Invacare improves operating loss by $7.8M in 2019

Monday, February 10, 2020

ELYRIA, Ohio – Invacare reported net sales decreased 4.8% to $232.9 million in the fourth quarter of 2019. It reported an operating loss of $3.8 million vs. a loss of $1.1 million.

The company reported net sales for North America decreased 2.5% or $2.2 million in the fourth quarter, driven by a 20.7% decrease in respiratory sales of $2.8 million. Mobility and seating sales, however, grew 2.8%, driven by increased sales of powered mobility products.

For the full year 2019, Invacare reported net sales decreased 4.6% to $928 million. It reported an operating loss of $10.4 million vs. a loss of $18.3 million, an improvement of $7.9 million.

“While I am encouraged by our continued progress, we didn't achieve everything we had set out to do in 2019, as net sales growth fell short of our expectations,” said Matthew Monaghan, chairman, president and CEO. “To reach our full potential, we know we need profitable sales growth in 2020 and have many actions underway to do that.”

Among the highlights of 2019 for Invacare: It mitigated the previously estimated annual $5 million to $7 million negative impact of tariffs to an actual negative impact of less than $2 million; it streamlined business operations, reducing constant currency SG&A expenses by nearly $15 million; and it announced the planned consolidation of two German facilities by the end of 2020, generating an expected $5.3 million in cost savings.

For the full year 2020, the company expects operating results in line with its previous guidance for run-rate adjusted EBITDA of $85 million to $105 million, consisting of constant currency net sales growth of 2% to 4%, adjusted EBITDA of at least $45 million and free cash flow generation of at least $5 million.