Earnings round-up: Invacare improves adjusted EBITDA, Option Care sees ‘robust’ growth

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Thursday, May 7, 2020

ELYRIA, Ohio – Invacare reported net sales of $218.4 million in the first quarter, a 2.2% decrease compared to the same period last year.

It reported $87 million in net sales for North America, specifically, about a 1% increase, driven by increased respiratory and mobility and seating product sales.

The company saw a 4% increase in mobility and seating product sales, driven by a 16% increase in power wheelchairs and offset by a decline in manual mobility product sales.

Gross profit was $63 million for the first quarter this year vs. $61.5 million for the same period last year. Adjusted EBITDA was $5.9 million vs. $1.5 million.

"We entered 2020 intending to build on our previous transformation progress and I am pleased to report good results in the quarter, demonstrated by strong financial performance across all business segments,” said Matthew Monaghan, chairman, president and CEO. “Our continued transformational initiatives drove measurable progress, including significantly improved profitability, as adjusted EBITDA more than tripled compared to the prior year. This was driven by expanded gross profit as we focused on a more profitable sales mix, improving material and freight costs, and reduced SG&A expenses driven by operational efficiencies.”

Option Care sees ‘robust’ growth

BANNOCKBURN, Ill. – Option Care reported net revenue of $705.4 million for the first quarter of 2020, an increase of 48% compared to the same quarter in 2019.

Gross profit was $158 million or 22.4% of net revenue, an increase of nearly 61% compared to one year ago, and net loss was $19.9 million or 11 cents per share. Adjusted EBITDA was $40.2 million.

“We are very pleased with the strong financial results generated in the first quarter, including robust revenue growth and solid cash flow generation,” said CEO John Rademacher. “More importantly, as the COVID-19 pandemic arose in the latter part of the first quarter, I could not be prouder of how the team of more than 5,000 professionals that comprises Option Care Heath continue to rise to the challenge to combat the coronavirus.”

In March, the provider created a command central to focus on a collaborative and coordinated responseto, among other things, ensure the health and safety of employees and maintain continuity of care for patients.

Option Care in April received approximately $11.7 million from the Public Health and Social Services Emergency Fund. With the extent that those funds offset the negative impact of the COIVD-19 pandemic undetermined, the company is unable to maintain previously communicated guidance for 2020.