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INVACARE REPORTS 1991 RESULTS; NET INCOME INCREASES 86 PERCENT ON SALES GAIN OF 15 PERCENT

 INVACARE REPORTS 1991 RESULTS;
 NET INCOME INCREASES 86 PERCENT ON SALES GAIN OF 15 PERCENT
 ELYRIA, Ohio, Feb. 20 /PRNewswire/ -- Invacare Corporation (NASDAQ-NMS: IVCR), the world's leading manufacturer of wheelchairs and other home medical equipment, today announced record sales and earnings for its fourth quarter and full year which ended Dec. 31, 1991.
 "We are pleased to announce the results of a most successful year during which Invacare continued to extend its industry-leading position," said A. Malachi Mixon III, chairman, president and chief executive officer. "In 1991, sales reached an all-time high of $263.2 million, up 15 percent over last year's sales of $229.8 million. Net income for the year reached $14.1 million, rising 86 percent above the $7.6 million reported in 1990. On a per-share basis, earnings were $1.06 in 1991, up 63 percent from 65 cents last year."
 Net income as a percentage of sales expanded to 5.4 percent for 1991, up from 3.3 percent last year. Increased gross profit margins, lower net borrowing costs, and reduced income taxes all contributed to this sharp increase in profitability. The return on average shareholders' equity was 22 percent in 1991, compared with 20.6 percent in 1990.
 "Invacare's year-end balance sheet was the strongest in the company's history," said Mixon, explaining that total shareholders' equity increased $44.8 million to $86.7 million in 1991. "The company's debt-to-equity ratio at year end was 0.4-to-1, compared to 1.2-to-1 at the conclusion of 1990. During the year the company successfully completed a 2 million share offering of common stock."
 During the fourth quarter which ended Dec. 31, 1991, sales improved 13 percent to $70.8 million, up from $62.9 million in the same period last year, representing the 25th consecutive quarter of higher year-to- year sales. Net income in the fourth quarter was $4.9 million, up 45 percent from $3.3 million in the 1990 fourth quarter. Quarterly per- share earnings increased 29 percent to 34 cents in 1991 from 28 cents in 1990. Quarterly net income as a percentage of sales reached an all-time high of 6.9 percent, up from 5.3 percent in the fourth quarter of 1990.
 In November, Invacare introduced more than 75 new products at the National Home Health Care Exposition. These introductions enhanced the company's leadership position in all core product segments and significantly extended its product offering in respiratory and seating and positioning lines. "Home health care dealers are responding very favorably to these new offerings and to our innovative One Stop Shopping Plus marketing program, which through partnering with Invacare, helps dealers improve merchandising, advertising, claims processing and administration," said Mixon.
 Sales growth in the fourth quarter slowed slightly from the first nine months of the year. The company attributes the slowing to a strengthening of the U.S. dollar and to inventory level reductions by medical equipment dealers in reaction to OBRA '90 reimbursement changes and general economic concerns. Although this inventory adjustment period and a strengthening U.S. dollar will continue to be factors in the first half of 1992, the outlook for consumer demand, which continues to grow at 8 percent-10 percent annually, remains quite optimistic. Further, the industry will be favorably impacted by any of the national health care reform initiatives presently being discussed. Home health care, in addition to being cost-effective, offers improved patient outcomes and an environment that is generally preferred by recovering patients.
 Mixon continued, "Our products are recession-resistant and the underlying fundamentals driving growth in home medical equipment are very strong. The well-documented aging of the population, technological advancements in home medical technology, enactment of the Americans with Disabilities Act to mainstream persons with disabilities, and growing awareness of the emotional and financial benefits of home care are all expected to continue building greater demand for our products.
 "We believe that the long-term outlook for both the home medical equipment industry in general, and for Invacare specifically, is extremely favorable. Invacare's sales growth continues to significantly outpace the industry. Strong earnings and operating cash flow, coupled with a successful equity offering last year, have allowed us to enjoy a much stronger balance sheet with a considerable reduction in long-term borrowings. Looking to 1992, we expect international operations to contribute as much as 25 percent of annual sales as opportunities abroad continue to develop nicely. In addition, we expect to achieve continued improvements in profit margins," he 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 health care and extended care equipment. Manufacturing locations include Ohio, Florida, 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
 Consolidated Statement of Earnings
 (In thousands, except per-share data)
 Periods ended Three Months Year
 Dec. 31 1991 1990 1991 1990
 Net sales $70,807 $62,908 $263,181 $229,797
 Cost of products sold 46,983 41,354 178,621 159,717
 Gross profit 23,824 21,554 84,560 70,080
 S,G&A expenses 16,377 15,317 60,932 53,330
 Income from operations 7,447 6,237 23,628 16,750
 Other income (expense):
 Interest income 1,032 764 3,589 2,771
 Interest expense (894) (1,287) (4,324) (5,654)
 Earnings before income taxes 7,585 5,714 22,893 13,867
 Income taxes 2,729 2,376 8,765 6,257
 Net earnings 4,856 3,338 14,128 7,610
 Net earnings per share $.34 $.28 $1.06 $.65
 Weighted avg. shares outstdg. 14,312 11,876 13,382 11,666
 Consolidated Balance Sheet
 (In thousands)
 Dec. 31 1991 1990
 Assets
 Current assets:
 Cash and cash equivalents $1,472 $1,028
 Marketable securities 1,723 2,849
 Trade receivables, net 51,006 41,609
 Investment in installment receivables, net 13,972 9,246
 Inventories 42,217 42,354
 Other current assets 4,648 2,744
 Deferred income taxes 4,776 3,980
 Total current assets 119,814 103,810
 Other assets:
 Investment in installment receivables,
 non-current portion, net 729 661
 Other 6,546 1,796
 Total 7,275 2,457
 Property and equipment, net 35,260 32,071
 Total assets 162,349 138,338
 Liabilities and shareholders' equity
 Current liabilities:
 Accounts payable 15,947 18,110
 Accrued expenses 22,946 19,354
 Accrued income taxes 2,267 4,742
 Current maturities of long-term obligations 896 595
 Total current liabilities 42,056 42,801
 Long-term obligations 31,795 51,506
 Deferred income taxes 1,788 2,169
 Shareholders' equity:
 Preferred shares -- --
 Common shares 4,522 3,036
 Class B common shares 2,323 2,742
 Additional paid-in capital 45,728 15,002
 Retained earnings 33,393 19,323
 Foreign currency translation adjustment 1,294 1,982
 Treasury stock (550) (223)
 Total shareholders' equity 86,710 41,862
 Total liabilities & shareholders' equity 162,349 138,338
 -0- 2/20/92
 /CONTACT: Kathleen Obert, 216-329-6696, or Gerald Blouch (investors), 216-329-6190, both of Invacare/
 (IVCR) CO: Invacare Corporation ST: Ohio IN: HEA SU: ERN


KK -- CL003 -- 0799 02/20/92 09:13 EST
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Date:Feb 20, 1992
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