Hanger Reports 3Q, YTD Financial Results

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Hanger, Austin, Texas, announced its financial results for the third quarter (3Q) and nine months ended September 30 (YTD).

Financial Highlights include:

  • Net revenue was $279.6 million for 3Q, compared to $262.9 million for the same period in 2018, reflecting an increase of 6.3 percent.
  • Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $32.6 million in 3Q, compared to $31.1 million for the same period in 2018, an increase of $1.5 million or 4.8 percent.
  • Patient care net revenue was $230.9 million, an increase of $16.9 million or 7.9 percent in 3Q, compared to the same period in 2018. Total revenue growth for the segment includes $8.5 million of revenue from O&P clinics acquired in late 2018 and early 2019, net of consolidations and closures.
  •  Income from operations in the patient care segment totaled $36.1 million during 3Q, reflecting $3.6 million in growth compared to the $32.5 million reported in the prior year.
  • Products and services net revenue totaled $48.7 million in 3Q, which was generally consistent with the same period in 2018. Income from operations for that segment decreased by $1.7 million to $5.1 million in 3Q compared to the same period in 2018.
  • Net income totaled $5.7 million in 3Q compared with $4.4 million for the same period a year ago. YTD net revenue totaled $797.2 million, compared to $763.9 million for the same period of 2018, reflecting a 4.4 percent increase. Acquisitions that occurred in late 2018 and early 2019 contributed $19.1 million to net revenue, net of consolidations and closures.
  • Cash flows provided by operating activities in 3Q, were $23.5 million compared to $20.3 million for the same period in 2018.
  • As of September 30, Hanger's liquidity totaled $144.8 million, comprising $49.9 million in cash and cash equivalents, and $94.8 million in available borrowing capacity under its revolving credit facility, compared to liquidity of $133.0 million on June 30.

"With nine months of the year completed, we are continuing to execute within the mid-range of our financial outlook for 2019," said Vinit Asar, president and CEO.