Invacare sticks to target
By HME News Staff
Updated Fri September 13, 2019
ELYRIA, Ohio - Invacare reaffirmed its long-term target of $85 million to $105 million adjusted EBITDA run-rate by the fourth quarter of 2020 at the Baird Global Healthcare Conference in New York on Sept. 4.
Invacare's Matt Monaghan said the company expects to achieve the goal through a combination of net sales growth driven by new product introductions, supply chain actions to expand gross margin and cost-optimization initiatives to meaningfully reduce SG&A expense.
“After four years of foundation building, we are pleased to see the results having a positive effect on our reported financial performance,” said Monaghan, chairman, president and CEO. “Our regions continue to focus on commercial excellence, while the rest of the business is taking advantage of global synergies and expertise. As a result, new product introductions are coming at a more rapid pace, cash flow is improving and overall operating results reflect better efficiencies. We expect these trends to continue through 2020.
Monaghan also said the 15% tariffs on $112 billion in Chinese imports that went into effect Sept. 1, 2019, will have an unfavorable impact of less than $200,000. The company continues to take supply chain actions to mitigate the previously announced tariffs, in addition to the 15% tariffs that are set to go into effect Dec. 15, 2019.
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