Hanger Posts 2017 Financial Results
May 15, 2018
Hanger, Austin, Texas, has posted its year-end financial results for 2017. Financial highlights, reported on Form 10-K with the Securities and Exchange Commission (SEC) for the year ended December 31, 2017, are as follows:
- Net revenue of $1.041 billion declined $1.3 million, or 0.1 percent, compared to 2016. The net revenue result was driven by an $11.8 million, or 1.4 percent, increase in the patient care segment, which was offset by a $13.1 million, or 6.5 percent, decrease in the products and services segment.
- Patient care net revenue totaled $852 million for 2017, an increase of $11.8 million compared to 2016. The net revenue growth was primarily the result of lower disallowed revenue and resumed same clinic revenue growth during 2017.
- Products and services net revenue totaled $188.8 million for 2017, a $13.1 million decrease compared to the previous year. The revenue decline was due to the net loss of customer contracts for therapeutic solutions, which provides services to the post-acute market, primarily within skilled nursing facilities.
- Net loss from operations in 2017 was $19.7 million compared with a net loss from operations of $72.1 million in 2016.
- On December 31, 2017, Hanger recorded liquidity of $87.9 million, comprising $1.5 million in cash and cash equivalents and $86.4 million in available borrowing capacity under its revolving credit facility, compared to $102.1 million of liquidity as of December 31, 2016. The $14.2 million decrease in liquidity from 2016 was the result of lower revolver capacity as well as uses of cash to reduce long-term indebtedness and other investing activity.
Hanger has not completed its financial statements for the first quarter of 2018, which ended March 31, but estimates that consolidated net revenue will be roughly $234 million.
"Hanger remains on schedule to achieve the financial reporting goals we provided in January, specifically a transition to current SEC filer status in 2018," said Thomas Kiraly, executive vice president and chief financial officer (CFO). "We are now focused on preparing our interim financial statements for the three months ended March 31, 2018, and our intention is to file our first quarter Form 10-Q as expeditiously as possible."