Invacare Reports Results for Third Quarter 2021
Invacare Corporation (NYSE: IVC) reported a 5.8% increase in net sales to $224.2 million for Q3 2021, driven by strong performance in lifestyle products in Europe and mobility & seating in North America. However, gross profit margin decreased to 26.9% due to supply chain disruptions and higher costs. An operating loss of $24.8 million was reported, impacted by a one-time goodwill impairment of $28.6 million. Adjusted EBITDA rose 83.9% to $18.1 million, aided by $10.1 million from the CARES Act. The company reaffirmed its 2021 guidance.
- Net sales rose by 5.8% to $224.2 million.
- Adjusted EBITDA increased 83.9% to $18.1 million, bolstered by CARES Act benefits.
- Growth in lifestyle products surged 17.1% in Europe.
- Operating loss of $24.8 million primarily due to a $28.6 million goodwill impairment.
- Gross profit margin decreased to 26.9%, down 140 basis points from the prior year.
- Free cash flow usage increased to $6.1 million, up $4.3 million year-over-year.
Net sales increase driven by growth in all major product categories
Full year 2021 financial guidance reaffirmed
Key Metrics (3Q21* versus 3Q20)
-
Reported net sales increased
5.8% to$224.2 million 2.9% .-
Growth in constant currency net sales was driven by a
17.1% increase in lifestyle products inEurope and7.1% growth in mobility & seating products inNorth America .
-
Growth in constant currency net sales was driven by a
-
Gross profit as a percent of net sales was
26.9% , a decrease of 140 basis points and flat compared to 2Q21, with the decline attributable to supply chain-related disruptions resulting in higher freight and material cost, as well as reduced production efficiency. Gross profit increased$0.3 million -
SG&A expense increased by
$0.6 million 1.1% , and constant currency SG&A(b) decreased by$0.7 million 1.2% . Spending benefited from lower employee costs, including reduced stock compensation expense, partially offset by unfavorable foreign currency transactions. -
Operating loss was
$24.8 million $27.7 million $28.6 million North America , which was the result of changes in the operating structure of the business following the recent IT implementation. Excluding this one-time, non-cash goodwill charge, operating income improved by$0.9 million $3.8 million -
Adjusted EBITDA(c) was
$18.1 million $8.3 million $10.1 million $8.0 million -
Free cash flow(d) usage was
$6.1 million $4.3 million $10.1 million
* Date format is quarter and year in each instance
Key Financial Results (3Q21 versus 3Q20)
(in millions USD) |
3Q21 |
|
3Q20 |
|
$ Change Fav/(Unfav) |
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% Change Fav/(Unfav) |
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Constant Currency |
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Gross Profit |
|
|
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|
Gross Profit % of |
|
|
|
|
|
|
(140 bps) |
SG&A |
|
|
|
|
|
|
(1.1)% |
Constant Currency SG&A (1) |
|
|
|
|
|
|
|
Operating Income (Loss) |
|
|
|
|
|
|
-- |
Operating Income excluding goodwill impairment |
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|
|
Adjusted EBITDA (2) |
|
|
|
|
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|
Free Cash Flow Usage |
|
|
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|
|
|
-- |
(1) Based on 3Q20 FX rates
(2) Adjusted EBITDA for 3Q21 includes the benefit of
Executive Summary
Reflecting on the quarter,
During the quarter, we undertook significant actions to address the previously disclosed supply chain and labor shortage issues which limited our near-term ability to convert orders to revenues in a timely fashion. In all regions, we continue to adjust price and freight charges, where applicable, to offset the substantially higher material and logistics costs we continue to experience. While still early in the fourth quarter, we are seeing positive signs that our actions should be effective.
As we manage these near-term challenges, we are also marching forward with the next phase of our IT modernization initiatives in
Looking forward, we believe our strategic initiatives will help drive improved financial performance, starting with 4Q21 where revenues and profitability are expected to grow sequentially driven by historically stronger seasonal sales and the benefit of actions taken to address elevated costs. I am confident that the durable benefits from our recent actions and our capable team will allow us to drive sustainable, profitable growth in 2022 and beyond."
Commenting on the company's financial results,
3Q21 Segment Results versus 3Q20
(in millions USD) |
|
|
Operating Income (Loss) |
||||||||||||||||
|
3Q21 |
3Q20 |
Reported % Change |
Constant Currency % Change |
|
3Q21 |
|
3Q20 |
|
% Change |
|||||||||
|
$ |
127.0 |
|
$ |
116.3 |
|
9.2 |
% |
4.5 |
% |
|
$ |
9.6 |
|
$ |
7.6 |
|
25.7 |
% |
|
88.1 |
|
88.1 |
|
— |
|
(0.4 |
) |
|
(1.5 |
) |
3.0 |
|
— |
|
||||
All Other |
9.1 |
|
7.6 |
|
20.6 |
|
17.0 |
|
|
(3.9 |
) |
(6.1 |
) |
36.6 |
|
||||
Globally, reported net sales grew year-over-year in spite of ongoing supply chain challenges. Each region incurred varying levels of supply chain challenges which impacted the timely receipt of inventory, limited the conversion of orders to shipments, and resulted in unfavorable costs. The company has implemented various actions to reduce the impact on the business.
All Other - Reported net sales in the
During 3Q21, the company's reporting units of
Financial Condition
The company's cash and cash equivalents balances were
Free cash flow usage in 3Q21 was
In 3Q21, the company received forgiveness of its CARES Act debt along with its accrued interest, resulting in a gain on debt extinguishment of
Reaffirms Full Year 2021 Guidance
The company reaffirms its financial guidance for the full year 2021 consisting of:
-
Constant currency net sales growth in the range of -
1% to2% ; -
Adjusted EBITDA range of
$30 $37 million -
Free cash flow usage of
$10 $20 million
The full year Adjusted EBITDA guidance range excludes the CARES Act benefit recorded in the third quarter. For 4Q21, the company anticipates sequential improvement in Adjusted EBITDA and free cash flow as a result of constant currency net sales growth and gross margin expansion.
Conference Call and Webcast
As previously announced, the company will provide a conference call and webcast for investors and other interested parties to review its third quarter 2021 financial results on
About
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, statements related to the expected effects on the company’s business of the COVID-19 pandemic; sales and free cash flow trends; the impact of contingency plans and cost containment actions; the company’s liquidity and working capital expectations; the company’s future financial results; and similar statements. Actual results may differ materially as a result of various risks and uncertainties, including the duration and scope of the COVID-19 pandemic, the pace of resumption of access to healthcare, including clinics and elective care, and loosening of public health restrictions, or any reimposed restrictions on access to healthcare or tightening of public health restrictions and impact on the demand for the company’s products; the availability and cost to the company of needed raw materials and components from its suppliers; actions that governments, businesses and individuals take in response to the pandemic, including mandatory business closures and restrictions on onsite commercial interactions; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies and economic activity; the pace of recovery when the COVID-19 pandemic subsides; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the effects of steps the company takes to reduce operating costs; the inability of the company to sustain profitable sales growth, achieve anticipated improvements in segment operating performance, convert high inventory to cash or reduce its costs; lack of market acceptance of the company's new product innovations revised product pricing and/or product surcharges; 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, such as its new product introductions, commercialization plans, additional investments in sales force and demonstration equipment, product distribution strategy in
INVACARE CORPORATION AND SUBSIDIARIES
|
|||||||||||||||
(In thousands, except per share data) |
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net sales |
$ |
224,200 |
|
|
$ |
211,906 |
|
|
$ |
646,266 |
|
|
$ |
626,646 |
|
Cost of products sold |
163,890 |
|
|
151,866 |
|
|
470,500 |
|
|
446,968 |
|
||||
Gross Profit |
60,310 |
|
|
60,040 |
|
|
175,766 |
|
|
179,678 |
|
||||
Selling, general and administrative expenses |
56,135 |
|
|
55,530 |
|
|
178,721 |
|
|
174,672 |
|
||||
Gain on sale of business |
— |
|
|
— |
|
|
— |
|
|
(9,790 |
) |
||||
Charges related to restructuring activities |
377 |
|
|
1,580 |
|
|
2,476 |
|
|
4,657 |
|
||||
Impairment of goodwill |
28,564 |
|
|
— |
|
|
28,564 |
|
|
— |
|
||||
Operating Income (Loss) |
(24,766 |
) |
|
2,930 |
|
|
(33,995 |
) |
|
10,139 |
|
||||
Loss (gain) on debt extinguishment including debt finance charges and fees |
(10,131 |
) |
|
761 |
|
|
(9,422 |
) |
|
7,360 |
|
||||
Interest expense - net |
6,284 |
|
|
7,395 |
|
|
18,098 |
|
|
21,042 |
|
||||
Loss Before Income Taxes |
(20,919 |
) |
|
(5,226 |
) |
|
(42,671 |
) |
|
(18,263 |
) |
||||
Income tax provision |
1,840 |
|
|
2,050 |
|
|
4,830 |
|
|
4,900 |
|
||||
Net Loss |
(22,759 |
) |
|
(7,276 |
) |
|
(47,501 |
) |
|
(23,163 |
) |
||||
|
|
|
|
|
|
|
|
||||||||
Net Loss per Share—Basic |
$ |
(0.65 |
) |
|
$ |
(0.21 |
) |
|
$ |
(1.36 |
) |
|
$ |
(0.68 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted Average Shares Outstanding—Basic |
35,013 |
|
|
34,419 |
|
|
34,826 |
|
|
34,213 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Net Loss per Share—Assuming Dilution * |
$ |
(0.65 |
) |
|
$ |
(0.21 |
) |
|
$ |
(1.36 |
) |
|
$ |
(0.68 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted Average Shares Outstanding—Assuming Dilution |
35,488 |
|
|
34,530 |
|
|
35,371 |
|
|
34,313 |
|
||||
__________
* Net loss per share assuming dilution calculated using weighted average shares outstanding - basic for periods in which there is a loss.
INVACARE CORPORATION AND SUBSIDIARIES
|
|||||||||||||||
(In thousands, except per share data) |
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net Loss per share - assuming dilution* |
$ |
(0.65 |
) |
|
$ |
(0.21 |
) |
|
$ |
(1.36 |
) |
|
$ |
(0.68 |
) |
Weighted average shares outstanding - assuming dilution (basic for periods in which there is a loss) |
35,013 |
|
|
34,419 |
|
|
34,826 |
|
|
34,213 |
|
||||
Net Loss |
(22,759 |
) |
|
(7,276 |
) |
|
(47,501 |
) |
|
(23,163 |
) |
||||
Income tax provision |
1,840 |
|
|
2,050 |
|
|
4,830 |
|
|
4,900 |
|
||||
Loss Before Income Taxes |
(20,919 |
) |
|
(5,226 |
) |
|
(42,671 |
) |
|
(18,263 |
) |
||||
Convertible debt discount amortization and accretion |
890 |
|
|
3,035 |
|
|
2,637 |
|
|
8,629 |
|
||||
Gain on sale of business |
— |
|
|
— |
|
|
— |
|
|
(9,790 |
) |
||||
Impairment of goodwill |
28,564 |
|
|
— |
|
|
28,564 |
|
|
— |
|
||||
Loss (gain) on debt extinguishment including debt finance charges and fees |
(10,131 |
) |
|
761 |
|
|
(9,422 |
) |
|
7,360 |
|
||||
Adjusted Loss Before Income Taxes |
(1,596 |
) |
|
(1,430 |
) |
|
(20,892 |
) |
|
(12,064 |
) |
||||
Adjusted Income Taxes |
2,501 |
|
|
2,050 |
|
|
5,491 |
|
|
5,888 |
|
||||
Adjusted Net Loss(e) |
$ |
(4,097 |
) |
|
$ |
(3,480 |
) |
|
$ |
(26,383 |
) |
|
$ |
(17,952 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding - assuming dilution (basic for periods in which there is a loss) |
35,013 |
|
|
34,419 |
|
|
34,826 |
|
|
34,213 |
|
||||
Adjusted Net Loss per share(f) - assuming dilution* |
$ |
(0.12 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.76 |
) |
|
$ |
(0.52 |
) |
__________
"Adjusted net loss per share" and "adjusted net loss" are non-GAAP financial measures, which are defined at the end of this press release.
*Net loss per share assuming dilution and adjusted net loss per share(f) assuming dilution are calculated using weighted average shares outstanding - basic for periods in which there is a loss.
INVACARE CORPORATION AND SUBSIDIARIES
|
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(In thousands) |
|
|
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net Loss |
$ |
(22,759 |
) |
|
$ |
(7,276 |
) |
|
$ |
(47,501 |
) |
|
$ |
(23,163 |
) |
Income tax provision |
1,840 |
|
|
2,050 |
|
|
4,830 |
|
|
4,900 |
|
||||
Interest expense - net |
6,284 |
|
|
7,395 |
|
|
18,098 |
|
|
21,042 |
|
||||
Loss (gain) on debt extinguishment including debt finance charges and fees |
(10,131 |
) |
|
761 |
|
|
(9,422 |
) |
|
7,360 |
|
||||
Operating Income (Loss) |
(24,766 |
) |
|
2,930 |
|
|
(33,995 |
) |
|
10,139 |
|
||||
Gain on sale of business |
— |
|
|
— |
|
|
— |
|
|
(9,790 |
) |
||||
Impairment of goodwill |
28,564 |
|
|
— |
|
|
28,564 |
|
|
— |
|
||||
Depreciation and amortization |
4,247 |
|
|
3,700 |
|
|
12,511 |
|
|
10,360 |
|
||||
EBITDA |
8,045 |
|
|
6,630 |
|
|
7,080 |
|
|
10,709 |
|
||||
Gain on CARES Act Forgiveness |
10,131 |
|
|
— |
|
|
10,131 |
|
|
— |
|
||||
Charges related to restructuring activities |
377 |
|
|
1,580 |
|
|
2,476 |
|
|
4,657 |
|
||||
Stock compensation expense (benefit) |
(441 |
) |
|
1,639 |
|
|
5,369 |
|
|
6,965 |
|
||||
Adjusted EBITDA(c) |
$ |
18,112 |
|
|
$ |
9,849 |
|
|
$ |
25,056 |
|
|
$ |
22,331 |
|
__________
"Adjusted EBITDA(c)" is a non-GAAP financial measure, which is defined at the end of this press release.
Adjusted EBITDA for 3Q21 includes the benefit of
INVACARE CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS (UNAUDITED)
The company operates in two primary business segments:
The information by segment is as follows:
|
Three Months Ended |
|
|
|
Nine Months Ended |
|
|
||||||||||||||||
(In thousands) |
|
|
|
|
|
|
|
||||||||||||||||
|
2021 |
|
2020 |
|
Change |
|
2021 |
|
2020 |
|
Change |
||||||||||||
Revenues from external customers |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
$ |
127,026 |
|
|
$ |
116,285 |
|
|
$ |
10,741 |
|
|
$ |
361,097 |
|
|
$ |
339,147 |
|
|
$ |
21,950 |
|
|
88,054 |
|
|
88,055 |
|
|
(1 |
) |
|
260,275 |
|
|
261,595 |
|
|
(1,320 |
) |
||||||
All Other (sales in |
9,120 |
|
|
7,566 |
|
|
1,554 |
|
|
24,894 |
|
|
25,904 |
|
|
(1,010 |
) |
||||||
Consolidated |
$ |
224,200 |
|
|
$ |
211,906 |
|
|
$ |
12,294 |
|
|
$ |
646,266 |
|
|
$ |
626,646 |
|
|
$ |
19,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
$ |
9,554 |
|
|
$ |
7,600 |
|
|
$ |
1,954 |
|
|
$ |
18,378 |
|
|
$ |
16,624 |
|
|
$ |
1,754 |
|
|
(1,523 |
) |
|
2,992 |
|
|
(4,515 |
) |
|
(2,308 |
) |
|
5,759 |
|
|
(8,067 |
) |
||||||
All Other |
(3,856 |
) |
|
(6,082 |
) |
|
2,226 |
|
|
(19,025 |
) |
|
(17,377 |
) |
|
(1,648 |
) |
||||||
Charge related to restructuring activities |
(377 |
) |
|
(1,580 |
) |
|
1,203 |
|
|
(2,476 |
) |
|
(4,657 |
) |
|
2,181 |
|
||||||
Gain on sale of business |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
9,790 |
|
|
(9,790 |
) |
||||||
Impairment of goodwill |
(28,564 |
) |
|
— |
|
|
(28,564 |
) |
|
(28,564 |
) |
|
— |
|
|
(28,564 |
) |
||||||
Consolidated operating income (loss) |
(24,766 |
) |
|
2,930 |
|
|
(27,696 |
) |
|
(33,995 |
) |
|
10,139 |
|
|
(44,134 |
) |
||||||
Gain (loss) on debt extinguishment including debt finance charges and fees |
10,131 |
|
|
(761 |
) |
|
10,892 |
|
|
9,422 |
|
|
(7,360 |
) |
|
16,782 |
|
||||||
Net interest expense |
(6,284 |
) |
|
(7,395 |
) |
|
1,111 |
|
|
(18,098 |
) |
|
(21,042 |
) |
|
2,944 |
|
||||||
Loss before income taxes |
$ |
(20,919 |
) |
|
$ |
(5,226 |
) |
|
$ |
(15,693 |
) |
|
$ |
(42,671 |
) |
|
$ |
(18,263 |
) |
|
$ |
(24,408 |
) |
__________
“All Other” consists of operating income (loss) associated with the company's businesses in the
INVACARE CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENT
The following tables provide net sales changes by segment as reported and as adjusted to exclude the impact of foreign exchange translation and divestitures (constant currency net sales(a)) for the periods referenced below. The current year constant currency net sales are translated using the prior year's foreign exchange rates. These amounts are then compared to the prior year's sales to calculate the constant currency net sales change.
Three months ended
|
Reported |
|
Foreign Exchange Translation Impact |
|
Constant Currency |
|||
|
9.2 |
% |
|
4.7 |
% |
|
4.5 |
% |
|
— |
|
|
0.4 |
|
|
(0.4 |
) |
All Other (sales in |
20.6 |
|
|
3.6 |
|
|
17.0 |
|
Consolidated |
5.8 |
% |
|
2.9 |
% |
|
2.9 |
% |
|
|
|
|
|
|
|||
Nine months ended
|
Reported |
|
Foreign Exchange Translation Impact |
|
Divestiture Impact |
|
Constant Currency |
||||
|
6.5 |
% |
|
8.1 |
% |
|
— |
% |
|
(1.6 |
)% |
|
(0.5 |
) |
|
0.6 |
|
|
— |
|
|
(1.1 |
) |
All Other (sales in |
(3.9 |
) |
|
9.4 |
|
|
(10.8 |
) |
|
(2.5 |
) |
Consolidated |
3.1 |
% |
|
5.0 |
% |
|
(0.4 |
)% |
|
(1.5 |
)% |
__________
"Constant currency net sales(a)" is a non-GAAP financial measure, which is defined at the end of this press release.
INVACARE CORPORATION AND SUBSIDIARIES
|
|||||||
|
|||||||
|
(unaudited) |
|
|
||||
(In thousands) |
2021 |
|
2020 |
||||
Assets |
|
|
|
||||
Current Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
73,656 |
|
|
$ |
105,298 |
|
Trade receivables, net |
115,923 |
|
|
108,588 |
|
||
Installment receivables, net |
292 |
|
|
379 |
|
||
Inventories, net |
151,335 |
|
|
115,484 |
|
||
Other current assets |
36,151 |
|
|
44,717 |
|
||
Total Current Assets |
377,357 |
|
|
374,466 |
|
||
Other Assets |
6,177 |
|
|
5,925 |
|
||
Intangibles, net |
27,357 |
|
|
27,763 |
|
||
Property and Equipment, net |
62,212 |
|
|
56,243 |
|
||
Finance Lease Assets, net |
65,758 |
|
|
64,031 |
|
||
Operating Lease Assets, net |
12,480 |
|
|
15,092 |
|
||
|
370,739 |
|
|
402,461 |
|
||
Total Assets |
$ |
922,080 |
|
|
$ |
945,981 |
|
Liabilities and Shareholders’ Equity |
|
|
|
||||
Current Liabilities |
|
|
|
||||
Accounts payable |
$ |
110,234 |
|
|
$ |
85,424 |
|
Accrued expenses |
104,210 |
|
|
126,273 |
|
||
Current taxes payable |
5,203 |
|
|
3,359 |
|
||
Current portion of long-term debt |
3,121 |
|
|
5,612 |
|
||
Current portion of finance lease obligations |
3,118 |
|
|
3,405 |
|
||
Current portion of operating lease obligations |
4,553 |
|
|
6,313 |
|
||
Total Current Liabilities |
230,439 |
|
|
230,386 |
|
||
Long-Term Debt |
306,334 |
|
|
239,441 |
|
||
Long-Term Obligations - Finance Leases |
66,070 |
|
|
63,137 |
|
||
Long-Term Obligations - Operating Leases |
7,742 |
|
|
8,697 |
|
||
Other Long-Term Obligations |
71,781 |
|
|
70,474 |
|
||
Shareholders’ Equity |
239,714 |
|
|
333,846 |
|
||
Total Liabilities and Shareholders’ Equity |
$ |
922,080 |
|
|
$ |
945,981 |
|
INVACARE CORPORATION AND SUBSIDIARIES
|
|||||||||||||||
|
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(In thousands) |
|
|
|
||||||||||||
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Net cash provided (used) by operating activities |
$ |
(775 |
) |
|
$ |
4,147 |
|
|
$ |
(36,825 |
) |
|
$ |
822 |
|
Plus: |
|
|
|
|
|
|
|
||||||||
Sales of property and equipment |
— |
|
|
3 |
|
|
23 |
|
|
396 |
|
||||
Less: |
|
|
|
|
|
|
|
||||||||
Purchases of property and equipment |
(5,350 |
) |
|
(5,945 |
) |
|
(14,397 |
) |
|
(16,824 |
) |
||||
Free Cash Flow(d) (usage) |
$ |
(6,125 |
) |
|
$ |
(1,795 |
) |
|
$ |
(51,199 |
) |
|
$ |
(15,606 |
) |
__________
"Free Cash Flow(d) is a non-GAAP financial measure, which is defined at the end of this press release.
Definitions of Non-GAAP Financial Measures
(a) "Constant currency net sales" is a non-GAAP financial measure, which is defined as net sales excluding the impact of foreign currency translation and further adjusted to exclude the impact of the sale of
(b) "Constant Currency SG&A" is a non-GAAP financial measure, which is defined as selling, general and administrative ("SG&A") expense excluding the impact of foreign currency translation and further adjusted to exclude the impact of the sale of
(c) "Adjusted EBITDA" is a non-GAAP financial measure, which is defined as earnings before interest, taxes, depreciation and amortization and calculated as net loss plus: income taxes, interest expense-net, net gain or loss on convertible debt derivatives, net gain or loss on debt extinguishment including debt finance charges and fees, asset write-downs related to intangible assets, impairment of goodwill, net gain on sale of business, and depreciation and amortization, as further adjusted to exclude charges related to restructuring activities, stock compensation expense and gain on CARES Act forgiveness.. It should be noted that the company's definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other companies because not all companies and financial analysts calculate Adjusted EBITDA in the same manner. The company believes that this financial measure provides meaningful information which is used by financial analysts and others in the company's industry to evaluate the performance of the company. This financial measure is reconciled to the related GAAP financial measure in the “Reconciliation of Net Income (Loss) to Adjusted EBITDA” table included in this press release.
(d) "Free cash flow" is a non-GAAP financial measure, which is defined as net cash provided (used) by operating activities less purchases of property and equipment plus proceeds from sales of property and equipment. The company believes that this financial measure provides meaningful information for evaluating the overall financial performance of the company and its ability to repay debt or make future investments. This financial measure is reconciled to the related GAAP financial measure in the “Reconciliation from Net Cash Provided (Used) by Operating Activities to Free Cash Flow” table included in this press release.
(e) "Adjusted net loss" is a non-GAAP financial measure, which is defined as net loss before income tax provision and excluding convertible debt discount amortization and accretion recorded in interest expense (
(f) "Adjusted net loss per share" is a non-GAAP financial measure, which is defined as adjusted net loss(e) divided by weighted average shares outstanding, assuming dilution (which uses basic shares outstanding in periods with a loss). It should be noted that the company's definition of adjusted net loss per share may not be comparable to similar measures disclosed by other companies because not all companies and financial analysts calculate adjusted net loss per share in the same manner. The company believes that its exclusion adjustments are generally recognized by the industry in which it operates as relevant in computing Adjusted net loss per share as a supplementary non-GAAP financial measure used by financial analysts and others in the company's industry to meaningfully evaluate operating performance. This financial measure is reconciled to the related GAAP financial measure in the “Reconciliation of Net Loss Per Share to Adjusted Net Loss per Share” table included in this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20211027006111/en/
INVESTOR CONTACT:
loislee@invacare.com
440-329-6435
Source:
FAQ
What were Invacare's Q3 2021 net sales figures?
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