Hanger Orthopedic Group, Austin, Texas, has announced net sales of $235.3 million for the quarter ended September 30, 2011, an increase of $28.6 million, or 13.8 percent, from $206.7 million for the third quarter a year ago.
Adjusted diluted earnings per share (EPS), which excludes the costs to relocate the company’s corporate headquarters and the costs related to acquisitions, increased 24.3 percent to $0.46 for the third quarter from $0.37 for the third quarter of 2010. Diluted EPS were $0.45 for the third quarter of 2011 compared to $0.21 in the same period a year ago.
The $28.6 million increase in sales for the third quarter of 2011 came via a $15.7 million increase from the therapeutic solutions segment, principally from the acquisition of Accelerated Care Plus (ACP); a $7.2 million increase in same-center sales in the patient care services segment; a $4.7 million increase due to acquisitions in the patient care services segment; and a $1 million increase in sales in the company’s distribution segment.
Income from operations for the third quarter 2011, was $31.2 million compared to $18.3 million in the prior year. Adjusted income from operations as a percentage of revenue increased 13.5 percent for the third quarter of 2011, which was primarily attributable to the acquisition of ACP.
“While we are pleased with our third quarter results, we experienced increased pressure on sales volumes and operating margin this quarter compared to the first half of the year, which we attribute to the cumulative weakness in the national economy, persistent high unemployment, uncertainty in the minds of our customers on the impact of health care reforms and state governments looking for ways to cover budget shortfalls,” said Thomas F. Kirk, CEO of Hanger Orthopedic Group. “We remain optimistic about our ability to continue to produce profitable growth; however given the current environment we are lowering our fourth quarter EPS growth expectations to a range of 7 percent to 13 percent.”
Hanger expects fourth quarter 2011 revenues between $243 million and $247 million and adjusted diluted EPS between $0.49 and $0.52, which would result in full year revenues between $914 million and $918 million and adjusted diluted EPS of $1.59 to $1.62.
