in the plan per month . we estimate our liability for the uninsured portion of employee health care obligations that have been incurred but not reported based on our claims experience , the number of employees enrolled in the program and the average time from when a claim is incurred to the time it is paid . in addition , we retain an independent third-party actuary to provide an analysis of potential liability for open claims . consolidated results of operations the following table sets forth components of our income statements expressed as a percentage of revenue : replace_table_token_7_th revenue the following table summarizes our revenue ( in thousands , except percentages ) : replace_table_token_8_th 29 consolidated revenue increased $ 172.8 million in 2007 as compared to 2006 , and $ 143.6 million in 2006 as compared to 2005. the increases in revenue were attributable to the combination of revenue from acquired animal hospitals , including healthy pet acquired on june 1 , 2007 and pet 's choice acquired on july 1 , 2005 , and organic growth . our laboratory internal revenue growth , adjusted for differences in billing days , was 13.5 % and 15.2 % , in 2007 and 2006 , respectively . our animal hospital same-store revenue growth , adjusted for differences in business days , was 5.2 % and 5.8 % in 2007 and 2006 , respectively . historically , the animal healthcare industry and our business have been relatively resistant to changes in the general economy . our fourth quarter results appear to indicate that we were marginally impacted by the uncertainty in the economy . during this quarter , our laboratory internal revenue growth , adjusted for differences in billing days , was 9.1 % and our animal hospital same-store revenue growth , adjusted for differences in business days , was 2.5 % . gross profit the following table summarizes our gross profit and our gross profit as a percentage of applicable revenue , or gross margin ( in thousands , except percentages ) : replace_table_token_9_th consolidated gross profit increased $ 50.9 million in 2007 as compared to 2006 , and $ 44.7 million in 2006 as compared to 2005. the increases in both periods were primarily due to the increase in consolidated revenue discussed above and improvements in consolidated gross margins as compared to the previous year . the improvement in our consolidated gross margin in 2007 as compared to 2006 was primarily attributable to an increase in our laboratory gross margin , partially offset by a decrease in our animal hospital and medical technology gross margins . consolidated gross margins in 2007 also benefited from a decrease in workers ' compensation insurance expense of $ 3.2 million , or 0.3 % of revenue , due to a reduction in our estimated workers ' compensation insurance liability for policy periods prior to 2007. an increase in animal hospital revenue , which had a lower gross margin than our other operating segments , as a percentage of our total consolidated revenue had a partially offsetting impact to our consolidated gross margin . the improvement in our consolidated gross margin in 2006 as compared to 2005 was primarily attributable to an increase in our laboratory and medical technology gross margins , partially offset by a decrease in our animal hospital gross margin . 30 selling , general and administrative expense the following table summarizes our selling , general and administrative expense ( sg & a ) and our expense as a percentage of applicable revenue ( in thousands , except percentages ) : replace_table_token_10_th consolidated selling , general and administrative expense increased $ 8.9 million in 2007 as compared to 2006 primarily due to growth in the size of our company as a result of acquisitions . our selling , general and administrative expense as a percentage of revenue declined due to the aforementioned increase in revenue combined with leverage . in addition to normal increases in selling , general and administrative expense to support the growth of our company , we incurred $ 1.6 million , or 0.1 % of consolidated revenue in 2007 , for integration costs in connection with operating healthy pet 's corporate office , which was closed in november 2007. these integration costs are included in corporate selling , general and administrative expense . consolidated selling , general and administrative expense increased $ 11.8 million in 2006 as compared to 2005 primarily due to an increase in the size of our company . in addition to normal increases in selling , general and administrative expense to support the growth of our company , we recognized $ 2.4 million , or 0.2 % of consolidated revenue in 2006 , for share-based compensation as a result of adopting sfas no . 123 ( revised 2004 ) , share-based payment , on january 1 , 2006. in addition , in 2005 , we recognized $ 1.2 million , or 0.1 % of consolidated revenue , for integration costs primarily to operate pet 's choice 's corporate office , which was closed in october

cash flows from investing activities the table below presents the components of the changes in investing cash flows ( in thousands ) : replace_table_token_19_th ( 1 ) the number of acquisitions will vary from year to year based upon the available pool of suitable candidates . a detailed discussion of our acquisitions is provided above in the executive overview . ( 2 ) the increases in cash used to acquire property and equipment was primarily due to costs related to maintaining the quality or expanding our existing animal hospital and laboratory facilities , including certain technology related initiatives aimed at creating operational efficiencies . ( 3 ) the increase in cash used to acquire real estate was due primarily to an increase in the number of favorable opportunities presented . cash flows from financing activities the table below presents the components of the changes in financing cash flows ( in thousands ) : replace_table_token_20_th 39 replace_table_token_21_th ( 1 ) the increase in proceeds from the issuance of long-term obligations was primarily due to borrowings made under our senior credit facility in the form of additional senior term notes , which were used to finance the acquisition of healthy pet on june 1 , 2007 . ( 2 ) in may 2005 , we entered into a new senior credit facility which provided $ 475.0 million of senior term notes and a $ 75.0 million revolving credit facility . the proceeds from the new senior term notes were used to retire our existing senior term notes in the principal amount of $ 220.3 million and repurchase our 9.875 % senior subordinated notes in the principal amount of $ 170.0 million . the new senior term notes also provided the necessary financing to acquire pet 's choice on july 1 , 2005. in connection with the refinancing transactions , we paid financing costs of approximately $ 3.3 million and paid an aggregate tender fee of $ 13.8 million to purchase the 9.875 % senior subordinated notes . in addition , during august 2005 , we used $ 35.0 million in cash to prepay a portion of our senior term notes .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash flows from investing activities the table below presents the components of the changes in investing cash flows ( in thousands ) : replace_table_token_19_th ( 1 ) the number of acquisitions will vary from year to year based upon the available pool of suitable candidates . a detailed discussion of our acquisitions is provided above in the executive overview . ( 2 ) the increases in cash used to acquire property and equipment was primarily due to costs related to maintaining the quality or expanding our existing animal hospital and laboratory facilities , including certain technology related initiatives aimed at creating operational efficiencies . ( 3 ) the increase in cash used to acquire real estate was due primarily to an increase in the number of favorable opportunities presented . cash flows from financing activities the table below presents the components of the changes in financing cash flows ( in thousands ) : replace_table_token_20_th 39 replace_table_token_21_th ( 1 ) the increase in proceeds from the issuance of long-term obligations was primarily due to borrowings made under our senior credit facility in the form of additional senior term notes , which were used to finance the acquisition of healthy pet on june 1 , 2007 . ( 2 ) in may 2005 , we entered into a new senior credit facility which provided $ 475.0 million of senior term notes and a $ 75.0 million revolving credit facility . the proceeds from the new senior term notes were used to retire our existing senior term notes in the principal amount of $ 220.3 million and repurchase our 9.875 % senior subordinated notes in the principal amount of $ 170.0 million . the new senior term notes also provided the necessary financing to acquire pet 's choice on july 1 , 2005. in connection with the refinancing transactions , we paid financing costs of approximately $ 3.3 million and paid an aggregate tender fee of $ 13.8 million to purchase the 9.875 % senior subordinated notes . in addition , during august 2005 , we used $ 35.0 million in cash to prepay a portion of our senior term notes .
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 Suspicious Activity Report : our laboratory internal revenue growth , adjusted for differences in billing days , was 13.5 % and 15.2 % in 2007 and 2006 , respectively . our animal hospital same-store revenue growth , adjusted for differences in business days , was 5.2 % and 5.8 % in 2007 and 2006 , 22 respectively . our medical technology segment also experienced growth through the sale of its digital radiography imaging equipment . our acquisition of independent animal hospitals for the last three years was augmented by the acquisition of two animal hospital chains including : healthy pet corp. ( healthy pet ) in 2007 and pet 's choice , inc. ( pet 's choice ) in 2005 , both of which are discussed in greater detail below . acquisitions and facilities our annual growth strategy includes the acquisition of independent animal hospitals . in 2007 , we acquired 29 independent animal hospitals with annual revenue of $ 57.0 million . in addition , we also evaluate the acquisition of animal hospital chains , laboratories or related businesses if favorable opportunities are presented . the following table summarizes the changes in the number of facilities operated by our laboratory and animal hospital segments : replace_table_token_5_th replace_table_token_6_th acquisition of healthy pet on june 1 , 2007 , we acquired healthy pet , which operated at the time of its acquisition , 44 animal hospitals and a small laboratory , which primarily serviced its own animal hospitals . at the time of the acquisition , healthy pet had estimated annualized revenue of approximately $ 80.0 million . this acquisition allowed us to expand our animal hospital operations , particularly in massachusetts , connecticut , virginia and georgia . our consolidated financial statements reflect the operating results of healthy pet since june 1 , 2007. the total purchase price for this acquisition was $ 185.0 million , consisting of : $ 153.7 million in cash paid to holders of healthy pet 's stock and debt ; $ 17.7 million in assumed debt ; $ 12.3 million in assumed liabilities ; and $ 1.3 million paid for professional and other outside services . in addition , we incurred integration costs of $ 1.6 million in 2007 , primarily to operate healthy pet 's corporate office , which was closed in november 2007. these costs were expensed as incurred and are included in corporate selling , general and administrative expense . 23 acquisition of pet 's choice on july 1 , 2005 , we acquired pet 's choice , which operated 46 animal hospitals as of the acquisition date . this acquisition allowed us to expand our animal hospital operations , particularly in texas and washington . at the time of the acquisition , pet 's choice had estimated annualized revenue of approximately $ 70.0 million . our consolidated financial statements include the operating results of pet 's choice since july 1 , 2005. the total purchase price for this acquisition was $ 78.8 million , consisting of : $ 51.1 million in cash paid to holders of pet 's choice stock and debt ; $ 14.1 million in assumed debt ; $ 12.8 million in assumed liabilities ; and $ 833,000 paid for professional and other outside services . in addition , we incurred integration costs of $ 1.2 million in 2005 primarily to operate pet 's choice 's corporate office , which was closed in october 2005. these costs were expensed as incurred and are included in corporate selling , general and administrative expense . critical accounting policies we believe that the application of the following accounting policies , which are important to our financial position and results of operations , require significant judgments and estimates on the part of management . for a summary of all our accounting policies , including the accounting policies discussed below , see note 2 . , summary of significant accounting policies , in our consolidated financial statements of this annual report on form 10-k. revenue laboratory and animal hospital revenue we recognize revenue when persuasive evidence of a sales arrangement exists , delivery of goods has occurred or services have been rendered , the sales price or fee is fixed or determinable and collectibility is reasonably assured . medical technology revenue our medical technology segment generates a majority of its revenue from the sale of digital radiography and ultrasound imaging equipment . we also generate revenue from : ( i ) licensing software ; ( ii ) providing technical support and product updates related to our software , otherwise known as maintenance ; ( iii ) providing professional services related to our equipment and software , including installations , on-site training , education services and extended warranty programs ; and ( iv ) providing mobile imaging services . we frequently sell equipment and license our software in multiple element arrangements in which the customer may choose a combination of our products and services . the accounting for the sale of equipment is substantially governed by the requirements of staff accounting bulletin ( sab ) no . 104 , revenue recognition ( sab no . 104 ) , and the sale of software licenses and related items is governed by statement of position ( sop ) no . 97-2 , software revenue recognition ( sop no . 97-2 ) , as amended . the determination of the amount of software license , maintenance and professional service revenue to be recognized in each accounting period requires us to exercise judgment and use estimates . in determining whether or not to recognize revenue , we evaluate each of these criteria : evidence of an arrangement : we consider a non-cancelable agreement signed by the customer and us to be evidence of an arrangement . delivery : we consider delivery to have occurred when the ultrasound imaging equipment is delivered . story_separator_special_tag we use both an internal review process and an independent third-party actuarial review to estimate claim liability based on actual and expected claims incurred and the estimated ultimate cost to settle the claims . periodically , we review our assumptions and the valuations provided by independent third-party actuaries to determine the adequacy of our self-insured liabilities . during the fourth quarter of 2007 , based upon information received from our actuaries , combined with our own internal review , we revised our estimate of our claims liability resulting in a $ 2.2 million favorable impact to our net earnings for the period . 28 health insurance with the exception of california employees enrolled in hmo plans , we are effectively self-insuring our employee health care benefit by retaining claims liability risk up to $ 150,000 per incident and an aggregate claim limit based on the number of employees enrolled in the plan per month . we estimate our liability for the uninsured portion of employee health care obligations that have been incurred but not reported based on our claims experience , the number of employees enrolled in the program and the average time from when a claim is incurred to the time it is paid . in addition , we retain an independent third-party actuary to provide an analysis of potential liability for open claims . consolidated results of operations the following table sets forth components of our income statements expressed as a percentage of revenue : replace_table_token_7_th revenue the following table summarizes our revenue ( in thousands , except percentages ) : replace_table_token_8_th 29 consolidated revenue increased $ 172.8 million in 2007 as compared to 2006 , and $ 143.6 million in 2006 as compared to 2005. the increases in revenue were attributable to the combination of revenue from acquired animal hospitals , including healthy pet acquired on june 1 , 2007 and pet 's choice acquired on july 1 , 2005 , and organic growth . our laboratory internal revenue growth , adjusted for differences in billing days , was 13.5 % and 15.2 % , in 2007 and 2006 , respectively . our animal hospital same-store revenue growth , adjusted for differences in business days , was 5.2 % and 5.8 % in 2007 and 2006 , respectively . historically , the animal healthcare industry and our business have been relatively resistant to changes in the general economy . our fourth quarter results appear to indicate that we were marginally impacted by the uncertainty in the economy . during this quarter , our laboratory internal revenue growth , adjusted for differences in billing days , was 9.1 % and our animal hospital same-store revenue growth , adjusted for differences in business days , was 2.5 % . gross profit the following table summarizes our gross profit and our gross profit as a percentage of applicable revenue , or gross margin ( in thousands , except percentages ) : replace_table_token_9_th consolidated gross profit increased $ 50.9 million in 2007 as compared to 2006 , and $ 44.7 million in 2006 as compared to 2005. the increases in both periods were primarily due to the increase in consolidated revenue discussed above and improvements in consolidated gross margins as compared to the previous year . the improvement in our consolidated gross margin in 2007 as compared to 2006 was primarily attributable to an increase in our laboratory gross margin , partially offset by a decrease in our animal hospital and medical technology gross margins . consolidated gross margins in 2007 also benefited from a decrease in workers ' compensation insurance expense of $ 3.2 million , or 0.3 % of revenue , due to a reduction in our estimated workers ' compensation insurance liability for policy periods prior to 2007. an increase in animal hospital revenue , which had a lower gross margin than our other operating segments , as a percentage of our total consolidated revenue had a partially offsetting impact to our consolidated gross margin . the improvement in our consolidated gross margin in 2006 as compared to 2005 was primarily attributable to an increase in our laboratory and medical technology gross margins , partially offset by a decrease in our animal hospital gross margin . 30 selling , general and administrative expense the following table summarizes our selling , general and administrative expense ( sg & a ) and our expense as a percentage of applicable revenue ( in thousands , except percentages ) : replace_table_token_10_th consolidated selling , general and administrative expense increased $ 8.9 million in 2007 as compared to 2006 primarily due to growth in the size of our company as a result of acquisitions . our selling , general and administrative expense as a percentage of revenue declined due to the aforementioned increase in revenue combined with leverage . in addition to normal increases in selling , general and administrative expense to support the growth of our company , we incurred $ 1.6 million , or 0.1 % of consolidated revenue in 2007 , for integration costs in connection with operating healthy pet 's corporate office , which was closed in november 2007. these integration costs are included in corporate selling , general and administrative expense . consolidated selling , general and administrative expense increased $ 11.8 million in 2006 as compared to 2005 primarily due to an increase in the size of our company . in addition to normal increases in selling , general and administrative expense to support the growth of our company , we recognized $ 2.4 million , or 0.2 % of consolidated revenue in 2006 , for share-based compensation as a result of adopting sfas no . 123 ( revised 2004 ) , share-based payment , on january 1 , 2006. in addition , in 2005 , we recognized $ 1.2 million , or 0.1 % of consolidated revenue , for integration costs primarily to operate pet 's choice 's corporate office , which was closed in october

