Invacare Corporation (NYSE:IVC) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 08:30 am ET
we are seeing in the fourth quarter, we are confident in our ability to achieve our 2019 annual guidance. Through this quarter, we have accumulated $14.7 million of adjusted EBITDA, which puts us on track to meet our annual guidance of achieving at least $20 million. In addition, we reaffirm our annual guidance of free cash flow usage at or below $25 million. I will now turn the call back over to Matt.
Thanks, Kathy. Turning to slide 16, our path to long-term adjusted EBITDA remains unchanged. Through the first nine months of 2019 in Europe, we realized higher profitability from sales growth and the benefit of cost reductions, which have been partially offset by unfavorable foreign exchange of $2.3 million .
North America operating profit improved $17.7 million, driven by revenue growth in lifestyle products, higher gross profit across all three product categories, cost reductions, including material and operating costs, as well as significant improvements in SG&A spending. These operational and this improvements expanded gross profit by 220 basis points and leveraged SG&A, driving favorable results in the region with North America nearing breakeven operating income in the quarter. We've made substantial progress in our transformation and we continue to strengthen our foundation with a solid plan in place to deliver significant improvements throughout the remainder of this year and beyond.
We're pleased with the improved performance and remain confident in our ability to meet our long-term objective of $85 million to $105 million of run rate adjusted EBITDA by the end of 2020. We appreciate the continued support of our shareholders and our associates through this process. Thanks for taking the time this morning to participate on our call. We have time to take questions. Savannah?