Hanger, Inc. (HNGR) Tops Q4 EPS by 1c; Offers FY20 Revenue Guidance

Hanger, Inc. (OTC: HNGR) reported Q4 EPS of $0.45, $0.01 better than the analyst estimate of $0.44. Revenue for the quarter came in at $300.9 million versus the consensus estimate of $300.76 million.

Financial Highlights for the Fourth Quarter of 2019

• Net revenue was $300.9 million for the three months ended December 31, 2019, compared to $284.9 million for the same period in 2018, reflecting growth of 5.6 percent. Patient Care segment net same clinic revenue grew by 2.9 percent.
• Net income was $18.8 million for the three months ended December 31, 2019, compared to $4.5 million for the same period in 2018. Fourth quarter 2019 net income benefited from a $7.1 million reduction of certain tax valuation allowances relating to state tax deferred assets.
• Adjusted EBITDA was $42.4 million in the fourth quarter, compared to $40.0 million for the same period in 2018, reflecting an increase of $2.3 million or 5.8 percent. Growth in Adjusted EBITDA was driven by a $16.4 million increase in Patient Care segment revenue and a resulting $5.2 million increase in segment Adjusted EBITDA.
• GAAP diluted earnings per share was $0.49 for the fourth quarter of 2019, compared to $0.12 for the same period in 2018. Adjusted diluted earnings per share was $0.45 for the three months ended December 31, 2019, compared to $0.40 for the same period in 2018, a 12.5 percent increase year-over-year.
• The Company introduced its 2020 financial outlook for revenue and earnings growth (see "2020 Outlook" within this release).

Vinit Asar, President and Chief Executive Officer of Hanger, Inc., stated, "I'm pleased with our strong finish to the year. We accomplished the key operating and financial objectives that we established at the start of 2019. Our patient care segment achieved same clinic revenue growth of 2.1 percent for the year through growth in both our prosthetics and orthotics portfolios. I believe these results have demonstrated the benefits of our strategy to elevate the value of our clinical care through a focus on patient outcomes and services, positioning us for continued momentum in 2020."

GUIDANCE:

Hanger, Inc. sees FY2020 revenue of $1.125-1.155 billion, versus the consensus of $1.13 billion.

• The Company currently anticipates 2020 net revenue in a range between $1.125 billion and $1.155 billion, and Adjusted EBITDA in a range between $129.0 million and $134.0 million.
• It is expected that revenue and earnings growth will primarily be driven by continued same clinic growth and margin expansion in its Patient Care segment. Products & Services segment revenue is anticipated to decline modestly due to the discontinuance of the distribution of some low-margin orthotics products to podiatrists.
• The Company's outlook for 2020 includes approximately $27 million in revenue relating to the full year of contribution of acquisitions previously completed in 2019 and acquisitions having signed definitive agreements as of March 5, 2020.

For earnings history and earnings-related data on Hanger, Inc. (HNGR) click here.

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