Hanger Reports 3Q, YTD Financial Results
November 19, 2019
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.