Strong Sequential Improvement Achieved in Preliminary 4Q22 Financial Results

In the fourth quarter of 2022, the company continued to experience strong demand for its lifestyle and mobility & seating products and elevated open orders compared to the end of 2021. As guided in its 3Q22 earnings release, the company anticipated sequential improvement in its key financial metrics. Based on preliminary unaudited 4Q22 results, the company anticipates reporting the following results for 4Q22 as compared to 3Q22:

• Reported net sales growth of 6% to $181 million as compared to $170 million, with growth in all regions and in all major product categories;
• Gross margins, excluding the respiratory charges in 3Q22, improved substantially by 310 basis points to 26.6%;
• Net Loss and Adjusted EBITDA significantly improved driven by revenue growth; gross margin expansion due to pricing actions, favorable product mix and lower freight costs; and lower SG&A expense; and,
• Europe returned to profitability, confirming the 3Q22 operating loss for the segment was out of the ordinary.