Hanger, Austin, Texas, announced net sales of $218.1 million for the quarter ended March 31, 2012, a $17.7 million increase, or 8.8 percent, compared to the first quarter of 2011. Diluted earnings per share (EPS) increased to $0.22 for the first quarter of 2012 compared to diluted EPS of $0.18 for the first quarter of 2011.
The $17.7 million, or 8.8 percent, increase in sales for the first quarter of 2012 was the result of an $11.4 million increase in same-center sales in the patient care services segment; a $4.4 million increase from acquired entities; a $2.8 million increase in sales in the distribution segment; and a $0.9 million decrease from the therapeutic solutions segment.
The company’s cash flow from operations increased $1.3 million to $13.6 million during the quarter ended March 31, 2012, compared to $12.3 million for the first quarter of 2011. As of March 31, 2012, the company had $131.7 million in total liquidity, which included $32.2 million of cash and $99.5 million available under its revolving credit facility, net of $0.5 million of letters of credit. The company’s leverage ratio, as defined in its credit facilities, was 3.0 at March 31, 2012, and December 31, 2011.
“Our patient care services and distribution segments delivered strong revenue growth, which drove 15.8 percent growth in diluted earnings per share,” said Hanger CEO Thomas F. Kirk, PhD. “We are very pleased with the strength of this performance and remain confident in achieving our full year guidance. Nevertheless, we expect the regulatory and reimbursement environment to remain challenging though the remainder of 2012.”
Hanger reports that it expects full year 2012 revenues of between $970 million and $990 million resulting from a comparable-store sales growth in its patient care services and distribution segments of 3 percent to 5 percent. It expects flat to slightly higher revenues in its therapeutic services segment for the year, with sales in the first half of the year down then trending up the second half as the rate of new contracts accelerates. Hanger also reports that it anticipates diluted EPS between $1.72 and $1.79, expects to generate cash flow from operations between $70 million and $80 million in 2012, and to invest $40 million to $50 million in capital additions. Hanger said it will continue its acquisition program during 2012 with a goal of closing acquisitions that total approximately $20 million in annualized revenues.
