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INVACARE REPORTS 33 PERCENT INCREASE IN FIRST QUARTER NET INCOME

 INVACARE REPORTS 33 PERCENT INCREASE
 IN FIRST QUARTER NET INCOME
 ELYRIA, Ohio, April 28 /PRNewswire/ -- Invacare Corporation (NASDAQ/NMS: IVCR), the world's leading manufacturer of home medical equipment, today announced record sales and earnings for its first quarter which ended March 31, 1992.
 Quarterly net income was $2.4 million, rising 33 percent above the $1.8 million reported in the same period a year ago. Quarterly earnings per share were 17 cents, up 13 percent from 15 cents last year. Earnings per share grew at a slower rate than net income as a result of the increased number of shares outstanding following the company's successful two million share offering in May 1991. Net sales for the first quarter were $62.9 million, representing the twenty-sixth consecutive quarter of higher year-to-year sales and an increase of 7 percent from $59.0 million in the same period a year ago. Return on sales was 3.8 percent, up from 3.1 percent in the first quarter of 1991.
 A. Malachi Mixon III, Invacare's chairman, president and chief executive officer, said that the company experienced an unusual addition to order backlog of more than $5 million in the month of March and as a result, first quarter sales figures do not fully reflect the strength of Invacare's business performance. "Our usual experience is for shipments to approximate orders received in the same period. Contributing to the unusual situation were some difficulties the company experienced in meeting the volume of demand for new products and a surge of quarter-end orders which were not received in time to make March shipments," said Mixon.
 "The expansion to Invacare's product offering with more than 75 new products introduced at the industry trade show in November was a major undertaking. An extensive series of seminars on these new products was held for rehab dealers and therapists throughout the country during the first quarter. While dealer, therapist and consumer response has been excellent, delays in bringing them to market also contributed to increasing our backlog. Despite unusual one-time costs associated with this extensive new product development effort, Invacare was still able to report a slightly improved net profit margin during the quarter. We are confident that our new products will soon be contributing significantly to our performance," he explained.
 Mixon went on to say that previously reported inventory level reductions by medical equipment dealers reacting to OBRA '90 reimbursement changes and general economic conditions continued during the quarter. "As the company had stated at year-end, this inventory adjustment period was expected to continue during early 1992. Consumer demand remains strong, however, and we remain confident that these adjustments are temporary. We expect dealer purchases to return to more normalized levels as the year progresses," he said.
 "Additionally, the strength of the U.S. dollar softened sales growth, as it depressed the reported sales gains in international operations. In both Europe and Canada, the company's sales growth momentum continued to be quite strong with favorable year-to-year comparisons. In Canada, performance was bolstered by the company's 1991 acquisitions of Canadian Wheelchair and Canadian Seating & Posture Centre. Canadian efficiencies are expected to improve further as a result of the recent acquisition of Hovis Medical, renamed Invacare Canada, an Ontario-based medical equipment distributor.
 "While the year-to-year revenue growth was not as strong as we would have liked, we are encouraged by more recent order activity. We are also just beginning to experience the benefits of the major expansions to our respiratory and seating and positioning lines, which have been received very positively by dealers and therapists," Mixon concluded.
 Invacare manufactures and distributes power and manual wheelchairs, respiratory equipment, hospital-type beds for the home, patient aids, three-wheel motorized scooters and other home healthcare and extended care equipment. With annual sales in 1991 of $263 million, Invacare is headquartered in Elyria, Ohio. Manufacturing locations include Ohio, Florida, Texas, California, Canada, Mexico, Great Britain and Germany. Products are distributed through a worldwide network of over 10,000 medical equipment dealer locations.
 INVACARE CORPORATION AND SUBSIDIARIES
 Condensed Consolidated Statement of Earnings -- (unaudited)
 Three Months Ended
 March 31
 1992 1991
 (in thousands, except
 per share data)
 Net sales $62,917 $59,019
 Cost of products sold 43,902 41,138
 GROSS PROFIT 19,015 17,881
 Selling, general and
 administrative expense 15,073 14,107
 INCOME FROM OPERATIONS 3,942 3,774
 Interest income 908 771
 Interest expense (993) (1,340)
 EARNINGS BEFORE INCOME TAXES 3,857 3,205
 Income taxes 1,468 1,378
 NET EARNINGS $2,389 $1,827
 NET EARNINGS PER SHARE $.17 $.15
 Weighted average shares
 outstanding 14,388 12,134
 INVACARE CORPORATION AND SUBSIDIARIES
 Consolidated Balance Sheet - (unaudited)
 March 31 Dec. 31
 1992 1991
 (In thousands)
 ASSETS
 CURRENT ASSETS
 Cash and cash equivalents $ 527 $1,472
 Marketable securities 2,572 1,723
 Trade receivables, net 49,610 51,006
 Investment in installment receivables, net 14,240 13,972
 Inventories 50,551 42,217
 Other current assets 8,768 9,424
 TOTAL CURRENT ASSETS 126,268 119,814
 OTHER ASSETS 7,974 7,275
 PROPERTY AND EQUIPMENT, NET 36,234 35,260
 TOTAL ASSETS $170,476 $162,349
 LIABILITIES AND SHAREHOLDERS' EQUITY
 CURRENT LIABILITIES
 Accounts payable $20,521 $15,947
 Accrued expenses 19,987 25,213
 Current maturities of long-term
 obligations 907 896
 TOTAL CURRENT LIABILITIES 41,415 42,056
 LONG-TERM OBLIGATIONS 39,449 33,583
 SHAREHOLDERS' EQUITY
 Preferred shares --- ---
 Common shares 4,534 4,522
 Class B common shares 2,313 2,323
 Additional paid-in-capital 45,785 45,728
 Retained earnings 35,782 33,393
 Foreign currency translation adjustment 1,206 1,294
 Treasury Stock (8) (550)
 TOTAL SHAREHOLDERS' EQUITY 89,612 86,710
 TOTAL LIABILITIES AND
 SHAREHOLDERS' EQUITY $170,476 $162,349
 -0- 4/28/92
 /CONTACT: Gerald Blouch (investor), 216-329-6190; or Kathleen Obert (media), 216-329-6696; both of Invacare Corporation/
 (IVCR) CO: Invacare Corporation ST: Ohio IN: MTC SU: ERN


LC -- CL002 -- 3550 04/28/92 08:17 EDT
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