Hanger Inc. revealed that it has acquired four patient care companies year to date with annualized sales of roughly $10 million. The acquired accompanies have nine clinics in six states. With this, HGR completed half of its 2013 goal to acquire $20 million in annualized sales.
The acquired companies are East Coast Orthotics, Inc.; Nascott, Inc.; Keller's Limb & Brace, Inc. dba Snell's of Jackson; and Development & Research, Inc., dba San Juan P&O. Together, they have over 60 clinicians.
Hanger posted adjusted earnings per share (EPS) of 52 cents for the second quarter of 2013 that exceeded the year-ago EPS by a penny but failed to meet the Zacks Consensus Estimate of 56 cents. Adjusted net earnings increased 5.1% to $18.5 million in the quarter.
Revenues increased 8.7% year over year to $273.7 million in the quarter, beating the Zacks Consensus Estimate of $271 million. The increase was mainly driven by growth in the Patient Care segment, partially mitigated by soft sales from the Products and Services unit.
Revenues from Hanger’s Patient-Care segment grew 11.1%, which include a 3.9% increase in same-center sales and a higher contribution of $15.0 million from acquisitions completed in 2012.
Hanger revised its financial guidance for 2013. The company expects revenues in the band of $1.06 billion to $1.08 billion. It projects same center sales from its Patient Care Services segment to grow 3% to 5%. However, Products & Services revenues are projected to be flat (earlier up 3% to 5%) in 2013. HGR also raised its adjusted earnings per share guidance to the range of $2.07– $2.13 from the earlier range of $2.02–$2.09 in 2013.
Austin, Texas-based Hanger provides orthotic and prosthetic patient care services in 45 states in the U.S. and the District of Columbia through over 740 patient care centers. Orthotic care comprises custom design, fabrication, and brace and support fit for treatment of musculoskeletal conditions. Prosthetic care deals in custom design, fabrication, and fit of artificial limbs required by patients suffering from loss of a limb at birth, vascular disease, diabetes, cancer, or trauma.
Currently, HGR carries a Zacks Rank #3 (Hold). While we remain on the sidelines about Hanger, other medical products companies that are performing well include PLC Systems Inc. and Alere Inc. with a Zacks Rank #1 (Strong Buy), and Advaxis Inc. with a Zacks Rank #2 (Buy).