Invacare sums up 2017, sizes up 2018

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Friday, February 9, 2018

ELYRIA, Ohio – Invacare’s net sales and net income were off for the year, but “2017 was a tremendous year of progress,” says Matthew Monaghan.

Invacare reported net sales of $966.5 million for all of 2017 compared to $1.04 billion for all of 2016. It reported a net loss of $76.5 million vs. $42.9 million.

“We’ve made tremendous progress toward restoring the company’s long-term earnings potential,” said Monaghan, the company’s chairman, president and CEO, citing quality milestones, more than 10 product launches and streamlined operations.

Perhaps the single greatest driver of that progress: The U.S. Food and Drug Administration lifted a consent decree on July 24, 2017, allowing Invacare to resume full operations at its corporate headquarters and Taylor Street manufacturing facility.

That paved the way for the launch of the Invacare TDX SP2 Power Wheelchair with LiNX Technology. Excluding consumer power products that have been discontinued, net sales for mobility and seating products increased 5.4% in the fourth quarter of 2017 compared to the same period in 2016.

“We have been actively re-familiarizing our customers with our Invacare TDX line of power wheelchairs,” Monaghan said. “We have seen mobility and seating sales grow as a result of these efforts and from the continued performance of our rehab sales force across the category.”

Overall, however, net sales for HME North America were $79.4 million for the fourth quarter of 2017 compared to $85.2 million for the same period in 2016, a 6.9% decrease. Additionally, sequential net sales, which were up in the third quarter compared to the second quarter, were flat in the fourth quarter.

“We’d expected the potential for sequential growth in North America/HME and we’re pleased to have sequential sales growth in our focus areas of mobility and seating, and respiratory products,” Monaghan said. “This growth was offset by sequential declines in lifestyle products.”

Invacare’s net sales did tick up slightly in the fourth quarter—$250.4 million, up from $246.6 million for the same period in 2016—and net loses were relatively stable at $17.7 million vs. $17.6 million, setting the stage for what should be an “interesting” 2018, Monaghan says.

“I want to caution people: When I think about 2017, I look back and feel really great about the change we made, but we’re only halfwway through phase 2 of the transformation,” he said. “I’d say we’re kind of in the fourth inning and we still have some variability to go through in 208, which is why it’s still a little early for us to give growth guidance on where we’ll be through 2018, but at some point, we’ll get comfortable doing that.”