Hanger, Austin, Texas, announced net sales of $272.2 million for the quarter ended December 31, 2012, a $24.1 million increase, or 9.7 percent, from $248.1 million for the fourth quarter (4Q) of 2011. Diluted earnings per share (EPS) were $0.62 for 4Q 2012 compared to $0.52 for the same period last year.
According to the company, the $24.1 million increase in net sales for 4Q 2012 was the result of a $21.8 million increase in the patient care segment, comprising a $9.8 million increase in same center sales and a $12 million increase from acquired entities; a $1.3 million increase in sales in the distribution segment; and a $1 million increase in the therapeutic solutions segment.
Income from operations for the quarter ended December 31, 2012, was $38.9 million, compared to $34.3 million in the prior year. Adjusted income from operations increased $39.8 million for the quarter ended December 31, 2012, from $35.2 million in the prior year, which was primarily attributable to the sales increase in the patient care segment combined with continued control of fixed costs.
Net sales increased $67.1 million to $985.6 million for the year ended December 31, 2012, from $918.5 million for 2011. The sales increase was primarily the result of a $30.1 million, or 4 percent, increase in same center sales within the patient care segment and a $30.2 million increase from acquired entities, as well as a $6.8 million increase in sales in the distribution segment. Sales in the therapeutic solutions segment remained relatively flat compared to the prior year. Diluted EPS were $1.84 for the year ended December 31, 2012, compared to $1.61 for 2011.
The company generated $81.3 million in cash flow from operations for the year ended December 31, 2012, compared to $61.8 million for 2011. As of December 31, 2012, Hanger had $118.7 million in total liquidity, including $19.2 million of cash and $99.5 million available under its revolving credit facility, net of $0.5 million in letters of credit.
“We reported excellent results across the board in the fourth quarter,” said Vinit K. Asar, president and CEO of Hanger. “We anticipate 2013 will be another year of profitable growth, even as we continue to make key investments in capabilities aimed at enhancing long-term productivity. We are guiding to increase our adjusted diluted earnings per share between 11.6 percent and 15.5 percent for 2013.”
The company said it expects 2013 revenues to be between $1.06 and $1.08 billion and adjusted diluted EPS between $2.02 and $2.09. The company expects to generate cash flow from operations between $80 million and $100 million in 2013, invest $40 million to $50 million in capital additions, as well as continue its acquisition program with a goal of closing acquisitions that total about $20 million in annualized revenues.
