Exhibit 99.1
ITEM 6. SELECTED FINANCIAL DATA
The following table presents selected financial data for the periods indicated for our continuing operations only. Effective June 1, 2009, the Company completed the sale of all the outstanding common stock of Phase 2 Consulting, Inc. (“Phase 2”). The financial data herein has been updated to reflect the classification of the results of operations of Phase 2 as discontinued operations for all periods presented.
See Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and the notes to our accompanying consolidated financial statements for additional information regarding the financial data presented under this item.
SIX-YEAR FINANCIAL SUMMARY | | | | | | | | | | | | | | | | | | | | | | | |
Dollars in thousands, except per share data | | | | | | | | | | | | | | | | | | | | | | | |
(Year ended December 31,) | | 2008 | | | | 2007 | | | | 2006 | | | | 2005 | | | | 2004 | | | | 2003 | |
Consolidated statement of earnings data: | | | | | | | | | | | | | | | | | | | | | | | |
Operating revenues | $ | 735,412 | | | $ | 693,013 | | | $ | 601,807 | | | $ | 443,731 | | | $ | 378,797 | | | $ | 539,322 | |
Operating earnings (loss) (2) | | 32,907 | | | | 27,530 | | | | 21,551 | | | | 32,610 | | | | 41,311 | | | | (14,396) | |
Amounts attributable to RehabCare: (2) (3) | | | | | | | | | | | | | | | | | | | | | | | |
Earnings (loss) from continuing operations | $ | 19,568 | | | $ | 13,041 | | | $ | 7,594 | | | $ | (17,373) | | | $ | 22,893 | | | $ | (13,699) | |
Basic EPS from continuing operations | $ | 1.11 | | | $ | 0.76 | | | $ | 0.45 | | | $ | (1.04) | | | $ | 1.41 | | | $ | (0.86) | |
Diluted EPS from continuing operations | $ | 1.10 | | | $ | 0.75 | | | $ | 0.44 | | | $ | (1.04) | | | $ | 1.36 | | | $ | (0.86) | |
Weighted average shares outstanding (000s): | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | 17,583 | | | | 17,226 | | | | 17,008 | | | | 16,751 | | | | 16,292 | | | | 16,000 | |
Diluted | | 17,798 | | | | 17,459 | | | | 17,243 | | | | 16,751 | | | | 16,835 | | | | 16,000 | |
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Consolidated balance sheet data: | | | | | | | | | | | | | | | | | | | | | | | |
Working capital | $ | 97,284 | | | $ | 80,285 | | | $ | 85,982 | | | $ | 60,664 | | | $ | 76,451 | | | $ | 76,952 | |
Total assets | | 438,406 | | | | 408,560 | | | | 428,296 | | | | 272,925 | | | | 277,666 | | | | 233,626 | |
Total liabilities | | 160,606 | | | | 163,271 | | | | 217,431 | | | | 74,677 | | | | 70,638 | | | | 55,671 | |
Total equity | | 277,800 | | | | 245,289 | | | | 210,865 | | | | 198,248 | | | | 207,028 | | | | 177,955 | |
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Financial statistics: | | | | | | | | | | | | | | | | | | | | | | | |
Operating margin (2) | | 4.5% | | | | 4.0% | | | | 3.6% | | | | 7.3% | | | | 10.9% | | | | (2.7)% | |
Net margin (2) (3) | | 2.7% | | | | 1.9% | | | | 1.3% | | | | (3.9)% | | | | 6.0% | | | | (2.5)% | |
Current ratio | | 2.1:1 | | | | 1.9:1 | | | | 1.9:1 | | | | 1.9:1 | | | | 2.3:1 | | | | 2.9:1 | |
Diluted EPS growth rate (2) (3) | | 46.7% | | | | 70.5% | | | | 142.3% | | | | (176.5)% | | | | 258.1% | | | | (162.3)% | |
Return on equity (1) (2) (3) | | 7.5% | | | | 5.7% | | | | 3.7% | | | | (8.6)% | | | | 11.9% | | | | (7.5)% | |
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Operating statistics: | | | | | | | | | | | | | | | | | | | | | | | |
Freestanding hospitals: | | | | | | | | | | | | | | | | | | | | | | | |
Number of locations at end of year (4) | | 11 | | | | 8 | | | | 7 | | | | 5 | | | | N/A | | | | N/A | |
Number of patient discharges (4) | | 6,019 | | | | 5,070 | | | | 3,595 | | | | 1,110 | | | | N/A | | | | N/A | |
Program management: | | | | | | | | | | | | | | | | | | | | | | | |
Inpatient units: | | | | | | | | | | | | | | | | | | | | | | | |
Average number of programs | | 124 | | | | 127 | | | | 137 | | | | 145 | | | | 142 | | | | 133 | |
Average admissions per program | | 377 | | | | 363 | | | | 360 | | | | 372 | | | | 383 | | | | 422 | |
Outpatient programs: | | | | | | | | | | | | | | | | | | | | | | | |
Average number of locations | | 33 | | | | 35 | | | | 41 | | | | 42 | | | | 42 | | | | 48 | |
Patient visits (000s) | | 983 | | | | 1,006 | | | | 1,130 | | | | 1,146 | | | | 1,133 | | | | 1,248 | |
Contract therapy: | | | | | | | | | | | | | | | | | | | | | | | |
Average number of locations (5) | | 1,066 | | | | 1,125 | | | | 1,018 | | | | 749 | | | | 588 | | | | 460 | |
(1) | Based on average of beginning and ending equity. |
(2) | The results for 2003 include a pretax loss on net assets held for sale of $43.6 million ($30.6 million after tax or $1.90 per diluted share). |
(3) | The results for 2005 include after tax losses on our equity investment in InteliStaf Holdings, Inc. of $36.5 million or $2.18 per diluted share. |
(4) | We entered the freestanding hospitals business on August 1, 2005 with the acquisition of substantially all of the operating assets of MeadowBrook Healthcare, Inc. |
(5) | Effective July 1, 2006, we acquired Symphony Health Services, LLC and its RehabWorks business, which added 470 contract therapy locations. |