Hanger Sees 1st Quarter Increase

Hanger Orthopedic Group Inc., Bethesda, Maryland, announced April 30 that net income increased to $0.19 per diluted share for the three-month period ended March 31, 2003. Net income increased by $3.9 million and EPS by $0.18 per diluted share compared to the same period last year.

Net sales for the three months ended March 31, 2003 increased by $2.6 million, or 2.1 percent, to $126.1 million from $123.5 million in the prior year's first quarter. The sales growth was primarily the result of a 1 percent increase in sales in the company's O&P practices and a 22.2 percent increase in the sales of the company's distribution segment. Gross profit for the first quarter of 2003 was $65.4 million, or 51.9 percent of net sales, compared to $64 million, or 51.8 percent of net sales, in the prior year. The improvement in gross profit, in both dollars and as a percentage of net sales, was due to a reduction in material costs. Net income for the first quarter of 2003 was $5.5 million, an improvement of $4 million over the comparable period last year. For the first quarter of 2002, Hanger reported net income of $1.5 million.

Net income applicable to common stock for the first quarter of 2003 was $4.1 million, or approximately $0.19 per diluted share, an improvement of $3.9 million over the comparable period last year. For the corresponding period of the prior year, Hanger reported net income applicable to common stock of $0.3 million, or approximately $0.01 per diluted share

Net income comparisons were favorably impacted by the loss on early extinguishment of debt recorded in the first quarter of 2002. In 2002, these expenses were reported as a $2.8 million extraordinary item, net of tax. New reporting requirements no longer allow this extraordinary treatment and require that these losses be reported as non-operating expenses.

Chairman and CEO Ivan R. Sabel, CPO, said, "We are pleased to be able to report continued improvement in earnings. As expected, the weather did have some impact on our patient-care sales growth; however, we continued to grow our earnings. As we move forward, we expect our patient-care sales growth to return to historic rates. As always, I want to thank our employees for all the hard work it took to achieve these results."

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Hanger Sees 1st Quarter Increase

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Related posts:

Upper-Extremity Patient Care: Personal Visions

Academy’s ‘Giving Back’ Program

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Clinic Manager – Certified Prosthetist Orthotist (CPO) – Rogers, AR

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