Invacare Corporation Announces Restructuring Initiative
Invacare Corporation (NYSE: IVC) today announced a restructuring initiative that is expected to generate $14 to $15 million in annualized pre-tax savings when fully instituted in 2015. The initiative includes a reduction to the Company's workforce of approximately 150 associates and 40 temporary associates from the North America/Home Medical Equipment (HME), Institutional Products Group and Asia/Pacific segments.
''Invacare is committed to improving free cash flow(a) and restoring profitability in the North America/HME and Asia/Pacific businesses. While the decision to downsize our workforce is extremely difficult, it is a necessary step toward achieving these objectives in light of our financial results for the first six months of 2014 and the slow sales start to the third quarter,'' said Robert K. Gudbranson, Invacare interim president and chief executive officer. ''All of our associates, including those affected by this restructuring, have been committed to Invacare. As always, we will provide support to our impacted associates during this transition period.''
Due to the realignment, the Company expects to incur restructuring charges not to exceed $6 million on a pre-tax basis.
(a) Free cash flow is a non-GAAP financial measure which is defined as net cash provided (used) by operating activities, excluding net cash flow impact related to restructuring activities, less purchases of property and equipment, net of proceeds from sales of property and equipment. Management believes that this financial measure provides meaningful information for evaluating the overall financial performance of the Company and its ability to repay debt or make future investments (including, for example, acquisitions).
Invacare Corporation (NYSE: IVC), headquartered in Elyria, Ohio, is the global leader in the manufacture and distribution of innovative home and long-term care medical products that promote recovery and active lifestyles. The Company had approximately 5,400 associates as of June 30, 2014, and markets its products in approximately 80 countries around the world. For more information about the Company and its products, visit Invacare's website at www.invacare.com.
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