Hanger Reports 1Q Results

Hanger Orthopedic Group Inc., Bethesda, Maryland, announced total sales growth of 5.6 percent and net income of $0.8 million for the quarter ended March 31, 2006.

The company said, net sales for the quarter ended March 31, 2006, increased by $7.4 million, or 5.6 percent, to $140.4 million from $133 million in the first quarter of the prior year. The sales increase was primarily the result of a $4.8 million, or 3.9 percent, increase in same center sales of patient-care centers and a $3.2 million, or 30.7 percent, increase in outside sales of the Company's distribution segment offset by a $0.4 million decline due to practices that have been closed, including two in New Orleans.

Included in the same center sales increase is a $1.6 million or 1.3 percent contribution from Linkia contracts.

Commenting on the results, Hanger's Chairman Ivan R. Sabel said, "Same center sales increased 3.9 percent in the quarter, which is our largest increase since the third quarter of 2002. Contributing to the improved sales results were our Linkia contracts which generated $1.6 million in sales growth and the traction generated by a number of the sales programs we have worked on over the past two years. We continue to focus on increasing net sales while dealing with the pressure of a slightly negative reimbursement environment. We have also shown discipline in our management of materials and direct labor. The increased revenue allowed us to absorb the impact of inflation on our fixed costs, an extra day of labor, some one-time costs as well as additional investments in Linkia and Innovative Neurotronics and still generate essentially the same operating income as we did in 2005. In the first quarter we also positioned ourselves to realize revenue from the WalkAide product beginning in the second quarter. Management is committed to improving our profitability through sales growth, but that growth has required investments in infrastructure."

Hanger Reports 1Q Results

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Related posts:

OPAF Launches Swim Program

Swanson O&P Sponsors Fitness Clinic

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Certified Prosthetist / Prosthetist-Orthotist (CP/CPO) Gates Prosthetics + Mobility Clinic — Mountain Home, AR

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