Invacare 'humming'

ELYRIA, Ohio--Despite a slumping economy and an industry reeling from several reimbursement cuts, it was “pretty much business as usual” at Invacare for the fourth quarter of 2008.

That's what Chairman and CEO Mal Mixon told investors during an earnings call in January.

“We've had strong demand in the quarter and it has continued into the early part of the year,” Mixon said. “I've been with this company now for 30 years, and I don't think our quality and deliveries have ever been better. We're humming right now. We're very fortunate to be in a field where it doesn't really matter what the economy is doing.”

About the 36-month oxygen cap and the 9.5% nationwide reimbursement cut, Mixon said: “I think the cuts will further make our HomeFill and our oxygen technology even more desirable, because our providers can enjoy lower costs by using this technology.”

Invacare reported adjusted net earnings of $19.1 million for the fourth quarter of 2008 compared to $19 million for the same period in 2007. Net sales were $430.4 million vs. $426.8 million.

The manufacturer reported adjusted net earnings of $43.1 million for 2008 compared to $35.7 million for 2007. Net sales were $1.76 billion vs. $1.6 billion.

During the earnings call, company officials highlighted the performance of North America HME. The division earned $187.3 million in net sales for the fourth quarter compared to $173.1 million for the same period in 2007, a 8.2% increase. Sales were $741.5 million for 2008 vs. $669.4 million for 2007.

“I think there's a lot of execution being done properly by the team in a number of locations, particularly in North America HME,” Gudbranson said.

Invacare reported a slight decrease in net sales at Invacare Supply Group. The division earned $68.4 million in sales for the fourth quarter compared to $68.6 million for the same period in 2007, a 0.2% decrease.

“We had organic growth in every business, other than the supply group, which has basically flat, despite losing some national providers who exited the supply business,” Gudbranson said.

For the year, net sales for Invacare Supply Group were $265.8 million for 2008 vs. $257 million for 2007, a 3.4% increase.

Invacare gave this guidance for 2009: 5% to 7% organic growth in net sales.