Invacare delays financial reporting

ELYRIA, Ohio – Invacare has filed a Form NT 10-K notifying the U.S. Securities and Exchange Commission that it is unable to file its annual report for the period ending Dec. 31, 2022, within the prescribed time period due to its Chapter 11 bankruptcy filing. 

“Due to the considerable time and resources the company’s management is devoting to the Chapter 11 cases, and the need to prepare and review the disclosures required in the Form 10-K as a result of the Chapter 11 cases, the company is unable to prepare and timely file its Form 10-K on or before the March 31, 2023, due date without unreasonable effort or expense,” the company stated. “The company expects to file the Form 10-K on or before the fifteenth calendar day following the prescribed due date of the Form 10-K.” 

Invacare expects its Form 10-K, when filed, will reflect reported net sales of approximately $740 million for 2022 compared to $872 million for 2021. It expects gross profit of approximately $175 million, compared to $239 million, and operating loss of approximately $81 million, compared to $24 million, driven by lower net sales (including product rationalization), higher input costs, and supply chain challenges and restructuring charges, partially offset by pricing actions and lower selling, general and administrative expenses. 

The company expects sequential improvement in revenue, gross margin, net loss and Adjusted EBITDA (non-GAAP) for the fourth quarter of 2022 compared to the third quarter of 2022. However, these key metrics would still be unfavorable compared to the fourth quarter of 2021 as a result of lower reported net sales and supply chain challenges. 

Specifically related to Europe, Invacare says it returned to profitability for the fourth quarter of 2022, with net sales of $106 million and operating profit of $9.3 million, a significant improvement compared to the previous quarter. The improvement was driven by revenue growth, margin expansion related to favorable product mix, pricing actions and operational efficiencies. 

The company will begin to file monthly operating reports with the Bankruptcy Court related to periods subsequent to Jan. 31, 2023. Bankruptcy Court filings and other documents related to the Chapter 11 Cases are available at a website maintained by the company's claims agent Epiq at http://dm.epiq11.com/Invacare.