Invacare emphasizes small picture

Net sales for North America/HME increased 2.3% on a sequential basis
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Friday, November 10, 2017

ELYRIA, Ohio – Company officials at Invacare are looking for good news where they can find it. For the third quarter of 2017, it’s the sequential growth in net sales for North America/Home Medical Equipment.

Invacare reported net sales of $79.5 million for the business unit for the third quarter vs. $77.7 million for the second quarter, a 2.3% increase.

“We were thinking we would have a flat third and fourth quarter—a couple of quarters to reflect a flat bottom to rebound—and we had a little bit better third quarter than we expected,” Matt Monaghan, chairman, president and CEO, told investors during a conference call on Nov. 8 to discuss the company’s latest financial results.

Year-over-year, however, net sales for North America/HME were $79.5 million for the third quarter of 2017 vs. $99.3 million for the same quarter in 2016, a 19.9% decrease.

Monaghan cautioned investors not to look at the sequential growth in net sales for North America/HME, the business unit most impacted by a consent decree that limited manufacturing at the Taylor Street facility from late 2012 to mid-2017, as the beginning of a “V-shaped recovery.”

“What I want people not to say is, all of a sudden we are on this rapid trajectory,” he said. “There are going to be a couple of quarters, with the inertia that we have to move through, but I have a lot of confidence in the North America commercial team.”

Asked whether the sequential growth in net sales for North America/HME means Invacare is gaining back market share post-consent decree, particularly in the complex rehab market, driven by its recently launched TDX SP2 Power Wheelchair with LiNX, Monaghan said not quite.

“The backlog we have, the commercial interest in the product—I think the fourth quarter should be decent and I think an inflection point for North America HME,” he said.

Overall, Invacare reported net sales of $250.9 million for the third quarter of 2017, compared to $268.1 million for the same period last year. It recorded a net loss of $18.6 million vs. $5 million.