Aided by a $6.7 million bump in same-center revenues, Hanger Orthopedic Group Inc. reported a $9.6 million profit on $192.3 million in sales during the three months ended Sept. 30.
Revenues at centers open more than one year climbed 4.3 percent, the Bethesda, Md.-based provider of artificial limbs and orthopedic devices said. Net revenues also benefited from a $2.1 million, or 10 percent, jump in sales for Hanger’s distribution unit, while recent acquisitions contributed an extra $4.8 million to net sales.
Revenues from patient-care services during the quarter were stable compared with 2008, holding at roughly 88 percent of total sales. Distribution revenues continued to provide all but a sliver of additional sales.
In addition to its chain of 669 patient-care centers and distribution services, Hanger operates Linkia, a provider-network management firm, as well as Innovative Neurotronics, which is working on neuromuscular technologies with several prosthetic and orthotic supply companies.
Third-quarter net income rose $2.3 million, or 31.4 percent, compared with the same period in 2008. Through the first nine months of the year, Hanger recorded a $24.2 million profit, or 76 cents a share, a 27.7 percent increase from the $13.2 million in net income reported during the first nine months of 2008.
According to CEO Thomas Kirk, Hanger’s bottom line was helped by lower interest costs and improved operating efficiencies. The company also said Barclays Bank late last week stepped in to replace $10 million in borrowing capacity lost when Lehman Brothers went broke last year and defaulted on guarantees underpinning Hanger’s revolving credit facility.
With the new commitment from the British bank, Hanger now has $62.8 million available through the revolver, which the company believes will be sufficient to support operations and fund possible acquisitions through the end of the year.
Overall debt at Hanger now stands at $409.7 million, down from $422.3 million at this point in 2008. The company also had $78.4 million in cash on hand at the end of September.
