Savaria Corporation (“Savaria”) (TSX: SIS), one of the global
leaders in the accessibility industry, is pleased to announce today
its results for fiscal 2019.
Highlights
- Revenue for the year was $374.3M, up $88.3M, or 30.9%;
- Gross profit was $125.3M, up $31.9M, or 34.1%;
- Adjusted net earnings for the year were $26.8M, or $0.55 per
share on a diluted basis, up 37.4% and 25.0%, respectively;
- Adjusted EBITDA was $55.6M, up $15.3M or 37.9%.
|
|
|
in thousands of dollars, except per-share amounts and
percentages |
Q4 |
YTD |
2019 |
2018 |
Change |
2019 |
2018 |
Change |
Revenue |
$96,437 |
|
$93,118 |
|
3.6% |
|
$374,340 |
|
$286,034 |
|
30.9% |
|
Gross profit |
$34,083 |
|
$29,077 |
|
17.2% |
|
$125,311 |
|
$93,436 |
|
34.1% |
|
% of revenue |
|
35.3% |
|
|
31.2% |
|
n/a |
|
|
33.5% |
|
|
32.7% |
|
n/a |
|
Adjusted net earnings (1) |
$8,834 |
|
$5,203 |
|
69.8% |
|
$26,777 |
|
$19,490 |
|
37.4% |
|
% of revenue |
|
9.2% |
|
|
5.6% |
|
n/a |
|
|
7.2% |
|
|
6.8% |
|
n/a |
|
Adjusted net earnings per share |
$0.17 |
|
$0.11 |
|
54.5% |
|
$0.55 |
|
$0.44 |
|
25.0% |
|
Adjusted EBITDA (1) |
$15,225 |
|
$12,426 |
|
22.5% |
|
$55,625 |
|
$40,327 |
|
37.9% |
|
% of revenue |
|
15.8% |
|
|
13.3% |
|
n/a |
|
|
14.9% |
|
|
14.1% |
|
n/a |
|
Adjusted EBITDA per share |
$0.30 |
|
$0.27 |
|
11.1% |
|
$1.14 |
|
$0.91 |
|
25.3% |
|
(1) Non-IFRS measures are described in the 'Glossary' section of
the MD&A |
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A word from the President
“Our results for fiscal 2019 were in line with
our expectations as the four key metrics of revenue, gross profit,
adjusted net earnings and adjusted EBITDA all grew more than 30%
compared to last year. This is a strong indicator that everyone at
Savaria worked hard to deliver these results,” declared Mr.
Bourassa, President and Chief Executive Officer of Savaria.
“As stated during the course of the year, our
primary focus for 2019 was on the integration of Garaventa Lift and
Span, as well the acquisition and integration of Florida Lifts and
Silvalea. Moreover, the bought-deal private placement of $70M in
April 2019 further strengthened our balance sheet in preparation
for future strategic acquisitions.
“In addition to the anticipated organic growth
in revenue generated by our core residential elevators and
accessibility lifts, growth in 2020 is anticipated to be further
fueled by three key product categories.
“First, the patient lift line is expected to
perform well, with growth being driven by an expanded product
offering and an emphasis on business development.
“Second, following the acquisition of Silvalea
in 2019, Savaria has begun to transfer its extensive sling
knowledge to Span’s operations in Greenville, South Carolina. This
will allow Span to manufacture and market patient slings in North
America while leveraging its domestic U.S. production capabilities
and allowing for a bundled offering of slings with patient lifts.
We have also made investments in personnel with corporate account
backgrounds and significant sales experience within the patient
lift category. Savaria is targeting to capture 5% of the estimated
North American market by the end of 2021, which would represent
approximately $20M in total annual revenue.
“Third, Savaria will launch and market its new
Vuelift Mini home elevator in 2020. This panoramic glass elevator
with integrated hoist way is now available with a diameter of only
42” making it ideal for smaller spaces and allowing for easier
installations centered inside a spiral staircase. This product will
be sold through Savaria’s dealers and by its Garaventa Lift
distribution teams in Europe.
“I would like to thank our 1,500 global
employees for their dedication to our vision of offering the best
accessibility products to an aging population. Our industry is
strong and will gain significance in the coming years. Savaria is
well-positioned as a worldwide leader to serve this growing
market’s needs,” concluded Mr. Bourassa.
Outlook 2020
While the effects of COVID-19 on our business
are difficult to predict, Savaria is focused on the unchanged
mobility product needs of an aging population. Our main supply
system - our factory in Huizhou, China - went back into production
February 19, 2020 after a vigilant effort to implement health and
safety protocols that protected our staff during the local
outbreak.
In other facilities, we have implemented
procedures to protect our employees and clients with by-appointment
only showroom and store access, protocols for on-site visits, and
restricted staff travel. We anticipate that some sales may be
delayed with the current restrictions in place for North America,
Europe and Australia. We are monitoring closely the impact of
COVID-19 and defer to our risks and uncertainties section in our
2019 annual Management’s Discussion and Analysis.
As we have been stating since early 2019, we
remain focused on operational synergies and the integration
processes of our recent Span and Garaventa Lift acquisitions. Our
balance sheet is healthier than ever, placing us in a solid
position to take advantage of growth opportunities.
As of March 25, 2020, we are not in a position
to reaffirm our guidance for our fiscal 2020, although our first
quarter results seem to be aligning with our expectations.
About Savaria Corporation
Savaria Corporation (savaria.com) is one of the
global leaders in the accessibility industry. It provides
accessibility solutions for the physically challenged to increase
their comfort, their mobility and their independence. Its product
line is one of the most comprehensive on the market. Savaria
designs, manufactures, distributes and installs accessibility
equipment, such as stairlifts for straight and curved stairs,
vertical and inclined wheelchair lifts and elevators for home and
commercial use. It also manufactures and markets a comprehensive
selection of pressure management products for the medical market,
medical beds for the long-term care market, as well as an extensive
line of medical equipment and solutions for the safe handling of
patients. In addition, Savaria converts and adapts vehicles to be
wheelchair accessible. The Corporation operates a sales network of
dealers worldwide and direct sales offices in North America, Europe
(Switzerland, Germany, Italy, Czech Republic, Poland and United
Kingdom), Australia and China. Savaria employs approximately 1,500
people globally and its plants are located across Canada in Laval
and Magog (Québec), Brampton, Beamsville and Toronto (Ontario) and
Surrey (British Columbia), in the United States at Greenville
(South Carolina), in Huizhou (China), in Milan (Italy) and in
Newton Abbot (United Kingdom ).
Compliance with International Financial Reporting
Standards (“IFRS”)
The information appearing in this press release
has been prepared in accordance with IFRS. However, Savaria uses
EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA
per share, adjusted net earnings and adjusted net earnings per
share for analysis purposes to measure its financial performance.
These measures have no standardized definitions in accordance with
IFRS and are therefore regarded as non-IFRS measures. These
measures may therefore not be comparable to similar measures
reported by other companies. Additional details for these non-IFRS
measures can be found in Savaria’s MD&A, which is posted on
Savaria’s website at www.savaria.com, and filed with SEDAR at
www.sedar.com.
Forward-Looking
Statements
This press release includes certain statements
that are “forward-looking statements” within the meaning of the
securities laws of Canada. Any statement in this press release that
is not a statement of historical fact may be deemed to be a
forward-looking statement. When used in this press release, the
words “believe”, “could”, “should”, “intend”, “expect”, “estimate”,
“assume” and other similar expressions are generally intended to
identify forward-looking statements. It is important to know that
the forward-looking statements in this document describe the
Corporation’s expectations as at the date hereof, which are not
guarantees of future performance of Savaria or its industry, and
involve known and unknown risks and uncertainties that may cause
Savaria’s or the industry’s outlook, actual results or performance
to be materially different from any future results or performance
expressed or implied by such statements. The Corporation’s actual
results could be materially different from its expectations if
known or unknown risks affect its business, or if its estimates or
assumptions turn out to be inaccurate. A change affecting an
assumption can also have an impact on other interrelated
assumptions, which could increase or diminish the effect of the
change. As a result, the Corporation cannot guarantee that any
forward-looking statement will materialize and, accordingly, the
reader is cautioned not to place undue reliance on these
forward-looking statements. Forward-looking statements do not take
into account the effect that transactions or special items
announced or occurring after the statements are made may have on
the Corporation’s business. For example, they do not include the
effect of sales of assets, monetizations, mergers, acquisitions,
other business combinations or transactions, asset write-downs or
other charges announced or occurring after forward-looking
statements are made.
Unless otherwise required by applicable
securities laws, Savaria disclaims any intention or obligation to
update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise. The
foregoing risks and uncertainties include the risks set forth under
“Risks and Uncertainties” in Savaria’s latest Annual MD&A as
well as other risks detailed from time to time in reports filed by
Savaria with securities regulators in Canada.
Results
Webcast and conference call on March 26, 2020, at 8:30 a.m.
(EST)
Savaria will host a conference call on Thursday,
March 26, 2020 at 8:30 a.m. Eastern Time with financial analysts to
discuss results of the quarter and fiscal year ended December 31,
2019. Investors and members of the media are invited to participate
on a listen-only basis.
Conference call access:
Local Dial-in Numbers: (647) 427-7450 or (514)
807-9895
North American Toll Free Number: 1 (888)
231-8191
Webcast (EN):
https://event.on24.com/wcc/r/2225130/5CF90FC9BA3F5D7830CF2BCEFF0550F4
link to the replay of the webcast will be available on the
Corporation’s website at www.savaria.com.
For further information: |
|
|
Marcel BourassaChairman,
President and Chief Executive Officer1.800.661.5112 |
Mauro Ferrara, CPA-CAChief
Financial Officer1.800.931.5655, ext. 227mferrara@savaria.com |
Nicolas Rimbert, CFAVice
President, Corporate Development1.800.931.5655, ext.
239nrimbert@savaria.com |
www.savaria.comFacebook :
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