EXHIBIT 11
Continental Medical Systems, Inc. and Subsidiaries
Computation of Earnings per Share
THREE MONTHS ENDED
SEPTEMBER 30,
1994 1993
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(In thousands, except per share data)
PRIMARY:
Shares outstanding at beginning of period 38,359 36,935
Weighted average shares issued pursuant to:
Employee benefit plans 22 54
Acquisition agreements 103
Dilutive effect of outstanding stock options 255 202
Contingent shares issuable pursuant to acquisition
agreements 323 647
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Weighted average number of shares and equivalent
shares outstanding 38,959 37,941
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Net income $5,761 $7,573
Additional goodwill amortization from contingent shares
issuable pursuant to acquisition agreements (44) (44)
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Adjusted net income used in primary calculation $5,717 $7,529
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Net income per share and equivalent share $0.15 $0.20
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FULLY DILUTED:
Weighted average number of shares and equivalent
shares used in primary calculation 38,959 37,941
Additional dilutive effect of stock options 109 12
Additional dilutive effect of contingent shares issuable pursuant
to acquisition agreements 192
Assumed conversion of dilutive convertible debentures 234 234
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Fully diluted weighted average number of shares and
equivalent shares outstanding 39,494 38,187
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Net income used in primary calculation $5,717 $7,529
Adjustment for interest expense, net of related income
tax benefits 23 23
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Adjusted net income used in fully diluted calculation $5,740 $7,552
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Fully diluted net income per share and equivalent share $0.15 $0.20
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