Earnings: Invacare remains strong, Lincare dips
ELYRIA, Ohio - Invacare last week reported adjusted net earnings of $13.4 million for the third quarter ended Sept. 30 compared to $10.8 million for the same period last year. Net sales were $461.8 million vs. $407.3 million, a 13.4% increase.
Earnings were $24 million for the nine months ended Sept. 30 compared to a net loss of $16.7 million for the same period last year. Net sales were $1.33 billion vs. $1.18 billion, a 12.7% increase.
For North American Home Medical Equipment, net sales were $191.2 million for the third quarter compared to $167.9 million for the same period last year, a 13.9% increase. Net sales of Invacare's rehab product line increased 2.2% for the quarter compared to last year. Excluding consumer power products, the line increased 7.6%. Net sales for its standard product line increased 21.7% for the quarter compared to last year, driven by increased volumes in manual wheelchairs and patient aids. Net sales for its respiratory product line increased 20.6%, driven by volume increases in oxygen concentrators and HomeFill, with strong purchases from national providers. Net sales were $554.2 million for the nine months ended Sept. 20 compared to $496.2 million for the same period last year.
Due to the credit crisis, Invacare "will remain judicious in its extension of credit to customers," it stated in a release.
In addition to reporting earnings, Invacare revised its 2008 guidance as follows: organic growth in net sales of 6% to 7%, excluding the impact from acquisitions and foreign currency translation adjustments; adjusted earnings per share of $1.35 to $1.40; and free cash flow between $35 million and $40 million.
Lincare earnings dip
CLEARWATER, Fla. - Lincare reported revenues of $405.7 million for the quarter ended Sept. 30 compared to $408.2 million for the same period last year. Net income was $55.8 million compared to $58.6 million. Revenues were $1.25 billion for the nine months ended Sept. 30 compared to revenues of $1.18 billion for the same period last year, a 6% increase. Lincare estimates the increase in revenues was comprised of about 10% internal growth, partially offset by Medicare price reductions of about 5%. Net income was $179 million for the nine months ended Sept. 30 compared to $168.5 million for the same period last year. Lincare added 10 new operating centers during the third quarter. During the first nine months of 2008, Lincare opened 30 new locations for a total of 1,049. Lincare also acquired two small pharmacy operations during the third quarter.
Coming up: ResMed reports earnings for the first quarter of fiscal year 2009 during a Nov. 6 conference call.