Hanger Posts 2Q Financial Results

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Hanger, Austin, Texas, has announced its financial results for the second quarter ended June 30.

Financial highlights include:

  • Net revenue was $281.1 million for the three months ended June 30, compared to $267.0 million for the same period in 2018, reflecting a net revenue increase of 5.3 percent.
  • Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $37.4 million in the second quarter, compared to $33.6 million for the same period in 2018, reflecting an increase of $3.7 million or 11.1 percent.
  • For the three months ending June 30, patient care net revenue totaled $231.2 million, an increase of $13.0 million or 6.0 percent, compared to the same period a year ago. Total revenue growth for the segment includes $5.8 million of revenue from O&P clinics acquired in late 2018 and early 2019.
  • Income from operations in the patient care segment was $41.8 million during the second quarter of 2019, reflecting growth of $6.8 million compared to the $35.0 million reported in the prior year.
  • Products and services net revenue totaled $49.9 million for the period ending June 30, reflecting a $1.1 million, or 2.3 percent increase compared to the same period in 2018.
  • For the three months ended June 30, net income was $10.0 million compared with $12.9 million the same period in 2018. The $2.9 million decline in net income was due primarily to the $3.7 million aggregate gain on favorable settlements recognized during the second quarter of 2018 as well as an increase in Hanger's provision for income taxes.
  • As of June 30, cash flows provided by operating activities totaled $29.3 million, which reflected a $3.9 million, or 15.3 percent, increase over the second quarter of 2018. On June 30, Hanger had liquidity totaling $133.0 million, comprising $38.2 million in cash and cash equivalents and $94.8 million in available borrowing capacity under its revolving credit facility, compared to liquidity of $115.3 million on March 31.
  • Based on the company's year-to-date results, it reaffirms its full-year 2019 net revenue and adjusted EBITDA outlook of: revenue between $1.075 billion and $1.105 billion, and adjusted EBITDA between $121 million and $126 million.

"As anticipated, we benefited from the timing of prosthetic deliveries during the quarter, which have brought our year-to-date results in line with our original expectations," said Vinit Asar, Hanger president and CEO.