Hanger, Inc. (NYSE: HNGR), a leading provider of orthotic and prosthetic (O&P) patient care services and solutions, today announced its financial results for the second quarter ended June 30, 2019.
Financial Highlights for the Second Quarter of 2019
- Net revenue was $281.1 million for the three months ended June 30, 2019, compared to $267.0 million for the same period in 2018, reflecting a net revenue increase of 5.3 percent. Same clinic revenue per day in the Patient Care segment grew by 3.0 percent.
- GAAP net income totaled $10.0 million for the three months ended June 30, 2019, compared to $12.9 million for the same period in 2018. GAAP net income in the second quarter of 2018 benefited from a $3.7 million pre-tax gain related to favorable settlements.
- GAAP income from operations was $23.1 million for the three months ended June 30, 2019, compared to $20.3 million for the same period in 2018.
- Adjusted EBITDA was $37.4 million in the second quarter, compared to $33.6 million for the same period in 2018, reflecting an increase of $3.7 million or 11.1 percent. Growth in Adjusted EBITDA was driven by higher revenue and contribution margin within the Company’s Patient Care segment. This growth was partially offset by decreased margins within the Products & Services segment and an increase in Corporate & Other costs relating to the Company’s financial and supply chain systems initiative.
- GAAP diluted earnings per share was $0.26 for the second quarter of 2019, compared to $0.35 for the same period in 2018. The reduction in GAAP earnings per share primarily relates to the gain on favorable settlements in the second quarter of 2018 and an increased provision for income taxes in the second quarter of 2019.
- Adjusted diluted earnings per share was $0.35 for the three months ended June 30, 2019, compared to $0.28 for the same period in 2018, which reflects an increase of 25.0 percent.
- The Company reaffirmed its 2019 financial outlook (see “2019 Outlook” within this release).
Vinit Asar, President and Chief Executive Officer of Hanger, Inc., stated, “As anticipated, we benefited from the timing of prosthetic deliveries during the quarter, which have brought our year-to-date results in line with our original expectations. These results, coupled with continuing stronger than anticipated growth in our distribution business, provided us with a solid revenue performance. The positive flow-through on this revenue growth was also evident during the quarter, as our Patient Care segment demonstrated a significant increase in earnings and margin. We are encouraged by this business momentum and believe it reflects the favorable impact our strategies and investments are having on our drive towards clinical excellence and differentiation.”
Complete reconciliations of GAAP to non-GAAP financial measures are provided in the tables located at the end of this press release. – Business Wire