Hanger, Austin, Texas, released its financial results for the third quarter (3Q) for the period ending September 30.
Financial highlights include:
- Net revenue totaled $262.9 million for the three months ended September 30, compared to $258 million for the same period in 2017, reflecting an increase of 1.9 percent. Net revenue for the first nine months of the year totaled $763.9 million, compared with $755 million for the same period in 2017.
- Net cash provided by operating activities totaled $20.3 million for the three months ended September 30, compared to $5.3 million for the same period a year ago.
- For the three months ending September 30, patient care net revenue totaled $214.1 million, an increase of $3.4 million or 1.6 percent, compared to the same period a year ago. Growth was primarily driven by a 3.1 percent increase in revenue from prosthetic services in 3Q compared to the prior year.
- Products and services net revenue totaled $48.9 million for the three-month period ending September 30, which reflected a $1.5 million, or a 3.2 percent, increase compared to the same period in 2017. Revenue growth was driven by a $2.2 million, or 6.9 percent, growth from distribution of O&P componentry to independent providers.
- The 3Q loss from operations relating to corporate and other activities decreased by $2.7 million to $23.4 million for the quarter ended September 30, compared to the same period in 2017. This decrease primarily related to a $4.7 million reduction in professional accounting and legal fees year-over-year.
- The 3Q net income was $4.4 million for the three-month period ending September 30, compared with a net loss of $4.2 million in the same period of 2017. The $8.5 million improvement in net income year-over-year was due primarily to lower interest expense, professional accounting and legal fees, and depreciation and amortization expense.
- Cash on hand as of September 30 totaled $155.1 million, composed of $61 million in cash and cash equivalents, and $94.1 million in available borrowing capacity under its revolving credit facility, compared to liquidity of $142.9 million on June 30. The increase in liquidity of $12.2 million from June 30 resulted from the positive cash flow from operations of $20.3 million in 3Q after the impact of capital expenditures and debt service.
“The third quarter was a memorable one for Hanger as we re-listed on the New York Stock Exchange, a key milestone in our efforts to re-establish the company with investors,” said Vinit Asar, president and CEO.