stock closed at 15 7/16.. after earnings release.
Hanger Orthopedic Group, Inc. Announces Record First Quarter Operating Results
BETHESDA, Md., May 3 /PRNewswire/ -- Hanger Orthopedic Group, Inc. (NYSE: HGR - news) today announced record results of operations for the three-month period ended March 31, 1999.
Net sales for the three months ended March 31, 1999 increased to $49.1 million from $40.8 million in the prior year's first quarter. The sales growth of 20.6% is primarily the result of acquisitions and increased revenues at patient-care facilities owned and operated by the Company during the first quarters of 1998 and this year. Net income for the first quarter of 1999 was $3.1 million, an 84.1% increase over net income of $1.7 million for the first quarter of 1998. Net income for the first quarter of 1999 was $.15 per diluted share on 20.2 million shares, compared to $.10 per diluted share on 17.1 million shares for the first quarter of 1998.
Revenues at patient-care centers owned and operated by the Company during the first quarter 1998 and 1999 increased 6.3%. Such ''same-center'' sales increase was adversely affected by the harsh winter conditions, particularly in the Eastern United States during January 1999, which resulted in higher than usual patient-care center closures and a 3.5% decrease in same-center sales during that month. Same-center sales based on operations in February and March 1999 increased by 9.2%.
Ivan R. Sabel, CPO, Chairman of the Board and Chief Executive Officer stated, ''Our first quarter results represent our continued strong internal growth as well as our successful acquisition program.''
Headquartered in Bethesda, Maryland, Hanger is the only national public company engaged exclusively in practice management for orthotics and prosthetics (''O&P''). The Company provides O&P services in 261 patient-care centers located in 31 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 383 managed care programs.
(tables to follow)
HANGER ORTHOPEDIC GROUP, INC.
(In Thousands, Except Per Share Data)
For the Three Months
Income Statement Data: Ended March 31,
(Unaudited)
1999 1998
Net sales $49,144 $40,750
Cost of goods sold 24,888 21,303
Gross profit 24,256 19,447
Selling, general and administrative 17,099 14,729
Depreciation and amortization 963 709
Amortization of Goodwill 742 551
Income from operations 5,452 3,458
Other (expense) income (288) (615)
Interest expense 38 30
Income from operations 5,202 2,873
Provision for income taxes 2,081 1,178
Net income $3,121 $1,695
Basic Per Common Share Data:
Net income $0.17 $0.11
Shares used to compute basic
per common share amounts 18,800,158 15,576,030
Diluted Per Common Share Data:
Net income $0.15 $0.10
Shares used to compute diluted
per common share amounts 20,201,380 17,081,983
March 31, December 31,
Balance Sheet Data: 1999 1998
Working Capital $49,848 $49,678
Long-Term Debt 13,699 11,154
Shareholders' Equity 166,795 162,553
Hanger Orthopedic Group, Inc.
(In Thousands)
For the Three Months
Statistical Data: Ended March 31,
1999 1998
Patient-care centers 261 238
Certified practitioners 323 278
Number of states (including D.C.) 32 30
Payer Mix:
Private pay and other 52.3% 48.0%
Medicare/Medicaid/VA 47.7% 52.0%
Same-center sales growth 6.3% 13.8%
EBITDA margin 14.6% 11.6%
Operating margin 11.0% 8.5%
Percentage of net sales from:
Practice management and
patient-care services 81.8% 79.0%
Manufacturing 5.3% 4.2%
Distribution 12.9% 16.8%
SOURCE: Hanger Orthopedic Group, Inc.
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