Hanger, Inc. (NYSE: HNGR), a leading provider of orthotic and
prosthetic (O&P) patient care services and solutions, today
announced its financial results for the first quarter ended
March 31, 2019.
Financial Highlights for the First Quarter of 2019
- Net revenue was $236.4 million for the
three months ended March 31, 2019, compared to $234.0 million
for the same period in 2018, reflecting a net revenue increase of
1.0 percent year-over-year.
- GAAP net loss totaled $7.0 million for
the three months ended March 31, 2019, compared to a net loss
of $22.6 million for the same period in 2018. The net loss in the
first quarter of 2018 included the impact of a $17.0 million
pre-tax loss on the extinguishment of debt as well as higher
interest expense compared to the first quarter of 2019.
- GAAP loss from operations totaled $2.0
million for the three months ended March 31, 2019, compared to
income from operations of $0.6 million for the same period in
2018.
- Adjusted EBITDA was $11.9 million in
the first quarter of 2019, compared to $16.2 million for the same
period in 2018, reflecting a decrease of $4.3 million. The decline
in Adjusted EBITDA was driven primarily by expected increases of
$1.8 million in benefits expense and $1.0 million in rent expense,
as well as expected lower margins within the Products and Services
segment.
- GAAP loss per share was ($0.19) for the
first quarter of 2019, compared to a loss per share of ($0.62) for
the same period in 2018. The reduction in GAAP loss per share
related primarily to the prior year refinancing costs, a reduction
in interest expense and lower third party professional fees.
- Adjusted diluted loss per share was
($0.16) for the three months ended March 31, 2019, compared to
loss per share of ($0.13) for the same period in 2018.
- The Company reaffirmed its 2019
financial outlook (see "2019 Outlook" within this release).
Vinit Asar, President and Chief Executive Officer of Hanger,
Inc., stated, "While revenue growth in the quarter was below our
expectations, we believe this relates primarily to the timing of
our prosthetics deliveries. As a result, we are reaffirming both
our revenue and earnings guidance for 2019. We remain positive in
our view of the demand for our O&P services, strength in our
referrals patterns, and the overall industry fundamentals."
Complete reconciliations of GAAP to non-GAAP financial measures
are provided in the tables located at the end of this press
release.
Segment Results for Three Months Ended March 31,
2019
Patient Care Segment
For the three months ended March 31, 2019, Patient Care net
revenue was $190.6 million, an increase of $2.1 million or 1.1
percent, compared to the same period in 2018. Growth on a reported
basis was attributed to $4.8 million of revenue during the quarter
from O&P clinics acquired in late 2018 and early 2019.
After adjusting for one less revenue day in the first quarter,
same clinic revenue for the three months ended March 31, 2019
was consistent with the prior year period. Revenue from prosthetic
services decreased 0.7 percent on a day-adjusted basis compared to
the prior year and revenue from orthotics increased by 0.9 percent
on a day-adjusted basis.
Income from operations in the Patient Care segment was $15.8
million during the first quarter of 2019, which reflected a $1.3
million decline, compared to $17.1 million reported in the prior
year. Adjusted EBITDA for the segment was $21.4 million, which
reflected a $1.6 million or 7.0 percent decline compared to the
$23.0 million reported in the prior year period. Results reflected
higher health benefit and rent expenses as compared with the prior
year period, with the Patient Care segment bearing $1.5 million of
the Company's $1.8 million increase in benefits costs and $0.9
million of the $1.0 million total increase in rent expense.
Benefits costs are inherently volatile from one period to the next
as they are dependent on the Company's underlying claim experience,
which was favorable in the first quarter of 2018. Of the total rent
increase, $0.3 million related to the adoption of the new lease
accounting standard, Accounting Standards Codification (ASC) 842,
and the remainder of the increase related to rent increases and
completed acquisitions.
Products & Services Segment
For the three months ended March 31, 2019, Products &
Services net revenue totaled $45.8 million, which reflected a $0.3
million, or 0.7 percent increase compared to the same period in
2018. Revenue growth was driven by a $1.8 million, or 5.9 percent
increase from the distribution of O&P componentry to
independent providers, which was partially offset by a $1.5 million
decrease in revenue from therapeutic solutions.
Income from operations for the Products & Services segment
decreased by $1.8 million to $4.1 million in the first quarter of
2019 compared to the same period in 2018. Adjusted EBITDA for the
Products & Services segment was $6.9 million for the first
quarter of 2019, which reflected a $1.8 million decrease compared
with the same period of 2018. The decline in therapeutic solutions
revenue as well as lower margins within O&P distribution
impacted segment earnings in the quarter.
Corporate & Other
The loss from operations relating to corporate and other
activities decreased by $0.5 million to $21.8 million for the
quarter ended March 31, 2019 compared to the same period in
2018. This decrease primarily related to a $2.1 million reduction
in professional accounting and legal fees year-over-year. Excluding
the effect of excess third party professional fees, depreciation
and amortization, certain acquisition related transaction costs and
non-cash equity compensation expense, the net cost of corporate and
other activities increased by $1.0 million to $16.4 million in the
first quarter of 2019. Increases in costs for Corporate & Other
activities related primarily to initial planning for the
implementation of new financial and supply chain systems as well as
an increase in compensation costs, franchise tax expense and other
tax-related costs.
Net Income; Interest Expense
For the three months ended March 31, 2019, net loss was
$7.0 million compared with a net loss of $22.6 million in the same
period in 2018. The $15.7 million improvement in net income
year-over-year was due primarily to a $17.0 million pre-tax loss on
the extinguishment of debt associated with the 2018 debt
refinancing as well as decreases in interest expense.
Liquidity
On March 31, 2019, the Company had liquidity of $115.3
million, comprised of $20.5 million in cash and cash equivalents,
and $94.8 million in available borrowing capacity under its
revolving credit facility, compared to liquidity of $189.2 million
on December 31, 2018.
The decrease in liquidity was primarily attributable to the use
of $36.5 million for the payment of annual incentive bonuses, tax
payments on stock vesting, and the employer 401(k) matching
contribution, the use of $27.7 million for an acquisition closed in
the first quarter, and a $5.6 million net reduction in accounts
payable.
2019 Outlook
Hanger reaffirms its full-year 2019 net revenue and Adjusted
EBITDA outlook as follows:
Revenue in a range between $1.075 billion and $1.105 billion,
and Adjusted EBITDA in a range between $121 million and $126
million.
Hanger's financial outlook for 2019 does not incorporate
contributions from potential future acquisitions. Adjusted EBITDA
is provided on a non-GAAP basis only because a reconciliation to
the most comparable GAAP financial measure, net income, is not
available without unreasonable effort due to the unpredictable
nature of reconciling items that render such a reconciliation not
meaningful for investors.
Conference and Webcast Details
Hanger’s management team will host a conference call tomorrow,
Thursday, May 9, at 8:30 a.m. Eastern time to discuss the
Company’s first quarter 2019 financial results and business
outlook.
To participate, dial 877-407-6184 or 201-389-0877 outside the
U.S. and Canada, and use conference code number
13689515. A live webcast and replay of the call will be
available at the Investor Relations section of the Company’s web
site at
https://investor.hanger.com/events/conferences-and-corporate-access/default.aspx,
and a replay of the webcast will remain available for one year.
Additional Notes
A reconciliation of GAAP and non-GAAP financial results is
included in the tables provided at the back of this press release.
The Company has provided certain supplemental key statistics
relating to its results for certain prior periods. These key
statistics are non-GAAP measures used by the Company’s management
to analyze the Company’s business results that are being provided
for informational and analytical context.
Accompanying supplemental information will be posted to the
Investor Relations section of Hanger’s web site
at www.hanger.com/investors.
About Hanger, Inc. – Built on the legacy of James
Edward Hanger, the first amputee of the American Civil War, Hanger,
Inc. (NYSE: HNGR) delivers orthotic and prosthetic (O&P)
patient care, and distributes O&P products and rehabilitative
solutions. Hanger's Patient Care segment is the largest owner and
operator of O&P patient care clinics with approximately 800
patient care locations nationwide. Through its Products &
Services segment, Hanger distributes O&P devices, products and
components, and provides rehabilitative solutions. With over 150
years of clinical excellence and innovation, Hanger's vision is to
lead the orthotic & prosthetic markets by providing superior
patient care, outcomes, services and value. For more information on
Hanger, visit www.hanger.com.
This press release contains certain “forward-looking statements”
relating to the Company. All statements, other than statements of
historical fact included herein, are “forward looking
statements.” These forward-looking statements are often
identified by the use of forward-looking terminology such as
“preliminary,” “intends,” “expects,” “plans,” “anticipates,”
“believes,” “views” or similar expressions and involve known and
unknown risks and uncertainties. Although the Company believes that
the expectations reflected in these forward-looking statements are
reasonable, they do involve assumptions, risks, and uncertainties,
and these expectations may prove to be incorrect. Investors should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. The Company
disclaims any intention or obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws. These uncertainties include, but are
not limited to, the risk of our identified material weaknesses in
the Company’s internal control over financial reporting adversely
affecting its ability to report its financial condition and results
of operations in a timely and accurate manner; any litigation
relating to the Company’s accounting practices, financial
statements and other financial data, periodic reports or other
corporate actions; changes in the demand for the Company’s O&P
products and services; uncertainties relating to the results of
operations or recently acquired O&P patient care clinics; the
Company’s ability to enter into and derive benefits from
managed-care contracts; the Company’s ability to successfully
attract and retain qualified O&P clinicians; federal laws
governing the health care industry; uncertainties inherent in
investigations and legal proceedings; governmental policies
affecting O&P operations; and other risks and uncertainties
generally affecting the health care industry. For additional
information and risk factors that could affect the Company, see its
Form 10-K for the year ended December 31, 2018 as filed with the
Securities and Exchange Commission. The information contained in
this press release is made only as of the date hereof, even if
subsequently made available by the Company on its website or
otherwise.
Table 1 Hanger, Inc.
Condensed Consolidated Statements of Operations
(Unaudited - dollars in thousands, except
share and per share amounts)
For the Three Months EndedMarch 31,
2019 2018 Net revenues $ 236,419 $
233,995 Material costs 78,377 76,356 Personnel costs 86,711 86,108
Other operating costs 33,555 31,096 General and administrative
expenses 28,282 25,636 Professional accounting and legal fees 2,700
4,846 Depreciation and amortization 8,773
9,330 (Loss) income from operations (1,979 ) 623 Interest
expense, net 8,538 12,263 Loss on extinguishment of debt — 16,998
Non-service defined benefit plan expense 173
176 Loss before income taxes (10,690 ) (28,814 ) Benefit for
income taxes (3,739 ) (6,196 ) Net loss $ (6,951 ) $
(22,618 ) Basic and Diluted Per Common Share Data: Basic and
diluted loss per share $ (0.19 ) $ (0.62 ) Weighted average shares
used to compute basic and diluted earnings per common share
37,001,977 36,498,482
Table 2 Hanger, Inc. Condensed
Consolidated Balance Sheets
(Unaudited - dollars in thousands)
As of March 31, As of December 31, 2019
2018 ASSETS Current assets: Cash and cash equivalents
$ 20,511 $ 95,114 Accounts receivable, net 136,891 143,986
Inventories 70,036 67,690 Income taxes receivable 734 379 Other
current assets 17,058 18,731 Total
current assets 245,230 325,900
Non-current assets: Property, plant and equipment, net 81,951
89,489 Goodwill 226,632 198,742 Other intangible assets, net 16,415
15,478 Deferred income taxes 69,738 65,635 Operating lease
right-of-use assets 103,676 — Other assets 8,392
7,766
Total assets $ 752,034 $ 703,010
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities: Current portion of long-term debt $ 8,677 $
8,583 Accounts payable 50,173 55,797 Accrued expenses and other
current liabilities 53,311 51,783 Accrued compensation related
costs 22,228 55,111 Current portion of operating lease liabilities
33,675 — Total current liabilities
168,064 171,274 Long-term
liabilities: Long-term debt, less current portion 490,623 502,090
Operating lease liabilities 83,693 — Other liabilities
40,259 51,570
Total liabilities
782,639 724,934 Shareholders' deficit:
Common stock 374 371 Additional paid-in capital 343,591 343,955
Accumulated other comprehensive loss (7,461 ) (4,531 ) Accumulated
deficit (366,413 ) (361,023 ) Treasury stock, at cost (696 )
(696 )
Total shareholders' deficit (30,605 )
(21,924 )
Total liabilities and shareholders' deficit
$ 752,034 $ 703,010
Table
3 Hanger, Inc. Condensed Consolidated Statements of
Cash Flows
(Unaudited - dollars in thousands)
For the Three MonthsEnded March
31,
2019 2018 Cash flow used in
operating activities: Net loss $ (6,951 ) $ (22,618 )
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization 8,773 9,330 Amortization
of right-of-use assets 9,161 — Benefit for doubtful accounts (20 )
(94 ) Stock-based compensation expense 3,265 2,585 Deferred income
taxes (3,749 ) (6,355 ) Amortization of debt discounts and issuance
costs 375 1,701 Loss on extinguishment of debt — 16,998 Gain on
sale and disposal of fixed assets (481 ) (594 ) Changes in
operating assets and liabilities: Accounts receivable, net 10,395
19,425 Inventories (880 ) 1,085 Other current assets and other
assets (1,433 ) 650 Income taxes (355 ) 12,255 Accounts payable
(6,511 ) 552 Accrued expenses and other current liabilities 492
(5,067 ) Accrued compensation related costs (32,970 ) (35,789 )
Other liabilities (1,829 ) (2,537 ) Operating lease liabilities
(10,082 ) — Net cash used in operating
activities (32,800 ) (8,473 )
Cash flows used in
investing activities Purchase of property, plant and equipment
(6,897 ) (4,388 ) Purchase of therapeutic program equipment leased
to third parties under operating leases (1,429 ) (2,034 )
Acquisitions, net of cash acquired (27,679 ) — Purchase of
company-owned life insurance investment — (598 ) Proceeds from sale
of property, plant and equipment 980 840
Net cash used in investing activities (35,025 )
(6,180 )
Cash flows (used in) provided by financing
activities Borrowings under term loan, net of discount —
501,467 Repayment of term loan (1,263 ) (431,875 ) Borrowings under
revolving credit agreement — 3,000 Repayments under revolving
credit agreement — (8,000 ) Payment of employee taxes on
stock-based compensation (3,626 ) (2,150 ) Payment on seller notes
(1,773 ) (1,749 ) Payment of financing lease obligations (116 )
(364 ) Payment of debt issuance costs — (6,757 ) Payment of debt
extinguishment costs — (8,436 ) Net cash (used
in) provided by financing activities (6,778 ) 45,136
(Decrease) increase in cash, cash equivalents and restricted
cash (74,603 ) 30,483 Cash, cash equivalents and restricted cash,
at beginning of period 95,114 4,779
Cash, cash equivalents and restricted cash, at end of period $
20,511 $ 35,262
Reconciliation of Cash,
Cash Equivalents, and Restricted Cash: Cash and cash
equivalents, at beginning of period $ 95,114 $ 1,508 Restricted
cash, at beginning of period — 3,271
Cash, cash equivalents, and restricted cash, at beginning of period
$ 95,114 $ 4,779 Cash and cash equivalents, at
end of period $ 20,511 $ 32,913 Restricted cash, at end of period
— 2,349 Cash, cash equivalents, and
restricted cash, at end of period $ 20,511 $ 35,262
Table 4
Hanger, Inc.
Segment Information: Revenue, EBITDA
and Adjusted EBITDA
(Unaudited - dollars in thousands)
EBITDA is defined as operating income before depreciation and
amortization. Adjusted EBITDA is defined as operating income before
certain charges, impairments of intangible assets, third-party
professional fees in excess of normal amounts incurred in
connection with our financial statement remediation, debt
extinguishment costs, expenses associated with equity-based
compensation, severance expenses and certain expenses incurred in
connection with our acquisitions.
We use EBITDA and Adjusted EBITDA as measures to assess the
relative level of our indebtedness and our compliance with certain
debt covenants which are based on these measures. Additionally, we
utilize these measures to assess our operating and financial
performance. We believe that these measures enhance a user’s
understanding of normal operating income excluding certain charges,
depreciation and amortization.
Neither EBITDA or Adjusted EBITDA are measures of financial
performance computed in accordance with Generally Accepted
Accounting Principles (“GAAP”) and should not be considered in
isolation nor as a substitute for operating income, net income,
cash flows from operations, or other statement of operations or
cash flow data prepared in conformity with GAAP, or as a measure of
profitability or liquidity. In addition, the calculation of EBITDA
and Adjusted EBITDA is susceptible to varying interpretations and
calculations, and the amounts presented may not be comparable to
similarly titled measures of other companies. EBITDA and Adjusted
EBITDA may not be indicative of historical operating results, and
we do not intend these measures to be predictive of future results
of operations.
For the Three Months EndedMarch 31,
2019 2018 Net Revenue (a)
Patient Care $ 190,601 $ 188,507 Products & Services
45,818 45,488 Net revenue $ 236,419 $
233,995 EBITDA (b) Patient Care $ 20,309 $ 21,991
Products & Services 6,641 8,381 Corporate & Other
(20,156 ) (20,419 ) EBITDA (Non-GAAP) $ 6,794 $ 9,953
Adjusted EBITDA (b) Patient Care $ 21,392 $ 23,011
Products & Services 6,885 8,651 Corporate & Other
(16,409 ) (15,425 ) Adjusted EBITDA (Non-GAAP) $ 11,868
$ 16,237 (a) Excludes intersegment revenue. (b)
EBITDA and Adjusted EBITDA are "Non-GAAP" measures. Please refer to
both Table 6 and Table 7 for a reconciliation of these measures to
GAAP net income.
Table 5 Hanger, Inc.
Reconciliation of Net Loss and Loss Per Share to Adjusted
Net Loss and Adjusted Loss Per Share (Unaudited - dollars in
thousands, except share and per share amounts)
Earnings Per Share (or “EPS”) is defined as net income divided
by our diluted common shares during the applicable period. Adjusted
EPS is defined as EPS adjusted for impairments of intangible
assets, third-party professional fees in excess of normal amounts
incurred in connection with our financial statement remediation,
debt extinguishment costs, severance expenses and certain other
charges.
We utilize Adjusted EPS to assess our operating and financial
performance. We believe that this measure enhances a user’s
understanding of normal operating results excluding certain
charges.
Adjusted EPS is not a measure of financial performance computed
in accordance with GAAP and should not be considered in isolation
nor as a substitute for operating income, net income, cash flows
from operations, or other statement of operations or cash flow data
prepared in conformity with GAAP, or as a measure of profitability
or liquidity. In addition, the calculation of Adjusted EPS is
susceptible to varying interpretations and calculations, and the
amounts presented may not be comparable to similarly titled
measures of other companies. Adjusted EPS may not be indicative of
historical operating results, and we do not intend these measures
to be predictive of future results of operations.
For the Three Months EndedMarch 31,
2019 2018 Net loss - as reported
(GAAP) $ (6,951 ) $ (22,618 ) Adjustments: Amortization
expense 1,230 1,953 Third-party professional fees 1,649 3,700 Loss
on extinguishment of debt — 16,998 Acquisition-related expenses 170
— Severance expenses (10 ) — Adjustments prior
to tax effect $ 3,039 $ 22,651 Tax effect of specified
adjustments (a) (1,903 ) (4,717 ) Adjustments after
taxes 1,136 17,934 Adjusted net loss (Non-GAAP) $
(5,815 ) $ (4,684 ) Basic and diluted loss per share - as
reported (GAAP) $ (0.19 ) $ (0.62 ) Effect of above listed
specified adjustments 0.03 0.49
Adjusted basic and diluted loss per share - as reported (Non-GAAP)
$ (0.16 ) $ (0.13 ) Shares used to compute basic and diluted
loss per share 37,001,977 36,498,482 (a) “Tax effect of specified
adjustments” reflects the difference between the Company's
effective provision for taxes and the application of a combined
federal and state statutory tax rate of 24% and 24% respectively
for the 2019 and 2018 periods to the Company's earnings from
operations before taxes, after the incorporation of the identified
above adjustments.
Table 6 Hanger, Inc.
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
(Unaudited - dollars in thousands)
EBITDA is defined as operating income before depreciation and
amortization. Adjusted EBITDA is defined as operating income before
certain charges, impairments of intangible assets, third-party
professional fees in excess of normal amounts incurred in
connection with our financial statement remediation, debt
extinguishment costs, expenses associated with equity-based
compensation, severance expenses and certain expenses incurred in
connection with our acquisitions.
We use EBITDA and Adjusted EBITDA as measures to assess the
relative level of our indebtedness and our compliance with certain
debt covenants which are based on these measures. Additionally, we
utilize these measures to assess our operating and financial
performance. We believe that these measures enhance a user’s
understanding of normal operating income excluding certain charges,
depreciation and amortization.
Neither EBITDA or Adjusted EBITDA are measures of financial
performance computed in accordance with Generally Accepted
Accounting Principles (“GAAP”) and should not be considered in
isolation nor as a substitute for operating income, net income,
cash flows from operations, or other statement of operations or
cash flow data prepared in conformity with GAAP, or as a measure of
profitability or liquidity. In addition, the calculation of EBITDA
and Adjusted EBITDA is susceptible to varying interpretations and
calculations, and the amounts presented may not be comparable to
similarly titled measures of other companies. EBITDA and Adjusted
EBITDA may not be indicative of historical operating results, and
we do not intend these measures to be predictive of future results
of operations.
For the Three Months EndedMarch 31,
2019 2018 Net loss - as reported
(GAAP) $ (6,951 ) $ (22,618 ) Adjustments to calculate
EBITDA: Depreciation and amortization 8,773 9,330 Interest expense,
net 8,538 12,263 Loss on extinguishment of debt — 16,998
Non-service defined benefit plan expense 173 176 Benefit for income
taxes (3,739 ) (6,196 ) Adjustments - net income
(loss) to EBITDA 13,745 32,571 EBITDA
(Non-GAAP) 6,794 9,953 Further adjustments to calculate
Adjusted EBITDA: Third-party professional fees 1,649 3,700
Equity-based compensation 3,265 2,584 Acquisition-related expenses
170 — Severance expenses (10 ) — Further
adjustments - EBITDA to Adjusted EBITDA 5,074
6,284 Adjusted EBITDA (Non-GAAP) $ 11,868 $ 16,237
Table 7 Hanger, Inc. Segment
Reconciliation of (Loss) Income From Operations to EBITDA and
Adjusted EBITDA (Unaudited - dollars in thousands)
EBITDA is defined as operating income before depreciation and
amortization. Adjusted EBITDA is defined as operating income before
certain charges, impairments of intangible assets, third-party
professional fees in excess of normal amounts incurred in
connection with our financial statement remediation, debt
extinguishment costs, expenses associated with equity-based
compensation, severance expenses and certain expenses incurred in
connection with our acquisitions.
We use EBITDA and Adjusted EBITDA as measures to assess the
relative level of our indebtedness and our compliance with certain
debt covenants which are based on these measures. Additionally, we
utilize these measures to assess our operating and financial
performance. We believe that these measures enhance a user’s
understanding of normal operating income excluding certain charges,
depreciation and amortization.
Neither EBITDA or Adjusted EBITDA are measures of financial
performance computed in accordance with Generally Accepted
Accounting Principles (“GAAP”) and should not be considered in
isolation nor as a substitute for operating income, net income,
cash flows from operations, or other statement of operations or
cash flow data prepared in conformity with GAAP, or as a measure of
profitability or liquidity. In addition, the calculation of EBITDA
and Adjusted EBITDA is susceptible to varying interpretations and
calculations, and the amounts presented may not be comparable to
similarly titled measures of other companies. EBITDA and Adjusted
EBITDA may not be indicative of historical operating results, and
we do not intend these measures to be predictive of future results
of operations.
For the Three Months EndedMarch 31,
2019 2018
Patient
Care
Income from operations - as reported (GAAP) $ 15,757 $ 17,093
Depreciation & amortization 4,552 4,898
EBITDA (Non-GAAP) 20,309 21,991 Further adjustments to
calculate Adjusted EBITDA: Equity-based compensation 1,094 1,020
Severance expenses (11 ) — Further adjustments
- EBITDA to Adjusted EBITDA 1,083 1,020
Adjusted EBITDA (Non-GAAP) 21,392 23,011
Products &
Services
Income from operations - as reported (GAAP) 4,098 5,879
Depreciation & amortization 2,543 2,502
EBITDA (Non-GAAP) 6,641 8,381 Further adjustments to
calculate Adjusted EBITDA: Equity-based compensation 244 270
Severance expenses — — Further
adjustments - EBITDA to Adjusted EBITDA 244
270 Adjusted EBITDA (Non-GAAP) 6,885
8,651
Corporate &
Other
Loss from operations - as reported (GAAP) (21,834 ) (22,349 )
Depreciation & amortization 1,678 1,930
EBITDA (Non-GAAP) (20,156 ) (20,419 ) Further adjustments to
calculate Adjusted EBITDA: Third-party professional fees 1,649
3,700 Equity-based compensation 1,927 1,294 Acquisition related
expenses 170 — Severance expenses 1 —
Further adjustments - EBITDA to Adjusted EBITDA 3,747
4,994 Adjusted EBITDA (Non-GAAP) (16,409 )
(15,425 ) Total Adjusted EBITDA (Non-GAAP) $ 11,868 $
16,237
Table 8
Hanger, Inc. Indebtedness
(Unaudited - dollars in thousands)
As of March 31, As of December 31, 2019
2018 Debt: Term Loan B $ 499,950 $ 501,213 Seller notes
7,402 4,506 Financing leases and other 1,212
14,361 Total debt before unamortized discount and debt
issuance costs 508,564 520,080 Unamortized discount and debt
issuance costs, net (9,264 ) (9,407 ) Total debt $
499,300 $ 510,673 Current portion of long-term
debt: Term Loan B $ 5,050 $ 5,050 Seller notes 3,288 2,513
Financing leases and other 339 1,020
Total current portion of long-term debt 8,677
8,583 Long-term debt: $ 490,623 $ 502,090
Net indebtedness: Total debt before unamortized discount and
debt issuance costs 508,564 520,080 Cash and cash equivalents
(20,511 ) (95,114 ) Net indebtedness $ 488,053
$ 424,966
Table 9 Hanger, Inc.
Key Operating Metrics As of and For
theThree Months Ended March 31, 2019
2018 Same clinic revenue: Decline (growth)
rate on net revenue (1.6 )% 1.1 % Growth rate day adjusted (a) (0.1
)% 1.1 % Clinical locations: Patient care clinics 697 683
Satellite clinics 104 108 Total clinical locations
801 791 (a) Same Clinic Revenue per Day - Same Clinic
Revenue per Day normalizes sales for the number of days a clinic
was open in each comparable period. These measures are both
non-GAAP and unaudited.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190508005679/en/
Thomas Kiraly, Executive Vice President and Chief Financial
Officer, Hanger, Inc.512-777-3600tkiraly@hanger.com
Seth Frank, Vice President, Treasury and Investor Relations,
Hanger, Inc.512-777-3573sfrank@hanger.com
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