Hanger Reports 1Q Financial Results
May 09, 2019
Hanger, Austin, Texas, announced its financial results for first quarter (1Q) 2019, which ended March 31.
- Net revenue was $236.4 million for 1Q, compared to $234 million for the same period in 2018, reflecting a net revenue increase of 1 percent year-over-year.
- Adjusted interest, taxes, depreciation, and amortization (EBITDA) was $11.9 million in the first quarter, compared to $16.2 million for the same period a year ago, a decrease of $4.3 million.
- Patient care net revenue was $190.6 million, an increase of $2.1 million or 1.1 percent, compared to the same period in 2018. Growth was attributed to $4.8 million of revenue from O&P clinics acquired in late 2018 and early 2019.
- Income from operations in the patient care segment was $15.8 million, which reflected a $1.3 million decline, compared to $17.1 million reported in the prior year.
- Products and services net revenue totaled $45.8 million, which reflected a $0.3 million, or 0.7 percent, increase compared to the same period in 2018.
- Net loss for 1Q was $7 million compared with a net loss of $22.6 million in the same period in 2018.
- March 31, the company had liquidity of $115.3 million, comprised of $20.5 million in cash and cash equivalents, and $94.8 million in available borrowing capacity under its revolving credit facility, compared to liquidity of $189.2 million on December 31, 2018.
"While revenue growth in the quarter was below our expectations, we believe this relates primarily to the timing of our prosthetics deliveries. As a result, we are reaffirming both our revenue and earnings guidance for 2019. We remain positive in our view of the demand for our O&P services, strength in our referrals patterns, and the overall industry fundamentals," said Vinit Asar, Hanger president and CEO.