Invacare Corporation announces its financial results for the third quarter and 9 months that ended September 30, 2016.
A media release from the company notes that Invacare Corp is transforming its business from focusing on generalist durable medical equipment to using its technical capabilities to solve complex clinical needs for post-acute care. In addition, the company is in the first phase of a three-phase turnaround that is expected to yield better returns for re-investment and long-term growth.
In the third quarter of 2016, the company’s gross margin percentage was flat compared to the third quarter last year reflecting a balanced offset of decreasing and increasing sales areas. Gross margin as a percentage of net sales included an improvement in North America/Home Medical Equipment (HME) gross margin percentage offset, in part, by additional investments in research and development (R&D). Gross profit dollars declined, principally in the North America/HME segment. The company had positive free cash flow for the third quarter, the release continues.
During the third quarter, reported net sales decreased 5.5% and constant currency net sales decreased 4.5% compared to the third quarter last year. Reported gross margin as a percentage of net sales from continuing operations was flat compared to the third quarter last year as reduced manufacturing costs and favorable sales mix were offset by R&D investments. Operating income was $2.6 million, which included a one-time gain of $7.4 million from the sale of Garden City Medical Inc (”GCM”), compared to operating income of $0.2 million in the third quarter last year.
In addition, GAAP loss per share from continuing operations was $0.15 compared to loss per share of $0.24 in the third quarter last year. Adjusted net loss per share from continuing operations was $0.37 compared to adjusted net loss per share of $0.13 in the third quarter last year, according to the release.
[Source(s): Invacare Corporation, Business Wire]