Hanger Orthopedic Group Inc. announced net sales of $205.8 million for the second quarter that June 30, an increase of $12.3 million from $193.5 million in the prior year, according to a press release.
The $12.3 million sales increase for the quarter was primarily the result of a $6.8 million increase in same-center sales in the patient care segment, a $2.3 million increase in sales from the company’s distribution segment and a $3.2 million increase principally related to sales from acquired entities. Income from operations for the quarter was $23.1 million compared to $24.2 million in 2009. Excluding the $4.2 million of costs related to the relocation of the corporate headquarters, income from operations increased 13.2% to $27.3 million due to the growth in sales and continued expense management efforts.
The company generated $19.6 million in cash in the second quarter of 2010 compared to $24.5 million in 2009. The decrease is principally due to funding of relocation related expenses. Hanger Orthopedic Group Inc. had total liquidity of $135.6 million, comprised of $72.1 million of cash and $63.5 million available under its revolving credit facility on June 30.
“The second quarter was our eighteenth consecutive quarter of meeting or beating consensus earnings estimates. We are proud of that accomplishment,” Thomas F. Kirk, president and chief executive officer of Hanger Orthopedic Group, stated in the release.
For 2010, the Hanger Orthopedic Group Inc. expects full-year revenues to be between $815 million and $825 million. As announced in February 2010, the Company is in the process of relocating its corporate headquarters from Bethesda, Md. to Austin, Texas and anticipates the move will be substantially completed by the end of the third quarter. Once complete, the company anticipates that the move will result in a reduction of operating expenses of approximately $2.5 million to $3.5 million annually.