Hanger Inc. HGR recently received a notice from the New York Stock Exchange (NYSE) stating that the company is not complying with the NYSE's continued listing requirements under the timely filing criteria outlined in Section 802.01E of the NYSE Listed Company Manual.
The company’s failure to file its Annual Report on Form 10-K (for the fiscal year ended Dec 31, 2014) in time prompted the NYSE action. Hanger is also reportedly working to complete and file its Form 10-Q for the quarter ended Sep 30, 2014.
The NYSE, under its existing set of rules, has given Hanger six months’ time until Sep 17, 2015, to file its Form 10-K with the U.S. Securities and Exchange Commission (SEC). The company is looking to regain compliance with the NYSE listing standards prior to that date by duly filing its Form 10-K.
Going forward, if Hanger fails to file Form 10-K before the set deadline, the NYSE, at its own discretion, may decide to grant the company an extension of up to six additional months. The notice which has been handed over to Hanger also states that NYSE may, however, commence delisting proceedings at any time, as per the circumstances.
However, the notice, for the time being, will have no effect on the listing of the company's common stock, which is listed on the NYSE under the symbol "HGR."
On Feb 17, Hanger had announced its decision to restate parts of its previously issued unaudited financial statements owing to certain errors identified in the same. The restated data to be presented pertains to the quarterly periods ended Mar 31, 2014; Mar 31, 2013; Sep 30, 2013; Dec 31, 2013 and Mar 31, 2012; and the year-to-date periods ended Jun 30, 2014; Jun 30, 2013; Sep 30, 2013 and Jun 30, 2012.
We feel the uncertainty hovering around Hanger’s listing on the NYSE will remain an overhang on the stock, going ahead.
Zacks Rank
Currently, Hanger has a Zacks Rank #3 (Hold). Better-ranked stocks in the medical sector are LeMaitre Vascular LMAT, Phibro Animal Health Corp PAHC and SurModics SRDX. All the stocks carry a Zacks Rank #1 (Strong Buy).
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