-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SctH43TWQNKA6g1uSNEIcRwZog7PxlSk/etwSuPzK1Zb1jJhbsujkfb7cGRK06pO +W7dASJDF12LiQM6M2YpcQ== 0000812191-03-000023.txt : 20030515 0000812191-03-000023.hdr.sgml : 20030515 20030515164625 ACCESSION NUMBER: 0000812191-03-000023 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030513 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: REHABCARE GROUP INC CENTRAL INDEX KEY: 0000812191 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-HOSPITALS [8060] IRS NUMBER: 510265872 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14655 FILM NUMBER: 03705669 BUSINESS ADDRESS: STREET 1: 7733 FORSYTH BLVD 17TH FLR STREET 2: SUITE 1700 CITY: ST LOUIS STATE: MO ZIP: 63105 BUSINESS PHONE: 3148637422 FORMER COMPANY: FORMER CONFORMED NAME: REHABCARE CORP DATE OF NAME CHANGE: 19940218 8-K 1 eightk503.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): May 13, 2003 REHABCARE GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 0-19294 51-0265872 (State or other (Commission File (I.R.S. Employer jurisdiction of Number) Identification incorporation) Number) 7733 Forsyth Boulevard 17th Floor St. Louis, Missouri 63105 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (314) 863-7422 Item 7. Financial Statements and Exhibits. (c) Exhibits. See Exhibit Index. -------- Item 9. Regulation FD Disclosure. Beginning on May 13, 2003, RehabCare executives will make presentations at investor conferences to analysts and in other forums using the slides as included in this Form 8-K as Exhibit 99. Presentations will be made using these slides, or modifications thereof, in connection with other presentations in the foreseeable future. The current slides incorporated into the investor relations presentation are included in this Form 8-K as Exhibit 99. The full slide presentation is available in the Investor Info section on our website at www. rehabcare.com. Information contained in this presentation is an overview and intended to be considered in the context of RehabCare's SEC filings and all other publicly disclosed information. We undertake no duty or obligation to update or revise this information. However, we may update the presentation periodically in a Form 8-K filing. The presentation included in this report does not include images included in the actual slides. In order that all investors be provided with substantially the same information, RehabCare is making these slides available on its website. The presentation in its entirety will be made available in the Investor Info section of the RehabCare website, www.rehabcare.com, although this availability may be discontinued at any time. This presentation contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act 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 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 clients, changes in and compliance with governmental reimbursement 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 risks, including an inability to predict the ultimate costs and liabilities or the disruption of RehabCare Group's operations, competitive effects on pricing and margins, and general economic conditions. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: May 15, 2003 REHABCARE GROUP, INC. By:/s/ Vincent L. Germanese ----------------------------------------- Vincent L. Germanese Senior Vice President, Chief Financial Officer and Secretary EXHIBIT INDEX Exhibit No. Description 99 Text of Investor Relations Presentation in Use Beginning May 13, 2003 Exhibit 99 Text of Investor Relations Presentation in Use Beginning May 13, 2003 Safe Harbor Forward looking statements have been provided pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. They involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to be materially different from any future performance suggested during this presentation. RehabCare Group Overview Leading Provider of Therapy Program Management and Healthcare Staffing Services o Primary client base - Hospitals - Skilled nursing facilities o Primary services - Program management - On-site management and delivery of therapy services - Healthcare staffing - Provision of temporary healthcare professionals o Compounded annual revenue growth of 29% and EPS growth of 21% since the 1991 IPO RehabCare Group Business At a Glance Program management - $77 million revenues Q1/03 o Hospital Rehabilitation Services - 135 inpatient units - 50 outpatient programs o Contract Therapy - 439 programs Healthcare staffing - $62 million revenues Q1/03 o Supplemental - 77 branches o Travel (Graphic Omitted)
RehabCare Group Locations Healthcare Staffing Program Management Services Services Mountain 6 8 Western 14 44 South central 8 211 North central 20 171 Northeast 7 47 Southeast 24 118
At 12/31/02 (Graphic Omitted) Program Management Hospital Rehabilitation Services o Inpatient - $34 million revenues Q1/03 - Acute rehab units - Skilled nursing units o Outpatient - $12 million revenues Q1/03 - Hospital-based programs Contract Therapy - $31 million revenues Q1/03 - Skilled nursing facilities (Graphic Omitted) Growth Driver for Program Management Services o Aging of U. S. Population Over 65 Drives Demand - (Graphic Omitted) o PPS Opportunity for Rehab Units (Graphic Omitted) Market Trend to Outsourcing Hospital Rehabilitation Services - Hospitals are able to o Improve clinical quality o Increase volumes o Realize improved financial results o Benefit from reimbursement expertise Contract Therapy - Skilled nursing facilities are able to o Obtain clinical resources and expertise o Ensure appropriate levels of staffing for rehab professionals o Improve skilled nursing facility profitability HRS Inpatient Market Opportunity o Of 5,000 hospitals in the U.S. o 1,000 operate inpatient rehab units - Approximately 20% outsource o PPS rate schedule provides incentive to outsource o Target market of 2,000 hospitals that meet our screens o Maintain high contract renewal rates HRS Inpatient Units Profile o Elderly population o 75% stroke and orthopedic patients o Long-term contracts o Direct payment by hospital clients HRS Outpatient Market Opportunity o Long-term growth trend o Cross-selling opportunity to inpatient client base o Underdeveloped at most hospitals HRS Outpatient Programs Profile o Middle-aged population o 75% sports injury and employment related o Long-term contracts o Direct payment by hospital client Contract Therapy Market Opportunity o Target market of 4,500 nursing homes that meet our screens o Sustain new business development o Maintain high contract retention rates o Improve staff productivity o Cross-sell other RHB services Contract Therapy Programs o Elderly population cared for in a skilled nursing facility setting o Primarily neurological, orthopedic and cardiological conditions o Flexibility of business model to adjust to facility's and patients' needs o Direct payment by skilled nursing facility clients Healthcare Staffing Supplemental Staffing - $35 million revenues Q1/03 Travel Staffing - $27 million revenues Q1/03 (Graphic Omitted) Growth Driver for Healthcare Staffing Industry Aging of U. S. Population Over 65 Drives Demand - (Graphic Omitted) Registered Nurses Demand Vs. Supply - (Graphic Omitted) Role of Staffing Agencies o Value to Client o Qualified professionals to fill vacancies o Ability to match staffing with census o Alleviate pressures of escalating nursing shortage o Value to Professionals o Flexibility in scheduling o Greater choice of assignments o Quality of benefits Healthcare Staffing - Q1/03 Revenue Mix by Skill (Graphic Omitted) o Registered Nurses - 63% o LPN's - 12% o Certified Nurse Assistants - 9% o Other Professionals - 16% Healthcare Staffing Market Opportunity o Provide broad array of staffing solutions to key accounts o Broaden mix of medical personnel o Increase branch productivity/volumes o Leverage infrastructure o Entry into select markets Financial and Operating Highlights
Q1/03 Vs. Q1/02 Financial Performance Increase Revenues $139 million -% EBITDA $ 9 million 7% EPS $.25 11%
Strong Financial Management o No Debt o $125.0 million/5 year revolver - 2.5 years remaining o Current Ratio - 3.0:1 o History of Share Repurchases Focus on Growth o HRS - Accelerate Revenue Growth - Addition of new units - Expansion of existing units - Retention of existing units o Contract Therapy - Sustain Revenue Growth - Addition of new locations - Retention of existing locations o Staffing - Renew Revenue Growth - Improved recruiter productivity - Client focused relationships Consistent EPS Growth Targeted 20-25% EPS Growth (Graphic Omitted)
Compounded Annual Growth Rate of 21% Fiscal Year Ended February 28 1992 - $0.20 1993 - $0.24 1994 - $0.29 1995 - $0.35 1996 - $0.42
Fiscal Year Ended December 31 1996 - $0.47* 1997 - $0.68 1998 - $0.85 1999 - $1.08 2000 - $1.45 2001 - $1.18 2002 - $1.38
*Annualized The results for 2001 and 1999 do not reflect non-operating losses associated with write-down of investments of $0.02 per share and $0.05 per share, respectively. The results for 1998 do not include a $0.06 per share gain on sale of securities or a $0.05 per share charge for the cumulative effect of change in accounting for start-up costs. The results for 1997 do not reflect a $0.06 per share gain on sale of securities. Considering the effects of these non-operating items, EPS in 2001, 1999, 1998 and 1997 was $1.16, $1.03, $0.86 and $0.73, respectively. RHB is the Leading National Provider of Therapy Program Management and Healthcare Staffing Services o Market Trend to Outsourcing o Experienced Management Team o Consistent Long-Term EPS Execution o Strong Cash Flow o Sustainable Growth of Healthcare Staffing Industry o Positive Demographics -----END PRIVACY-ENHANCED MESSAGE-----