Invacare Corp. (IVC, Financial) filed Quarterly Report for the period ended 2010-03-31.
Invacare Corp. has a market cap of $831.5 million; its shares were traded at around $26.63 with a P/E ratio of 15.9 and P/S ratio of 0.5. The dividend yield of Invacare Corp. stocks is 0.2%.IVC is in the portfolios of Chuck Royce of Royce& Associates.
The company s restructuring activities concluded in the fourth quarter of 2009 thus no material additional charges were incurred in the first quarter of 2010 compared to restructuring charges of $776,000 in the first three months of 2009 which included $218,000 in NA/HME, $171,000 in IPG, $101,000 in Asia/Pacific and $286,000 in Europe. The 2009 charge amount is included 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 March 31, 2010.
During the quarter ended March 31, 2010, the company paid down $15,772,000 par value of debt comprised of $14,772,000 related to the convertible senior subordinated debentures and $1,000,000 related to the senior notes. 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. As of the quarter ended March 31, 2010, the company recorded expense of $4,386,000 related to the loss on the debt retirement including the write-off of $414,000 pre-tax of deferred financing fees, which were previously capitalized.
The company s total debt outstanding (including the debt discount described above) decreased by $16,741,000 from $321,606,000 as of December 31, 2009 to $304,865,000 as of March 31, 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 $42,050,000 and $48,272,000 as of March 31, 2010 and December 31, 2009, respectively. The debt discount decreased $6,222,000 during the quarter primarily as a result of the extinguishment of convertible debt.
Cash flows provided by operating activities were $10,249,000 for the first three months of 2010 compared to $2,514,000 used in the first three months of 2009. Operating cash flows for the first three months of 2010 were significantly improved compared to the same period a year ago principally due to the collection of a tax receivable of $7,800,000, higher trade accounts receivable collections in the first quarter of 2010 compared to the first quarter of 2009 and an improvement in net earnings in the first quarter of 2010 compared to the first quarter of 2009.
The company s captive insurance company, Invatection Insurance Co., currently has a policy year that runs from September 1 to August 31 and insures annual policy losses of $10,000,000 per occurrence and $13,000,000 in the aggregate of the company s North American product liability exposure. The company also has additional layers of external insurance coverage insuring up to $75,000,000 in annual aggregate losses arising from individual claims anywhere in the world that exceed the captive insurance company policy limits or the limits of the company s per country foreign liability limits, as applicable. There can be no assurance that Invacare s current insurance levels will continue to be adequate or available at affordable rates.
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Invacare Corp. has a market cap of $831.5 million; its shares were traded at around $26.63 with a P/E ratio of 15.9 and P/S ratio of 0.5. The dividend yield of Invacare Corp. stocks is 0.2%.IVC is in the portfolios of Chuck Royce of Royce& Associates.
Highlight of Business Operations:
NA/HME SG&A expense increased $1,379,000, or 2.8%, for the quarter compared to the same period a year ago. Foreign currency translation increased SG&A by $684,000. Excluding foreign currency translation, SG&A expense increased by $695,000, or 1.4%, primarily attributable to increased employee related costs.The company s restructuring activities concluded in the fourth quarter of 2009 thus no material additional charges were incurred in the first quarter of 2010 compared to restructuring charges of $776,000 in the first three months of 2009 which included $218,000 in NA/HME, $171,000 in IPG, $101,000 in Asia/Pacific and $286,000 in Europe. The 2009 charge amount is included 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 March 31, 2010.
During the quarter ended March 31, 2010, the company paid down $15,772,000 par value of debt comprised of $14,772,000 related to the convertible senior subordinated debentures and $1,000,000 related to the senior notes. 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. As of the quarter ended March 31, 2010, the company recorded expense of $4,386,000 related to the loss on the debt retirement including the write-off of $414,000 pre-tax of deferred financing fees, which were previously capitalized.
The company s total debt outstanding (including the debt discount described above) decreased by $16,741,000 from $321,606,000 as of December 31, 2009 to $304,865,000 as of March 31, 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 $42,050,000 and $48,272,000 as of March 31, 2010 and December 31, 2009, respectively. The debt discount decreased $6,222,000 during the quarter primarily as a result of the extinguishment of convertible debt.
Cash flows provided by operating activities were $10,249,000 for the first three months of 2010 compared to $2,514,000 used in the first three months of 2009. Operating cash flows for the first three months of 2010 were significantly improved compared to the same period a year ago principally due to the collection of a tax receivable of $7,800,000, higher trade accounts receivable collections in the first quarter of 2010 compared to the first quarter of 2009 and an improvement in net earnings in the first quarter of 2010 compared to the first quarter of 2009.
The company s captive insurance company, Invatection Insurance Co., currently has a policy year that runs from September 1 to August 31 and insures annual policy losses of $10,000,000 per occurrence and $13,000,000 in the aggregate of the company s North American product liability exposure. The company also has additional layers of external insurance coverage insuring up to $75,000,000 in annual aggregate losses arising from individual claims anywhere in the world that exceed the captive insurance company policy limits or the limits of the company s per country foreign liability limits, as applicable. There can be no assurance that Invacare s current insurance levels will continue to be adequate or available at affordable rates.
Read the The complete Report
