Hanger, Austin, Texas, announced its financial results for the second quarter (2Q) and six months ended June 30.
The financial highlights were:
- Net revenues were $312 million for the three months ended June 30, compared to $280.8 million for the same period in 2021, reflecting growth of 11.1 percent. Patient care same clinic revenue growth per day was 6.2 percent during the period.
- Net income was $10.1 million for the three months ended June 30, compared to $10.2 million for the same period in 2021. Income from operations was $20.8 million for the quarter compared to $20.1 million for the same period in 2021.
- Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $35.5 million in 2Q 2022, compared to $31 million for the same period in 2021, reflecting an increase of $4.5 million, or 14.5 percent.
- Generally accepted accounting principles diluted earnings per share was $0.26 for 2Q 2022 and 2021. Adjusted diluted earnings per share was $0.35 for the three months ended June 30, compared to $0.27 for the same period in 2021.
Results for the patient care segment were:
- For the three months ended June 30, patient care net revenues were $265.7 million, an increase of $28.9 million, or 12.2 percent, compared to the same period in 2021. For the three-month period, acquisitions of O&P clinics that were consummated in 2021 and 2022 contributed $13.7 million of incremental revenue.
- Net same clinic revenue on a day-adjusted basis grew 6.2 percent during 2Q 2022 compared to the same quarter in the prior year period. Patient care results benefited from the continued improvement in patient volumes compared to the decreased levels of demand experienced due to the COVID pandemic during the same period in 2021.
- During 2Q, excluding the effect of acquisitions, net revenue from prosthetics grew 8.9 percent and net revenue from orthotics grew 3 percent, each compared to the prior year period. Prosthetics comprised 55.1 percent of patient care segment net revenue for the quarter, compared to 53.7 percent in the same period of 2021. Income from operations in the patient care segment was $40.5 million during 2Q 2022, an increase of $0.9 million compared to the $39.6 million reported in the prior year.
- Payer disallowances and patient nonpayment were 4.4 percent of gross charges during 2Q 2022, which compared to 3.4 percent during the second quarter of 2021, resulting in an approximate $2.8 million comparative decrease to revenue, income from operations, and adjusted EBITDA during the 2Q 2022.
- Adjusted EBITDA for the segment was $47.8 million, which reflected a $2.9 million increase compared to 2Q 2021. Adjusted EBITDA margin in the segment totaled 18 percent compared to 18.9 percent during 2Q 2021.
