Hanger, Austin, Texas, announced net sales of $243.5 million for the quarter ended September 30, 2012, an increase of $8.2 million, or 3.5 percent, from $235.3 million for the third quarter of 2011. Third quarter 2012 diluted earnings per share (EPS) increased $0.05 to $0.50 for the same period of 2011. Adjusted diluted EPS increased 8.7 percent to $0.50 compared to diluted EPS of $0.46 for the same period in 2011.
According to a company press release, the $8.2 million, or 3.5 percent, increase in net sales for the third quarter of 2012 was the result of a $7.7 million, or 4 percent, increase from its patient care services segment, comprising a $1.9 million, or 1 percent, increase in same-center sales and a $5.8 million increase from acquired entities; a $0.9 million, or 3.5 percent, increase in sales in the distribution segment; and a $0.4 million decrease in the therapeutic solutions segment. Income from operations for the quarter ended September 30, 2012, was $35.4 million compared to $31.2 million in the prior year. Adjusted income from operations increased 12.7 percent to $35.7 million for the three months ended September 30, 2012 from $31.7 million in the same period of 2011.
Net sales for the nine months ended September 30, 2012, increased $42.9 million, or 6.4 percent, to $713.4 million from $670.5 million in 2011. The sales increase was driven by a $21.2 million, or 3.9 percent, increase in same-center sales in the patient care services segment; a $17.3 million increase from acquired entities; a $5.5 million, or 7.3 percent, increase in sales in the distribution segment; and a $1.1 million decrease in the therapeutic solutions segment. Diluted EPS $1.21 for the nine months ended September 30, 2012, a 12 percent increase compared to $1.08 in the same period of 2011. Adjusted diluted EPS increased $0.13, or 11.8 percent, to $1.23 for the nine months ended September 30, 2012, from $1.10 in the 2011 period.
The company’s cash flow from operations increased $23.8 million to $59 million during the nine months ended September 30, 2012, compared to $35.2 million in 2011. As of September 30, 2012, the company had $155.1 million in total liquidity, which included $55.6 million of cash and $99.5 million available under its revolving credit facility, net of $0.5 million in letters of credit.
“Overall we are very pleased with the results,” Hanger President and CEO Vinit K. Asar said in a company press release. “We came out of Q3 with a strong backlog and are optimistic about our prospects in the fourth quarter. On another note, Hanger was recently recognized as one of Forbes’ 100 Best Small Companies in America. Credit for that accomplishment rests with our employees who are passionate, well trained, and highly engaged in providing the best patient experience.”
For 2012, Hanger said it continues to expect full year revenues between $970-990 million resulting from a comparable store sales growth in its patient care services segment of 3-5 percent and growth in its distribution segment of 3-7 percent. It expects diluted EPS between $1.75 and $1.79 for the year, and it expects to generate cash flow from operations between $70-80 million in 2012 and to invest $35-45 million in capital additions. Through October 2012 Hanger said it has closed O&P acquisitions totaling about $35.6 million in annualized revenue, which exceeds its previously announced goal of $20 million in total annualized revenue.
