Invacare, Lincare report earnings
ELYRIA, Ohio - Invacare last week reported net adjusted earnings of $7 million for the quarter ended June 30, 2008, compared to earnings of $4.3 million for the same period last year. Net sales were $447.2 million compared to $393.3 million. Invacare reported net adjusted earnings of $10.6 million for the six months ended June 30, compared to earnings of $5.9 million for the same period last year. Net sales were $863.4 million compared to $768.2 million. Invacare credited organic sales growth, cost reduction activities and reduced net interest expenses for its growth. Growth was offset by increased freight and higher commodity costs. For Invacare's North American HME Division, net sales for the second quarter were $187.2 million, compared to $166.6 million for the same period last year. Sales of its rehab product line increased 6.7% in the second quarter, despite volume declines in the consumer mobility product line caused by its decision to terminate sales to a large national account, The Scooter Store. Sales of its respiratory product line increased 9.2%; sales of its standard product line increased 15.1%. With the delay in national competitive bidding, Invacare updated its guidance, projecting organic growth in net sales of 5% to 6% instead of 4% to 5%.
Drugs boost Lincare
CLEARWATER, Fla. - Lincare last week reported revenues of $428.4 million for the quarter ended Jun 30, 2008, compared to revenues of $397.1 million for the same period last year. Net income was $62.6 million compared to $56 million. Lincare reported revenues of $843.8 million for the six months ended June 30, 2008, compared to $775.5 million for the same period last year. Net income was $123.3 million compared to $109.9 million. Revenues for the three and six months ended June 30 were impacted by a change in ordering patterns for certain inhalation drugs. In April, CMS issued a revised local coverage determination (LCD) that would have eliminated Medicare reimbursement to the drugs as of July 1 (The LCD has since been delayed). As a result, a significant number of the company's customers placed orders in June to receive 90-day instead of 30-day shipments of the drugs. Because this accelerated about $18.9 million in revenues in the second quarter, Lincare expects proportionately fewer revenues in the third quarter. Internally, the provider added 10 operating centers during the second quarter for a total of 1,039. It also bought a small home infusion therapy provider in Mississippi during the quarter. Due to the delay in national competitive bidding, Lincare has revised previous guidance for the impact of Medicare pride reductions taking effect in 2008 from $100 million to $70 million.