Hanger Orthopedic Group Inc. announced net sales of $226.5
million for the quarter, which ended Dec. 31, 2010, an increase of $21.4
million, or 10.4%, from $205.1 million in 2009. Adjusted diluted earnings per
share, which excludes the cost to relocate the company’s corporate
headquarters, the cost to refinance debt, the loss incurred to terminate an
interest rate swap and the costs related to the acquisition of Accelerated Care
Plus Corp (ACP), were $0.52 per diluted share for the fourth quarter of 2010, a
40.5% increase compared to $0.37 per diluted share for the same period in 2009.
 |
|
| Thomas F. Kirk |
“The quarter completes our fifth consecutive year in which we have
met or exceeded street estimates. The credit for this accomplishment belongs to
our employees and their drive to provide the best possible care to our patients
and to excel at meeting our customers’ needs,” Thomas F. Kirk,
president and chief executive officer of Hanger Orthopedic Group, stated in a
press release. “With the addition of ACP and their dedicated employees we
have acquired an exciting new strategic growth platform which, when viewed in
conjunction with our existing operations, will expand our market
potential.”
The $21.4 million increase in sales for the fourth quarter of 2010 was
primarily the result of a $11.2 million, or 6.2%, increase in same-center sales
in the patient care segment, a $1.9 million, or 8.7% increase in sales from the
company’s distribution segment, $5.3 million in sales from the therapeutic
solutions segment and a $3 million increase principally related to sales from
acquired patient care entities. Income from operations for the quarter was
$25.7 million compared to $27.5 million in 2009. Excluding the $2.2 million of
costs related to the relocation of the corporate headquarters and the $4.9
million of cost related to the acquisition of ACP, income from operations
increased 19.3% to $32.8 million due to increased sales and expense management.
Net sales for 2010 increased by $57.3 million, or 7.5%, to $817.4
million from $760.1 million in 2009. Income from operations for 2010 was $81.4
million compared to $90.5 million in 2009. After excluding the $16.4 million of
costs related to the relocation of the corporate headquarters and $5.4 million
in costs related to the acquisition of ACP, income from operations increased
14% to $103.2 million. Diluted earnings per share for 2010 were $0.65. Adjusted
diluted earnings per share for 2010, which excludes the cost to relocate the
corporate headquarters, the cost to refinance debt, the loss incurred to
terminate an interest rate swap and cost related to the acquisition of ACP,
increased 25.8% to $1.42 from $1.13 in 2009.
 |
|
| Net sales for the fourth quarter of 2010 were up $21.4 million from the same quarter in 2009. |
|
| Source: Hanger Orthopedic Group |
Hanger Orthopedic Group has completed the relocation of its corporate
headquarters to Austin, Texas. The cost of the move is reported as a separate
component of income from operations. In connection with the move the company
incurred severance, lease termination and other relocation costs of $2.2
million and $16.4 million for the quarter and year, respectively. The company
anticipates incurring $1.5 to $2.5 million of additional costs in the first
half of 2011 as the final employee moves are completed.
For 2011, the company expects full-year revenues to be between $945
million and $955 million. They expect to generate cash flow from operations of
$85 to $95 million and plan to invest $40 to $50 million in new capital
additions to fund core businesses, including ACP’s continued expansion and
development of a comprehensive electronic practice management system.
