Hanger Orthopedic Group, Bethesda, Maryland, has announced net sales of $192.3 million for the quarter ended September 30, 2009, an increase of $13.6 million, or 7.6 percent, from $178.7 million in the prior year. Earnings per share for the third quarter of 2009 were $0.30 per diluted share compared to $0.23 per diluted share for the same period in 2008, an increase of 30.4 percent. Net income increased $2.3 million, or 31.4 percent.
According to Hanger, the sales increase was primarily the result of a 4.3 percent increase in same-center sales in its patient care centers, a 10-percent increase in sales of the company’s distribution segment, and a $4.8-million increase principally related to sales from acquired entities. The combination of expense management and increased sales resulted in income from operations increasing $3.5 million, or 17.4 percent, to $23.8 million for the third quarter of 2009, compared to last year.
“We are very pleased with our third-quarter results, as they exceeded our expectations, represented solid operational execution, and generated strong cash flow,” commented Thomas F. Kirk, Hanger president and CEO. “Patient care centers revenues grew at 6.6 percent, and our efforts on expense management continue to be reflected in our results. Since the third quarter of last year, we have improved operating margins for the quarter by 100 basis points to 12.4 percent. We are also extremely pleased with the added commitment to our revolver and liquidity because it reflects the confidence our lenders have in our consistent execution. I am proud of our teams’ efforts in this economic environment, and we are actively monitoring the proposed healthcare reforms and how they could impact our future prospects.”
