Hanger Orthopedic Group Inc. (HGR, Financial) filed Quarterly Report for the period ended 2009-03-31.
Hanger Orthopedic Group Inc. develops acquires and operates orthotic and prosthetic patient-care centers. The Orthotics & Prosthetics centers are staffed by orthotists and prosthetists who design fabricate fit and supervise the use of external musculoskeletal support devices and artificial limbs. The company also manufacture custom-made and prefabricated Orthotics & Prosthetics devices and are the country's largest distributor of Orthotics & Prosthetics components and finished Orthotics & Prosthetics patient-care products. Hanger Orthopedic Group Inc. has a market cap of $387.9 million; its shares were traded at around $12.5 with a P/E ratio of 14.2 and P/S ratio of 0.6. Hanger Orthopedic Group Inc. had an annual average earning growth of 7% over the past 10 years.
Net sales for the three months ended March 31, 2009 increased by $11.4 million, or 7.3%, to $169.1 million from $157.7 million in the prior years first quarter. The sales increase was principally the result of a $5.6 million, or 4.1%, increase in same-center sales in our patient care business, a $2.0 million, or 10.4%, increase in external sales of our distribution segment, and $4.1 million associated with acquisitions. As a result of the sales increase, income from operations increased $0.9 million to $15.1 million in the three months ended March 31, 2009 from $14.2 million in the same period in 2008.
Net income applicable to common stock for the three months ended March 31, 2009 increased $1.4 million to $4.5 million, compared to $3.1 million in the same period of the prior year. The current period benefited from increased sales and lower interest costs.
Net cash used in operations improved by $3.8 million for the three months ended March 31, 2009 to a use of $3.7 million compared to a use of $7.5 million in the same period of the prior year. The improvement in cash used for the first quarter of 2009 was primarily the result of improved operating results and a $1.4 million decrease in working capital. Days sales outstanding improved to 48 days as of March 31, 2009 from 51 days as of March 31, 2008.
As of March 31, 2009, $88.3 million, or 20.9%, of the Companys total debt of $422.9 million was subject to variable interest rates. The Company had access to funds of $89.8 million, comprised of $51.9 million of cash and $37.9 million available under its revolving credit facility at March 31, 2009. The Company believes that it has sufficient liquidity to conduct its normal operations and fund its acquisition plan in 2009.
For the full year 2009, the Company expects revenues to be between $750 million and $760 million, which would result in growth of 6.7% to 8.1% compared to fiscal 2008. The Company also expects diluted EPS in the range of $0.96 to $0.98 for twelve months ended December 31, 2009.
Read the The complete ReportHGR is in the portfolios of Richard Pzena of Pzena Investment Management LLC.
Hanger Orthopedic Group Inc. develops acquires and operates orthotic and prosthetic patient-care centers. The Orthotics & Prosthetics centers are staffed by orthotists and prosthetists who design fabricate fit and supervise the use of external musculoskeletal support devices and artificial limbs. The company also manufacture custom-made and prefabricated Orthotics & Prosthetics devices and are the country's largest distributor of Orthotics & Prosthetics components and finished Orthotics & Prosthetics patient-care products. Hanger Orthopedic Group Inc. has a market cap of $387.9 million; its shares were traded at around $12.5 with a P/E ratio of 14.2 and P/S ratio of 0.6. Hanger Orthopedic Group Inc. had an annual average earning growth of 7% over the past 10 years.
Highlight of Business Operations:
For the three month period ended March 31, 2009, our net sales were $169.1 million and we recorded net income of $4.5 million. For the three month period ended March 31, 2008, our net sales were $157.7 million and we recorded net income of $3.6 million.Net sales for the three months ended March 31, 2009 increased by $11.4 million, or 7.3%, to $169.1 million from $157.7 million in the prior years first quarter. The sales increase was principally the result of a $5.6 million, or 4.1%, increase in same-center sales in our patient care business, a $2.0 million, or 10.4%, increase in external sales of our distribution segment, and $4.1 million associated with acquisitions. As a result of the sales increase, income from operations increased $0.9 million to $15.1 million in the three months ended March 31, 2009 from $14.2 million in the same period in 2008.
Net income applicable to common stock for the three months ended March 31, 2009 increased $1.4 million to $4.5 million, compared to $3.1 million in the same period of the prior year. The current period benefited from increased sales and lower interest costs.
Net cash used in operations improved by $3.8 million for the three months ended March 31, 2009 to a use of $3.7 million compared to a use of $7.5 million in the same period of the prior year. The improvement in cash used for the first quarter of 2009 was primarily the result of improved operating results and a $1.4 million decrease in working capital. Days sales outstanding improved to 48 days as of March 31, 2009 from 51 days as of March 31, 2008.
As of March 31, 2009, $88.3 million, or 20.9%, of the Companys total debt of $422.9 million was subject to variable interest rates. The Company had access to funds of $89.8 million, comprised of $51.9 million of cash and $37.9 million available under its revolving credit facility at March 31, 2009. The Company believes that it has sufficient liquidity to conduct its normal operations and fund its acquisition plan in 2009.
For the full year 2009, the Company expects revenues to be between $750 million and $760 million, which would result in growth of 6.7% to 8.1% compared to fiscal 2008. The Company also expects diluted EPS in the range of $0.96 to $0.98 for twelve months ended December 31, 2009.
Read the The complete ReportHGR is in the portfolios of Richard Pzena of Pzena Investment Management LLC.
