Investor Presentation March 2019 Cautionary Note Forward Looking - - PowerPoint PPT Presentation

Investor Presentation

March 2019

Cautionary Note Forward Looking Statements

page 02

This presentation contains certain “forward-looking statements” relating to the Company. All statements, other than statements of historical fact included herein, are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “preliminary,” “intends,” “expects,” “plans,” “anticipates,” “believes,” “views” or similar expressions and involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. These uncertainties include, but are not limited to, the risk of our identified material weaknesses in our internal control over financial reporting adversely affecting our ability to report our financial condition and results of

• perations in a timely and accurate manner; any litigation relating to, the Company’s accounting practices, financial statements and other

financial data, periodic reports or other corporate actions; changes in the demand for the Company’s O&P products and services; uncertainties relating to the results of operations or recently acquired O&P patient care clinics; the Company’s ability to enter into and derive benefits from managed-care contracts; the Company’s ability to successfully attract and retain qualified O&P clinicians; federal laws governing the health care industry; uncertainties inherent in investigations and legal proceedings; governmental policies affecting O&P operations; and other risks and uncertainties generally affecting the health care industry. For additional information and risk factors that could affect the Company, see its Form 10-K for the year ended December 31, 2018 as filed with the Securities and Exchange Commission. The information contained in this presentation is made only as of the date hereof, even if subsequently made available by the Company on its website or otherwise. Note Regarding the Presentation of Non-GAAP Financial Measures: This presentation includes certain “non-GAAP financial measures” as defined in Regulation G under the federal Securities Exchange Act of 1934. Non-GAAP measures include Adjusted EBITDA, Adjusted EBITDA Margin, adjusted earnings per share, leverage ratios, free cash flow. As required under Regulation G, Reconciliations of GAAP and non-GAAP financial results are included in schedules at the Appendix. These schedules reconcile the non-GAAP financial measures included in this presentation to the most direct comparable financial measure under generally-accepted accounting principles in the United States. The non-GAAP measures contained herein are used by the Company’s management to analyze the Company’s business results and are provided for informational and analytical context.

Hanger

At a Glance

page 03

Who We Are:

 Industry leader in orthotics and prosthetics (O&P) services  $4.2 billion1 addressable O&P domestic U.S. market  Pioneered prosthetic devices in 1861  Focus on custom devices

By The Numbers (2018):

 Net Revenue $1.049 billion  Adjusted EBITDA2 $121 million  4,600 employees in 881 locations (incl. 780 patient care and satellite locations) across 45 states and D.C.  Two segments: Patient Care (82% revenue) and Products & Services (18% of revenue)

1 Source: Hanger Inc. estimates

2Adjusted EBITDA is a non GAAP-measure. Please see the Appendix for a reconciliation of GAAP to non-GAAP metrics.

Hanger

Values, Vision and Purpose

page 04 page 04

Our Values – Integrity, patient-focused,

• utcomes, collaboration, innovation –

are the heartbeat of a cultural evolution that places our patients at the core of everything we do Our Vision – To lead the orthotic and prosthetic markets by providing superior patient care, outcomes, services and value Our Purpose – Empowering Human Potential Together

Business Mix

Primary Focus on the Provision of Specialty Health Care

page 05 Hanger Net Revenue Hanger Adjusted EBITDA1

Patient Care $857.4 million 81.8% revenue Patient Care $150.9 million 17.6% margin G&A expense ($66.3) million Products & Services $191.4 million 18.2% revenue Products & Services $36.5 million 19.1% margin

2018 Hanger Net Revenue

$1.049 billion

2018 Adjusted EBITDA1

$121.1 million - 11.5% EBITDA margin

1 Adjusted EBITDA is a non GAAP-measure. Please see the Appendix for a reconciliation of GAAP to non-GAAP metrics.

your logo

Investment Thesis

Industry Leader Building Sustainable Competitive Advantage

page 06

• The leading provider
• f orthotic and

prosthetic services in the United States

• Provides approximately

20% of all O&P services in the United States

1

• $4.2 billion market for

prescription prostheses,

• rthoses and prefabricated
• r off-the-shelf orthoses
• Broad demand drivers

across injuries and multiple, high prevalence disease etiologies

2

• Competitive

differentiation through investments in clinical

• utcomes, centralized

revenue cycle management, patient engagement and supply chain to drive growth

3

• Multi-tier strategy to grow
• rganically, steadily expand

margins and pursue M&A to drive incremental growth

• pportunities

4 Premier scalable provider in a large market for specialized healthcare services Market Leader Sizeable Market Growth Levers Differentiators

page 07

Our Market Focused Growth Strategy Patient Care Financial Performance

Discussion Points

Agenda Products & Services

page 08

Our Market Focused Growth Strategy Patient Care Financial Performance

Discussion Points

Agenda Products & Services

Orthotics and Prosthetics (O&P)

95% of Hanger’s Revenue is Related to O&P Services and Distribution

page 09

 Prosthetic devices replace a missing limb or portion of a limb  Provided to patients with amputated or congenitally absent limbs to replace the function and appearance of a limb  Prosthetics are customized to meet the unique location and characteristics of the patient and their residual limb  Prostheses have an average useful life ranging 3-5 years

Prosthetics

 Orthotic devices modify the structural and functional characteristics of the neuromuscular and skeletal system  Prescribed for injuries, musculoskeletal, neurological or

• rthopedic disorders

 Hanger Clinic emphasizes fabrications of customized devices

Orthotics

Prosthetics: Large and Growing Addressable Market

Approximately 500,000 People Living with Major Limb Loss in the U.S.

page 010

 Approximately 350,000 people with major limb loss utilize a prosthesis  +90% are lower extremity  Typically have a 3-5 year replacement cycle (70% recurring revenue)  Prosthetics total approximately 50% of the prescription O&P market

Source: IQVIA (IMS) 2016 data; EpiSource 2014 data; Ziegler-Graham, et al., “Estimating the Prevalence of Limb Loss in the United States: 2005 to 2050”, Arch Phys Med Rehabil 2008:89, 422-429; Dillingham et al., “Rehabilitation Setting and Associated Mortality and Medical Stability Among Persons With Amputations”, Arch Phys Med Rehabil 2008:89, 1038-1045; Science Daily, “Prosthetic knee type may determine cost of care for amputees”, July 11, 2017

3% Other Disease 50% Trauma 47%

Addressable market currently growing at 1.5 - 2.0% annually

page 011

$1,420 $1,170 $960 $450 $210

Endocrine & Circulatory – Endocrine and circulatory disorders

drive the majority of major amputations. Mix of prosthetics and orthotics

Musculoskeletal Disease – Arthritis, spinal and foot disease

requiring braces, boots and supports. Orthotics-only market

Nervous System – 795,000 strokes per year – 75% occur in people

+65, cerebral palsy, multiple sclerosis. Ankle-foot orthosis, braces

Other – Congenital, cancer and acute infections. May require prosthetics (i.e.

congential limb difference) or orthotics (i.e.cranial orthosis for plagiocephaly)

O&P Market: $4.2 billion

Diverse Disease State Mix Drives Demand

$ millions

Sources: IMS Health, Hanger Estimates Note: “Major amputation or limb loss refers to a lower extremity, above or below the knee and upper limb, or combination thereof

Injuries – Approximately 76,000 major amputations per year, 5-10% of which

are due to injury. +$1 billion spent on prosthetics secondary to injury

page 012

Our Market Focused Growth Strategy Patient Care Financial Performance

Discussion Points

Agenda Products & Services

Patient Care Differentiators

Building Sustainable Advantages in a Fragmented Industry

page 013

National network and market leadership Enhancing productivity and cost management through an enterprise supply chain Driving patient engagement, connectivity and satisfaction Optimizing reimbursement through centralized revenue cycle management

Hanger Net Revenue

Patient Care1 $857.4 million 81.8% of revenue Patient Care1 $150.9 million 17.6% margin

Unique ability to measure and improve patient outcomes

Hanger Adjusted EBITDA2

1 Referenced amounts reflect 2018 actual results. 2Adjusted EBITDA is a non GAAP-measure. Please see the Appendix for a

reconciliation of GAAP to non-GAAP metrics. Products & Services Products & Services G&A Expense

Scale as a Competitive Advantage

National Network Brings Hanger Closer to the Community

page 014

1

1,500 Clinicians

 Hanger employs over 20% of the board certified, O&P clinicians in the U.S.  Competitors are spread out in small local practitioner settings.

3

780 Patient Care Locations

 Hanger is the only O&P provider operating a nationwide network of patient care clinics in 45 states and D.C.

2

Nationwide Network

 Hanger’s broad provider footprint allows for a healthy diversity of payor and referral sources.  Geographic diversity insulates Hanger from local or market specific challenges.

4

2 million Annual Patient Encounters

/ / / / / / /

Hanger Patient Care Clinics

 Hanger has the highest volume of O&P patients as compared with any provider.  Enables Hanger to develop and deliver best practices in O&P care.

page 015

Market Leader

In a Fragmented Industry

676 282

79

2,163

O&P Patient Care Clinic Market

(by location) Approximately 3,200 Clinics

Hanger Clinic

10 next largest O&P providers

ranging from 22 - 44 clinics

Veterans Administration Rest of market

21% of O&P clinics in the nation Hanger currently operates 780 patient care clinics nationally VA: Next largest at 2%

 676 patient care clinics  104 satellite locations

Rest of market is comprised of diverse small providers

Source: American Board For Certification 2017. Figures reflect Hanger as of 12.31.18

Patient Engagement and Connectivity

Enhance Consistency, Quality of Patient Experience

page 016

Programs and initiatives to engage and connect our community, measure and improve patient satisfaction, driving retention and growth

 Clinicians and Peer Visitors connect with new amputees in the hospital at the time of their amputation  Net promoter score measured nationally at the patient and clinic level. Average score of 82  Outcomes, patient satisfaction and quality life tracked and reported at the patient and referral source level  Patient Events designed to support mobility and utilization of devices  Active social media coverage of patient and clinician stories

Clinical Focus on Patient Outcomes

Implementing Clinical Care Standards and Demonstrating Value

page 017

Clinical team and senior leadership

 Chief Clinical Officer and clinical leadership group  1,500 certified / licensed clinicians  500 technicians and assistants  Specialists and centers of excellence

Technology & process

 Enterprise-wide electronic health record to digitize clinician documentation and practice administration  Implementing a patient portal and consumer engagement platform

Outcomes, research and education

 Implementation of comprehensive outcomes programs across Hanger Clinic, as a basic standard of care  Collaborations with leading clinical and academic institutions  Five multi-center publications released to clarify the concept of prosthetic mobility  Annual education conference  Sponsor 30% of residency training sites in the U.S.

Achieving clinical results for patients, payors and referral sources

page 018

$20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000

2014 2015 2016 2017 2018

Reduced to $38 million in 2018

Localized claims process pre-2015

 Disallowed revenue rises to $82 million,

• r 9.0%, of Patient Care segment

revenue1

Disallowances peak in 2014

 Hired Chief Revenue Officer  Established centralized RCM function  Executed a claims documentation initiative in 2016

RCM deployed in 2015

Revenue Cycle Management (RCM)

Central Function Drives Lower Disallowed Revenue

$ thousands

Reduced disallowed revenue dollars by 53% from 2014 through 2018

Disallowed Revenue: Peaks in 2014 at $82 million

1 Disallowed revenue expressed as a percentage of adjusted gross Patient Care segment revenue.

 Strong documentation regimen  Focus on eligibility and preauthorization  Low first pass denials and payor friction  Sophisticated level of service to patients and payors

Program results to date

Enterprise Supply Chain

Opportunities to Leverage Buying Power and Scale

page 019

Purchasing leverage

 Patient Care purchases 74% of materials for its own use through its central supply chain  Provides scale and purchasing power

Manage COM

 Patient Care Materials Costs (COM) were 30.1%

• f revenue in 2018

 Opportunities exist to achieve further economies of scale

Streamline inventory

 Hanger operates five distribution centers across the U.S.  Investments in systems, processes and on-line channels aim to lower supply chain costs

Hub and spoke fabrication  Future margin opportunity through development of efficient supply chain  Implementing advanced supply chain systems beginning in late 2019

 In addition to laboratories within local clinics, Hanger operates eleven fabrication facilities nationwide  Opportunities to streamline production through use of central fabrication facilities

1 2 3 1 4

page 020

Our Market Focused Growth Strategy Patient Care Financial Performance

Discussion Points

Agenda Products & Services

Products and Services

National Scale Supports Profitable Growth

page 021

71% of products & services net revenue derived from the distribution of O&P components and related devices through “SPS”

 5.7% net revenue growth in 2018  Comprehensive catalog for independent O&P providers  One-stop O&P industry destination with 400,000 SKUs across more than 300 manufactures  Leading dedicated O&P distributor in the industry

Remaining 29% of net revenue from therapeutic solutions “ACP”

 Rehabilitation technologies and clinical programs to skilled nursing facilities (SNFs)  Facing headwinds due to challenging conditions and the reimbursement environment in SNFs  Goal to stabilize revenue and earnings

Hanger Net Revenue

Products & Services1 $191.4 million 18.2% of revenue

Hanger Adjusted EBITDA2

Products & Services1 $36.5 million 19.1% margin

1 Referenced amounts reflect 2018 actual results. 2 Adjusted EBITDA is a non GAAP-measure. Please see the

Appendix for a reconciliation of GAAP to non-GAAP metrics. Patient Care Patient Care G&A

page 022

Our Market Focused Growth Strategy Patient Care Financial Performance

Discussion Points

Agenda Products & Services

page 023

Drive organic revenue growth via market share

 Exceed industry growth rate of 1.5 - 2.0%

• Higher volume through referrals
• Focus on high-value custom O&P
• Prosthetics growth +3.3% in 2018
• Add clinicians
• Drive higher throughput and productivity
• Implement new delivery strategies for lower margin
• rthotic categories
• Stabilize therapeutic solutions business

Growth Strategy

Two-Fold Approach Select, in-market acquisitions

 Disciplined approach to O&P acquisitions

• Focus on synergistic geographies and specialties
• Attractive valuations
• Full integration into centralized infrastructure offers

incremental returns

• Completed three recent transaction at the end of

2018 and early 2019: will add $28 million of incremental revenue in 2019

page 024

Realize benefits of a scalable platform

 Achieve consistent operating leverage

• Revenue growth consistently higher than market
• High clinician utilization
• G&A and supporting infrastructure costs

relatively fixed, contributing to gradual margin expansion

• Earnings growth outpaces revenue growth
• Accelerating free cash flow yield

Growth Strategy

Enhanced Scale

page 025

Our Market Focused Growth Strategy Patient Care Financial Performance

Discussion Points

Agenda Products & Services

Fourth Quarter and 2018 Performance

Fourth Quarter and Annual Results

page 026  Excluding a $1.1 million reduction in net revenue resulting from the adoption of ASC 606, fourth quarter 2018 net revenue was consistent with the prior year  Excluding a $4.0 million reduction in net revenue resulting from the adoption of ASC 606, 2018 net revenue grew by $12 million, or 1.2%

Fourth Quarter Annual

2018 2017 2018 2017

Net Revenue (millions)

$284.9 $285.7 $1,048.8 $1,040.8

Adjusted EBITDA1 (millions)

$40.0 $39.6 $121.1 $120.3

Margin Percentage

14.1% 13.9% 11.5% 11.6%

• 1. Adjusted EBITDA and Adjusted Net Earnings are non-GAAP-measures. Please see the Appendix for a reconciliation of GAAP to non-GAAP metrics.

2019 Outlook

Key Assumptions

page 027

• Net revenue in a range between $1.075 billion and $1.105 billion
• Adjusted EBITDA1 in a range between $121 million and $126 million
• Includes $28 million in revenue contribution from acquisitions completed in

Q4 2018 and Q1 2019

• Other considerations:

− At the mid-point, outlook includes an underlying $19 million in organic growth (excluding Therapeutic Solutions) − Products & Services segment anticipated to decline in revenue and earnings due to moderation of growth in distribution services and decline of $5 million to $7 million in revenue from therapeutic solutions − Any additional acquisitions Hanger completes in 2019 would provide incremental revenue and earnings contribution − $35 million in Capital Expenditures

• 1. Adjusted EBITDA is provided on a non-GAAP basis only because a reconciliation to the most comparable GAAP financial measure, net income, is not available without unreasonable effort due to the

unpredictable nature of reconciling items that render such a reconciliation not meaningful for investors.

Annual Revenue Performance and 2019 Outlook

Growth Contributions from Organic and Inorganic Sources

page 028

$1,042.1 $1,040.8 $1,048.8 $1,090.0

2016 2017 2018 2019

Note: Guidance as of March 14, 2019. This presentation is not a reiteration or affirmation of prior guidance.

 Illustration above based on the midpoint of the outlook range, a net increase of $41 million in revenue or reported growth of 3.9%

Annual Adjusted EBITDA1 Performance and 2019 Outlook

Establishing a Consistent Foundation for Future Growth

page 029  Illustration above based on the midpoint of the outlook range

$108.5 $120.3 $121.1 $123.5

2016 2017 2018 2019

Note: Guidance as of March 14, 2019. This presentation is not a reiteration or affirmation of prior guidance.

• 1. Adjusted EBITDA is provided on a non-GAAP basis only because a reconciliation to the most comparable GAAP financial measure, net income, is not available without unreasonable effort due to the

unpredictable nature of reconciling items that render such a reconciliation not meaningful for investors.

page 030

30 35 40 45 50 55 60 $100,000 $110,000 $120,000 $130,000 $140,000 $150,000 $160,000 $170,000 $180,000

2014 2015 2016 2017 2018

Payor Mix and Accounts Receivables Trend

Multi-Year Improvements in Working Capital Conversion

Accounts Receivable, net

(Orange Bars) $ thousands

Day Sales Outstanding

(Black Line)

 Commercial mix excludes Medicare and Medicaid Managed Care  Diverse reimbursement mix combined with improved A/R aging has driven stronger working capital characteristics

Peak in late 2014

Balances as of December 31,

DSO 46 and A/R balance at $144 million

Medicare Medicaid Commercial VA Private Pay

9% 6% 37% 32% 16% Payor Mix, Percentage of Patient Care Net Revenue 2018

Cash Flow, Liquidity and Capital Allocation Priorities

Use Excess Cash Flow to Execute Growth Strategy

page 031  $189.2 million in liquidity, comprised of:

• $94.1 million of borrowing

capacity under revolving credit facility

• $95.1 million in cash and cash

equivalents

• Decline anticipated in Q1

primarily due to seasonality, acquisitions, annual bonus and 401-K annual match

 $520.1 million in indebtedness

• $501.2 million Senior Term Loan

B; $18.9 million of seller notes and capital leases

 Net debt of $425.0 million

• 66% hedged or otherwise

bearing fixed rate

• $34 million in annualized cash

interest expense, or 6.5%

Flexible Balance Sheet2

 2018 Free Cash Flow (Adjusted EBITDA1 - CapEx) of $92.3 million  2018 Capex, including purchase of equipment leased to third parties totaled, $28.8 million  Estimated future annual CapEx of approximately $35 million in 2019

Strong Cash Flow

 Current leverage in the range of 3.5x to 4.0x  Objective of managing Free Cash Flow to support both anticipated acquisitions and de-leveraging  Re-invest in technology infrastructure to broaden capabilities and drive efficiencies

Disciplined Capital Allocation Strategy

1 Adjusted EBITDA is a non GAAP-measure. Please see the

Appendix for a reconciliation of GAAP to non-GAAP metrics.

2 Amounts stated as of December 31, 2018

Investment Thesis

Industry Leader Building Sustainable Competitive Advantage

page 032

• The leading provider
• f orthotic and

prosthetic services in the United States

• Provides approximately

20% of all O&P services in the United States

1

• $4.2 billion market for

prescription prostheses,

• rthoses and prefabricated
• r off-the-shelf orthoses
• Broad demand drivers

across injuries and multiple, high prevalence disease etiologies

2

• Competitive

differentiation through investments in clinical

• utcomes, centralized

revenue cycle management, patient engagement and supply chain to drive growth

3

• Multi-tier strategy to grow
• rganically, steadily expand

margins and pursue M&A to drive incremental growth

• pportunities

4 Premier scalable provider in a large market for specialized healthcare services Market Leader Sizeable Market Growth Levers Differentiators

Appendix Non-GAAP Reconciliations

Non-GAAP Reconciliations

Net Loss to Adjusted EBITDA

page 034

2 0 1 8 2 0 1 7 2 0 1 6 Net loss - as reported (GAAP) (858) $ (104,671) $ (106,471) $ Adjustments to calculate EBI TDA: Depreciation and amortization 36,455 39,259 44,887 I nterest expense, net 37,566 57,688 45,199 Loss on extinguishment of debt 16,998

• 6,031

Non-service defined benefit plan expense 703 736 786 Provision (benefit) for income taxes 5,238 27,297 (15,910) I ncome from discontinued operations, net of income taxes

• (935)

Adjustments - net loss to EBI TDA 96,960 124,980 80,058 EBI TDA (Non-GAAP) 96,102 20,309 (26,413) Further adjustments to calculate Adjusted EBI TDA: I mpairment of intangible assets 183 54,735 86,164 Third-party professional fees 12,461 32,301 37,244 Equity-based compensation 13,065 12,930 9,763 Acqusition-related expenses 510

• Disaster recovery / unclaimed property settlement

(2,221)

• Severance expense

957 64 2,487 Specified further adjustments - EBI TDA to Adjusted EBI TDA 24,955 100,030 135,658 Adjusted EBI TDA (Non-GAAP) 121,057 $ 120,339 $ 109,245 $ For the Years Ended Decem ber 3 1 ,

Non-GAAP Reconciliations

Operating Income to Segment Adjusted EBITDA

page 035

2 0 1 8 2 0 1 7 2 0 1 8 2 0 1 7 Patient Care I ncome from operations - as reported (GAAP) 42,190 $ 44,175 $ 126,805 $ 122,418 $ Depreciation & amortization 4,566 5,240 19,113 21,363 EBI TDA (Non-GAAP) 46,756 49,415 145,918 143,781 Further adjustments to calculate Adjusted EBI TDA: Equity-based compensation 1,110 1,247 4,372 4,138 Severance expenses 591 — 591 88 Further adjustments - EBI TDA to Adjusted EBI TDA 1,701 1,247 4,963 4,226 Adjusted EBI TDA (Non-GAAP) 48,457 50,662 150,881 148,007 Products & Services I ncome (loss) from operations - as reported (GAAP) 5,352 (48,065) 25,523 (27,676) Depreciation & amortization 2,628 2,472 10,197 10,163 EBI TDA (Non-GAAP) 7,980 (45,593) 35,720 (17,513) Further adjustments to calculate Adjusted EBI TDA: I mpairment of intangible assets 183 54,735 183 54,735 Equity-based compensation 257 375 600 1,306 Severance expenses — — — (24) Further adjustments - EBI TDA to Adjusted EBI TDA 440 55,110 783 56,017 Adjusted EBI TDA (Non-GAAP) 8,420 9,517 36,503 38,504 Corporate & Other Loss from operations - as reported (GAAP) (24,771) (31,523) (92,681) (113,692) Depreciation & amortization 1,709 1,953 7,145 7,733 EBI TDA (Non-GAAP) (23,062) (29,570) (85,536) (105,959) Further adjustments to calculate Adjusted EBI TDA: Third-party professional fees 3,591 6,358 12,461 32,301 Equity-based compensation 2,124 2,615 8,093 7,486 Acqusition-related expenses 510 — 510 — Disaster recovery / unclaimed property settlement — — (2,221) — Severance expenses — — 366 — Further adjustments - EBI TDA to Adjusted EBI TDA 6,225 8,973 19,209 39,787 Adjusted EBI TDA (Non-GAAP) (16,837) (20,597) (66,327) (66,172) Total Adjusted EBI TDA (Non-GAAP) 40,040 $ 39,582 $ 121,057 $ 120,339 $ Three Months Ended Decem ber 3 1 , Tw elve Months Ended Decem ber 3 1 ,

Non-GAAP Reconciliations

Adjusted EBITDA Margin: Net Revenue and Segment

page 036

2 0 1 8 2 0 1 7 2 0 1 8 2 0 1 7 Net Revenue (a) Patient Care 236,637 $ 237,478 $ 857,382 $ 851,973 $ Products & Services 48,216 48,258 191,378 188,796 Net revenue 284,853 $ 285,736 $ 1,048,760 $ 1,040,769 $ EBI TDA Patient Care 46,756 $ 49,415 $ 145,918 $ 143,781 $ Products & Services 7,980 (45,593) 35,720 (17,513) Corporate & Other (23,062) (29,570) (85,536) (105,959) EBI TDA (Non-GAAP) 31,674 $ (25,748) $ 96,102 $ 20,309 $ Adjusted EBI TDA Patient Care 48,457 $ 50,662 $ 150,881 $ 148,007 $ Products & Services 8,420 9,517 36,503 38,504 Corporate & Other (16,837) (20,597) (66,327) (66,172) Adjusted EBI TDA (Non-GAAP) 40,040 $ 39,582 $ 121,057 $ 120,339 $ Adjusted EBI TDA Margin (Non-GAAP) Patient Care 20.5% 21.3% 17.6% 17.4% Products & Services 17.5% 19.7% 19.1% 20.4% Net revenue 14.1% 13.9% 11.5% 11.6% (a) Excludes intersegment revenue For the Three Months Ended Decem ber 3 1 , For the Tw elve Months Ended Decem ber 3 1 ,