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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
---------
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly period Ended March 31, 2001
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to .
------------------ --------------
Commission File No. 0-9407
REHABILICARE INC.
(Exact name of registrant as specified in its charter)
MINNESOTA 41-0985318
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1811 OLD HIGHWAY 8
NEW BRIGHTON, MINNESOTA 55112
(Address of principal executive offices)
(651) 631-0590
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of May 11, 2001 was:
COMMON STOCK, $.10 PAR VALUE 10,732,652 SHARES
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CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS
The following Quarterly Report on Form 10-Q contains various "forward looking
statements" within the meaning of federal securities laws. These forward looking
statements represent management's expectations or beliefs concerning future
events, including statements regarding anticipated product introductions;
changes in markets, customers and customer order rates; changes in third party
reimbursement rates; expenditures for research and development; growth in
revenue; taxation levels; and the effects of pricing decisions. When used in
this 10-Q, the words "anticipate," "believe," "expect," "estimate" and similar
expressions are generally intended to identify forward-looking statements. These
and other forward looking statements made by the Company must be evaluated in
the context of a number of factors that may affect the Company's financial
condition and results of operations, including, but not limited to, the
following:
- Like many medical device companies, the Company has a large balance of
uncollected receivables. If it cannot collect an amount of receivables that
is consistent with historical collection rates, it might be required to
charge off a portion of uncollected receivables, significantly impacting
earnings.
- The Company has incurred a significant amount of indebtedness to finance
acquired businesses. The interest expense on such indebtedness reduces
earnings and could cause the Company to be short of cash if its operations
do not meet expectations.
- In the United States, the Company's products and services are frequently
reimbursed by private and public insurers that impose limits on
reimbursement and strict rules on applications for reimbursement. Changes
in the rates, eligibility or requirements for reimbursement, or failure to
comply with reimbursement requirements, could cause a reduction in earnings
or fines or both.
- The Company maintains significant amounts of inventory on consignment at
clinics for distribution to patients. It may not be able to completely
control losses of this inventory and if inventory losses are not consistent
with historical experience, the Company might be required to write off a
portion of the carrying value of inventory.
- The clinical effectiveness of the Company's electrotherapy products has
periodically been challenged. Publicity about the effectiveness of
electrotherapy for pain relief or other clinical applications could
negatively impact revenue and earnings.
- The Company formed a subsidiary in the United Kingdom in fiscal 1999
and acquired a Swiss company in the first quarter of fiscal 2000. These
European operations may be more difficult to supervise, and may be subject
to different economic influences than United States operations, and may
subject the Company to significant exposure from currency fluctuations.
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PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Included herein is the following unaudited condensed
financial information:
Consolidated Balance Sheets as of March 31, 2001 and
June 30, 2000
Consolidated Statements of Operations for the three
months and nine months ended March 31, 2001 and 2000
Consolidated Statements of Cash Flows for the nine
months ended March 31, 2001 and 2000
Notes to Consolidated Financial Statements
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REHABILICARE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, June 30,
2001 2000
--------------------- ------------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,620,445 $ 2,227,352
Receivables, less reserve for uncollectible accounts of $7,867,778 17,595,332 19,268,252
and $6,575,715
Inventories -
Raw materials 2,044,942 1,283,791
Work in process 12,445 334,900
Finished goods 6,101,853 6,817,964
Deferred tax assets 3,351,294 3,351,294
Prepaid expenses 2,006,531 1,404,968
------------ ------------
Total current assets 32,732,842 34,688,521
PROPERTY, PLANT AND EQUIPMENT: 13,398,412 12,932,485
Less accumulated depreciation (8,220,200) (7,336,310)
------------ ------------
Net property, plant and equipment 5,178,212 5,596,175
Intangible assets, net 11,527,462 12,152,185
Deferred tax assets 194,771 223,923
Other assets 170,953 47,158
------------ ------------
$ 49,804,240 $ 52,707,962
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ 2,162,276 $ 2,170,468
Note payable 1,100,000 1,200,000
Accounts payable 2,819,364 3,108,514
Medicare lawsuit payable -- 1,677,021
------------ ------------
Accrued liabilities -
Payroll 326,956 327,856
Commissions 296,387 350,893
Income taxes 691,674 1,672,636
Other 2,142,543 2,684,301
------------ ------------
Total current liabilities 9,539,200 13,191,689
LONG-TERM LIABILITIES:
Long term-debt 11,323,442 13,662,792
Deferred tax liabilities 732,894 583,927
------------ ------------
Total liabilities 21,595,536 27,438,408
STOCKHOLDERS' EQUITY
Common stock, $.10 par value: 25,000,000 shares authorized; 1,073,265 1,055,871
issued and outstanding 10,732,652 and 10,558,710 shares,
respectively
Preferred stock, no par value; 5,000,000 shares authorized; none
issued and outstanding -- --
Additional paid-in capital 21,279,693 20,873,737
Less note receivable from officer/stockholder (189,417)
(210,417)
Accumulated other non-owner changes in equity (466,156)
(154,719)
Retained earnings 6,511,319 3,705,082
------------ ------------
Total stockholders' equity 28,208,704 25,269,554
------------ ------------
$ 49,804,240 $ 52,707,962
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REHABILICARE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
March 31 March 31
-------------------------------------- ---------------------------------------
2001 2000 2001 2000
----------------- ----------------- ----------------- ------------------
Net sales and rental revenue $ 15,171,676 $ 13,949,721 $ 45,268,040 $ 42,604,077
Cost of sales and rentals 4,822,818 4,141,278 14,219,015 12,847,569
------------ ------------ ------------ ------------
Gross profit 10,348,858 9,808,443 31,049,025 29,756,508
Operating expenses:
Selling, general and administrative 8,048,582 7,888,129 23,812,699 22,887,512
Research and development 493,643 340,244 1,333,549 947,123
------------ ------------ ------------ ------------
Total operating expenses 8,542,225 8,228,373 25,146,248 23,834,635
------------ ------------ ------------ ------------
Income from operations 1,806,633 1,580,070 5,902,777 5,921,873
Other income (expense):
Interest expense (313,035) (410,628) (1,025,755) (1,165,330)
Gain on sale of building -- -- -- 1,075,680
Minority interest -- (3,850) -- 13,948
Other income (expense) 14,376 (10,176) 43,215 (97,631)
------------ ------------ ------------ ------------
Income before income taxes 1,507,974 1,155,416 4,920,237 5,748,540
Provision for income taxes 646,000 486,000 2,114,000 2,413,000
------------ ------------ ------------ ------------
Net income $ 861,974 $ 669,416 $ 2,806,237 $ 3,335,540
============ ============ ============ ============
Net income per common and
common equivalent share
Basic $ 0.08 $ 0.06 $ 0.26 $ 0.31
============ ============ ============ ============
Diluted $ 0.08 $ 0.06 $ 0.26 $ 0.31
============ ============ ============ ============
Weighted average number of shares
outstanding
Basic
10,788,277 10,569,275 10,758,451 10,548,712
============ ============ ============ ============
Diluted
10,844,363 10,612,967 10,786,763 10,635,278
============ ============ ============ ============
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REHABILICARE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended
March 31
--------------------------------------------------
2001 2000
---------------------- --------------------
OPERATING ACTIVITIES:
Net income $ 2,806,237 $ 3,335,540
Adjustments to reconcile net income to net cash
provided by (used in) operating activities
Gain on sale of building -- (1,075,680)
Depreciation and amortization 1,708,614 1,568,382
Change in long-term portion of deferred taxes 178,119 85,655
Minority interest -- (13,948)
Change in current assets and liabilities, excluding effects of
business combinations
Receivables 1,672,919 200,314
Inventories 277,415 2,115,807
Prepaid expenses (647,969) (615,683)
Accounts payable (1,966,171) (1,757,582)
Accrued liabilities (1,578,100) (1,061,835)
------------ ------------
Net cash provided by (used in) operating activities 2,451,064 2,780,970
INVESTING ACTIVITIES:
Purchases of property and equipment (265,361) (1,314,374)
Cash paid in asset acquisition, net of cash received -- (12,598,117)
Proceeds from sale of building -- 1,726,930
Change in other assets, net (477,956) --
------------ ------------
Net cash used in investing activities (743,317) (12,185,561)
FINANCING ACTIVITIES:
Proceeds from new financing -- 15,339,365
Principal payments on long-term obligations (2,326,566) (3,403,203)
Proceeds from (payments on) line of credit, net (100,000) 600,000
Payment of capital lease obligation -- (1,261,733)
Proceeds from exercise of stock options 314,375 39,059
Proceeds from employee stock purchase plan 108,975 103,290
------------ ------------
Net cash provided by (used in) financing activities (2,003,216) 11,416,778
Effect of exchange rates on cash and cash equivalents (311,438) (140,403)
------------ ------------
Net increase (decrease) in cash and cash equivalents (606,907) 1,871,784
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 2,227,352 561,207
------------ ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,620,445 $ 2,432,991
============ ============
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid $ 1,025,743 $ 1,118,156
============ ============
Income taxes paid $ 2,582,920 $ 1,842,984
============ ============
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REHABILICARE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2001
1. ACCOUNTING POLICIES
The amounts set forth in the preceding financial statements are unaudited as of
and for the periods ended March 1, 2001 and 2000 but, in the opinion of
management, reflect all adjustments (consisting only of normal recurring
adjustments) necessary for a fair statement of the results for the periods
presented. Such results are not necessarily indicative of results for the full
year. The significant accounting policies and certain financial information
which are normally included in financial statements prepared in accordance with
generally accepted accounting principles, but which are not required for interim
reporting purposes, have been omitted. The accompanying financial statements of
the Company should be read in conjunction with the audited consolidated
financial statements for the year ended June 30, 2000 included in the Company's
Annual Report on Form 10-K.
Certain previously reported amounts have been reclassified to conform to
classifications adopted in fiscal year 2001. These reclassifications had no
effect on net income, cash flows or shareholders' equity.
2. BUSINESS COMBINATIONS
On July 16, 1999, the Company acquired substantially all the assets of Compex
SA, a Swiss-based medical products company for cash of approximately $11.0
million. The acquisition was financed principally with debt and provided for
additional contingent consideration of up to $2 million based on the performance
of Compex through December 31, 2000. In connection with the acquisition, the
purchase consideration and transaction costs were allocated as follows:
Net assets acquired $ 1,612,085
Goodwill 9,060,772
Developed technology 1,400,000
Existing workforce 1,400,000
Debt structuring costs 346,970
-----------
$13,819,827
===========
Included in goodwill are contingent payments of $1,777,185 and $222,815 made
during fiscal 2000 and 2001, respectively, to the former Compex shareholders.
3. NOTE PAYABLE AND LONG TERM DEBT
In conjunction with its acquisition of Compex SA, the Company entered into a new
$20,000,000 credit facility which provides for both term and revolving
borrowings at varying rates based either on the bank's prime rate or LIBOR. The
initial term loan of $15,000,000 was used to fund the acquisition and repay the
balance of a note and a revolving loan provided under a credit facility with
another bank.
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Borrowings under the credit facility are secured by substantially all assets of
the Company other than those pledged as collateral on existing lease or mortgage
obligations. There remained $11,247,000 outstanding under the term loan, bearing
interest at 7.44%, at March 31, 2001. There were borrowings of $1,100,000 under
the revolving line of credit as of March 31, 2001, with a weighted average
interest rate of 8.0%.
The Company was in compliance with all financial covenants in its credit
agreement as of March 31, 2001 and for the period then ended.
4. SEGMENT INFORMATION
Rehabilicare and its consolidated subsidiaries operate in one reportable
segment, the manufacture and distribution of electromedical pain management and
rehabilitation products. The Company's chief operating decision makers use
consolidated results to make operating and strategic decisions. Net revenue from
the United States and foreign sources (primarily Europe) are as follows:
For the Nine Months Ended March 31
-------------------------------------------------------------
2001 2000
------------------------------- --------------------------
United States revenue $ 33,184,315 $ 31,010,778
Foreign revenue 12,083,725 11,593,299
---------------- ----------------
$ 45,268,040 $ 42,604,077
================ ================
Net revenue by product line was as follows:
For the Nine Months Ended
March 31
-------------------------------------------------
2001 2000
--------------------- ----------------------
Rehabilitation products $ 9,194,245 $ 8,733,829
Pain management 10,571,689 10,399,133
Consumer Products 8,592,509 8,088,928
Accessories and supplies 6,909,597 15,382,187
-------------- -------------
$ 45,268,040 $ 42,604,077
============= =============
During the first nine months of fiscal 2001, one customer accounted for
approximately 13% of total consolidated revenue. This customer represented
approximately 6% of total accounts receivable at March 31, 2001.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
OVERVIEW
The Company designs, manufactures and distributes electrotherapy products used
for pain management, rehabilitation and sports training. Its products are used
in clinical, home health care, sports medicine and occupational medicine
applications. It also distributes other medical products used in related
applications. The Company operates in one business segment, distributing its
products through sales to medical product dealers and distributors, sport shops
and, in the United States, through direct rental or sale to patients.
The direct rental or sale approach involves placing electrotherapy units with
physicians, physical therapists and other health care providers who then refer
those units to patients after determining an appropriate treatment regimen.
Units are left on consignment with the health care providers for such referral.
The Company then bills the patient or the patient's insurance carrier directly
after being notified that a unit has been prescribed and provided to the
patient. The Company takes responsibility for subsequent patient follow-up,
including extension of the rental period, sale of the unit, if appropriate, and
sale of additional supplies required for continued use of the electrotherapy
units. This distribution approach requires the Company to maintain significant
investments in inventories and receivables.
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RESULTS OF OPERATIONS
The following table sets forth information from the statements of operations as
a percentage of revenue for the periods indicated:
Three Months Ended Nine Months Ended
March 31 March 31
---------------------------- -------------------------
2001 2000 2001 2000
----------- -------- -------- ---------
Net sales and rental revenue 100.0% 100.0% 100.0% 100.0%
Cost of sales and rentals (31.8) (29.7) (31.4) (30.2)
Gross profit 68.2 70.3 68.6 69.8
Operating expenses -
Selling, general and administrative (53.0) (56.6) (52.6) (53.7)
Research and development (3.3) (2.4) (2.9) (2.2)
----- ----- ----- -----
Total operating expenses (56.3) (59.0) (55.5) (55.9)
----- ----- ----- -----
Income from operations 11.9 11.3 13.1 13.9
Other income (expense), net (1.9) (3.0) (2.2) (2.9)
Gain on sale of building -- -- -- 2.5
Income tax provision (4.3) (3.5) (4.7) (5.7)
----- ----- ----- -----
Net income 5.7 4.8 6.2 7.8
===== ===== ===== =====
Revenue was $15,172,000 for the third quarter of fiscal 2001, a 9% increase from
$13,950,000 for the third quarter of fiscal 2000. Revenue for the nine months
ended March 31, 2001 increased 6% to $45,268,000 from $42,604,000 for the nine
months ended March 31, 2000. The increase was primarily attributable to United
States operations where revenue increased 15% in the third quarter and 7% for
the first nine months of fiscal 2001 over the same period in fiscal 2000. The
Company continues its recovery from the impact of a whistleblower lawsuit
disclosed in the third quarter of fiscal 2000, which adversely impacted earnings
growth during the last half of fiscal 2000. Compex accounted for $3,393,000 of
revenue in the third quarter and $11,248,000 for the nine months ended March 31,
2001, compared to $3,624,000 in the third quarter and $10,643,000 for the nine
months ended March 31, 2000. Revenue from Compex was lower than expected in the
third quarter of fiscal 2001 due to the effects of a strengthening U.S. dollar
against European currencies and to slower than anticipated orders from a major
customer.
Gross profit was $10,349,000 or 68.2% of revenue for the third quarter and
$31,049,000 or 68.6% of revenue for the nine months ended March 31, 2001
compared with $9,808,000 or 70.3% of revenue for the third quarter and
$29,757,000 or 69.8% of revenue for the nine months ended March 31, 2000. Cost
of sales in the first quarter of fiscal 2000 included a one-time charge of
$645,000 related to the step-up in basis of inventory recorded in connection
with the Compex acquisition. Without that charge, gross profit would have been
71.3% of revenue for the nine months. The current year reduction in gross profit
resulted primarily from increased focus on sales of Compex sport products at
wholesale prices to retail
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store outlets, rather than direct to consumers at retail prices. The change in
strategy is expected to expand market penetration.
Selling, general and administrative expenses increased 2% to $8,048,000 in the
third quarter of fiscal 2001 from $7,888,000 in fiscal 2000. As a percent of
revenue, those expenses decreased from 57% to 53%. For the nine months ended
March 31, 2001, those expenses increased 4% to $23,813,000 from $22,888,000 in
fiscal 2000, but stayed the same as a percentage of revenue at approximately
53%. The reductions as a percent of revenue reflect lower selling expenses
related to the Compex retail sales strategy and certain economies of scale.
Research and development expense increased 45% to $494,000 in the third quarter
of fiscal 2001, compared with $340,000 in fiscal 2000. For the nine months ended
March 31, 2001, these costs increased 41% to $1,334,000 compared to $947,000 in
fiscal 2000. Those increases reflect expanded new product development activities
both in the U.S. where two new products are scheduled for introduction later in
calendar 2001 and in Europe where one new sport product was introduced in April
2001.
Interest expense decreased slightly from $1,165,000 in the nine months ended
March 31, 2000 to $1,026,000 in the current period. The decrease resulted from
slightly lower interest rates and lower outstanding borrowings under the
Company's credit facility.
Operating results for the nine months ended March 31, 2000 include a gain on the
sale of the former Staodyn building in Longmont, Colorado in the amount of
$1,076,000. The Company exercised its option to purchase that building in the
first quarter of fiscal 1999 and closed the purchase and the subsequent sale on
July 7, 1999.
The provision for income taxes was increased from 40% of income before taxes in
the first quarter of fiscal 2001 to 43% for the nine months ended March 31,
2001, compared with 42% in both periods in the prior year. The Company now
operates in various countries in Europe as well as the United States. Some
countries have higher tax rates than the United States as well as different
rules on the deductibility of certain expenses and the availability of certain
credits for taxes paid to other jurisdictions. In addition, the Company has
relocated certain operations and negotiated new agreements with certain European
taxing authorities. The Company believes that 43% is a reasonable estimate of
the effective rate for fiscal 2001 based on most recent estimates of expected
sources of revenue and expenses for the entire year.
As a result of all the above activity, net income increased from $669,000 in the
third quarter of fiscal 2000 to $862,000 in the third quarter of fiscal 2001.
For the nine months ended March 31, 2001 net income decreased to $2,806,000 from
$3,336,000 during the same period in fiscal 2000. Diluted earnings per share
increased from $.06 to $.08 for the third quarter and decreased from $.31 to
$.26 for the nine month period. Before the one time gain related to the building
sale and the one time charge related to the Compex inventory step-up, net income
was $3,085,000 of $.29 per share for the nine months ended March 31, 2000.
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LIQUIDITY AND CAPITAL RESOURCES
During the nine months ended March 31, 2001, the Company's operations provided
cash of $2,451,000, mainly from net income and a reduction in inventory and
accounts receivable of $277,000 and $1,673,000, respectively. These amounts were
offset by an increase in prepaid expenses of $648,000 and decreases of
$1,966,000 in accounts payable and $1,578,000 in accrued liabilities. The
decrease in account payable was due mainly to the payment of $1,677,000 for the
settlement for the Medicare whistleblower suit.
The Company used $743,000 in investing activities in the nine months ended March
31, 2001 for net purchases of property and equipment and a net increase in
clinical and rental equipment.
The Company's financing activities used $2,003,000 of cash during the nine
months ended March 31, 2001, mainly for the repayment of borrowings under the
$20,000,000 credit facility used to finance the Compex acquisition. The Company
initially borrowed $15,000,000 under the credit facility to finance the Compex
purchase and to repay an outstanding note. At March 31, 2001, $11,247,000 is
outstanding under the facility.
Managing receivables represents one of the biggest business challenges to the
Company. The process of determining what products will be reimbursed by third
party payors and the amounts to be paid for those products is very complex and
the reimbursement environment is constantly changing. That risk is spread across
many payors throughout the United States. The determination of an appropriate
reserve for uncollectible accounts at the end of each reporting period includes
various factors including historical trends and relationships and experience
with insurance companies or other third party payors. The Company believes that
the reserve at March 31, 2001 is adequate to cover future losses on its
receivables based on collection history and trends. The provision for
uncollectible accounts recorded in the income statement may continue to
fluctuate significantly from quarter to quarter as such trends change. The
reserve was 30.9% of receivables at March 31, 2001 compared to 25.4% at June 30,
2000. The Company believes that the ratio will be favorably impacted in the
future as a result of including receivables from Compex SA and Rehabilicare (UK)
Ltd. which are more traditional trade receivables and not dependent on third
party payors.
The Company has no material commitment for capital expenditures. The Company
believes that available cash and borrowings under its credit line will be
adequate to fund cash requirements for the current fiscal year.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company is exposed to market risk from changes in the interest rates
on certain of its outstanding debt. The outstanding loan balance under
the $20 million credit facility bears interest at a variable rate based
on the bank's prime rate or LIBOR. Based on the average outstanding bank
debt for the period ended March 31, 2001, a 100 basis point change in
interest rates would not change interest expense by a material amount.
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PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In late January 2001, Rehabilicare was served with documents in
connection with a products liability case brought in the California
Superior Court for Solano County. Until receipt of these documents,
Rehabilicare had no record of the proceedings. The case involved a
product liability claim for burns allegedly suffered by plaintiff
through the use of a stimulation unit that was allegedly manufactured by
Rehabilicare. The action alleged damages for medical expenses of
approximately $1,000, for future medical expenses of approximately
$270,000 and for punitive damages and pain and suffering of
approximately $2.0 million. The action apparently progressed to the
entry of a default judgment on January 11, 2001 against Rehabilicare for
failing to respond to pleadings.
In March 2001, Rehabilicare moved in Solano County court to set aside
the default judgment on various grounds, including irregularities in the
filings and other matters. Because the appeal period with respect to the
default judgment would have lapsed prior to the hearing on its motion in
Solano County, Rehabilicare also appealed the judgment to the California
Court of Appeals. The Solano County Court, however, refused to act on
Rehabilicare's motion because of the pendency of the appeal.
Rehabilicare believes the judgment is void or otherwise improper, has
obtained a stay of execution of the judgment in both California and
Minnesota and intends to vigorously pursue available actions, including
its appeal, to set aside the judgment.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS - None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES - None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS - None
ITEM 5. OTHER INFORMATION - None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
None filed during the quarter ended March 31, 2001
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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 thereunto duly authorized.
REHABILICARE INC.
May 15, 2001 /s/ David B. Kaysen
--------------------------- ----------------------------------------------
Date David B. Kaysen
President and Chief Executive Officer
May 15, 2001 /s/ W. Glen Winchell
--------------------------- ----------------------------------------------
Date W. Glen Winchell
Vice President of Finance
(Principal Financial and Accounting Officer)
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