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INVACARE REPORTS SECOND QUARTER RESULTS: HIGHEST-EVER QUARTERLY SALES, 31 PERCENT INCREASE IN NET INCOME

 INVACARE REPORTS SECOND QUARTER RESULTS: HIGHEST-EVER QUARTERLY SALES, 31 PERCENT INCREASE IN NET INCOME
 ELYRIA, Ohio, July 23 /PRNewswire/ -- Invacare Corporation (NASDAQ/NMS: IVCR), the world's leading manufacturer and distributor of home medical equipment, today announced record sales and earnings for its second quarter which ended June 30, 1992.
 Quarterly net income was $4.2 million, rising 31 percent above the $3.2 million reported in the same period a year ago. Quarterly earnings per share were 30 cents, up 20 percent from 25 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 second quarter were $74.8 million, a record for any quarter in the company's history and an increase of 14 percent from $65.8 million reported in the same period a year ago. Year-to-year return on sales for the quarter improved from 4.9 percent to 5.6 percent.
 Earnings for the first half of 1992 reached $6.6 million, or 47 cents per share, rising 31 percent above the $5.1 million, or 40 cents per share, earned in the first half of 1991. Net sales in the period reached $137.7 million, representing 10 percent growth above $124.9 million reported a year ago. The balance between order levels and shipments returned by the close of the half. Year-to-year return on sales for the period improved from 4.0 percent to 4.8 percent.
 A. Malachi Mixon, III, Invacare's chairman, president and chief executive officer, said that quarterly profits were enhanced by strong sales growth and improving gross profit margins since year end which resulted from increased manufacturing productivity.
 Mixon said that while some business segments, primarily standard wheelchairs, patient aids and respiratory products, continue to reflect the temporary adverse impact of general economic conditions and dealer inventory adjustments due to Medicare reimbursement changes, there were clear signs of improvement as the quarter progressed. "As we stated at 1991 year-end, management expected the impact of OBRA '90 to continue during this period, and for dealer purchases to return to more normalized levels as the year progresses.
 "The company's strong sales and profit results during the second quarter can largely be attributed to excellent performance in domestic rehab product lines and in Canadian operations," Mixon explained. "Sales performance at our operations in Canada has been bolstered by several key acquisitions which have improved our market leadership position. Domestically, rehab sales increased by nearly 20 percent as our upgraded line of Action power wheelchairs with state-of-the-art electronics is now in full production and has been extremely well received. Additionally, our Action superlight wheelchair line, now in its second full year of production, continues to gain market share," 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
 Consolidated Statement of Earnings -- (unaudited)
 Three Months Ended Six Months Ended
 June 30 June 30
 1992 1991 1992 1991
 (in thousands, except per share data)
 Net sales $74,806 $65,845 $137,723 $124,864
 Cost of products sold 50,539 44,464 94,441 85,602
 GROSS PROFIT 24,267 21,381 43,282 39,262
 Selling, general and
 administrative
 expenses 17,572 15,608 32,645 29,715
 INCOME FROM OPERATIONS 6,695 5,773 10,637 9,547
 Interest income 1,103 841 2,011 1,612
 Interest expense (1,079) (1,211) (2,072) (2,551)
 EARNINGS BEFORE INCOME
 TAXES 6,719 5,403 10,576 8,608
 Income taxes 2,504 2,179 3,972 3,557
 NET EARNINGS $4,215 $3,224 $6,604 $5,051
 NET EARNINGS PER SHARE $.30 $.25 $.47 $.40
 Weighted average shares
 outstanding 14,099 12,963 14,119 12,540
 INVACARE CORPORATION AND SUBSIDIARIES
 Consolidated Balance Sheet - (unaudited)
 June 30, Dec. 31,
 1992 1991
 (In thousands)
 ASSETS
 CURRENT ASSETS
 Cash and cash equivalents $ 700 $1,472
 Marketable securities 2,642 1,723
 Trade receivables, net 57,164 51,006
 Investment in installment receivables, net 15,195 13,972
 Inventories 47,749 42,217
 Other current assets 10,381 7,275
 PROPERTY AND EQUIPMENT, NET 40,166 35,260
 TOTAL ASSETS $183,163 $162,349
 LIABILITIES AND SHAREHOLDERS' EQUITY
 CURRENT LIABILITIES
 Accounts payable $17,522 $15,947
 Accrued expenses 23,628 25,213
 Current maturities of long-term
 obligations 758 896
 TOTAL CURRENT LIABILITIES 41,908 42,056
 LONG-TERM OBLIGATIONS 47,194 33,583
 SHAREHOLDERS' EQUITY
 Preferred Shares -0- -0-
 Common Shares 4,545 4,522
 Class B common shares 2,313 2,323
 Additional paid-in-capital 45,987 45,728
 Retained earnings 39,997 33,393
 Foreign currency translation adjustment 1,616 1,294
 Treasury Stock (397) (550)
 TOTAL SHAREHOLDERS' EQUITY 94,061 86,710
 TOTAL LIABILITIES AND
 SHAREHOLDER'S EQUITY $183,163 $162,349
 -0- 7/23/92
 /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


BM -- CL002 -- 2254 07/23/92 08:05 EDT
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Date:Jul 23, 1992
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