Invacare Corp. (IVC, Financial) filed Quarterly Report for the period ended 2010-09-30.
Invacare Corp. has a market cap of $876.1 million; its shares were traded at around $27.84 with a P/E ratio of 15.8 and P/S ratio of 0.5. The dividend yield of Invacare Corp. stocks is 0.2%.IVC is in the portfolios of Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Chuck Royce of Royce& Associates.
North American/HME SG&A expense increased $203,000, or 0.4%, for the quarter and $6,803,000, or 4.3%, in the first nine months of 2010 compared to the same periods a year ago. For the quarter, foreign currency translation increased SG&A expense by $221,000 or 0.4% while acquisitions increased SG&A expense by $1,849,000 or 3.3%. For the first nine months of 2010, foreign currency translation increased SG&A expense by $1,474,000 or 0.9% while acquisitions increased SG&A by $2,499,000 or 1.6%. The year-to-date increase in SG&A expense is primarily attributable to increased associate and legal expenses.
The Company s restructuring activities concluded in the fourth quarter of 2009, thus no material additional charges were incurred in the first nine months of 2010 compared to restructuring charges of $4,055,000 in the first nine months of 2009 which included $255,000 in NA/HME, $60,000 in ISG, $171,000 in IPG, $1,135,000 in Asia/Pacific and $2,434,000 in Europe. The 2009 charge amount is included in cost of products sold and on the Charge Related to Restructuring Activities in the Condensed Consolidated Statement of Operations as part of operations. There are no material accrual balances related to the charge remaining as of September 30, 2010.
During the three and nine months ended September 30, 2010, the Company paid down $8,158,000 and $83,061,000 par value of debt comprised of $8,158,000 and $54,061,000 related to its 4.125% Convertible Senior Subordinated Debentures due 2027 and $0 and $29,000,000 related to its 9 3/4% Senior Notes due 2015, respectively. The Company retired the debt at a premium above par. In accordance with Convertible Debt, ASC 470-20, the Company utilized the inducement method of accounting to calculate the loss associated with the early retirement of the convertible debt. For the three and nine months ended September 30, 2010, the Company recorded pre-tax expense of $3,711,000 and $22,145,000, respectively related to the loss on the debt extinguishment including the write-off of $209,000 and $2,094,000, respectively, of pre-tax deferred financing fees, which were previously capitalized.
The Company s total debt outstanding, inclusive of the debt discount included in equity in accordance with FSB APB 14-1, decreased by $47,149,000 from $321,606,000 as of December 31, 2009 to $274,457,000 as of September 30, 2010 primarily as a result of the generation of cash flow and utilization of cash to pay down debt. The Company s balance sheet reflects the impact of ASC 470-20 which reduced debt and increased equity by $27,073,000 and $48,272,000 as of September 30, 2010 and December 31, 2009, respectively. The debt discount decreased $3,527,000 and $21,199,000 during the quarter and first nine months of the year primarily as a result of the extinguishment of convertible debt. The Company s cash and cash equivalents were $32,089,000 at September 30, 2010, down from $37,501,000 at the end of the year. At September 30, 2010, the Company had outstanding $39,500,000 on its revolving line of credit compared to $1,725,000 as of December 31, 2009.
On November 1, 2010, the Company purchased an aggregate of $142,945,000 in principal amount of the Senior Notes in a tender offer conducted by the Company. The Company paid $1,075.00 for each $1,000 principal amount of the Senior Notes validly tendered in the tender offer, which included a consent payment of $30.00 per $1,000 principal amount of the Senior Notes. The Company also paid accrued and unpaid interest on the purchased Senior Notes up to, but not including, November 1, 2010. After giving effect to the Senior Notes purchased in the tender offer, an aggregate of approximately $3,055,000 principal amount of the Senior Notes remain outstanding. In connection with tender offer, the Company received a sufficient number of consents to adopt, on November 1, 2010, amendments to the indenture governing the Senior Notes pursuant to a supplemental indenture entered into with the trustee for the Senior Notes. The amendments have eliminated substantially all of the restrictive covenants and reduced the list of potential events that would constitute events of default in the indenture governing the Senior Notes.
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Invacare Corp. has a market cap of $876.1 million; its shares were traded at around $27.84 with a P/E ratio of 15.8 and P/S ratio of 0.5. The dividend yield of Invacare Corp. stocks is 0.2%.IVC is in the portfolios of Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Steven Cohen of SAC Capital Advisors, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Selling, general and administrative (“SG&A”) expense as a percentage of net sales for the three and nine months ended September 30, 2010 was 23.3% and 24.3%, respectively, compared to 24.0% and 23.8% for each of the same periods a year ago. The dollar decrease for the quarter was $2,398,000 or 2.3% compared to an increase of $11,727,000 or 4.0% for the first nine months of the year, as compared to the same period a year ago. An acquisition increased these expenses by $1,849,000 in the quarter and $2,499,000 in the first nine months of the year, while foreign currency translation decreased these expenses by $1,414,000 in the quarter and increased these expenses by $5,692,000 in the first nine months of the year compared to the same periods a year ago.North American/HME SG&A expense increased $203,000, or 0.4%, for the quarter and $6,803,000, or 4.3%, in the first nine months of 2010 compared to the same periods a year ago. For the quarter, foreign currency translation increased SG&A expense by $221,000 or 0.4% while acquisitions increased SG&A expense by $1,849,000 or 3.3%. For the first nine months of 2010, foreign currency translation increased SG&A expense by $1,474,000 or 0.9% while acquisitions increased SG&A by $2,499,000 or 1.6%. The year-to-date increase in SG&A expense is primarily attributable to increased associate and legal expenses.
The Company s restructuring activities concluded in the fourth quarter of 2009, thus no material additional charges were incurred in the first nine months of 2010 compared to restructuring charges of $4,055,000 in the first nine months of 2009 which included $255,000 in NA/HME, $60,000 in ISG, $171,000 in IPG, $1,135,000 in Asia/Pacific and $2,434,000 in Europe. The 2009 charge amount is included in cost of products sold and on the Charge Related to Restructuring Activities in the Condensed Consolidated Statement of Operations as part of operations. There are no material accrual balances related to the charge remaining as of September 30, 2010.
During the three and nine months ended September 30, 2010, the Company paid down $8,158,000 and $83,061,000 par value of debt comprised of $8,158,000 and $54,061,000 related to its 4.125% Convertible Senior Subordinated Debentures due 2027 and $0 and $29,000,000 related to its 9 3/4% Senior Notes due 2015, respectively. The Company retired the debt at a premium above par. In accordance with Convertible Debt, ASC 470-20, the Company utilized the inducement method of accounting to calculate the loss associated with the early retirement of the convertible debt. For the three and nine months ended September 30, 2010, the Company recorded pre-tax expense of $3,711,000 and $22,145,000, respectively related to the loss on the debt extinguishment including the write-off of $209,000 and $2,094,000, respectively, of pre-tax deferred financing fees, which were previously capitalized.
The Company s total debt outstanding, inclusive of the debt discount included in equity in accordance with FSB APB 14-1, decreased by $47,149,000 from $321,606,000 as of December 31, 2009 to $274,457,000 as of September 30, 2010 primarily as a result of the generation of cash flow and utilization of cash to pay down debt. The Company s balance sheet reflects the impact of ASC 470-20 which reduced debt and increased equity by $27,073,000 and $48,272,000 as of September 30, 2010 and December 31, 2009, respectively. The debt discount decreased $3,527,000 and $21,199,000 during the quarter and first nine months of the year primarily as a result of the extinguishment of convertible debt. The Company s cash and cash equivalents were $32,089,000 at September 30, 2010, down from $37,501,000 at the end of the year. At September 30, 2010, the Company had outstanding $39,500,000 on its revolving line of credit compared to $1,725,000 as of December 31, 2009.
On November 1, 2010, the Company purchased an aggregate of $142,945,000 in principal amount of the Senior Notes in a tender offer conducted by the Company. The Company paid $1,075.00 for each $1,000 principal amount of the Senior Notes validly tendered in the tender offer, which included a consent payment of $30.00 per $1,000 principal amount of the Senior Notes. The Company also paid accrued and unpaid interest on the purchased Senior Notes up to, but not including, November 1, 2010. After giving effect to the Senior Notes purchased in the tender offer, an aggregate of approximately $3,055,000 principal amount of the Senior Notes remain outstanding. In connection with tender offer, the Company received a sufficient number of consents to adopt, on November 1, 2010, amendments to the indenture governing the Senior Notes pursuant to a supplemental indenture entered into with the trustee for the Senior Notes. The amendments have eliminated substantially all of the restrictive covenants and reduced the list of potential events that would constitute events of default in the indenture governing the Senior Notes.
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