Earnings: Invacare, ResMed

Thursday, October 28, 2010

ELYRIA, Ohio - Invacare racked up organic growth of 2.4% in the third quarter, but the company still has a ways to go to reach its historic growth rate of 4% to 5%, interim CEO Gerald Blouch said last week during a call with financial analysts.

One way the company may get there: acquisitions. For the past few years, Invacare has "kept its head down," making its manufacturing operation more efficient. Having made progress on that front, it's now open to "looking at acquisitions" to accelerate growth, Blouch said.

Blouch described the current HME market as "a little choppy," but eventually competitive bidding and other challenges will "iron themselves out." All in all, the healthcare market is growing and a good place to be, he said, adding: "We don't think there is any significant market where we are not stable and gaining share."

During the call, Blouch answered a question regarding the health of Mal Mixon, who stepped down as CEO last spring after suffering a mild stroke.

"Mal's attitude is great," he said "He's positive. He's engaged. He's started back as chairman. He is in the office with great regularity. The situation with the CEO slot remains unchanged. He intends to make a decision by the end of the year."

Here are some highlights from the company's third quarter results:

-    Debt decreased by $18.6 million.

-    Adjusted net earnings jumped from $16.7 million last year to $18.2 million this year.

-    Net sales for the quarter increased 0.8% to $437.5.

-    Net North American HME sales increased 3.2% to $190.9 million.

-    Rehab products increased net sales 2.6%, driven primarily by higher sales of custom power and consumer power products.

-    Respiratory sales decreased 0.1% compared to the third quarter of last year, primarily due to a reduction in sales of stationary concentrators related to a national account.

-    Third quarter DSO was 52 compared to 54 last year.

Record earnings for ResMed

SAN DIEGO - Sleeps products manufacturer ResMed last week reported revenue of $282 million for the quarter ended Sept. 30, 2010, a 14% increase over the same period last year. Income was $66.4 million and net income $56.7 million, an increase of 26% and 35%, respectively, compared to last year, the company reported.