EX-13.1 5 d62900_ex13-1.htm REGISTRANT'S ANNUAL REPORT TO STOCKHOLDERS

EXHIBIT 13.1

*(Year ended December 31,)*	2004			2003			2002			2001			2000			1999
SIX-YEAR FINANCIAL SUMMARY
Dollars in thousands, except per share data
Consolidated statement of earnings data:
Operating revenues	$	383,846		$	539,322		$	562,565		$	542,265		$	452,374		$	309,425
Operating earnings (loss)^{(1) (2) (8)}		41,804			(14,396	)		39,697			36,967			44,189			29,922
Net earnings (loss)^{(1) (2) (3) (8)}		23,181			(13,699	)		24,395			21,035			23,534			15,098
Net earnings (loss) per share (EPS):^{(1) (2) (3) (4) (8)}
Basic	$	1.42		$	(0.86	)	$	1.45		$	1.25		$	1.62		$	1.15
Diluted	$	1.38		$	(0.86	)	$	1.38		$	1.16		$	1.45		$	1.03
Weighted average shares outstanding (000s):⁽⁴⁾
Basic		16,292			16,000			16,833			16,775			14,563			13,144
Diluted		16,835			16,000			17,642			18,077			16,268			14,814


Consolidated balance sheet data:
Working capital	$	76,451		$	76,952		$	67,846		$	77,524		$	64,186		$	27,069
Total assets		277,666			233,626			235,530			250,661			229,093			187,264
Total liabilities		70,638			55,671			46,916			51,625			111,133			109,481
Stockholders’ equity		207,028			177,955			188,614			199,036			117,960			77,783


Financial statistics:
Operating margin ^{(2) (8)}		10.9	%		(2.7	)%		7.1	%		6.8	%		9.8	%		9.7	%
Net margin ^{(1) (2) (3) (8)}		6.0	%		(2.5	)%		4.3	%		3.9	%		5.2	%		4.9	%
Current ratio		2.3:1			2.9:1			2.8:1			2.7:1			2.6:1			1.6:1
Diluted EPS growth rate ^{(1) (2) (3) (5) (8)}		260.5	%		(162.3	)%		19.0	%		(20.0	)%		40.8	%		19.8	%
Return on equity ^{(1) (2) (3) (5) (8)}		12.0	%		(7.5	)%		12.6	%		13.3	%		24.0	%		21.9	%


Operating statistics:
Healthcare staffing:
Average number of branch offices ⁽⁶⁾		N/A			73			108			108			89			55
Number of weeks worked ^{(6) (7)}		N/A			141,114			182,552			233,898			223,951			131,110
Program management:
Inpatient units (acute rehabilitation and skilled
nursing):
Average number of programs		142			133			135			137			136			132
Average admissions per program		383			422			411			394			373			369
Average length of stay (days/discharge) ⁽⁹⁾		16.0			12.9			13.3			13.8			14.3			14.5
Patient days		871,185			721,570			737,017			746,583			725,497			706,822
Outpatient programs:
Average number of locations		42			48			55			61			53			40
Patient visits		1,133,462			1,247,534			1,366,439			1,439,169			1,173,324			785,943
Contract therapy:
Average number of locations		588			460			378			250			156			91


⁽¹⁾	The results for 2002 reflect the adoption of Statement of Financial Accounting Standards No. 142 “Goodwill and Other Intangible Assets” on January 1, 2002.

⁽²⁾	The results for 2001 include $9.0 million in non-recurring charges related to our supplemental staffing division.

⁽³⁾	The results for 2001 include a pretax loss of $0.5 million ($0.3 million after tax or $0.02 per share) on write-down of an investment. The results for 1999 include a pretax loss of $1.0 million ($0.6 million after tax or $0.05 per share) on write-down of investments.

⁽⁴⁾	Share data adjusted for 2-for-1 stock split in June 2000.

⁽⁵⁾	Average of beginning and ending equity.

⁽⁶⁾	We exited the healthcare staffing business in February 2004 with the sale of StarMed Staffing, Inc. to InteliStaf Holdings, Inc.

⁽⁷⁾	Includes both supplemental and travel weeks worked.

⁽⁸⁾	The results for 2003 include a pretax restructuring charge of $1.3 million ($0.8 million after tax or $0.05 per diluted share) and a pretax loss on net assets held for sale of $43.6 million ($30.6 million after tax or $1.90 per diluted share).

⁽⁹⁾	Average length of stay for inpatient units increased from 2003 to 2004 primarily as a result of the acquisition of the VitalCare units in March 2004. Excluding the impact of the VitalCare units, average length of stay in 2004 was 12.5 days.

EXHIBIT 13.1

Stock Data

The Company’s common stock is listed and traded on the New York Stock Exchange under the symbol “RHB.” The stock prices below are the high and low closing sale prices per share of our common stock, as reported on the New York Stock Exchange, for the periods indicated.

CALENDAR QUARTER		1st		2nd		3rd		4th

2004	High	$	25.04	$	26.68	$	26.10	$	28.81

	Low		18.82		19.48		21.65		22.26

2003	High		20.70		18.45		18.56		23.01

	Low		16.55		13.53		14.25		14.88

The Company has not paid dividends on its common stock during the two most recently completed fiscal years and has not declared any dividends during the current fiscal year. The Company does not anticipate paying cash dividends in the foreseeable future.

The number of holders of the Company’s common stock as of March 7, 2005, was approximately 14,220, including 542 shareholders of record and an estimated 13,680 persons or entities holding common stock in nominee name.

Shareholders may receive earnings news releases, which provide timely financial information, by notifying our investor relations department or by visiting our website: http://www.rehabcare.com