Invacare Corporation Reports Improved Earnings and Cash Flow for Its First Quarter
ELYRIA, Ohio--(BUSINESS WIRE)--Invacare Corporation (NYSE: IVC) today announced its financial results for the quarter ended March 31, 2009.

HIGHLIGHTS FOR THE QUARTER

· Organic sales increase of 2.1% in the quarter

· Adjusted earnings per share(a) for the quarter increased 18% to $0.13 versus $0.11 last year

· Earnings per share on a GAAP basis for the quarter of $0.08 versus $0.07 last year

· Free cash flow(d) of negative $5 million in the quarter this year as compared to negative $24 million in the quarter last year

· Adjusted EBITDA(e) of $27 million for the quarter

· Reduction in debt outstanding of $13.4 million for the quarter

CONSOLIDATED RESULTS

Earnings per share on a GAAP basis for the first quarter were $0.08 ($2.4 million net earnings) as compared to earnings per share for the same period last year of $0.07 ($2.2 million net earnings). Adjusted earnings per share(a) were $0.13 for the first quarter of 2009 as compared to $0.11 for the first quarter of 2008. Adjusted net earnings(b) for the quarter were $4.1 million versus $3.6 million last year. Adjusted earnings before income taxes(c) for the first quarter were $6.2 million as compared to $6.2 million for the first quarter last year. Adjusted earnings per share(a) and adjusted net earnings(b) for the first quarter 2009 and 2008 exclude interest expense of $1.0 million and $0.9 million, respectively, due to the amortization of the discount recorded on convertible debt as a result of the adoption of FASB Staff Position APB 14-1, Accounting for Convertible Debt Instruments (FSP APB 14-1). Adjusted net earnings(b) for the quarter were positively impacted by organic sales growth (both volume and selective price increases), cost reduction activities, reduced net interest expense and a lower effective tax rate which were partially offset by commodity cost increases and unfavorable foreign currency transactions and translation.

Net sales for the quarter decreased 4.4% to $398.0 million versus $416.3 million last year. Foreign currency translation decreased net sales by seven percentage points and acquisitions increased net sales by less than a percentage point. Organic net sales for the quarter grew 2.1% over the same period last year driven primarily by organic net sales performance in North America/Home Medical Equipment (NA/HME), which grew 7.1%. While European net sales for the quarter decreased by 14.0%, organic net sales grew 0.6%.

Gross margin as a percentage of net sales for the first quarter was higher by 0.1 percentage point compared to last year’s first quarter. The margin improvement was

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