Invacare: ‘We are working to increase output’ 

ELYRIA, Ohio – Invacare reported net sales of $189 million for the second quarter of 2022, a 16.3% decrease compared to the same period last year. 

The company, however, reported sequential growth of 4.7% in mobility and seating products, driven by increased adoption of its product portfolio. 

“We continue to experience elevated backlog across all product categories and regions and see strong demand in mobility and seating and lifestyle products,” said Matt Monaghan, chairman, president and CEO. “We are working diligently to increase output and convert order backlog into sales.” 

Invacare reported net sales of $68.7 million for North America, driven by lower sales of respiratory products. 

Other financial results: 

• Gross margin was 25.4%, an increase of 160 basis points on a sequential basis and a decrease of 150 basis points compared to 2Q21. 
• SG&A expense of $58.6 million decreased 8.1%, and constant currency SG&A(b) decreased 3.8% compared to 2Q21 primarily attributable to lower employment costs. 
• Operating loss was $14.8 million compared to a loss of $3.5 million in 2Q21; improvement of $1.8 million sequentially. 
• Adjusted EBITDA(c) loss was $4.8 million, compared to positive $5.5 million in 2Q21; improvement of $3.8 million sequentially. 
• Free cash flow(d) generated was $0.1 million, an improvement of $29.9 million sequentially and improved $27.3 million from 2Q21. 

In the second half of 2022, Invacare expects an improvement in adjusted EBITDA, driven by gross profit improvements with increased effectiveness of pricing actions and restructuring benefits, partially offset by continued higher input costs. 

However, given the continuing supply chain challenges, the company has suspended its full year 2022 financial guidance.