Exhibit 11
Continental Medical Systems, Inc. and Subsidiaries
Computation of Earnings per Share
Three Months Ended Six Months Ended
December 31, December 31,
1994 1993 1994 1993
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(In thousands, except per share data)
Primary:
Shares outstanding at beginning of period 38,383 37,168 38,359 36,935
Weighted average shares issued pursuant to:
Employee benefit plans 22 56 41 107
Acquisition agreements 130 220 92 244
Dilutive effect of outstanding stock options 319 152 252
Contingent shares issuable pursuant to acquisition
agreements 601 392 608
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Weighted average number of shares and equivalent
shares outstanding 38,535 38,364 39,036 38,146
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Net income (loss) $ (5,669) $ 3,788 $ 92 $ 11,361
Additional goodwill amortization from contingent
shares issuable pursuant to acquisition agreements 0 (44) (44) (88)
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Adjusted net income (loss) used in primary calculation $ (5,669) $ 3,744 $ 48 $ 11,273
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Net income (loss) per share and equivalent share $ (0.15) $ 0.10 $ 0.00 $ 0.30
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Fully Diluted:
Weighted average number of shares and equivalent
shares used in primary calculation 38,535 38,364 39,036 38,146
Additional dilutive effect of stock options 31
Additional dilutive effect of contingent shares issuable
pursuant to acquisition agreements 276
Assumed conversion of dilutive convertible debentures 234 234 234
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Fully diluted weighted average number of shares and
equivalent shares outstanding 38,535 38,598 39,546 38,411
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Net income (loss) used in primary calculation $ (5,669) $ 3,744 $ 48 $ 11,273
Adjustment for interest expense, net of related income
tax benefits 23 1 46
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Adjusted net income (loss) used in fully diluted calculation $ (5,669) $ 3,767 $ 49 $ 11,319
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Fully diluted net income (loss) per share and equivalent share $ (0.15) $ 0.10 $ 0.00 $ 0.29
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