latest qtr.. I think one reason the stock is down from the 20's is anticipation of the acquisition..
BETHESDA, Md., March 1 /PRNewswire/ -- Hanger Orthopedic Group, Inc. (NYSE: HGR) today announced record results of operations for the three and twelve month periods ended December 31, 1998.
Revenues for the three months ended December 31, 1998 increased to $51.4 million from $39.2 million in the prior year's fourth quarter. The sales growth of $12.2 million, or 31%, is primarily the result of acquisitions and increased revenues of 11.5% at patient-care facilities owned and operated by the Company during the fourth quarters of 1997 and this year. Net income for the fourth quarter was $4.4 million, or $.22 per diluted share on 20.2 million shares, compared to net income of $2.9 million, or $.17 per diluted share on 16.9 million shares, for the fourth quarter of 1997, an increase of 52.0%.
For the twelve months ending December 31, 1998, revenues reached a record $187.9 million compared to revenues of $145.6 million for the same period last year. The Company reported net income for the year ended December 31, 1998, of $13.8 million, or $.75 per diluted share on 18.5 million shares, compared to net income (before extraordinary item) of $7.6 million, or $.58 per diluted share on 13.1 million shares, for the year ended December 31, 1997.
Ivan R. Sabel, CPO, Chairman of the Board and Chief Executive Officer stated, "Our fourth quarter and year-end results represent the success of the Company's acquisition program and the strong same store sales growth achieved in our existing facilities."
Headquartered in Bethesda, Maryland, Hanger is the only national public company specializing exclusively in practice management for orthotics and prosthetics ("O&P"). The Company provides O&P services in 256 patient-care centers located in 30 states and the District of Columbia and is the largest distributor of O&P supplies and components in the country. The Company has six strategically placed distribution points throughout the United States. Hanger also is engaged in the manufacture and distribution of components and finished patient-care products to the O&P industry, and through its OPNET program, provides O&P services to over 353 managed care programs.
(tables to follow)
HANGER ORTHOPEDIC GROUP, INC. (In Thousands, Except Per Share Data)
For the Year Ended For the Three
Months Ended
Income Statement Data December 31, December 31,
(Unaudited)
1998 1997 1998 1997
Net sales $187,870 $145,598 $51,444 $39,164
Cost of goods sold 92,903 73,533 24,361 19,201
Gross profit 94,967 72,065 27,083 19,963
Selling, general and
administrative 63,512 49,076 17,413 13,214
Depreciation and
amortization 3,293 2,871 942 660
Amortization of Goodwill 2,488 1,810 704 489
Income from operations 25,674 18,308 8,024 5,600
Other expense (315) (209) (355) (78)
Interest expense (1,902) (4,932) (202) (476)
Income from operations 23,457 13,167 7,467 5,046
Provision for income
taxes 9,616 5,526 3,061 2,116
Income before
extraordinary items 13,841 7,641 4,406 2,930
Extraordinary item,
net of tax -- (2,694) -- --
Net income $13,841 $4,947 $4,406 $2,930
Basic Per Common Share Data:
Income before
extraordinary item $0.82 $0.65 $0.24 $ 0.19
Extraordinary item,
net of tax -- (0.23) -- --
Net Income $0.82 $0.42 $0.24 $0.19
Shares used to compute
basic per common
share amounts 16,800,000 11,800,000 18,600,000 15,400,000
Diluted Per Common Share Data:
Income before
extraordinary item $0.75 $0.58 $0.22 $0.17
Extraordinary item,
net of tax -- (0.21) -- --
Net income $0.75 $0.37 $0.22 $0.17
Shares used to compute
diluted per common
share amounts 18,500,000 13,100,000 20,200,000 16,900,000
Hanger Orthopedic Group, Inc.
(In Thousands)
December 31, December 31,
1998 1997
Balance Sheet Data:
Working Capital $46,801 $39,031
Long-Term Debt 11,154 23,237
Shareholders' Equity 162,209 106,320
For the Year For the Three Months
Statistical Data: Ended December 31, Ended December 31,
1998 1997 1998 1997
Patient-care centers 256 212 256 212
Certified practitioners 321 248 321 248
Number of states (including D.C.) 31 30 31 30
Payor Mix:
Private pay and other 46.3% 38.0% 48.5% 36.7%
Medicare/Medicaid/VA 53.7% 62.0% 51.5% 63.3%
Same-center sales growth 11.1% 11.7% 11.5% 12.2%
EBITDA margin 16.7% 15.8% 18.8% 17.2%
Operating margin 13.7% 12.6% 15.6% 14.3%
Percentage of net sales from:
Practice management and
patient-care services 81.1% 77.1% 82.5% 78.8%
Manufacturing 4.5% 5.3% 5.3% 4.7%
Distribution 14.4% 17.6% 12.2% 16.5%
SOURCE Hanger Orthopedic Group, Inc.
/CONTACT: Ivan R. Sabel or Richard A. Stein, both of Hanger Orthopedic
Group, 301-986-0701/
/Web site: hanger.com
(HGR) |
