Ohio
|
95-2680965
|
(State
or other jurisdiction of
incorporation
or organization)
|
(IRS
Employer Identification No)
|
|
|
One
Invacare Way, P.O. Box 4028, Elyria, Ohio
|
44036
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
|
(440)
329-6000
|
|
(Registrant's
telephone number, including area code)
|
|
|
|
_____________________________________________________________
|
|
(Former
name, former address and former fiscal year, if changed since last
report)
|
|
Page
No.
|
|
||
|
|
|
||
|
|
3
|
|
|
|
|
4
|
|
|
|
|
5
|
|
|
|
|
6
|
|
|
|
|
21
|
|
|
|
|
32
|
|
|
|
|
32
|
|
|
|
|
|
|
|
|
|
32
|
|
|
|
|
32
|
|
|
|
|
33
|
|
|
|
|
34
|
|
|
|
September
30,
2007
|
|
|
December
31,
2006
|
|
||
|
|
|
(unaudited)
|
|
|
|
|
|
ASSETS
|
|
(In
thousands)
|
|
|||||
CURRENT
ASSETS
|
|
|
|
|
|
|
||
Cash
and cash equivalents
|
|
$
|
63,650
|
|
|
$
|
82,203
|
|
Marketable
securities
|
|
|
254
|
|
|
|
190
|
|
Trade
receivables, net
|
|
|
267,926
|
|
|
|
261,606
|
|
Installment
receivables, net
|
|
|
10,797
|
|
|
|
7,097
|
|
Inventories,
net
|
|
|
204,626
|
|
|
|
201,756
|
|
Deferred
income taxes
|
|
|
14,158
|
|
|
|
13,512
|
|
Other
current assets
|
|
|
59,916
|
|
|
|
89,394
|
|
TOTAL
CURRENT ASSETS
|
|
|
621,327
|
|
|
|
655,758
|
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS
|
|
|
84,364
|
|
|
|
67,443
|
|
OTHER
INTANGIBLES
|
|
|
100,504
|
|
|
|
102,876
|
|
PROPERTY
AND EQUIPMENT, NET
|
|
|
166,618
|
|
|
|
173,945
|
|
GOODWILL
|
|
|
509,389
|
|
|
|
490,429
|
|
TOTAL
ASSETS
|
|
$
|
1,482,202
|
|
|
$
|
1,490,451
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
151,764
|
|
|
$
|
163,041
|
|
Accrued
expenses
|
|
|
143,583
|
|
|
|
147,776
|
|
Accrued
income taxes
|
|
|
2,545
|
|
|
|
12,916
|
|
Short-term
debt and current maturities of long-term obligations
|
|
|
5,325
|
|
|
|
124,243
|
|
TOTAL
CURRENT LIABILITIES
|
|
|
303,217
|
|
|
|
447,976
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM
DEBT
|
|
|
565,004
|
|
|
|
448,883
|
|
OTHER
LONG-TERM OBLIGATIONS
|
|
|
109,803
|
|
|
|
108,228
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Preferred
shares
|
|
|
-
|
|
|
|
-
|
|
Common
shares
|
|
|
8,013
|
|
|
|
8,013
|
|
Class
B common shares
|
|
|
278
|
|
|
|
278
|
|
Additional
paid-in-capital
|
|
|
145,502
|
|
|
|
143,714
|
|
Retained
earnings
|
|
|
269,743
|
|
|
|
276,750
|
|
Accumulated
other comprehensive earnings
|
|
|
123,361
|
|
|
|
99,188
|
|
Treasury
shares
|
|
|
(42,719
|
)
|
|
|
(42,579
|
)
|
TOTAL
SHAREHOLDERS' EQUITY
|
|
|
504,178
|
|
|
|
485,364
|
|
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
1,482,202
|
|
|
$
|
1,490,451
|
|
|
|
Three
Months Ended
September
30,
|
|
|
Nine
Months Ended
September
30,
|
|
||||||||||
(In
thousands except per share data)
|
|
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
|
||||
Net
sales
|
|
$
|
407,303
|
|
|
$
|
379,462
|
|
|
$
|
1,175,475
|
|
|
$
|
1,112,930
|
|
Cost
of products sold
|
|
|
291,852
|
|
|
|
268,397
|
|
|
|
851,022
|
|
|
|
795,004
|
|
Gross
profit
|
|
|
115,451
|
|
|
|
111,065
|
|
|
|
324,453
|
|
|
|
317,926
|
|
Selling,
general and administrative expense
|
|
|
92,536
|
|
|
|
88,372
|
|
|
|
274,153
|
|
|
|
260,348
|
|
Charge
related to restructuring activities
|
|
|
2,994
|
|
|
|
2,356
|
|
|
|
7,807
|
|
|
|
8,353
|
|
Charges,
interest and fees associated with debt refinancing
|
|
|
22
|
|
|
|
-
|
|
|
|
13,403
|
|
|
|
-
|
|
Interest
expense
|
|
|
11,412
|
|
|
|
8,829
|
|
|
|
33,525
|
|
|
|
24,748
|
|
Interest
income
|
|
|
(552
|
)
|
|
|
(685
|
)
|
|
|
(1,549
|
)
|
|
|
(2,001
|
)
|
Earnings
(loss) before income taxes
|
|
|
9,039
|
|
|
|
12,193
|
|
|
|
(2,886
|
)
|
|
|
26,478
|
|
Income
taxes
|
|
|
(2,600
|
)
|
|
|
2,500
|
|
|
|
2,925
|
|
|
|
6,625
|
|
NET
EARNINGS (LOSS)
|
|
$
|
11,639
|
|
|
$
|
9,693
|
|
|
$
|
(5,811
|
)
|
|
$
|
19,853
|
|
DIVIDENDS
DECLARED PER COMMON SHARE
|
|
|
.0125
|
|
|
|
.0125
|
|
|
|
.0375
|
|
|
|
.0375
|
|
Net
earnings (loss) per share – basic
|
|
$
|
0.37
|
|
|
$
|
0.31
|
|
|
$
|
(0.18
|
)
|
|
$
|
0.63
|
|
Weighted
average shares outstanding - basic
|
|
|
31,844
|
|
|
|
31,813
|
|
|
|
31,836
|
|
|
|
31,778
|
|
Net
earnings (loss) per share – assuming dilution
|
|
$
|
0.36
|
|
|
$
|
0.30
|
|
|
$
|
(0.18
|
)
|
|
$
|
0.62
|
|
Weighted
average shares outstanding - assuming dilution
|
|
|
31,958
|
|
|
|
31,890
|
|
|
|
31,836
|
|
|
|
32,083
|
|
|
|
Nine
Months Ended
September
30,
|
|
|||||
|
|
2007
|
|
|
2006
|
|
||
OPERATING
ACTIVITIES
|
|
(In thousands)
|
|
|||||
Net
earnings (loss)
|
|
$
|
(5,811
|
)
|
|
$
|
19,853
|
|
Adjustments
to reconcile net earnings (loss) to net
cash provided by operating activities:
|
|
|
|
|
|
|
|
|
Debt
finance charges, interest and fees associated with debt
refinancing
|
|
|
13,403
|
|
|
|
-
|
|
Depreciation
and amortization
|
|
|
32,409
|
|
|
|
28,996
|
|
Provision
for losses on trade and installment receivables
|
|
|
7,312
|
|
|
|
7,659
|
|
Provision
for other deferred liabilities
|
|
|
2,311
|
|
|
|
3,536
|
|
Provision
(benefit) for deferred income taxes
|
|
|
(7,317
|
)
|
|
|
1,839
|
|
Loss
(gain) on disposals of property and equipment
|
|
|
464
|
|
|
|
1,035
|
|
Changes
in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Trade
receivables
|
|
|
(5,948
|
)
|
|
|
(2,913
|
)
|
Installment
sales contracts, net
|
|
|
(6,057
|
)
|
|
|
(3,466
|
)
|
Inventories
|
|
|
1,895
|
|
|
|
(19,811
|
)
|
Other
current assets
|
|
|
32,749
|
|
|
|
(2,714
|
)
|
Accounts
payable
|
|
|
(13,751
|
)
|
|
|
567
|
|
Accrued
expenses
|
|
|
(20,568
|
)
|
|
|
1,186
|
|
Other
deferred liabilities
|
|
|
(679
|
)
|
|
|
1,514
|
|
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
|
|
30,412
|
|
|
37,281
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Purchases
of property and equipment
|
|
|
(13,715
|
)
|
|
|
(15,600
|
)
|
Proceeds
from sale of property and equipment
|
|
|
477
|
|
|
|
111
|
|
Other
long term assets
|
|
|
(417
|
)
|
|
|
(857
|
)
|
Other
|
|
|
658
|
|
|
(619
|
)
|
|
NET
CASH USED FOR INVESTING ACTIVITIES
|
|
|
(12,997
|
)
|
|
|
(16,965
|
)
|
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
Proceeds
from revolving lines of credit, securitization facility and long-term
borrowings
|
|
|
603,252
|
|
|
|
613,052
|
|
Payments
on revolving lines of credit, securitization facility and long-term
debt
and capital lease obligations
|
|
|
(620,015
|
)
|
|
|
(649,923
|
)
|
Proceeds
from exercise of stock options
|
|
|
-
|
|
|
|
2,220
|
|
Payment
of financing costs
|
|
|
(20,615
|
)
|
|
|
-
|
|
Payment
of dividends
|
|
|
(1,196
|
)
|
|
|
(1,192
|
)
|
NET
CASH USED BY FINANCING ACTIVITIES
|
|
|
(38,574
|
)
|
|
|
(35,843
|
)
|
Effect
of exchange rate changes on cash
|
|
|
2,606
|
|
|
|
(786
|
)
|
Decrease
in cash and cash equivalents
|
|
|
(18,553
|
)
|
|
|
(16,313
|
)
|
Cash
and cash equivalents at beginning of period
|
|
|
82,203
|
|
|
|
25,624
|
|
Cash
and cash equivalents at end of period
|
|
$
|
63,650
|
|
|
$
|
9,311
|
|
|
|
Three
Months Ended
September
30,
|
|
|
Nine
Months Ended
September
30,
|
|
||||||||||
|
|
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
|
||||
Revenues
from external customers
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
North
America / HME
|
|
$
|
167,578
|
|
|
$
|
168,322
|
|
|
$
|
495,461
|
|
|
$
|
511,214
|
|
Invacare
Supply Group
|
|
|
64,068
|
|
|
|
56,952
|
|
|
|
188,440
|
|
|
|
168,202
|
|
Institutional
Products Group
|
|
|
20,427
|
|
|
|
23,020
|
|
|
|
65,897
|
|
|
|
68,959
|
|
Europe
|
|
|
132,665
|
|
|
|
113,908
|
|
|
|
358,908
|
|
|
|
314,141
|
|
Asia/Pacific
|
|
|
22,565
|
|
|
|
17,260
|
|
|
|
66,769
|
|
|
|
50,414
|
|
Consolidated
|
|
$
|
407,303
|
|
|
$
|
379,462
|
|
|
$
|
1,175,475
|
|
|
$
|
1,112,930
|
|
Intersegment
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America / HME
|
|
$
|
12,530
|
|
|
$
|
12,073
|
|
|
$
|
34,919
|
|
|
$
|
37,881
|
|
Invacare
Supply Group
|
|
|
89
|
|
|
|
14
|
|
|
|
210
|
|
|
|
95
|
|
Institutional
Products Group
|
255
|
-
|
255
|
-
|
||||||||||||
Europe
|
|
|
2,856
|
|
|
|
3,600
|
|
|
|
7,760
|
|
|
|
9,275
|
|
Asia/Pacific
|
|
|
7,762
|
|
|
|
12,122
|
|
|
|
21,260
|
|
|
|
29,404
|
|
Consolidated
|
|
$
|
23,492
|
|
|
$
|
27,809
|
|
|
$
|
64,404
|
|
|
$
|
76,655
|
|
Charge
related to restructuring before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America / HME
|
|
$
|
810
|
|
|
$
|
1,209
|
|
|
$
|
3,621
|
|
|
$
|
6,049
|
|
Invacare
Supply Group
|
|
|
31
|
|
|
692
|
|
|
|
45
|
|
|
|
692
|
|
|
Institutional
Products Group
|
|
|
163
|
|
|
|
13
|
|
|
|
172
|
|
|
|
38
|
|
Europe
|
|
|
1,123
|
|
|
|
848
|
|
|
|
3,064
|
|
|
|
2,286
|
|
Asia/Pacific
|
|
|
1,242
|
|
|
|
166
|
|
|
|
1,525
|
|
|
|
932
|
|
Consolidated
|
|
$
|
3,369
|
|
|
$
|
2,928
|
|
|
$
|
8,427
|
|
|
$
|
9,997
|
|
Earnings
(loss) before income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America / HME
|
|
$
|
3,012
|
|
|
$
|
4,282
|
|
|
$
|
2,446
|
|
$
|
16,750
|
|
|
Invacare
Supply Group
|
|
|
806
|
|
|
|
48
|
|
|
|
2,417
|
|
|
|
2,834
|
|
Institutional
Products Group
|
|
|
(441
|
)
|
|
|
1,468
|
|
|
|
692
|
|
|
|
3,973
|
|
Europe
|
|
|
12,847
|
|
|
|
11,433
|
|
|
|
23,366
|
|
|
|
21,066
|
|
Asia/Pacific
|
|
|
(1,771
|
)
|
|
|
(2,061
|
)
|
|
|
(3,790
|
)
|
|
|
(5,426
|
)
|
All
Other *
|
|
|
(5,414
|
)
|
|
|
(2,977
|
)
|
|
|
(28,017
|
)
|
|
|
(12,719
|
)
|
Consolidated
|
|
$
|
9,039
|
|
|
$
|
12,193
|
|
|
$
|
(2,886
|
)
|
|
$
|
26,478
|
|
|
“All
Other” consists of
unallocated corporate selling, general and administrative costs and
intercompany profits, which do not meet the quantitative criteria
for
determining reportable segments. In addition, the “All Other”
earnings (loss) before income taxes for the first nine months
of 2007 includes charges,
interest and fees associated with debt
refinancing.
|
|
|
Three
Months Ended
September
30,
|
|
|
Nine
Months Ended
September
30,
|
|
||||||||||
|
|
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
|
||||
|
|
(In
thousands, except per share
data)
|
|
|||||||||||||
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average
common shares outstanding
|
|
|
31,844
|
|
|
|
31,813
|
|
|
|
31,836
|
|
|
|
31,778
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss)
|
|
$
|
11,639
|
|
|
$
|
9,693
|
|
|
$
|
(5,811
|
)
|
|
$
|
19,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss) per common share
|
|
$
|
.37
|
|
|
$
|
.31
|
|
|
$
|
(.18
|
)
|
|
$
|
.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
common shares outstanding
|
|
|
31,844
|
|
|
|
31,813
|
|
|
|
31,836
|
|
|
|
31,778
|
|
Stock
options and awards
|
|
|
114
|
|
|
|
77
|
|
|
|
-
|
|
|
|
305
|
|
Average
common shares assuming dilution
|
|
|
31,958
|
|
|
|
31,890
|
|
|
|
31,836
|
|
|
|
32,083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss)
|
|
$
|
11,639
|
|
|
$
|
9,693
|
|
|
$
|
(5,811
|
)
|
|
$
|
19,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings (loss) per common share
|
|
$
|
.36
|
|
|
$
|
.30
|
|
|
$
|
(.18
|
)
|
|
$
|
.62
|
|
|
|
September
30, 2007
|
|
|
December
31, 2006
|
|
||||||||||
|
|
Historical
Cost
|
|
|
Accumulated
Amortization
|
|
|
Historical
Cost
|
|
|
Accumulated
Amortization
|
|
||||
Customer
lists
|
|
$
|
73,117
|
|
|
$
|
19,463
|
|
|
$
|
71,106
|
|
|
$
|
14,373
|
|
Trademarks
|
|
|
34,690
|
|
|
|
-
|
|
|
|
33,034
|
|
|
|
-
|
|
License
agreements
|
|
|
4,556
|
|
|
|
4,293
|
|
|
|
4,489
|
|
|
|
3,821
|
|
Developed
technology
|
|
|
6,959
|
|
|
|
1,299
|
|
|
|
6,819
|
|
|
|
940
|
|
Patents
|
|
|
6,836
|
|
|
|
4,195
|
|
|
|
6,631
|
|
|
|
3,869
|
|
Other
|
|
|
8,544
|
|
|
|
4,948
|
|
|
|
8,005
|
|
|
|
4,205
|
|
|
|
$
|
134,702
|
|
|
$
|
34,198
|
|
|
$
|
130,084
|
|
|
$
|
27,208
|
|
|
|
Three
Months Ended
September
30,
|
|
|
Nine
Months Ended
September
30,
|
|
||||||||||
|
|
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
|
||||
Stock-based
compensation expense recognized as part of selling, general and
administrative expense
|
|
$
|
710
|
|
|
$
|
365
|
|
|
$
|
1,787
|
|
|
$
|
940
|
|
|
|
2007
|
|
|
Weighted
Average
Exercise
Price
|
|
||
Options
outstanding at January 1
|
|
|
4,724,651
|
|
|
$
|
30.68
|
|
Granted
|
|
|
439,828
|
|
|
|
23.39
|
|
Exercised
|
|
|
-
|
|
|
|
-
|
|
Canceled
|
|
|
(464,007
|
)
|
|
|
29.30
|
|
Options
outstanding at September 30
|
|
|
4,700,472
|
|
|
$
|
30.13
|
|
|
|
|
|
|
|
|
|
|
Options
price range at September 30
|
|
$
|
16.03
to
|
|
|
|
|
|
|
|
$
|
47.80
|
|
|
|
|
|
Options
exercisable at September 30
|
|
|
3,907,767
|
|
|
|
|
|
Options
available for grant at September 30*
|
|
|
1,397,985
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Options
Outstanding
|
|
|
Options
Exercisable
|
|
|||||||||||||||
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Number
Outstanding
|
|
|
Average
Remaining
|
|
|
Weighted
Average
|
|
|
Number
Exercisable
|
|
|
Weighted
Average
|
|
||||||
Exercise
Prices
|
|
|
At
9/30/07
|
|
|
Contractual
Life
|
|
|
Exercise
Price
|
|
|
At
9/30/07
|
|
|
Exercise
Price
|
|
||||||
$
|
16.03
- $23.71
|
|
|
|
2,166,656
|
|
|
4.6
years
|
|
|
$
|
22.43
|
|
|
|
1,433,651
|
|
|
$
|
22.13
|
|
|
$
|
24.43
- $36.40
|
|
|
|
1,177,336
|
|
|
|
4.4
|
|
|
$
|
31.10
|
|
|
|
1,117,636
|
|
|
$
|
31.10
|
|
$
|
37.70
- $47.80
|
|
|
|
1,356,480
|
|
|
|
7.0
|
|
|
$
|
41.59
|
|
|
|
1,356,480
|
|
|
$
|
41.59
|
|
Total
|
|
|
|
4,700,472
|
|
|
|
5.3
|
|
|
$
|
30.13
|
|
|
|
3,907,767
|
|
|
$
|
31.45
|
|
|
|
2007
|
|
|
Expected
dividend yield
|
|
|
2.1
|
%
|
Expected
stock price volatility
|
|
|
29.2
|
%
|
Risk-free
interest rate
|
|
|
4.3
|
%
|
Expected
life (years)
|
|
|
3.9
|
|
Balance
as of January 1, 2007
|
|
$
|
15,165
|
|
Warranties
provided during the period
|
|
|
8,519
|
|
Settlements
made during the period
|
|
|
(7,312
|
)
|
Changes
in liability for pre-existing warranties during the period, including
expirations
|
|
|
612
|
|
Balance
as of September 30, 2007
|
|
$
|
16,984
|
|
|
|
Balance
at
12/31/06
|
|
|
Accruals
(Reversals)
|
|
|
Payments
|
|
|
Balance
at
9/30/07
|
|
||||
North
America/HME
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Severance
|
|
$
|
1,359
|
|
|
$
|
3,425
|
|
|
$
|
(4,162
|
)
|
|
$
|
622
|
|
Contract
terminations
|
|
|
557
|
|
|
|
18
|
|
|
(172
|
)
|
|
|
403
|
|
|
Product
line discontinuance
|
|
|
2,037
|
|
|
|
178
|
|
|
|
(2,183
|
)
|
|
|
32
|
|
Total
|
|
$
|
3,953
|
|
|
$
|
3,621
|
|
|
$
|
(6,517
|
)
|
|
$
|
1,057
|
|
Invacare
Supply Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance
|
|
$
|
166
|
|
|
$
|
45
|
|
|
$
|
(211
|
)
|
|
$
|
-
|
|
Institutional
Products Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance
|
|
$
|
-
|
|
|
$
|
19
|
|
|
$
|
(19
|
)
|
|
$
|
-
|
|
Contract
terminations
|
-
|
98
|
(98
|
)
|
-
|
|||||||||||
Other
|
-
|
55
|
(55
|
)
|
-
|
|||||||||||
Total
|
$
|
-
|
$
|
172
|
$
|
(172
|
)
|
$
|
-
|
|||||||
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance
|
|
$
|
3,734
|
|
|
$
|
527
|
|
|
$
|
(4,104
|
)
|
|
$
|
157
|
|
Product
line discontinuance
|
|
|
-
|
|
|
|
177
|
|
|
|
(177
|
)
|
|
|
-
|
|
Other
|
|
|
-
|
|
|
|
2,360
|
|
|
|
(2,283
|
)
|
|
|
77
|
|
Total
|
|
$
|
3,734
|
|
|
$
|
3,064
|
|
|
$
|
(6,564
|
)
|
|
$
|
234
|
|
Asia/Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance
|
|
$
|
-
|
|
|
$
|
1,047
|
|
|
$
|
(492
|
)
|
|
$
|
555
|
|
Contract
terminations
|
|
|
122
|
|
|
|
78
|
|
|
|
(77
|
)
|
|
|
123
|
|
Product
line discontinuance
|
-
|
265
|
(265
|
)
|
-
|
|||||||||||
Other
|
|
|
-
|
|
|
|
135
|
|
|
|
(135
|
)
|
|
|
-
|
|
Total
|
|
$
|
122
|
|
|
$
|
1,525
|
|
|
$
|
(969
|
)
|
|
$
|
678
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance
|
|
$
|
5,259
|
|
|
$
|
5,063
|
|
|
$
|
(8,988
|
)
|
|
$
|
1,334
|
|
Contract
terminations
|
|
|
679
|
|
|
|
194
|
|
|
(347
|
)
|
|
|
526
|
|
|
Product
line discontinuance
|
|
|
2,037
|
|
|
|
620
|
|
|
|
(2,625
|
)
|
|
|
32
|
|
Other
|
|
|
-
|
|
|
|
2,550
|
|
|
|
(2,473
|
)
|
|
|
77
|
|
Total
|
|
$
|
7,975
|
|
|
$
|
8,427
|
|
|
$
|
(14,433
|
)
|
|
$
|
1,969
|
|
|
|
Three
Months Ended
September
30,
|
|
|
Nine
Months Ended
September
30,
|
|
||||||||||
|
|
2007
|
|
|
2006
|
|
|
2007
|
|
|
2006
|
|
||||
Net
earnings (loss)
|
|
$
|
11,639
|
|
|
$
|
9,693
|
|
|
$
|
(5,811
|
)
|
|
$
|
19,853
|
|
Foreign
currency translation gain
|
|
|
1,613
|
|
|
|
3,945
|
|
|
|
24,137
|
|
|
|
43,715
|
|
Unrealized
gain (loss) on available for sale securities
|
|
|
(13
|
)
|
|
|
(2
|
)
|
|
|
41
|
|
|
|
(40
|
)
|
SERP/DBO
amortization of prior service costs and unrecognized
losses
|
|
|
443
|
|
|
|
-
|
|
|
|
1,847
|
|
|
|
-
|
|
Current
period unrealized gain (loss) on cash flow hedges
|
|
|
4,557
|
|
|
272
|
|
|
|
(1,852
|
)
|
|
|
1,366
|
|
|
Total
comprehensive earnings
|
|
$
|
15,013
|
|
|
$
|
13,908
|
|
|
$
|
18,362
|
|
|
$
|
64,894
|
|
|
|
September
30, 2007
|
|
|
December
31, 2006
|
|
||
Raw
materials
|
|
$
|
64,866
|
|
|
$
|
66,718
|
|
Work
in process
|
|
|
15,570
|
|
|
|
16,715
|
|
Finished
goods
|
|
|
124,190
|
|
|
|
118,323
|
|
|
|
$
|
204,626
|
|
|
$
|
201,756
|
|
|
|
September
30, 2007
|
|
|
December
31, 2006
|
|
||
Machinery
and equipment
|
|
$
|
288,559
|
|
|
$
|
276,062
|
|
Land,
buildings and improvements
|
|
|
89,186
|
|
|
|
86,544
|
|
Furniture
and fixtures
|
|
|
28,582
|
|
|
|
29,609
|
|
Leasehold
improvements
|
|
|
16,183
|
|
|
|
15,943
|
|
|
|
|
422,510
|
|
|
|
408,158
|
|
Less
allowance for depreciation
|
|
|
(255,892
|
)
|
|
|
(234,213
|
)
|
|
|
$
|
166,618
|
|
|
$
|
173,945
|
|
|
|
Severance
|
|
|
Exit
of
Product
Lines
|
|
|
Sales
Agency
Terminations
|
|
|||
Balance
at 1/1/05
|
|
$
|
561
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Additional
accruals
|
|
|
4,445
|
|
|
|
897
|
|
|
|
612
|
|
Payments
|
|
|
(1,957
|
)
|
|
|
-
|
|
|
|
(612
|
)
|
Balance
at 12/31/05
|
|
|
3,049
|
|
|
|
897
|
|
|
|
-
|
|
Adjustments
|
|
|
(1,285
|
)
|
|
|
(897
|
)
|
|
|
-
|
|
Payments
|
|
|
(566
|
)
|
|
|
-
|
|
|
|
-
|
|
Balance
at 12/31/06
|
|
|
1,198
|
|
|
|
-
|
|
|
|
-
|
|
Adjustments
|
|
|
35
|
|
|
|
-
|
|
|
|
-
|
|
Payments
|
|
|
(204
|
)
|
|
|
-
|
|
|
|
-
|
|
Balance
at 9/30/07
|
|
$
|
1,029
|
|
|
$
|
-
|
|
|
$
|
-
|
|
(in
thousands)
Three
month period ended September 30,
2007
|
|
The
Company (Parent)
|
|
|
Combined
Guarantor Subsidiaries
|
|
|
Combined
Non-Guarantor Subsidiaries
|
|
|
Eliminations
|
|
|
Total
|
|
|||||
Net
sales
|
|
$
|
89,270
|
|
|
$
|
150,919
|
|
|
$
|
183,218
|
|
|
$
|
(16,104
|
)
|
|
$
|
407,303
|
|
Cost
of products sold
|
|
|
68,328
|
|
|
|
120,868
|
|
|
|
118,794
|
|
|
|
(16,138
|
)
|
|
|
291,852
|
|
Gross
Profit
|
|
|
20,942
|
|
|
|
30,051
|
|
|
|
64,424
|
|
|
|
34
|
|
|
|
115,451
|
|
Selling,
general and administrative expenses
|
|
|
27,404
|
|
|
|
30,866
|
|
|
|
34,266
|
|
|
|
-
|
|
|
|
92,536
|
|
Charge
related to restructuring activities
|
|
|
603
|
|
|
|
31
|
|
|
2,360
|
|
|
|
-
|
|
|
|
2,994
|
|
|
Charges,
interest and fees associated with debt refinancing
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
27
|
|
|
|
-
|
|
|
|
22
|
|
Income
(loss) from equity investee
|
|
|
26,747
|
|
|
|
12,019
|
|
|
|
13,789
|
|
|
(52,555
|
)
|
|
|
-
|
|
|
Interest
expense - net
|
|
|
7,123
|
|
|
|
107
|
|
|
|
3,630
|
|
|
|
-
|
|
|
|
10,860
|
|
Earnings
(loss) before Income Taxes
|
|
|
12,564
|
|
|
|
11,066
|
|
|
|
37,930
|
|
|
|
(52,521
|
)
|
|
|
9,039
|
|
Income
taxes
|
|
|
925
|
|
|
|
315
|
|
|
|
(3,840
|
)
|
|
|
-
|
|
|
|
(2,600
|
)
|
Net
Earnings (loss)
|
|
$
|
11,639
|
|
|
$
|
10,751
|
|
|
$
|
41,770
|
|
|
$
|
(52,521
|
)
|
|
$
|
11,639
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
month period ended September 30, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$
|
89,109
|
|
|
$
|
150,215
|
|
|
$
|
158,877
|
|
|
$
|
(18,739
|
)
|
|
$
|
379,462
|
|
Cost
of products sold
|
|
|
67,314
|
|
|
|
118,769
|
|
|
|
100,885
|
|
|
|
(18,571
|
)
|
|
|
268,397
|
|
Gross
Profit
|
|
|
21,795
|
|
|
|
31,446
|
|
|
|
57,992
|
|
|
|
(168
|
)
|
|
|
111,065
|
|
Selling,
general and administrative expenses
|
|
|
25,902
|
|
|
|
28,603
|
|
|
|
33,867
|
|
|
|
-
|
|
|
|
88,372
|
|
Charge
related to restructuring activities
|
|
|
1,205
|
|
|
|
130
|
|
|
|
1,021
|
|
|
|
-
|
|
|
|
2,356
|
|
Income
(loss) from equity investee
|
|
|
18,455
|
|
|
|
11,006
|
|
|
|
(3,421
|
)
|
|
|
(26,040
|
)
|
|
|
-
|
|
Interest
expense - net
|
|
|
4,529
|
|
|
|
2,505
|
|
|
|
1,110
|
|
|
|
-
|
|
|
|
8,144
|
|
Earnings
(loss) before Income Taxes
|
|
|
8,614
|
|
|
|
11,214
|
|
|
|
18,573
|
|
|
|
(26,208
|
)
|
|
|
12,193
|
|
Income
taxes (benefit)
|
|
|
(1,079
|
)
|
|
|
243
|
|
|
|
3,336
|
|
|
|
-
|
|
|
|
2,500
|
|
Net
Earnings (loss)
|
|
$
|
9,693
|
|
|
$
|
10,971
|
|
|
$
|
15,237
|
|
|
$
|
(26,208
|
)
|
|
$
|
9,693
|
|
(in
thousands)
Nine month
period ended September 30, 2007
|
|
The
Company (Parent)
|
|
|
Combined
Guarantor Subsidiaries
|
|
|
Combined
Non-Guarantor Subsidiaries
|
|
|
Eliminations
|
|
|
Total
|
|
|||||
Net
sales
|
|
$
|
245,880
|
|
|
$
|
466,451
|
|
|
$
|
507,547
|
|
|
$
|
(44,403
|
)
|
|
$
|
1,175,475
|
|
Cost
of products sold
|
|
|
190,907
|
|
|
|
371,534
|
|
|
|
333,152
|
|
|
|
(44,571
|
)
|
|
|
851,022
|
|
Gross
Profit
|
|
|
54,973
|
|
|
|
94,917
|
|
|
|
174,395
|
|
|
|
168
|
|
|
|
324,453
|
|
Selling,
general and administrative expenses
|
|
|
81,829
|
|
|
|
83,937
|
|
|
|
108,387
|
|
|
|
-
|
|
|
|
274,153
|
|
Charge
related to restructuring activities
|
|
|
3,053
|
|
|
|
45
|
|
|
|
4,709
|
|
|
|
-
|
|
|
|
7,807
|
|
Charges,
interest and fees associated with debt refinancing
|
|
|
13,329
|
|
|
|
-
|
|
|
|
74
|
|
|
|
-
|
|
|
|
13,403
|
|
Income
(loss) from equity investee
|
|
|
59,822
|
|
|
|
23,019
|
|
|
|
9,501
|
|
|
(92,342
|
)
|
|
|
-
|
|
|
Interest
expense - net
|
|
|
21,014
|
|
|
|
851
|
|
|
|
10,111
|
|
|
|
-
|
|
|
|
31,976
|
|
Earnings
(loss) before Income Taxes
|
|
|
(4,430
|
)
|
|
|
33,103
|
|
|
|
60,615
|
|
|
|
(92,174
|
)
|
|
|
(2,886
|
)
|
Income
taxes
|
|
|
1,381
|
|
|
|
855
|
|
|
|
689
|
|
|
|
-
|
|
|
|
2,925
|
|
Net
Earnings (loss)
|
|
$
|
(5,811
|
)
|
|
$
|
32,248
|
|
|
$
|
59,926
|
|
|
$
|
(92,174
|
)
|
|
$
|
(5,811
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
month period ended September 30, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$
|
259,676
|
|
|
$
|
459,854
|
|
|
$
|
447,483
|
|
|
$
|
(54,083
|
)
|
|
$
|
1,112,930
|
|
Cost
of products sold
|
|
|
194,764
|
|
|
|
359,684
|
|
|
|
294,322
|
|
|
|
(53,766
|
)
|
|
|
795,004
|
|
Gross
Profit
|
|
|
64,912
|
|
|
|
100,170
|
|
|
|
153,161
|
|
|
|
(317
|
)
|
|
|
317,926
|
|
Selling,
general and administrative expenses
|
|
|
78,144
|
|
|
|
84,832
|
|
|
|
97,372
|
|
|
|
-
|
|
|
|
260,348
|
|
Charge
related to restructuring activities
|
|
|
4,736
|
|
|
|
255
|
|
|
|
3,362
|
|
|
|
-
|
|
|
|
8,353
|
|
Income
(loss) from equity investee
|
|
|
45,311
|
|
|
|
20,024
|
|
|
|
7,623
|
|
|
|
(72,958
|
)
|
|
|
-
|
|
Interest
expense - net
|
|
|
11,834
|
|
|
|
7,119
|
|
|
|
3,794
|
|
|
|
-
|
|
|
|
22,747
|
|
Earnings
(loss) before Income Taxes
|
|
|
15,509
|
|
|
|
27,988
|
|
|
|
56,256
|
|
|
|
(73,275
|
)
|
|
|
26,478
|
|
Income
taxes (benefit)
|
|
|
(4,344
|
)
|
|
|
1,105
|
|
|
|
9,864
|
|
|
|
-
|
|
|
|
6,625
|
|
Net
Earnings (loss)
|
|
$
|
19,853
|
|
|
$
|
26,883
|
|
|
$
|
46,392
|
|
|
$
|
(73,275
|
)
|
|
$
|
19,853
|
|
(in
thousands)
September
30, 2007
|
|
The
Company (Parent)
|
|
|
Combined
Guarantor Subsidiaries
|
|
|
Combined
Non-Guarantor Subsidiaries
|
|
|
Eliminations
|
|
|
Total
|
|
|||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash
and cash equivalents
|
|
$
|
11,046
|
|
|
$
|
2,727
|
|
|
$
|
49,877
|
|
|
$
|
-
|
|
|
$
|
63,650
|
|
Marketable
securities
|
|
|
254
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
254
|
|
Trade
receivables, net
|
|
|
105,547
|
|
|
|
53,708
|
|
|
|
116,304
|
|
|
|
(7,633
|
)
|
|
|
267,926
|
|
Installment
receivables, net
|
|
|
-
|
|
|
|
8,183
|
|
|
|
2,614
|
|
|
|
-
|
|
|
|
10,797
|
|
Inventories,
net
|
|
|
74,436
|
|
|
|
35,897
|
|
|
|
95,681
|
|
|
|
(1,388
|
)
|
|
|
204,626
|
|
Deferred
income taxes
|
|
|
4,518
|
|
|
|
394
|
|
|
|
9,246
|
|
|
|
-
|
|
|
|
14,158
|
|
Other
current assets
|
|
|
13,151
|
|
|
|
8,043
|
|
|
|
38,722
|
|
|
|
-
|
|
|
|
59,916
|
|
Total
Current Assets
|
|
|
208,952
|
|
|
|
108,952
|
|
|
|
312,444
|
|
|
|
(9,021
|
)
|
|
|
621,327
|
|
Investment
in subsidiaries
|
|
|
1,322,494
|
|
|
|
619,160
|
|
|
|
-
|
|
|
|
(1,941,654
|
)
|
|
|
-
|
|
Intercompany
advances, net
|
|
|
330,504
|
|
|
|
815,831
|
|
|
|
42,653
|
|
|
|
(1,188,988
|
)
|
|
|
-
|
|
Other
Assets
|
|
|
66,582
|
|
|
|
16,248
|
|
|
|
1,534
|
|
|
|
-
|
|
|
|
84,364
|
|
Other
Intangibles
|
|
|
992
|
|
|
|
11,741
|
|
|
|
87,771
|
|
|
|
-
|
|
|
|
100,504
|
|
Property
and Equipment, net
|
|
|
59,505
|
|
|
|
10,526
|
|
|
|
96,587
|
|
|
|
-
|
|
|
|
166,618
|
|
Goodwill
|
|
|
-
|
|
|
|
23,541
|
|
|
|
485,848
|
|
|
|
-
|
|
|
|
509,389
|
|
Total
Assets
|
|
$
|
1,989,029
|
|
|
$
|
1,605,999
|
|
|
$
|
1,026,837
|
|
|
$
|
(3,139,663
|
)
|
|
$
|
1,482,202
|
|
Liabilities
and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
72,363
|
|
|
$
|
15,367
|
|
|
$
|
64,034
|
|
|
$
|
-
|
|
|
$
|
151,764
|
|
Accrued
expenses
|
|
|
38,487
|
|
|
|
18,117
|
|
|
|
94,612
|
|
|
|
(7,633
|
)
|
|
|
143,583
|
|
Accrued
income taxes
|
|
|
3,063
|
|
|
|
149
|
|
|
|
(667
|
)
|
|
|
-
|
|
|
|
2,545
|
|
Short-term
debt and current maturities of long-term
obligations
|
|
|
4,500
|
|
|
|
-
|
|
|
|
825
|
|
|
|
-
|
|
|
|
5,325
|
|
Total
Current Liabilities
|
|
|
118,413
|
|
|
|
33,633
|
|
|
|
158,804
|
|
|
|
(7,633
|
)
|
|
|
303,217
|
|
Long-Term
Debt
|
|
|
553,447
|
|
|
|
17
|
|
|
|
11,540
|
|
|
|
-
|
|
|
|
565,004
|
|
Other
Long-Term Obligations
|
|
|
61,405
|
|
|
|
2,040
|
|
|
|
46,358
|
|
|
|
-
|
|
|
|
109,803
|
|
Intercompany
advances, net
|
|
|
751,586
|
|
|
|
319,745
|
|
|
|
117,657
|
|
|
|
(1,188,988
|
)
|
|
|
-
|
|
Total
Shareholders’ Equity
|
|
|
504,178
|
|
|
|
1,250,564
|
|
|
|
692,478
|
|
|
|
(1,943,042
|
)
|
|
|
504,178
|
|
Total
Liabilities and Shareholders’ Equity
|
|
$
|
1,989,029
|
|
|
$
|
1,605,999
|
|
|
$
|
1,026,837
|
|
|
$
|
(3,139,663
|
)
|
|
$
|
1,482,202
|
|
(in
thousands)
December
31, 2006
|
|
The
Company (Parent)
|
|
|
Combined
Guarantor Subsidiaries
|
|
|
Combined
Non-Guarantor Subsidiaries
|
|
|
Eliminations
|
|
|
Total
|
|
|||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Current
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash
and cash equivalents
|
|
$
|
35,918
|
|
|
$
|
2,202
|
|
|
$
|
44,083
|
|
|
$
|
-
|
|
|
$
|
82,203
|
|
Marketable
securities
|
|
|
190
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
190
|
|
Trade
receivables, net
|
|
|
651
|
|
|
|
15,888
|
|
|
|
248,667
|
|
|
|
(3,600
|
)
|
|
|
261,606
|
|
Installment
receivables, net
|
|
|
-
|
|
|
|
5,513
|
|
|
|
1,584
|
|
|
|
-
|
|
|
|
7,097
|
|
Inventories,
net
|
|
|
77,201
|
|
|
|
37,511
|
|
|
|
88,585
|
|
|
|
(1,541
|
)
|
|
|
201,756
|
|
Deferred
income taxes
|
|
|
4,223
|
|
|
|
393
|
|
|
|
8,896
|
|
|
|
-
|
|
|
|
13,512
|
|
Other
current assets
|
|
|
26,353
|
|
|
|
8,764
|
|
|
|
55,477
|
|
|
|
(1,200
|
)
|
|
|
89,394
|
|
Total
Current Assets
|
|
|
144,536
|
|
|
|
70,271
|
|
|
|
447,292
|
|
|
|
(6,341
|
)
|
|
|
655,758
|
|
Investment
in subsidiaries
|
|
|
1,293,046
|
|
|
|
607,559
|
|
|
|
-
|
|
|
|
(1,900,605
|
)
|
|
|
-
|
|
Intercompany
advances, net
|
|
|
354,660
|
|
|
|
850,121
|
|
|
|
110,935
|
|
|
|
(1,315,716
|
)
|
|
|
-
|
|
Other
Assets
|
|
|
50,443
|
|
|
|
15,566
|
|
|
|
1,434
|
|
|
|
-
|
|
|
|
67,443
|
|
Other
Intangibles
|
|
|
1,016
|
|
|
|
13,150
|
|
|
|
88,710
|
|
|
|
-
|
|
|
|
102,876
|
|
Property
and Equipment, net
|
|
|
65,016
|
|
|
|
11,550
|
|
|
|
97,379
|
|
|
|
-
|
|
|
|
173,945
|
|
Goodwill
|
|
|
-
|
|
|
|
23,541
|
|
|
|
466,888
|
|
|
|
-
|
|
|
|
490,429
|
|
Total
Assets
|
|
|
1,908,717
|
|
|
$
|
1,591,758
|
|
|
$
|
1,212,638
|
|
|
$
|
(3,222,662
|
)
|
|
$
|
1,490,451
|
|
Liabilities
and Shareholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
89,818
|
|
|
$
|
12,095
|
|
|
$
|
61,128
|
|
|
$
|
-
|
|
|
$
|
163,041
|
|
Accrued
expenses
|
|
|
34,611
|
|
|
|
17,405
|
|
|
|
100,560
|
|
|
|
(4,800
|
)
|
|
|
147,776
|
|
Accrued
income taxes
|
|
|
10,021
|
|
|
|
26
|
|
|
|
2,869
|
|
|
|
-
|
|
|
|
12,916
|
|
Short-term
debt and current maturities of long-term
obligations
|
|
|
51,773
|
|
|
|
-
|
|
|
|
72,470
|
|
|
|
-
|
|
|
|
124,243
|
|
Total
Current Liabilities
|
|
|
186,223
|
|
|
|
29,526
|
|
|
|
237,027
|
|
|
|
(4,800
|
)
|
|
|
447,976
|
|
Long-Term
Debt
|
|
|
321,263
|
|
|
|
70
|
|
|
|
127,550
|
|
|
|
-
|
|
|
|
448,883
|
|
Other
Long-Term Obligations
|
|
|
53,044
|
|
|
|
2,040
|
|
|
|
53,144
|
|
|
|
-
|
|
|
|
108,228
|
|
Intercompany
advances, net
|
|
|
862,823
|
|
|
|
370,452
|
|
|
|
82,441
|
|
|
|
(1,315,716
|
)
|
|
|
-
|
|
Total
Shareholders’ Equity
|
|
|
485,364
|
|
|
|
1,189,670
|
|
|
|
712,476
|
|
|
|
(1,902,146
|
)
|
|
|
485,364
|
|
Total
Liabilities and Shareholders’ Equity
|
|
$
|
1,908,717
|
|
|
$
|
1,591,758
|
|
|
$
|
1,212,638
|
|
|
$
|
(3,222,662
|
)
|
|
$
|
1,490,451
|
|
(in
thousands)
Nine
month period ended September 30, 2007
|
|
The
Company (Parent)
|
|
|
Combined
Guarantor Subsidiaries
|
|
|
Combined
Non-Guarantor Subsidiaries
|
|
|
Eliminations
|
|
|
Total
|
|
|||||
Net
Cash Provided (Used) by Operating
Activities
|
|
$
|
(99,833
|
)
|
|
$
|
1,603
|
|
|
$
|
128,642
|
|
|
$
|
-
|
|
|
$
|
30,412
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases
of property and equipment
|
|
|
(2,919
|
)
|
|
|
(1,078
|
)
|
|
|
(9,718
|
)
|
|
|
-
|
|
|
|
(13,715
|
)
|
Proceeds
from sale of property and equipment
|
|
|
-
|
|
|
|
-
|
|
|
|
477
|
|
|
|
-
|
|
|
|
477
|
|
Increase
in other long-term assets
|
|
|
-
|
|
|
-
|
|
|
|
(417
|
)
|
|
|
-
|
|
|
|
(417
|
)
|
|
Other
|
|
|
657
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
658
|
||
Net
Cash Used for Investing Activities
|
|
|
(2,262
|
)
|
|
|
(1,078
|
)
|
|
|
(9,657
|
)
|
|
|
-
|
|
|
|
(12,997
|
)
|
Financing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
revolving lines of credit, securitization facility and long-term
borrowings
|
|
|
586,084
|
|
|
|
-
|
|
|
|
17,168
|
|
|
|
-
|
|
|
|
603,252
|
|
Payments
on revolving lines of credit, securitization facility and long-term
borrowings
|
|
|
(487,050
|
)
|
|
|
-
|
|
|
|
(132,965
|
)
|
|
|
-
|
|
|
|
(620,015
|
)
|
Payment
of dividends
|
|
|
(1,196
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,196
|
)
|
Payment
of financing costs
|
|
|
(20,615
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(20,615
|
)
|
Net
Cash Provided (Used) by Financing
Activities
|
|
|
77,223
|
|
|
|
-
|
|
|
|
(115,797
|
)
|
|
|
-
|
|
|
|
(38,574
|
)
|
Effect
of exchange rate changes on cash
|
|
|
-
|
|
|
|
-
|
|
|
|
2,606
|
|
|
|
-
|
|
|
|
2,606
|
|
Increase
(decrease) in cash and cash equivalents
|
|
|
(24,872
|
)
|
|
|
525
|
|
|
|
5,794
|
|
|
-
|
|
|
|
(18,553
|
)
|
|
Cash
and cash equivalents at beginning of period
|
|
|
35,918
|
|
|
|
2,202
|
|
|
|
44,083
|
|
|
|
-
|
|
|
|
82,203
|
|
Cash
and cash equivalents at end of period
|
|
$
|
11,046
|
|
|
$
|
2,727
|
|
|
$
|
49,877
|
|
|
$
|
-
|
|
|
$
|
63,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
month period ended September 30, 2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Cash Provided (Used) by Operating Activities
|
|
$
|
(13,021
|
)
|
|
$
|
19,105
|
|
|
$
|
48,315
|
|
|
$
|
(17,118
|
)
|
|
$
|
37,281
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases
of property and equipment
|
|
|
(6,026
|
)
|
|
|
(1,607
|
)
|
|
|
(7,967
|
)
|
|
|
-
|
|
|
|
(15,600
|
)
|
Proceeds
from sale of property and equipment
|
|
|
-
|
|
|
|
11
|
|
|
|
100
|
|
|
|
-
|
|
|
|
111
|
|
Increase
(decrease) in other investments
|
|
|
(7,604
|
)
|
|
|
(3,000
|
)
|
|
|
-
|
|
|
|
10,604
|
|
|
|
-
|
|
Increase
in other long-term assets
|
|
|
(857
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(857
|
)
|
Other
|
|
|
(619
|
)
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
(619
|
)
|
|
Net
Cash Used for Investing Activities
|
|
|
(15,106
|
)
|
|
|
(4,596
|
)
|
|
|
(7,867
|
)
|
|
|
10,604
|
|
|
|
(16,965
|
)
|
Financing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
revolving lines of credit, securitization facility and long-term
borrowings
|
|
|
449,950
|
|
|
|
-
|
|
|
|
163,102
|
|
|
|
-
|
|
|
|
613,052
|
|
Payments
on revolving lines of credit, securitization facility and long-term
borrowings
|
|
|
(425,723
|
)
|
|
|
(94
|
)
|
|
|
(224,106
|
)
|
|
|
-
|
|
|
|
(649,923
|
)
|
Proceeds
from exercise of stock options
|
|
|
2,220
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,220
|
|
Payment
of dividends
|
|
|
(1,192
|
)
|
|
|
(17,370
|
)
|
|
|
-
|
|
|
|
17,370
|
|
|
|
(1,192
|
)
|
Capital
contributions
|
|
|
-
|
|
|
|
3,020
|
|
|
|
7,836
|
|
|
|
(10,856
|
)
|
|
|
-
|
|
Net
Cash Provided (Used) by Financing Activities
|
|
|
25,255
|
|
|
|
(14,444
|
)
|
|
|
(53,168
|
)
|
|
|
6,514
|
|
|
|
(35,843
|
)
|
Effect
of exchange rate changes on cash
|
|
|
-
|
|
|
|
-
|
|
|
|
(786
|
)
|
|
|
-
|
|
|
|
(786
|
)
|
Increase
(decrease) in cash and cash equivalents
|
|
|
(2,872
|
)
|
|
|
65
|
|
|
(13,506
|
)
|
|
|
-
|
|
|
|
(16,313
|
)
|
|
Cash
and cash equivalents at beginning of period
|
|
|
7,270
|
|
|
|
1,046
|
|
|
|
17,308
|
|
|
|
-
|
|
|
|
25,624
|
|
Cash
and cash equivalents at end of period
|
|
$
|
4,398
|
|
|
$
|
1,111
|
|
|
$
|
3,802
|
|
|
$
|
-
|
|
|
$
|
9,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations.
|
|
·
|
organization
and infrastructure rationalization,
|
|
·
|
product
line simplification,
|
|
·
|
reduction
of fixed costs through
further product and sub-assembly outsourcing,
|
|
·
|
rationalization
of facilities
and
|
|
·
|
global
standardization of
products and product
technologies.
|
|
|
Nine
Months Ended September 30,
|
|
|||||
|
|
2007
|
|
|
2006
|
|
||
Net
cash provided by operating activities
|
|
$
|
30,412
|
|
$
|
37,281
|
|
|
Net
cash impact related to restructuring activities
|
|
|
10,951
|
|
|
|
7,707
|
|
Less: Purchases
of property and equipment - net
|
|
|
(13,238
|
)
|
|
|
(15,489
|
)
|
Free
Cash Flow
|
|
$
|
28,125
|
|
$
|
29,499
|
|
Quantitative
and Qualitative Disclosures About Market
Risk.
|
Controls
and Procedures.
|
OTHER
INFORMATION
|
Risk
Factors.
|
Unregistered
Sales of Equity Securities and Use of
Proceeds.
|
Exhibits.
|
Exhibit
No.
|
|
|
|
10.1
|
Form of Rule 10b5-1 Sales Plan, with attached schedule of officers who have entered into such a plan. | ||
|
31.1
|
|
Chief
Executive Officer Rule 13a-14(a)/15d-14(a) Certification (filed
herewith).
|
|
31.2
|
|
Chief
Financial Officer Rule 13a-14(a)/15d-14(a) Certification
(filed herewith).
|
|
32.1
|
|
Certification
of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350,
as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(furnished herewith).
|
|
32.2
|
|
Certification
of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(furnished herewith).
|
|
INVACARE
CORPORATION
|
|
|
|
|
|
|
Date:
November 8, 2007
|
By:
|
/s/
Gregory C. Thompson
|
|
|
|
Name:
Gregory C. Thompson
|
|
|
|
Title:
Chief Financial Officer
|
|
|
|
(As
Principal Financial and Accounting Officer and on behalf of the
registrant)
|
|