EXHIBIT 11
Continental Medical Systems, Inc. and Subsidiaries
Computation of Earnings per Share
1994 1993 1992
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(In thousands, except per share data)
Primary:
Shares outstanding at beginning of period 36,935 35,560 34,733
Weighted average shares issued pursuant to:
Employee benefit plans 188 671 473
Acquisition agreements 540 138 72
Dilutive effect of outstanding stock options 963 1,611
Contingent shares issuable pursuant to
acquisition agreements 719 280
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Weighted average number of shares and
equivalent shares outstanding 37,663 38,051 37,169
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Income (loss) before cumulative effect of
accounting change ($34,545) $22,723 $27,091
Additional goodwill amortization from
contingent shares issuable pursuant to
acquisition agreements (176) (109)
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Adjusted income (loss) before cumulative
effect of accounting change
used in primary calculation ($34,545) $22,547 $26,982
Cumulative effect of accounting change (3,204)
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Adjusted net income (loss) used in primary
calculation ($34,545) $19,343 $26,982
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Income (loss) per share and equivalent
share:
Income (loss) before cumulative effect of
accounting change ($0.92) $ 0.59 $ 0.73
Cumulative effect of accounting change (0.08)
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Net income (loss) ($0.92) $ 0.51 $ 0.73
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Continental Medical Systems, Inc. and Subsidiaries
Computation of Earnings per Share
1994 1993 1992
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Fully Diluted: (In thousands, except per share data)
Weighted average number of shares and equivalent
shares used in primary calculation 37,663 38,051 37,169
Additional dilutive effect of stock options 5
Assumed conversion of dilutive convertible
debentures 234 234
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Fully diluted weighted average number of shares
and equivalent shares outstanding 37,663 38,290 37,403
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Adjusted income (loss) before cumulative effect
of accounting change
used in primary calculation ($34,545) $22,547 $26,982
Adjustment for interest expense, net of related
income tax benefits 86 97
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Adjusted income (loss) before cumulative effect
of accounting change
used in fully diluted calculation ($34,545) $22,633 $27,079
Cumulative effect of accounting change (3,204)
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Adjusted net income (loss) used in fully diluted
calculation ($34,545) $19,429 $27,079
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Income (loss) per share and equivalent share:
Income (loss) before cumulative effect of
accounting change ($0.92) $ 0.59 $ 0.72
Cumulative effect of accounting change (0.08)
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Net income (loss) ($0.92) $ 0.51 $ 0.72
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