Invacare

Corporation

Second Quarter 2021

Conference Call

Webcast

Forward-Looking Statements

This presentation contains forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that describe future outcomes or expectations that are usually identified by words such as "will," "should," "could," "plan," "intend," "expect," "continue," "forecast," "believe," and "anticipate" and include, for example, any statement made regarding the company's future results. Actual results may differ materially as a result of various risks and uncertainties, including those expressed in the cautionary statement in the company's earnings press release for the second quarter 2021 posted on www.invacare.com/investorrelations, as well as in the company's annual reports on Form 10-K, quarterly reports on Form 10-Q and other filings with the Securities and Exchange Commission. The company may not be able to predict and may have little or no control over many factors or events that may influence its future results and, except as required by law, shall have no obligation to update any forward-looking statements.

Financial results presented are as of June 30, 2021, unless otherwise noted.

Non-GAAP Financial Measures

Some of the information in this presentation is derived from the company's consolidated financial data but not

presented in its financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of these data points are considered "non-GAAP financial measures" under Securities and Exchange Commission rules. These non-GAAP financial measures supplement the company's GAAP disclosures and should not be considered an alternative to the GAAP measure. The reconciliations to their most directly comparable GAAP financial measures are included in the accompanying table and Appendix.

Invacare 2Q21 Earnings Release and Conference Call Website Slides - August 4, 2021

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Strengthening Demand Drives Improved Results

  • 2Q21 demand yielded strong revenue growth as expected
    • High single-digit constant currency net sales growth driven by strong new order intake and the partial conversion of excess backlog from 1Q21
    • Increased adoption of new products launched over the last 18 months
    • Excess backlog at the end of 2Q21 of $15 million, similar to 1Q21 levels
    • Gross profit benefited from favorable sales mix driven by higher sales of mobility & seating products
  • Taking actions to rectify temporary gross margin impact
    • Supply chain disruptions resulted in delays in the receipt of components
    • Short-termactions in place are expected to enable gross margin to rebound
  • Free Cash Flow usage increased to support net sales growth
    • Reflects higher accounts receivable and increased inventory levels, as previously discussed
    • Positive free cash flow expected in the second half of the year with achievement of Adjusted EBITDA, and as collection of accounts receivable and inventory is converted to sales

$225.9 million

Reported Net Sales

$5.5 million

Adjusted EBITDA

($27.2) million

Free Cash Flow

Invacare 2Q21 Earnings Release and Conference Call Website Slides - August 4, 2021

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Well-Positioned to Achieve Full Year Guidance

  • 2021 2H business environment expected to improve
    • Restored access to healthcare is anticipated to continue to improve and accelerate sales growth
    • Continued alleviation of global supply chain-related issues
  • Strong demand for products
    • Seeing positive trends in early 3Q21 in orders for lifestyle products and quote rates for mobility & seating products
    • Conversion of elevated backlog to sales, primarily in Europe
    • Increased adoption and continued launch of new products
  • Gross margin improvement
    • Driven by increased volume, favorable sales mix and operating leverage
    • Ongoing demand trends support confidence in full-year guidance
    • Expect sequential net sales growth in 3Q21 and 4Q21
    • Adjusted EBITDA and free cash flow growth expected to accelerate driven by sales growth and gross margin improvement

Invacare 2Q21 Earnings Release and Conference Call Website Slides - August 4, 2021

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Financial Results

Invacare 2Q21 Earnings Release and Conference Call Website Slides - August 4, 2021

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Invacare Corporation published this content on 04 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2021 20:26:06 UTC.