Hanger Orthopedic 4Q profit jumps as sales rise

BETHESDA, Md. - Hanger Orthopedic Group Inc. said Tuesday its fourth-quarter profit jumped 19 percent, helped by strong patient care revenue at centers open at least a year.

Hanger, which operates rehabilitation centers for people with braces or prosthetics, said net income for the quarter ended Dec. 31 rose to $7.8 million, or 24 cents per share, from $6.6 million, or 23 cents per share, in the 2007 period.

Adjusted profit totaled 26 cents per share, beating Wall Street's average estimate of 23 cents per share, according to a Thomson Reuters poll.

Hanger said sales rose 9 percent to $185.5 million from $170.8 million a year earlier.

The Bethesda, Md.-based company owns and operates 668 patient care centers in 45 states and Washington, D.C., up from 636 centers in 2007. Hanger said same-center sales increased 6 percent, and acquisitions contributed $3.5 million to revenue.

For the year, net income after paying preferred dividends increased to $21.1 million, or 78 cents per share, from $17.6 million, or 64 cents per share. Sales rose 10 percent to $703.1 million.

The company said it had total liquidity of $96.6 million, including $58.4 million of cash at Dec. 31. It believes that it has sufficient liquidity to conduct its normal operations and fund its acquisition plan in 2009.

For 2009, Hanger forecast earnings per share of 96 cents to 98 cents on revenue between $750 million and $760 million.

Analysts have predicted full-year earnings per share of 97 cents, on average.

Hanger shares rose 4 cents to close earlier at $13.61.

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