ELYRIA, Ohio--(BUSINESS WIRE)--Matt Monaghan, chairman, president and chief executive officer of Invacare Corporation (NYSE: IVC) provided a business update at the Baird Global Healthcare Conference in New York on September 4th. Mr. Monaghan discussed Invacare’s continuing progress in the company’s transformation, the impact of additional U.S. tariffs, and reaffirmed the company’s 2019 and 2020 guidance.
Commenting on the transformation, Mr. Monaghan said, “After four years of foundation building, we are pleased to see the results having a positive effect on our reported financial performance. Our regions continue to focus on commercial excellence while the rest of the business is taking advantage of global synergies and expertise. As a result, new product introductions are coming at a more rapid pace, cash flow is improving, and overall operating results reflect better efficiencies. We expect these trends to continue through 2020.”
Update on U.S. Tariff Mitigation
On September 1, 2019, the U.S. began imposing 15% tariffs on $112 billion of Chinese imports, which the company estimates will have an annual unfavorable impact of less than $200,000. The company continues to take supply chain actions to mitigate the previously announced tariffs, in addition to the 15% tariffs that will become effective December 15, 2019.
Reaffirms Full-Year 2019 and 2020 Financial Guidance
Invacare reaffirmed its full-year 2019 guidance and long-term target of $85 - $105 million Adjusted EBITDA run-rate by the fourth quarter of 2020. The company expects to achieve its goal through a combination of net sales growth driven by new product introductions, supply chain actions to expand gross margin and cost optimization initiatives to meaningfully reduce SG&A expense.
Further details of recent accomplishments and outlook are included in the webcast materials.
The webcast and presentation are available at http://wsw.com/webcast/baird56/ivc/ and the replay will be accessible for 90 days following the conference.
A copy of the updated Investor Relations presentation and Baird Conference webcast slides have been posted on the company’s website at www.invacare.com/investorrelations.
About Invacare Corporation
Invacare Corporation (NYSE: IVC) is a leading manufacturer and distributor in its markets for medical equipment used in non-acute care settings. At its core, the company designs, manufactures and distributes medical devices that help people to move, breathe, rest and perform essential hygiene. The company provides clinically complex medical device solutions for congenital (e.g., cerebral palsy, muscular dystrophy, spina bifida), acquired (e.g., stroke, spinal cord injury, traumatic brain injury, post-acute recovery, pressure ulcers) and degenerative (e.g., ALS, multiple sclerosis, chronic obstructive pulmonary disease (COPD), elderly, bariatric) ailments. The company's products are important parts of care for people with a wide range of challenges, from those who are active and involved in work or school each day and may need additional mobility or respiratory support, to those who are cared for in residential care settings, at home and in rehabilitation centers. The company sells its products principally to home medical equipment providers with retail and e-commerce channels, residential care operators, distributors and government health services in North America, Europe and Asia/Pacific. For more information about the company and its products, visit Invacare's website at www.invacare.com.
This press release contains forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that describe future outcomes or expectations that are usually identified by words such as “will,” “should,” “could,” “plan,” “intend,” “expect,” “continue,” “forecast,” “believe,” and “anticipate” and include, for example, any statement made regarding the company's future results. Actual results may differ materially as a result of various risks and uncertainties, including the adverse impacts of new tariffs or increases in commodity prices or freight costs; adverse changes in government and third-party payor reimbursement levels and practices in the U.S.; regulatory proceedings or the company's failure to comply with regulatory requirements or receive regulatory clearance or approval for the company's products or operations; adverse effects of regulatory or governmental inspections of company facilities at any time and governmental investigations or enforcement actions, including the investigation of pricing practices of one of the company’s former rentals businesses; inability of the company to sustain profitable sales growth or reduce its costs to maintain competitive prices for its products; lack of market acceptance of the company's new product innovations; circumstances or developments that may make the company unable to implement or realize the anticipated benefits, or that may increase the costs, of its current and planned business initiatives, in particular the key elements of its enhanced transformation and growth plan; possible adverse effects on the company’s liquidity, including the company's ability to address future debt maturities, that may result from delays in the implementation of, any failure to realize benefits from, its current and planned business initiatives, including its enhanced transformation and growth plan; any failure to achieve anticipated improvements in segment operating loss or convert high inventory levels to cash; exchange rate fluctuations; and those other risks and uncertainties expressed in the cautionary statements and risk factors in the company’s annual report on Form 10-K, quarterly reports on Form 10-Q and other filings with the Securities and Exchange Commission. The company may not be able to predict and may have little or no control over many factors or events that may influence its future results and, except as required by law, shall have no obligation to update any forward-looking statements.