Hanger, Austin, Texas, announced its financial results for the second quarter (2Q) ended June 30.
The financial highlights were as follows:
· Net revenue was $233.4 million, compared to $281.1 million for the same period in 2019, reflecting a decrease of 17 percent. Net same clinic revenue on a day-adjusted basis declined by 18.7 percent, due primarily to a decrease in patient volumes associated with the COVID-19 pandemic. Net revenue from prosthetic services declined at a lower rate than net revenue from orthotic services.
· Net income was $31.1 million, compared to $10 million for the same period in 2019. Income from operations was $38.9 million for 2Q compared to $23.1 million for the same period in 2019. Generally accepted accounting principles (GAAP) operating and net income benefited from $20.5 million related to the company’s receipt of healthcare provider grants from the US Department of Health and Human Services’ stimulus funding enacted under the COVID-19-related legislation, known as the CARES Act.
· Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $36.5 million in 2Q, compared to $37.4 million for the same period in 2019, reflecting a decrease of $0.9 million. Adjusted EBITDA excludes the benefit of the CARES Act healthcare provider grants. Adjusted EBITDA benefited from decreases in operating costs associated with reduced salaries, employee furloughs, and other cost reduction actions.
· GAAP diluted earnings per share was $0.81 for 2Q, compared to $0.26 per diluted share for the same period in 2019. Adjusted diluted earnings per share was $0.35, compared to $0.35 per share for the same period in 2019.
· On June 30, Hanger had $202.7 million in liquidity, which reflected an increase of $70.9 million compared with March 31.
“During the second quarter, our primary focus was on providing uninterrupted patient care and on the safety of patients and employees,” said Vinit Asar, president and CEO. “Through the management actions we took, we were also able to build the liquidity necessary to support the company throughout a prolonged COVID-19 pandemic. As a result of the dedication and efforts of our 4,900 associates, we enter the second half of 2020 in a position of strength and with a collective confidence that we are prepared to return to a growth footing once the pandemic subsides.”
