Invacare posts loss

Thursday, July 23, 2015

ELYRIA, Ohio – The second quarter of 2015 saw another loss in sales for Invacare.

North America/HME net sales were $119 million, compared to $134.3 million a year ago, the company reported in its earnings report, released this morning. For the first six months of 2015, the business had net sales of $244.2 million, compared to $258.9 million during the same period last year.

“In the North America/HME business, sales were lower as a result of a number of transitional issues,” said President and CEO Matthew Monaghan.

Monaghan took the reins at Invacare April 1 and had implemented a short-term strategy to start turning around the company.

Invacare remains hampered by a consent decree with the Food and Drug Administration that limits its ability to manufacture and sell custom power wheelchair and seating systems.

Invacare is in the process of completing a third and final certification audit and cannot “predict” its timing and outcome.

Overall, the company reported nets sales of $286.3 million for the second quarter this year, compared to $326.9 million for the same period last year. Net losses were $7.3 million vs. $12.5 million.

Monaghan says he remains focused on two priorities: building a strong quality culture throughout the company and generating profitable growth.

“To position ourselves for the future, we have adjusted our capital structure accordingly and have narrowed our focus on long term strengths,” he said.

In April, Invacare sold and leased back five properties in a $23 million transaction. In July, it divested its long-term care rentals business.