Hanger Orthopedic Group, Inc. Reports $0.31 EPS for the Second Quarter 2009 and Raises Full Year EP...(08 a record low for the Company. ....),Health

As of June 30, 2009, $91.9 million, or 21.6%, of the Company's total debt of $426.4 million was subject to variable interest rates. The Company had total liquidity of $114.1 million, comprised of $76.4 million of cash and $37.7 million available under its revolving credit facility at June 30, 2009. On July 15, 2009 the Company repaid the $15.3 million outstanding balance on its revolving credit facility. The Company believes that it has sufficient liquidity to conduct its normal operations and fund its acquisition plan in 2009.

The Company is confirming its full year 2009 sales guidance of $750 to $760 million and is increasing its 2009 diluted EPS guidance by $0.06 to a range of $1.02 to $1.04.

"We are extremely pleased with our second quarter results as they exceeded our expectations and represent sound operational execution, particularly in this economic environment," commented Thomas F. Kirk, President and Chief Executive Officer of Hanger Orthopedic Group. Mr. Kirk added, "Our patient care centers growth of 4.4% continues to be a key driver of our revenues. Combined with our expense management efforts we have improved operating margins for the quarter by 70 basis points to 12.5% since the second quarter of last year. We move to the second half of the year in solid financial shape and focused on executing our business opportunities."

In June 2008, the Company's common stock performance triggered an acceleration of preferred stock dividends once the Company's average closing price of its common stock price exceeded the Company's forced conversion price of the Series A Convertible Preferred Stock by 200% for a 20-trading day period. This event accelerated the payment of Series A Convertible Preferred Stock dividends due from the time of the event through May 26, 2011. The accelerated dividends were paid in the form of increased stated value of p
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