Hanger, Austin, Texas, announced its financial results for the second quarter (2Q) and six months ended June 30.
The highlights were as follows:
· Net revenue was $280.8 million for the three months ended June 30, compared to $233.4 million for the same period in 2020, reflecting growth of 20.3 percent.
· Net income was $10.2 million for the three months ended June 30, compared to $31.1 million for the same period in 2020.
· Income from operations was $20.1 million for the quarter compared to $38.9 million for the same period in 2020.
· 2Q 2020 generally accepted accounting principles (GAAP) income from operations and net income benefited from $20.5 million related to the company’s receipt of provider grants under the CARES Act, as well as $35 million in temporary cost reductions taken during that period in response to the COVID-19 pandemic.
· Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $31 million in 2Q 2021, compared to $36.5 million for the same period in 2020, a decline of $5.6 million or 15.2 percent. Results for 2Q 2020 benefited from the temporary cost reductions discussed above.
· GAAP diluted earnings per share was $0.26 per share for 2Q 2021, compared to $0.81 per share for the same period in 2020. Adjusted diluted earnings per share was $0.27 for the three months ended June 30, 2021, compared to $0.35 for the same period in 2020.
The company reaffirmed its financial outlook for 2021. Hanger anticipates net revenue between $1.145 billion and $1.175 billion, and adjusted EBITDA in a range between $130 million and $135 million.
“Our second quarter results reflected an encouraging recovery in Hanger’s business,” said Vinit Asar, president and CEO. “Within the patient care segment, on a same-clinic basis, second quarter net revenue was approximately 96 percent of 2019 levels. While we remain concerned, as others do, with the lingering effects of the pandemic on the nation’s business and labor environment, we are nevertheless pleased with our progress for the year to date and believe we are well positioned to further restore growth as the pandemic comes to an end.”