Exhibit 11
Continental Medical Systems, Inc. and Subsidiaries
Computation of Earnings per Share
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
1995 1994 1995 1994
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(In thousands, except per share data)
PRIMARY:
Shares outstanding at beginning of period 38,539 37,550 38,359 36,935
Weighted average shares issued pursuant to:
Employee benefit plans 85 74 127 146
Acquisition agreements 105 307
Dilutive effect of outstanding stock options 27 494 95 338
Contingent shares issuable pursuant to acquisition
agreements 303 401 330 455
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Weighted average number of shares and equivalent
shares outstanding 38,954 38,519 39,016 38,181
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Net income $ 3,762 $ 4,170 $ 3,854 $15,531
Additional goodwill amortization from contingent
shares issuable pursuant to acquisition agreements (44) (44) (132)
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Adjusted net income used in primary calculation $3,762 $4,126 $3,810 $15,399
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Net income per share and equivalent share $0.10 $0.11 $0.10 $0.40
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FULLY DILUTED:
Weighted average number of shares and equivalent
shares used in primary calculation 38,954 38,519 39,016 38,181
Additional dilutive effect of stock options 93 26 113
Additional dilutive effect of contingent shares issuable
pursuant to acquisition agreements 226 82 226 82
Assumed conversion of dilutive convertible debentures 262 234 262 234
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Fully diluted weighted average number of shares and
equivalent shares outstanding 39,535 38,835 39,530 38,610
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Net income used in primary calculation $3,762 $4,126 $3,810 $15,399
Adjustment for interest expense, net of related income
tax benefits 20 23 45 69
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Adjusted net income used in fully diluted calculation $3,782 $4,149 $3,855 $15,468
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Fully diluted net income per share and equivalent share $0.10 $0.11 $0.10 $0.40
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