Hanger Inc. announced net sales of $275.9 million for the second quarter of 2014, an increase of 3% from the second quarter of 2013, according to a company press release.
The second quarter net sales increase of $8.1 million was the result of a $6.8 million increase in the patient care segment, and a $1.3 million increase in the products and services segment. Income from operations for the quarter was $26.4 million, compared to $36.6 million in 2013.
“We are clearly disappointed with our second quarter results and are revising our outlook for the year,” Vinit Asar, president and chief executive officer of Hanger, stated in the release. “The continuing pressure on authorizations, collections and patient flow has had a significant impact on our top and bottom line to date, and will continue to pressure our earnings growth at least through the remainder of this year. We have already begun meeting these challenges head-on by increasing our focus on business development and implementing cost reductions, including a reduction in force, and the rationalization of certain investments and other cost-savings measures. While this is certainly a difficult environment today, we remain confident that the fundamental growth prospects of our market and our strategy and execution capabilities will deliver significant long-term returns for our shareholders.”