Invacare Corporation (NYSE:IVC) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 08:30 am ET
[Operator Instructions]. And we will take our first question from Bob Labick with CJS Securities. Please go ahead.
Good morning. Thank you. Good morning, congratulations. Hi. Very nice quarter obviously strong EBITDA and free cash flow a key proof point in the journey right now, more to come, but congratulations .
So I wanted to start obviously you've guided to the at least $20 million of EBITDA and just because we're in this transformation and getting closer to the end, could you talk a little bit about some of the key revenue drivers and deltas and some of the key cost take out over the next 12 months, and specifically kind of how we should be thinking through seasonally softer first half, just to give us a sense of timing of what's going to help pickup that North American revenue because as you said cost have come out very well, but you're looking to get that revenue growth. So talk a little bit about that and then when we might see the next chunks of costs come out?
Yeah, thanks for the question, Bob. Over the next five quarters, we have, let's say two layers of kind of cost reduction activities and nearly every day we're looking for ways to improve cost around our enterprise and those happen often in a small fashion. One of the next big bows of cost to come out will be as we implement our IT system in the various regions will -- which will do a lot to integrate business processes of these very disparate business units we've operated, which resulted from many years of acquisition without integration. So, I think it's in North America, at the end of the first half, kind of midway through second quarter we're going live in North America, we have the normal cut over processes and extraordinary care that goes on as you do some of those things, then we would assume we start to see the benefits of that streamlining in third and fourth quarter in North America.
On that basis, Asia Pacific along the way although that's more minor and then Europe at the beginning of 2021, when they go live with the next round of their process improvements. In the meantime, we have brand new products coming out in all categories. I mentioned three today on the call, there are categories --products coming out in each category that are quite novel over the next year. And I think they come out in relatively uniform fashion nearly every 60 days.
So we'll have some small costs coming up uniformly, we'll have some big chunky costs coming out with IT implementations and other consolidation efforts and then we'll see sales growth. That's more than seasonal next year with more new products.
It will generally via an amplification from now through the end of 2020 as we expect to meet that end -- year-end objective, but not just because things were pushed to the end of our