Earnings: Invacare reports losses, Inogen raises guidance

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Friday, November 4, 2016

ELYRIA, Ohio – Invacare on Oct. 31 reported a net loss of $5 million for the third quarter of 2016 compared to $7.8 million for the same period last year. It reported net sales of $268.1 million vs. $283.8 million.

Invacare reported a net loss of $25.2 million for the nine months ended Sept. 30, 2016, compared to $23.3 million for the same period last year.

For North America HME, Invacare reported net sales of $98 million for the third quarter of 2016, a 14.5% decrease compared to the same period last year. For the nine months ended Sept. 30, it reported net sales of $314 million, a 12.5% decrease.

Invacare has acknowledged that as part of its transformation from a generalist to a specialized DME company, it would experience “periods of net sales declines.”

But Matthew Monaghan, chairman, president and CEO, says the company is making progress, citing the sale of its Garden City Medical business, which does business as PMI and Pinnacle Medsource; and the launch of two new products, the LiNX control system in Europe, a wirelessly programmable complex power wheelchair control system, and the Alber Twion power assist device for active manual wheelchairs users.

“In the quarter, we made the right kind of progress in our transformation, and had good uptake of our leading products, as well as positive response of our business associates and customers to these changes,” he said.

Inogen raises guidance

GOLETA, Calif. – Inogen on Nov. 3 reported total revenues of $54.4 million for the third quarter of 2016 compared to $40.8 million for the same period last year, a 33.5% increase. It reported net income of $3.5 million vs. $2.7 million, a 28.2% increase.

“We are very pleased with sales growth and execution across our business-to-business and direct-to-consumer channels this quarter, indicating increasing demand and adoption of our portable oxygen concentrators,” said Raymond Huggenberger, CEO.

Inogen reported 65.1% growth in domestic business-to-business sales for the third quarter, primarily driven by traditional home medical equipment provider purchases and the continued strength of its private label partner.

The company reported 38.6% growth in direct-to-consumer sales, approximately in line with expectations. It reported a 37.2% decrease in rental sales, largely due to a second round of Medicare reimbursement cuts that went into effect July 1, 2016.

As a result of its year-to-date results, Inogen has increased its revenue guidance for 2016 to $194 million to $198 million, representing year-over-year growth of 22% to 24.5%. It has also increased its revenue guidance for 2017 to 2017 to $230 million to $236 million.