Hanger, Austin, Texas, has posted year-end financial results for the years ended December 31, 2016, and December 31, 2015.
Financial highlights, reported on Form 10-K with the U.S. Securities and Exchange Commission, are as follows:
- For 2016, net revenue of $1.042 billion declined $25.1 million, or 2.4 percent, compared to 2015, a decrease that was driven by a $34.9 million, or 4 percent, decline in the patient care segment.
- For 2015, net revenue of $1.067 billion increased by $55.1 million, or 5.4 percent, compared to 2014. Same clinic revenue growth, acquisitions, and improved claims disallowance rates were primary contributors to revenue growth.
- For 2016, patient care net revenue totaled $840.1 million, a decline of $34.9 million compared to the same period in 2015. The net revenue decrease was primarily the result of a reduction in clinic net revenue of $28.5 million and the impact of exiting the CARES business line in 2015, which resulted in a decline of $6.4 million in 2016 net revenue.
- For 2015, patient care net revenue totaled $875 million, an increase of $37.9 million over 2014. The increase in net revenue was driven by clinic organic and acquisition revenue growth of $55.6 million, which was partially offset by the consolidation and closure of clinics.
- For 2016, net loss from operations was $72.1 million compared with a loss of $349.6 million in 2015. The decrease was the result of lower charges for impairment of intangible assets in 2016 compared to 2015, partially offset by higher professional accounting and legal fees.
- For 2015, net loss from operations was $349.6 million as compared with income from operations of $27.3 million in the prior year. This net loss resulted primarily from intangible asset impairment charges, partially offset by lower professional accounting and legal fees.
- On December 31, 2016, Hanger had liquidity of $102.1 million, comprising $7.2 million in cash and cash equivalents, and $94.9 million in available borrowing capacity under its revolving credit facility, compared to $68.8 million as of December 31, 2015. The $33.3 million increase from 2015 was the result of an increase in net proceeds from long-term indebtedness of $44.6 million.
- Hanger anticipates it will file financial results for the year ended December 31, 2017, during the second quarter of 2018. It estimates consolidated net revenue for 2017 will total about $1.04 billion.
