ELYRIA, OH – Medtrade exhibitor Invacare Corp announced results last week for the first quarter ended March 31, 2017. After another quarter of progress on the company’s planned transformation, reported net sales decreased 10.0% to $231.7 million, or 4.4% on a constant currency basis, excluding the impact of the third quarter 2016 divestiture of Garden City Medical Inc.
As a result of the strategic shift to more clinically complex products, gross margin as a percentage of net sales increased 180 basis points to 28.1%. Operating loss increased by $5.6 million, primarily driven by lower net sales and restructuring costs largely related to the reduction in force that was announced on January 31, 2017. Adjusted net loss per share increased by $0.21 to $0.47.
”Our organization continues to make progress transforming from being a generalist durable medical equipment company toward more clinically complex products and solutions. Net sales of basic aids for daily living continued to decline, while mobility and seating sales, excluding discontinued consumer power products, increased in the North America/Home Medical Equipment (NA/HME) segment, where the transformation is most significant. Gross margin as a percentage of net sales grew primarily due to our more favorable mix of products,” said Matthew E. Monaghan, chairman, president and CEO. ”In the next phase of Invacare’s transformation, we are focusing on reducing costs and driving efficiency around the more clinical core of our business. This is the area we expect to grow in the long-term by emphasizing greater clinical value and better economics built around sustainable innovation.”