RehabCare Reports First Quarter 2003 Revenues of $138.8 Million and Diluted EPS of $0.25.Business Editors/Health/Medical Writers ST. LOUIS--(BUSINESS WIRE)--May 6, 2003 RehabCare Group, Inc. (NYSE NYSE See: New York Stock Exchange :RHB) today announced results for its first quarter ended March 31, 2003. Operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the quarter increased to $138.8 million from $138.2 million in the first quarter of 2002. Net earnings for the quarter were $4.0 million, unchanged from earnings reported in the first quarter of 2002. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.25 compared to $0.22 in the year-ago quarter, an increase of 11.3 percent. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. shares outstanding decreased by 9.7 percent from last year's first quarter, primarily due to the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of 1.7 million shares under the stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program, which was completed in the second half of 2002. In the hospital rehabilitation rehabilitation: see physical therapy. services division, which is comprised of the inpatient inpatient /in·pa·tient/ (in´pa-shent) a patient who comes to a hospital or other health care facility for diagnosis or treatment that requires an overnight stay. in·pa·tient n. and outpatient outpatient /out·pa·tient/ (-pa-shent) a patient who comes to the hospital, clinic, or dispensary for diagnosis and/or treatment but does not occupy a bed. out·pa·tient n. segments, revenues for the quarter increased by 5.1 percent to $46.2 million from $43.9 million in the first quarter of 2002. Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before (earnings before interest and income taxes) for the division grew by 6.2 percent to $7.1 million in the first quarter of 2003 from $6.7 million in the same period last year. Improved profitability within the inpatient segment compared to last year was partially offset by lower margins in the outpatient business. -- In the inpatient segment, first quarter revenues increased 7.5 percent to $34.1 million compared to $31.8 million in last year's first quarter as a result of net new openings in 2002 and higher revenue per location. -- First quarter revenues in the outpatient segment fell slightly to $12.0 million compared to $12.1 million in last year's first quarter. The decline in revenues was the result of fewer locations than a year ago as the Company exited smaller, less productive programs. In the contract therapy division, revenues for the first quarter increased 32.1 percent to $30.9 million compared to $23.4 million in last year's first quarter. The increase in revenues reflects continued growth in the number of locations and higher revenues per location. Operating earnings for the division were $1.7 million in the first quarter of 2003, up 11.5 percent from $1.6 million for the year-ago quarter. The year-over-year growth in operating earnings reflects a significant increase in the number of locations offset by higher labor and related costs, the greater use of higher cost contract labor, and pressure on contract pricing. Revenues in the staffing division were $62.1 million for the first quarter of 2003 compared to $70.9 million in the year-ago quarter. The operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for the first quarter of 2003 was $2.0 million, up 18.8 percent from a $1.7 million operating loss in the first quarter of 2002. Included in this year's first quarter results was an $800,000 loss associated with the previously announced consolidation of smaller branches. -- In supplemental staffing, revenues for the first quarter of 2003 declined 23.0 percent to $35.4 million compared to $46.0 million in last year's first quarter. Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. for the first quarter was 20.3 percent compared to 22.5 percent in the comparable quarter last year. -- Travel staffing ended the first quarter with revenues of $26.7 million, an increase of 7.3 percent compared to $24.9 million in last year's first quarter. Increases in weeks worked, for the most part, are responsible for the change. The gross profit margin decreased to 19.8 percent compared to 21.3 percent in the comparable quarter last year. Alan Henderson Alan Lybrooks Henderson (born December 2 1972 in Morgantown, West Virginia) is an American professional basketball player for the Philadelphia 76ers of the NBA. He stands 6'9" (2.06 m) tall. Henderson attended Brebeuf Jesuit Preparatory School in Indianapolis, Indiana. , chief executive officer, commented, "Each of our divisions is facing significant margin pressures related to higher salary-related costs, such as workers compensation, health and professional liability insurance. In our hospital rehabilitation services division, we are pleased with the growth in revenues and earnings and see significant opportunities to expand the size of our current programs with existing customers as well as add new and larger programs to our portfolio of clients. Our unique integrated inpatient and outpatient service offering is enabling us to extend our client relationships into larger programs for longer terms." Mr. Henderson Henderson. 1 City (1990 pop. 25,945), seat of Henderson co., NW Ky., on the Ohio River, in an oil, coal, tobacco, corn, and livestock area; founded 1797, inc. as a city 1867. continued, "Our contract therapy division continues to show excellent growth through openings of new locations, ending the quarter with 25 percent more locations than a year ago. Finally, our staffing division results reflect continued efforts by healthcare providers to reduce use of agency staff." Mr. Henderson added, "Despite our reduced staffing volumes and the challenging pricing environment for all our divisions, our balance sheet remains debt-free and our operations are generating more than sufficient cash to allow investment in the business drivers that will provide the greatest returns for our shareholders." RehabCare Group, Inc., headquartered in St. Louis Louis, titular duke of Burgundy Louis, 1682–1712, titular duke of Burgundy; grandson of King Louis XIV of France. He became heir to the throne on the death (1711) of his father, Louis the Great Dauphin. , is a leading provider of program management of inpatient rehabilitation and skilled nursing units, outpatient therapy programs, contract therapy services and temporary healthcare staffing services in conjunction with over 7,000 hospitals, nursing homes and other long-term care facilities long-term care facility n. See skilled nursing facility. throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . RehabCare is pleased to be included in the Russell Russell, English noble family. It first appeared prominently in the reign of Henry VIII when John Russell, 1st earl of Bedford, 1486?–1555, rose to military and diplomatic importance. 2000 and Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index Small Cap 600 Indices. A listen-only simulcast Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. of RehabCare's first quarter conference call will be available on the Company's web site at www.rehabcare.com and online at www.companyboardroom.com beginning at 10:00 A.M. Eastern time today. A telephonic replay of the call will be available beginning at 1:30 P.M. Eastern time today. The dial-in number for the replay is (320) 365-3844 and the access code is 682288. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. These risks and uncertainties may include, but are not limited to, the effect and timing of additional corrective actions A corrective action is a change implemented to address a weakness identified in a management system. Normally corrective actions are instigated in response to a customer complaint, abnormal levels if internal nonconformity, nonconformities identified during an internal audit or that may be taken in supplemental staffing, fluctuations in occupancy of and use of staffing agencies by the Company's hospital and long-term care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. clients, changes in and compliance with governmental reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. rates, regulations or policies, the inability to attract new client relationships or to retain existing client relationships, the inability, or additional costs, to attract operational and professional employees, the adequacy and effectiveness of operating and administrative systems, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. risks, including an inability to predict the ultimate costs and liabilities or the disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. of RehabCare Group's operations, competitive effects on pricing and margins, and general economic conditions. NOTE: More information on RehabCare Group can be found on the World Wide Web at http://www.rehabcare.com.
REHABCARE REPORTS FIRST QUARTER 2003 REVENUES
OF $138.8 MILLION AND DILUTED EPS OF $0.25
I. Condensed Consolidated Statements of Earnings
(Amounts in thousands, except per share data)
Three Months Ended
March 31,
%
2003 2002 Change
Operating revenues $138,842 $138,229 0.4
Costs & expenses
Operating 104,690 102,826 1.8
Selling, general & administrative
Divisions 18,290 18,980 (3.6)
Corporate 6,796 7,946 (14.5)
Depreciation & amortization 2,239 1,925 16.3
Total costs & expenses 132,015 131,677 0.3
Operating earnings net 6,827 6,552 4.2
Other income, net (20) 3 N/M
Interest expense, net (151) (59) 155.9
Earnings before income taxes 6,656 6,496 2.5
Income taxes 2,612 2,468 5.8
Net earnings $ 4,044 $ 4,028 0.4
Diluted earnings per share $ 0.25 $ 0.22 11.3
Weighted average diluted
shares outstanding 16,443 18,211 (9.7)
N/M: Not Meaningful
II. Condensed Consolidated Balance Sheets
(Amounts in thousands)
March 31, December 31,
2003 2002
Assets
Cash & short-term investments $13,284 $ 9,584
Accounts receivable, net 89,693 87,221
Deferred tax asset 3,928 2,529
Other current assets 3,709 6,122
Total current assets 110,614 105,456
Equipment, net 18,843 19,844
Excess cost of net assets acquired, net 101,685 101,685
Other assets 7,846 8,545
-------- --------
$238,988 $235,530
Liabilities & Stockholders' Equity
Payables & accruals $36,674 $37,610
Other non-current liabilities 9,607 9,306
Stockholders' equity 192,707 188,614
-------- --------
$238,988 $235,530
III. Operating Statistics
(Revenues and Operating Earnings in 000's)
Three Months Ended
3/31/03 3/31/02
Hospital Rehabilitation Services
Revenues
Inpatient $34,137 $31,769
Outpatient 12,022 12,140
Total $46,159 $43,909
Division Operating Earnings (a) $7,074 $6,663
Average Number of Programs
Inpatient 138 134
Outpatient 50 56
Total 188 190
Contract Therapy
Revenues $30,926 $23,415
Division Operating Earnings (a) $ 1,739 $ 1,560
Average Number of Locations 431 337
Staffing
Revenues
Supplemental $35,436 $46,048
Travel 26,680 24,857
Total (b) $62,116 $70,905
Gross Profit Margin
Supplemental 20.3% 22.5%
Travel 19.8% 21.3%
Total 20.1% 22.1%
Division Operating Earnings (a) $(1,986) $(1,671)
Weeks Worked
Supplemental 25,134 35,403
Travel 13,607 12,989
Total 38,741 48,392
Average Number of
Supplemental Branches 82 112
(a) Division Operating Earnings are earnings before interest and
income taxes
(b) Includes intercompany sales of $0.4 million that staffing has
sold to hospital rehabilitation services and contract therapy
at market rates
We invite you to visit our web site after noon today to view key statistics in greater detail at www.rehabcare.com. |
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