SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to ________
Commission file number 1-10670
HANGER ORTHOPEDIC GROUP, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 84-0904275
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(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
7700 Old Georgetown Road, Bethesda, MD 20814
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
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(301) 986-0701
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Former name, former address and former fiscal year, if changed since last
report.
Indicate by check whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes [X] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares
outstanding of each of the issuer's classes of common stock, as of November
14, 1995, 8,290,544 shares of common stock, $.01 par value per share.
<PAGE>
HANGER ORTHOPEDIC GROUP, INC.
INDEX
Page No.
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets - September 30, 1995
(unaudited) and December 31, 1994 1
Consolidated Statements of Operations for the nine
months ended September 30, 1995 and 1994 (unaudited) 3
Consolidated Statements of Operations for the three
months ended September 30, 1995 and 1994 (unaudited) 4
Consolidated Statements of Cash Flows for the nine
months ended September 30, 1995 and 1994 (unaudited) 5
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 14
SIGNATURES 15
<PAGE>
<TABLE>
HANGER ORTHOPEDIC GROUP, INC.
CONSOLIDATED BALANCE SHEETS
<CAPTION>
September 30, December 31,
1995 1994
---- ----
(unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,069,627 $ 1,048,381
Accounts receivable less allowances for
doubtful accounts of $1,211,000 and $975,000 in
1995 and 1994 12,551,617 12,392,843
Inventories 10,302,297 9,465,186
Prepaid expenses and other assets 1,127,011 1,149,026
Deferred income taxes 1,264,790 1,264,790
------------- -------------
Total current assets 26,315,342 25,320,226
------------- -------------
PROPERTY, PLANT AND EQUIPMENT
Land 2,991,245 2,991,245
Buildings 2,583,661 2,288,357
Machinery and equipment 3,553,390 3,232,442
Furniture and fixtures 1,573,055 1,526,237
Leasehold improvements 1,174,353 1,075,481
------------- -------------
11,875,704 11,113,762
Less accumulated depreciation and amortization 3,946,341 3,104,828
------------- -------------
7,929,363 8,008,934
------------- -------------
INTANGIBLE ASSETS
Excess of cost over net assets acquired 27,121,855 26,633,643
Non-compete agreements 4,786,371 4,751,371
Other intangible assets 3,809,876 3,762,307
------------- -------------
35,718,102 35,147,321
Less accumulated amortization 8,682,424 7,532,295
------------- -------------
27,035,678 27,615,026
------------- -------------
OTHER ASSETS
Other 400,763 537,032
------------- -------------
TOTAL ASSETS $61,681,146 $61,481,218
============ ============
</TABLE>
1
<PAGE>
<TABLE>
HANGER ORTHOPEDIC GROUP, INC.
CONSOLIDATED BALANCE SHEETS
<CAPTION>
September 30, December 31,
1995 1994
(unaudited)
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt $ 2,146,843 $ 2,132,076
Accounts payable 1,500,942 1,562,625
Accrued expenses 1,365,577 1,300,070
Customer deposits 340,826 392,722
Accrued wages and payroll taxes 1,057,317 1,422,741
Deferred revenue 101,523 97,690
------------- -------------
Total current liabilities 6,513,028 6,907,924
------------- -------------
Long-term debt 23,311,649 24,329,710
Deferred income taxes 563,902 563,902
Other liabilities 294,523 269,871
Mandatorily redeemable preferred stock, class C,
liquidation preference of $500 per share 248,258 232,086
Mandatorily redeemable preferred stock, class F,
liquidation preference of $500 per share
SHAREHOLDERS' EQUITY
Common stock, $.01 par value; 25,000,000 shares
authorized, 8,424,039 shares issued and 8,290,544
shares outstanding in 1995 and 1994 84,241 84,241
Additional paid-in capital 33,579,685 33,595,857
Accumulated deficit (2,258,578) (3,846,811)
------------- -------------
31,405,348 29,833,287
Treasury stock - (133,495 shares) (655,562) (655,562)
------------- -------------
30,749,786 29,177,725
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 61,681,146 $ 61,481,218
============= =============
</TABLE>
2
<PAGE>
<TABLE>
HANGER ORTHOPEDIC GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED September 30,
(unaudited)
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Net Sales $ 39,110,549 $ 36,674,095
Cost of products and services sold 18,334,524 16,708,946
------------- -------------
Gross profit 20,776,025 19,965,149
Selling, general & administrative 14,362,923 15,052,424
Depreciation and amortization 1,514,443 1,775,894
Amortization of excess cost over net assets acquired 517,618 504,599
------------- -------------
Income from operations 4,381,041 2,632,232
Other income expense:
Interest expense, net (1,545,706) (1,230,946)
Other income (expense) (106,280) (82,384)
------------- -------------
Income from continuing operations before income taxes 2,729,055 1,318,902
Provision for income taxes 1,140,822 594,000
------------- -------------
Income from continuing operations 1,588,233 724,902
Loss from discontinued operations net of tax benefit
of $189,000 (231,313)
Loss on sale of assets net of tax benefit of $93,000 (114,304)
------------- -------------
Net income $ 1,588,233 $ 379,285
============= =============
Income from continuing operations $ .19 $ .09
Loss from discontinued operations (.03)
Loss on sale of discontinued operations (.01)
------------- -------------
Net income per share $ .19 $ .05
============= =============
Weighted average number of common shares
outstanding 8,290,544 8,290,454
============= =============
</TABLE>
3
<PAGE>
<TABLE>
HANGER ORTHOPEDIC GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED September 30,
(unaudited)
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Net Sales $ 13,549,654 $ 13,729,841
Cost of products and services sold 6,404,886 6,086,081
------------- -------------
Gross profit 7,144,768 7,643,760
Selling, general & administrative 4,758,320 5,362,128
Depreciation and amortization 468,482 596,338
Amortization of excess cost over net assets acquired 171,494 172,374
------------- -------------
Income from operations 1,746,472 1,512,920
Other expense:
Interest expense, net (528,682) (461,340)
Other (43,077) (42,563)
------------- -------------
Income from continuing operations before income taxes 1,174,713 1,009,017
Provision for income taxes 488,000 454,000
------------- -------------
Income from continuing operations 686,713 555,017
Loss from discontinued operations net of tax benefit
of $142,000 (173,061)
Loss on sale of assets net of tax benefit of $93,000 (114,304)
------------- -------------
Net income $ 686,713 $ 267,652
============= =============
Income from continuing operations $ .08 $ .07
Loss from discontinued operations (.03)
Loss from sale of discontinued operations (.01)
------------- -------------
Net income per share $ .08 $ .03
============= =============
Weighted average number of common shares
outstanding 8,290,544 8,290,694
============= =============
</TABLE>
4
<PAGE>
<TABLE>
HANGER ORTHOPEDIC GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED September 30,
(unaudited)
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,588,233 $ 379,285
Adjustments to reconcile net income to net cash provided by
operating activities:
Discontinued operations 420,313
Loss on sale of assets 207,304
Provision for bad debt 554,661 439,769
Amortization of deferred compensation 4,197
Depreciation and amortization 1,514,443 1,775,894
Amortization of excess cost over net assets acquired 517,618 504,599
Changes in assets and liabilities, net
of effect from acquired companies:
Increase in accounts receivable (695,128) (1,965,973)
Increase in inventory (790,941) (1,652,625)
(Increase) decrease in prepaid and other assets 22,015 (823,309)
(Increase) decrease in other assets 136,267 (24,365)
Decrease in accounts payable (62,997) (8,670)
Increase (decrease) in accrued expenses (587,315) 196,248
Decrease in accrued wages and payroll taxes (365,424) (592,749)
Increase (decrease) in customer deposits (51,896) 55,102
Increase in deferred revenue 3,833 2,517
Increase in taxes payable 652,822 312,000
Increase in other liabilities 24,652 133,849
------------- -------------
Total adjustments 872,609 (1,015,899)
------------- -------------
Net cash provided by continuing operations 2,460,842 (636,614)
Net cash provided by discontinued operations 48,908
------------- -------------
Net cash provided by operating activities 2,460,842 (587,706)
------------- -------------
Cash flows from investing activities:
Purchase of fixed assets, (792,148) (773,086)
Purchase of patents (58,188) (26,123)
Acquisitions, net of cash (274,294) (2,509,114)
Proceeds from sale of certain assets 180,806
Purchase of non-compete agreements (35,000) (450,500)
Other intangibles (12,293) (265,377)
------------- -------------
Net cash used in investing activities (1,171,923) (3,843,394)
------------- -------------
</TABLE>
Continued
5
<PAGE>
<TABLE>
HANGER ORTHOPEDIC GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED September 30,
(unaudited)
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Cash flows from financing activities:
Net borrowings under revolving credit facility $ 200,000 $ 2,135,449
Increase in long-term debt 5,000,000
Repayment of long-term debt (1,478,292) (2,808,326)
Increase (decrease) in financing costs 10,619 (64,268)
------------- -------------
Net cash (used in) provided by financing activities (1,267,673) 4,262,855
------------- -------------
Net change in cash and cash equivalents for the period 21,246 (168,245)
Cash and cash equivalents at beginning of period 1,048,381 1,404,157
------------- -------------
Cash and cash equivalents at end of period $ 1,069,627 $ 1,235,912
============= =============
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest $ 1,750,507 $ 1,090,844
============= =============
Taxes $ 427,700 $ 216,392
============= =============
Non-cash financing and investing activities:
Issuance of common stock in connection with
acquisitions $ 1,725,000
=============
Issuance of notes in connection with acquisitions $ 175,000 $ 200,000
============= =============
Dividends declared preferred stock $ 16,146 $ 14,762
============= =============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
6
<PAGE>
NOTE A -- BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in
accordance with Rule 10-01 of Regulation S-X. They do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments, consisting of a normal recurring nature, considered necessary for
a fair presentation have been included.
These financial statements should be read in conjunction with the
financial statements of Hanger Orthopedic Group, Inc. (the "Company"), as of
December 31, 1994, and notes thereto included in the Annual Report on Form
10-K filed by the Company with the Securities and Exchange Commission for the
year then ended.
NOTE B -- INVENTORY
Inventories at September 30, 1995 and December 31, 1994 were comprised of
the following:
September 30, 1995 December 31, 1994
------------------ -----------------
(unaudited)
Raw materials $ 9,036,594 $ 8,078,838
Work-in-process 754,829 835,934
Finished goods 510,874 550,414
------------ ------------
$10,302,297 $9,465,186
============ ============
NOTE C -- ACQUISITIONS
During the nine months ended September 30, 1995, the Company acquired two
orthotic and prosthetic companies and certain assets of another O&P company.
The aggregate purchase price was $390,000 comprised of $215,000 in cash and
$175,000 in promissory notes. The cash portion of the purchase prices for
these acquisitions was borrowed under the Company's revolving credit facility.
7
<PAGE>
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations
The following table sets forth for the periods indicated certain items of
the Company's statements of operations and their percentage of the Company's
net sales:
<TABLE>
<CAPTION>
For the Nine For the Three
Months Ended Months Ended
September 30, September 30,
-------------- --------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of products and services sold 46.9 45.6 47.3 44.3
Gross profit 53.1 54.4 52.7 55.7
Selling, general & administrative
expenses 36.7 41.0 35.1 39.1
Depreciation and amortization 3.9 4.8 3.5 4.3
Amortization of excess cost over net
assets acquired 1.3 1.4 1.3 1.3
Income from operations 11.2 7.2 12.9 11.0
Interest expense 4.0 3.4 3.9 3.4
Provision for income taxes 2.9 1.6 3.6 3.3
Loss from discontinued operations and
sale of assets .9 2.1
Net income 4.1 1.0 5.1 1.9
</TABLE>
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 1994
NET SALES
Net sales for the nine months ended September 30, 1995 amounted to
approximately $39,111,000, an increase of approximately $2,437,000, or 6.6%,
over net sales of approximately $36,674,000 for the nine months ended
September 30, 1994. The increase was primarily a result of an increase of
$1,888,000, or an increase of 6%, in net sales attributable to patient care
centers and facilities that were in operation during both periods ("Internal
Base Net Sales"). Of the $1,888,000 increase in Internal Base Net Sales,
$1,627,000, or an increase of 6.7%, was attributable to patient care centers
and $261,000 was attributable to the Company's manufacturing and distribution
activities. The balance of the increase in net sales was attributable to O&P
patient care centers and facilities acquired by the Company in late 1994 and
1995. The increase of $2,437,000 in net sales occurred notwithstanding the
sale or closure of nine patient care centers during late 1994 and the first
quarter of 1995 in connection with the restructuring (the "Restructuring")
announced by the Company in March 1995. These nine centers
8
<PAGE>
accounted for net sales of $1,389,000 during the first nine months of 1994
compared with only $75,000 in the first nine months of 1995. The non-recurring
charges associated with the Restructuring were recorded during the fourth
quarter of 1994.
GROSS PROFIT
Gross profit for the first nine months of 1995 increased by approximately
$811,000, or 4.1% over the prior year's comparable period. Gross profit as a
percent of net sales remained constant for the comparable periods.
SELLING, GENERAL AND ADMINISTRATIVE
Selling, general and administrative expenses for the first nine months
ended September 30, 1995 decreased by approximately $689,000, or 4.6%,
compared to the first nine months of 1994. In addition to decreasing in dollar
amount, selling, general and administrative expenses as a percent of net sales
decreased to 36.7% for the nine months ended September 30, 1995 from 41.0% of
net sales for the nine months ended September 30, 1994. The decrease in
selling, general and administrative expenses as a percent of net sales
resulted primarily from the increase in Internal Base Net Sales while selling,
general and administrative expenses decreased. The decrease in selling,
general and administrative expenses was primarily a result of cost reduction
efforts initiated in late 1994 in connection with the Restructuring.
INCOME FROM OPERATIONS
Principally as a result of the above, income from operations in the first
nine months ended September 30, 1995 amounted to approximately $4,381,000, an
increase of $1,762,000, or 66.9%, over the prior year's comparable period. In
addition to increasing in dollar amount, income from operations as a percent
of net sales increased from 7.2% in the nine months ended September 30, 1994
to 11.2% in the nine months ended September 30, 1995.
INTEREST EXPENSE
Interest expense for the first nine months of 1995 amounted to
approximately $1,546,000, an increase of approximately $315,000, or 25.6%,
over the $1,231,000 of interest expense incurred in the nine months of 1994.
In addition, interest expense as a percent of net sales increased from 3.4%
for the nine months ended September 30, 1994 to 4.0% for the nine months ended
September 30, 1995. The increase in interest expense was primarily
attributable to indebtedness incurred in connection with the acquisition of
O&P patient care centers and facilities acquired subsequent to September 30,
1994 and the increase in the Bank's prime rate.
9
<PAGE>
INCOME TAXES
The provision for income taxes for the nine months ended September 30,
1995 amounted to approximately $1,141,000 as compared to a $594,000 for the
nine months ended September 30, 1994.
NET INCOME
As a result of the above, the Company recorded net income of $1,588,000,
or $.19 per share, in the first nine months of 1995, compared to net income of
$379,000, or $.05 per share, in the first nine months of 1994.
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO THE THREE MONTHS
ENDED SEPTEMBER 30, 1994
NET SALES
Net sales for the three months ended September 30, 1995, amounted to
approximately $13,550,000, a decrease of approximately $180,000, or 1.3%, from
net sales of approximately $13,730,000 for the three months ended September
30, 1994. The decrease in net sales was attributable to the sale or closure of
nine patient care centers during late 1994 and the first quarter of 1995 in
connection with the restructuring (the "Restructuring") announced by the
Company in March 1995. These nine centers accounted for net sales of $529,000
during the three months ended September 30, 1994 compared with no sales during
the three months ended September 30, 1995. The non-recurring charges
associated with the Restructuring were recorded during the fourth quarter of
1994. Excluding the net sales of such discontinued operations, net sales in
the third quarter of 1995 increased approximately $400,000, or 3%, over the
prior year's comparable quarter. Such sales growth was primarily a result of
new patient care center openings after the third quarter of 1994.
Gross Profit
Gross profit in the three months ended September 30, 1995 decreased
by approximately $499,000, or 6.5%, from the prior year's comparable quarter.
Gross profit as a percent of net sales decreased from 55.7% to 52.7% for the
comparable periods.
SELLING, GENERAL AND ADMINISTRATIVE
Selling, general and administrative expenses in the three months ended
September 30, 1995 decreased by approximately $604,000, or 11.3%, compared to
the three months ended September 30, 1994. Selling, general and administrative
expenses as a percent of net sales decreased to 35.1% in the three months
ended September 30, 1995 from 39.1% for the last year's comparable period.
This decrease in selling, general and administrative
10
<PAGE>
expenses as a percent of net sales resulted primarily from the increase in
sales while selling, general and administrative expenses decreased.
INCOME FROM OPERATIONS
Principally as a result of the above, income from operations in the three
months ended September 30, 1995 amounted to approximately $1,746,000, an
increase of $233,000, or 15.4%, from the prior year's comparable quarter.
Income from operations as a percent of net sales, increased to 12.9% in the
third quarter of 1995 from 11.0% for the prior year's comparable period.
INTEREST EXPENSE
Interest expense in the third quarter of 1995 amounted to approximately
$529,000, an increase of approximately $67,000, or 14.6%, from the $461,000 of
interest expense incurred in the third quarter of 1994. Interest expense as a
percent of net sales also increased to 3.9% from 3.4% for the same period a
year ago. The increase in interest expense is primarily a result of
indebtedness incurred in connection with acquisitions consummated subsequent
to September 30, 1994 and an increase in the Bank's prime rate.
INCOME TAXES
The provision for income taxes for the quarter ended September 30, 1995
was $488,000 compared to $454,000 for the quarter ended September 30, 1994.
NET INCOME
As a result of the above, the Company recorded net income of $687,000, or
$.08 per share, in the quarter ended September 30, 1995, compared to net
income of $268,000, or $.03 per share, in the quarter ended September 30,
1994.
LIQUIDITY AND CAPITAL RESOURCES
The Company's consolidated working capital at September 30, 1995 was
approximately $19.8 million. Cash available at that date was approximately
$1,070,000. Net cash provided by operations for the nine months ended
September 30, 1995 was $2,461,000. The Company's cash resources available
during the first nine months of 1995 were satisfactory to meet its
obligations.
The Company's total long-term debt at September 30, 1995, including a
current portion of approximately $2.1 million, was approximately $25.2
million. Such indebtedness included: (i) $4.0 million principal amount of an
8.5% Convertible Note; (ii) $1.0 million principal amount of an 8.25%
Convertible Note; (iii) $13.0 million borrowed under the Company's $13.0
million revolving credit facility with NationsBank, N.A. (the
11
<PAGE>
"Bank"); (iv) a total of $4.8 million in term loans borrowed from the Bank and
(v) approximately $2.7 million of other indebtedness.
Under the terms of the Financing and Security Agreement, as amended,
between the Bank and the Company (the "Financing Agreement"), the Bank
currently provides a $13.0 million revolving credit facility (the "Revolving
Credit Facility"), which reflects a reduction from its original amount of
$13.5 million. The Revolving Credit Facility bears interest, at the Company's
option, at either a fluctuating rate equal to the Bank's prime lending rate
plus .25% or a fixed rate equal to the three-month London InterBank Offered
Rate ("LIBOR") plus 2.5%. On June 30, 1995, the Company made a mandatory
curtailment payment of $250,000 to the Bank to reduce the maximum amount of
the Revolving Credit Facility from $13.5 million to $13.25 million. On October
2, 1995, the Company and the Bank entered into Amendment No. 8 to the
Financing Agreement which memorialized the prior understanding between the
Bank and the Company to reduce the mandatory curtailment payment by the
Company under the Revolving Credit Facility from a $1.0 million curtailment to
a $250,000 curtailment at September 30, 1995. On September 30, 1995, the
Company made such mandatory curtailment payment of $250,000 to the Bank to
reduce the maximum amount of the Revolving Credit Facility from $13.25 million
to its current amount of $13.0 million. On November 13, 1995, the Company and
the Bank agreed to the terms of Amendment No. 9 to the Financing Agreement,
which will (i) eliminate the previously required mandatory curtailment
payments of the Revolving Credit Facility of $250,000 at each of December 31,
1995 and March 31, 1996 and (ii) extend the expiration date of the Revolving
Credit Facility from September 30, 1996 to June 30, 1997.
The Revolving Credit Facility is collateralized by substantially all the
assets of the Company and contains covenants restricting, among other things,
the payment of dividends, the making of acquisitions and other transactions,
and imposes net worth, debt service coverage and other financial maintenance
requirements.
The Company plans to finance future acquisitions through internally
generated funds or borrowings under the Revolving Credit Facility, the
issuance of notes or shares of common stock of the Company, or through a
combination thereof.
During the first nine months of 1995, the Company acquired two orthotic
and prosthetic companies and certain assets of another O&P company.
Negotiations relating to those acquisitions commenced prior to the
Restructuring. The total purchase price of the acquisitions effected during
that period was $390,000, of which $215,000 was paid in cash and $175,000 was
financed through seller notes. The cash paid to effect such acquisitions was
borrowed under the Revolving Credit Facility established between the Company
and the Bank.
12
<PAGE>
The Company is actively engaged in ongoing discussions with prospective
acquisition candidates. The Company plans to continue to expand its operations
through acquisitions, at a slower rate, with a view towards increasing
efficiency and profitability of its existing facilities.
OTHER
Inflation has not had a significant effect on the Company's operations,
as increased costs to the Company generally have been offset by increased
prices of products and services sold.
13
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibit and Reports on Form 8-K
(a) Exhibits
The following exhibit is filed herewith:
11 Computation of net Income Per Share
(b) Reports on Form 8-K
None
14
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
HANGER ORTHOPEDIC GROUP, INC.
Date: November 14, 1995 /s/IVAN R. SABEL
------------------
Ivan R. Sabel
Chief Executive Officer
Date: November 14, 1995 /s/RICHARD A. STEIN
-------------------
Richard A. Stein
Vice President - Finance
Principal Financial and
Accounting Officer
<TABLE>
HANGER ORTHOPEDIC GROUP, INC.
EXHIBIT 11
COMPUTATION OF NET INCOME PER SHARE
FOR THE THREE MONTHS ENDED September 30,
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Net income $ 686,713 $ 267,652
Less:
Dividends declared (5,628) (5,032)
------------- -------------
Total $ 681,085 $ 262,620
Divided by:
Weighted average number of shares
outstanding 8,290,544 8,290,694
------------- -------------
Net income (loss) per share $ .08 $ .03
============= =============
FOR THE NINE MONTHS ENDED September 30,
1995 1994
---- ----
Net income $ 1,588,233 $ 379,285
Less:
Dividends declared (21,774) (14,762)
------------- -------------
Total $ 1,566,459 $ 364,523
Divided by:
Weighted average number of shares
outstanding 8,290,544 8,290,454
------------- -------------
Net income per share $ .19 $ .05
============= =============
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JUL-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 1,069,627
<SECURITIES> 0
<RECEIVABLES> 12,551,617
<ALLOWANCES> 0
<INVENTORY> 10,302,297
<CURRENT-ASSETS> 26,315,342
<PP&E> 11,875,704
<DEPRECIATION> 3,946,341
<TOTAL-ASSETS> 61,681,146
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248,258
0
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</TABLE>
