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EXHIBIT 99(A)
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FOR IMMEDIATE RELEASE MEDIA INQUIRIES:
KATHY OBERT
(216) 781-2400
INVESTOR INQUIRIES:
Thomas R. Miklich
(216) 329-6111
INVACARE REPORTS RECORD YEAR
ELYRIA, OHIO, FEBRUARY 21, 1995 -- Invacare Corporation (NASDAQ/NMS:IVCR), the
world's leading manufacturer and distributor of home medical equipment, today
reported record sales and earnings for the fourth quarter and year ending
December 31, 1994.
Earnings per share were $1.78 for the year, a 19% increase
over 1993. Net income rose to $26,377,000 compared to $22,110,000 last year, an
increase of 19%; and, net sales were up 13% to $411,123,000.
Earnings per share for the fourth quarter were $.61 representing a 20% increase
over the comparable period in 1993. Net income for the quarter increased 19%
to $9,020,000 while net sales rose 15% to $115,350,000.
A. Malachi Mixon III, chairman, president and chief executive officer, said,
"We are pleased by the sales and profit performance of the Company in 1994, as
our return on sales increased to 6.4% and our return on equity to 19.5%. These
important financial measures exceed those of our major competitors and compare
very favorably with the returns for industry in general." Mixon added, "Cash
flow continued to be strong as the Company's debt-to-equity ratio declined
despite the increased investment required to fund additional installment
receivables in the Company's financing arm, Invalease, and two acquisitions,
Genus Medical, Ontario, Canada and Rehadap, S.A., Gerona, Spain." Further
commenting on 1994 results, Mixon stated, "The Company's home care products
were exceptionally strong throughout 1994; and with the introduction of the
Storm series of power wheelchairs, rehab product sales growth strengthened in
the last half of the year. The Company's European operations' sales growth
also accelerated in the third and fourth quarters with sales increases of 13%
and 20%, respectively."
Mixon added, "We have strengthened and focused our management team to meet the
challenges of a changing market in 1995. With favorable sales and profit
trends continuing early in 1995 for both Europe and the U.S., we are confident
that the Company's growth in revenues, market share and earnings will continue,
despite a period of rising raw material costs."
Invacare's corporate
headquarters are in Elyria, Ohio with plants in the U.S., Canada, Mexico, New
Zealand, Germany, France and the United Kingdom. Products are distributed
worldwide through more than 10,000 dealer locations.
(More)
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INVACARE REPORTS RECORD YEAR-- P. 2 (CONTINUED)
INVACARE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
Three Months Ended Year to Date
December 31, December 31,
In thousands, except per-share data 1994 1993 1994 1993
---- ---- ---- ----
Net sales $115,350 $100,700 $411,123 $365,457
Cost of products sold 76,084 67,260 278,041 246,953
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Gross Profit 39,266 33,440 133,082 118,504
Selling, general and administrative expense 24,357 21,053 89,346 81,635
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Income from Operations 14,909 12,387 43,736 36,869
Interest income 1,757 1,225 6,373 5,255
Interest expense (2,336) (1,962) (8,232) (8,614)
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Earnings before income taxes 14,330 11,650 41,877 33,510
Income taxes 5,310 4,096 15,500 11,400
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NET INCOME $9,020 $7,554 $26,377 $22,110
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EARNINGS PER SHARE $0.61 $0.51 $1.78 $1.50
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Weighted average shares outstanding 14,894 14,750 14,848 14,738
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INVACARE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
December 31, December 31,
In thousands 1994 1993
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Assets
CURRENT ASSETS $179,791 $156,191
OTHER ASSETS 28,840 17,341
PROPERTY AND EQUIPMENT, net 55,919 52,480
GOODWILL, net 72,915 60,355
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TOTAL ASSETS $337,465 $286,367
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Liabilities and Shareholders' Equity
CURRENT LIABILITIES $70,448 $60,913
LONG-TERM OBLIGATIONS 103,010 90,492
SHAREHOLDERS' EQUITY 164,007 134,962
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $337,465 $286,367
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