Invacare Corp. (IVC, Financial) filed Quarterly Report for the period ended 2010-06-30.
Invacare Corp. has a market cap of $782.5 million; its shares were traded at around $25.01 with a P/E ratio of 14 and P/S ratio of 0.4. 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, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
North American/HME SG&A expense increased $5,223,000, or 10.1%, for the quarter and $6,601,000, or 6.5%, in the first half of 2010 compared to the same periods a year ago. For the quarter, foreign currency translation increased SG&A expense by $570,000 or 1.1% while acquisitions increased SG&A expense by $651,000 or 1.3%. For the first half of 2010, foreign currency translation increased SG&A expense by $1,254,000 or 1.2% while acquisitions increased SG&A by $651,000 or 0.6%. The increase in SG&A expense is primarily attributable to increased associate costs.
Asia/Pacific SG&A expense increased $295,000, or 4.5%, for the quarter and $830,000, or 6.5%, in the first half of the year compared to the same periods a year ago. For the quarter, foreign currency translation increased SG&A expense by $883,000, or 13.4%. For the first half of 2010, foreign currency translation increased SG&A by $2,524,000, or 19.9%. Excluding the impact of foreign currency translation, SG&A expense decreased 8.9% and 13.4% for the quarter and first half of 2010, respectively as compared to last year due primarily to cost reduction activities and favorable currency transaction impact related to the U.S. dollar.
The Company s restructuring activities concluded in the fourth quarter of 2009 thus no material additional charges were incurred in the first half of 2010 compared to restructuring charges of $1,900,000 in the first half of 2009 which included $335,000 in NA/HME, $171,000 in IPG, $770,000 in Asia/Pacific and $624,000 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 June 30, 2010.
During the three and six months ended June 30, 2010, the Company paid down $59,131,000 and $74,903,000 par value of debt comprised of $31,131,000 and $45,903,000 related to its 4.125% Senior Subordinated Convertible Debentures and $28,000,000 and $29,000,000 related to its 9 ¾% Senior Notes, 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 six months ended June 30, 2010, the Company recorded pre-tax expense of $14,048,000 and $18,434,000, respectively related to the loss on the debt extinguishment including the write-off of $1,471,000 and $1,885,000, 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 $28,496,000 from $321,606,000 as of December 31, 2009 to $293,110,000 as of June 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 $30,600,000 and $48,272,000 as of June 30, 2010 and December 31, 2009, respectively. The debt discount decreased $11,450,000 and $17,672,000 during the quarter and first half of the year primarily as a result of the extinguishment of convertible debt. The Company s cash and cash equivalents were $31,205,000 at June 30, 2010, down from $37,501,000 at the end of the year. The Company utilized its cash and cash flows from operations as well as its revolving line of credit primarily to pay down the debt noted above. At June 30, 2010, the Company had outstanding $50,118,000 on its revolving line of credit compared to $1,725,000 as of December 31, 2009.
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Invacare Corp. has a market cap of $782.5 million; its shares were traded at around $25.01 with a P/E ratio of 14 and P/S ratio of 0.4. 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, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Selling, general and administrative (“SG&A”) expense as a percentage of net sales for the three and six months ended June 30, 2010 was 24.2% and 24.8%, respectively, compared to 23.7% for each of the same periods a year ago. The dollar decreases were $6,482,000 and $14,125,000, or 6.6% and 7.4%, respectively, for the quarter and first half of the year, as compared to the same period a year ago. An acquisition increased these expenses by $651,000 in the quarter and first half of the year, while foreign currency translation increased these expenses by $1,911,000 in the quarter and $7,106,000 in the first half of the year compared to the same periods a year ago. Excluding the impact of foreign currency translation and an acquisition, SG&A expense increased 4.0% for the quarter and 3.3% for the first half of 2010 as compared to the same periods a year ago. The dollar increase, excluding foreign currency translation and acquisitions, was $3,920,000 and $6,368,000 for the quarter and first half of the year, as compared to the same periods a year ago. The increase in SG&A expense is primarily attributable to increased associate costs.North American/HME SG&A expense increased $5,223,000, or 10.1%, for the quarter and $6,601,000, or 6.5%, in the first half of 2010 compared to the same periods a year ago. For the quarter, foreign currency translation increased SG&A expense by $570,000 or 1.1% while acquisitions increased SG&A expense by $651,000 or 1.3%. For the first half of 2010, foreign currency translation increased SG&A expense by $1,254,000 or 1.2% while acquisitions increased SG&A by $651,000 or 0.6%. The increase in SG&A expense is primarily attributable to increased associate costs.
Asia/Pacific SG&A expense increased $295,000, or 4.5%, for the quarter and $830,000, or 6.5%, in the first half of the year compared to the same periods a year ago. For the quarter, foreign currency translation increased SG&A expense by $883,000, or 13.4%. For the first half of 2010, foreign currency translation increased SG&A by $2,524,000, or 19.9%. Excluding the impact of foreign currency translation, SG&A expense decreased 8.9% and 13.4% for the quarter and first half of 2010, respectively as compared to last year due primarily to cost reduction activities and favorable currency transaction impact related to the U.S. dollar.
The Company s restructuring activities concluded in the fourth quarter of 2009 thus no material additional charges were incurred in the first half of 2010 compared to restructuring charges of $1,900,000 in the first half of 2009 which included $335,000 in NA/HME, $171,000 in IPG, $770,000 in Asia/Pacific and $624,000 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 June 30, 2010.
During the three and six months ended June 30, 2010, the Company paid down $59,131,000 and $74,903,000 par value of debt comprised of $31,131,000 and $45,903,000 related to its 4.125% Senior Subordinated Convertible Debentures and $28,000,000 and $29,000,000 related to its 9 ¾% Senior Notes, 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 six months ended June 30, 2010, the Company recorded pre-tax expense of $14,048,000 and $18,434,000, respectively related to the loss on the debt extinguishment including the write-off of $1,471,000 and $1,885,000, 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 $28,496,000 from $321,606,000 as of December 31, 2009 to $293,110,000 as of June 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 $30,600,000 and $48,272,000 as of June 30, 2010 and December 31, 2009, respectively. The debt discount decreased $11,450,000 and $17,672,000 during the quarter and first half of the year primarily as a result of the extinguishment of convertible debt. The Company s cash and cash equivalents were $31,205,000 at June 30, 2010, down from $37,501,000 at the end of the year. The Company utilized its cash and cash flows from operations as well as its revolving line of credit primarily to pay down the debt noted above. At June 30, 2010, the Company had outstanding $50,118,000 on its revolving line of credit compared to $1,725,000 as of December 31, 2009.
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