Hanger sees ‘good’ cash flow, ‘solid’ balance sheet after debt refi

By Devika Patel

Knoxville, Tenn., Aug. 10 – Hanger, Inc. has “good” cash flow and a “solid” balance sheet.

“Our balance sheet is solid,” president and chief executive officer Vinit K. Asar said on the company’s second quarter ended June 30 earnings conference call on Friday.

“We are generating good cash flow which, combined with our lower interest rates as a result of our refinancing earlier this year and our continued reduction in third-party fees that we have been paying in the last few years, gives us additional financial flexibility to reinvest as needed in the business to maximize shareholder returns,” Asar said.

Adjusted EBITDA was $33.6 million in the second quarter of 2018 compared to $36.8 million in the second quarter of 2017, a decline of $3.2 million or 8.6%.

As of June 30, the company had $142.9 million of liquidity, comprised of $48.8 million in cash and cash equivalents, and $94.1 million in available borrowing capacity under its revolving credit facility, compared to liquidity of $127 million on March 31.

Based in Austin, Texas, Hanger owns and operates orthotic and prosthetic clinics and distributes orthotic and prosthetic products.

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