Invacare ‘not pleased’ with earnings

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Thursday, July 24, 2014

ELYRIA, Ohio – Invacare has reported a loss in net earnings of $13.6 million for the second quarter compared to a loss of $12.5 million for the same period last year.

It reported net sales of $331.3 million vs. $344.8 million.

“We are not pleased with the second quarter’s consolidated financial results,” said Gerald Blouch, president and CEO, who will retire July 31. “We are determined to turn around the business by focusing on improving free cash flow and restoring profitability in the North America/HME and Asia/Pacific businesses.”

Invacare reported a loss in net earnings of $31.6 million for the first half of the year compared to net earnings of $22.7 million for the same period last year. It reported net sales of $640.4 million vs. $676.2 million.

For North America/HME, Invacare reported a loss in net earnings of $12.4 million, excluding restructuring charges, for the second quarter compared to a loss of $10.3 million for the same period last year. It reported net sales of $138.7 million, a 13% decrease. The company reported a loss in net revenues of $28.4 million, excluding restricting charges, for the first six months of the year compared to $19.8 million for the same period last year. It reported net sales of $267.8 million vs. $311.2 million.

Invacare says sales in lifestyle products were affected by Medicare’s audits of HME providers and by a focus on lower-cost products driven by the competitive bidding program.

Sales of power wheelchairs from the Taylor Street facility, still under a consent decree with the Food and Drug Administration, in the second quarters of 2014 and 2013 represented only 8.8% and 14.5%, respectively, of the pre-consent decree units shipped during the same period in 2012.

“We are continuing through the final certification audit process,” Blouch said. “In order to address these needs, we have engaged additional consultants to help us improve the functionality and capabilities of certain of our quality subsystems.”

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