Hanger, Austin, Texas, announced net sales of $251.8 million for the quarter ended June 30, 2012, an increase of $17 million, or 7.2 percent, from $234.8 million for the second quarter of 2011. Diluted earnings per share (EPS) increased 11.1 percent to $0.50 for the second quarter of 2012 compared to diluted EPS of $0.45 in the same period in 2011.
According to a company press release, the $17 million increase in net sales for the second quarter of 2012 was the result of an $8.8 million increase in same-center sales in the patient care services segment; a $5.9 million increase from acquired entities; a $1.8 million increase in sales in the distribution segment; and a $0.3 million increase from the therapeutic solutions segment. The increase in revenues, together with continued expense control, resulted in an 8.6 percent, or $2.8 million, increase in income from operations to $35.7 million for the three months ended June 30, 2012, compared to income from operations of $32.9 million for the same period in 2011.
Net sales for the six months ended June 30, 2012, increased $34.6 million, or 8 percent, to $469.8 million from $435.2 million compared to the same period in 2011. The sales increase was driven by a $20.1 million increase in same-center sales in the patient care services segment; a $10.5 million increase from acquired entities; a $4.6 million increase in sales in the distribution segment; and a $0.6 million decrease from the therapeutic solutions segment. The increase in sales resulted in a 14.3 percent, or $0.09 per diluted share, increase in diluted EPS to $0.72 for the six months ended June 30, 2012, from $0.63 in the same period in 2011.
The company’s cash flow from operations increased $16.4 million to $27.0 million during the six months ended June 30, 2012, compared to $10.6 million in 2011. Through July 2012, Hanger reports it has acquired seven patient care companies comprised of thirteen clinics with annualized revenue of $12.8 million. As of June 30, 2012, the company had $141.1 million in total liquidity, which included $41.6 million of cash and $99.5 million available under its revolving credit facility, net of $0.5 million in letters of credit.
“We continue to deliver strong revenue growth in our patient care services and our distribution segments,” Vinit K. Asar, CEO of Hanger said in a company press release. “This, combined with solid operational execution demonstrated by our talented employees around the country, has resulted in 11.1 percent growth in diluted earnings per share.”
For 2012, Hanger said it continues to expect full year revenues between $970 million and $990 million resulting from a comparable store sales growth in its patient care services segment of 3–5 percent and similar growth in its distribution segment. It expects flat to slightly higher revenues in its therapeutic services segment for the year, with sales in the first half of the year down then trending up the second half as the rate of new contract sales accelerates. Hanger also reports that it has raised the lower end of its earnings guidance range and now anticipates diluted EPS between $1.75 and $1.79, and it expects to generate cash flow from operations between $70 million and $80 million and to invest a $40 million to $50 million in capital additions. Hanger said it will continue its acquisition program with a goal of closing acquisitions that total about $20 million in annualized revenues.