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Articles 

Hanger Orthopedic Group Inc. Reports Operating Results (10-Q)

August 03, 2012 | About:

Hanger Orthopedic Group Inc. (NYSE:HGR) filed Quarterly Report for the period ended 2012-06-30.

Hanger Inc has a market cap of $884.3 million; its shares were traded at around $26.89 with a P/E ratio of 15.5 and P/S ratio of 1. Hanger Inc had an annual average earning growth of 1.7% over the past 5 years.

Highlight of Business Operations:

For the three and six months ended June 30, 2012, our net sales were $251.8 million and $469.8 million, respectively, and we recorded net income of $17.4 million and $24.9 million, respectively. For the three and six months ended June 30, 2011, our net sales were $234.8 million and $435.2 million respectively, and we recorded net income of $15.4 million and $21.6 million, respectively.

Net Sales. Net sales for the three months ended June 30, 2012 increased $17.0 million, or 7.2%, to $251.6 million for the second quarter of 2012 compared to $234.8 million for the same period of 2011. The increase was the result of a $8.8 million, or 4.6%, increase in same-center sales in the Patient-Care Services segment; a $5.9 million increase from acquired entities; a $1.8 million, or 7.0%, increase in sales in the Distribution segment; and a $0.3 million increase from the Therapeutic Solutions segment.

Other Operating Expenses. Other operating expenses for the three months ended June 30, 2012 increased $6.7 million, to $51.3 million, from $44.6 million for the three months ended June 30, 2011. The increase was primarily due to: (i) the addition of $1.1 million in operating expenses from acquired entities; (ii) $2.0 million in increased expenses related bad debt; (iii) $3.1 million in increased incentive compensation; and (iv) $0.5 million related to Instride trials. Other operating expenses as a percentage of net revenues increased 1.4% to 20.4% in 2012 from 19.0% in the prior year due to the increase expenses discussed above.

Net Sales. Net sales for the six months ended June 30, 2012 increased $34.6 million, or 8.0%, to $469.8 million from $435.2 million for the same period in 2011. The sales increase was driven by a $20.2 million, or 5.7%, increase in same-center sales in the Patient-Care Services segment; a $10.6 million increase from acquired entities; a $4.6 million or 9.4% increase in sales in the Distribution segment; and a $0.7 million decrease from the Therapeutic Solutions segment.

Other Operating Expenses. Other operating expenses for the six months ended June 30, 2012 increased $11.4 million, to $93.4 million, from $82.0 million for the six months ended June 30, 2011. The increase was primarily due to: (i) the addition of $2.1 million in operating expenses from acquired entities; (ii) $3.4 million in increased expenses related to bad debt; (iii) $4.0 million in increased incentive compensation; (iv) $1.1 million related to Instride trials; and (v) 0.9 million in other costs. Other operating expenses as a percentage of net revenues increased 110 basis points to 19.9% in 2012 from 18.8% in the prior year due to the increase expenses discussed above.

Read the The complete Report

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