Invacare reports improvements in operating loss, free cash flow

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Tuesday, August 6, 2019

CLEVELAND – Invacare saw net sales decrease 4.2% to $235.9 million in the second quarter of 2019 compared to the same period last year, but it saw improvements in its operating loss and free cash flow.

North America

Net sales in North America decreased 4.3% to $89.6 million. Respiratory net sales in the region continued to be impacted by the company’s previously discussed reimbursement changes and declined 23.5% to $4.4 million. Excluding respiratory, constant currency net sales increased 1% driven by higher lifestyle products revenues, partially offset by lower mobility and seating revenue.

“In North America, our top priority is to drive profitability through a multi-pronged strategy,” said Matt Monaghan, chairman, president and CEO. “Our more efficient business processes are yielding higher returns in respiratory, despite lower sales versus a year ago. In mobility and seating, we realized above-market unit growth and higher margins with revenue adversely affected by price and mix.”

Europe

Net sales in Europe decreased 3.5% to $134 million in the second quarter of 2019 compared to the same period last year, while net sales in all other regions decreased 10% to $12.3 million.

Incremental gains

Invacare also reported:

  • constant currency net sales of $247.7 million in the second quarter of 2019 compared to $246.2 million for the same period last year
  • gross margin percent of net sales of 27.6% vs. 27.4%
  • gross profit of $65.1 million vs. $67.3 million
  • constant currency SG&A of $70.9 million vs. $73.8 million
  • operating loss of $4.5 million vs. $6.8 million
  • free cash flow of $300,000 vs. negative $24.6 million
  • adjusted EBITDA of $3.6 million vs. negative $1.7 million


“Per our plan, we have more work to do, and we remain confident in our ability to achieve our long-term objectives,” Monaghan said.