Savaria Corporation (“Savaria”) (TSX: SIS), one of the global
leaders in the accessibility industry, is pleased to announce today
its results for the first quarter of fiscal 2020.
Highlights
- Revenue was $88.4M, up $0.9M, or 1.1%;
- Gross profit was $30.1M, up $3.1M, or 11.4%;
- Adjusted net earnings were $7.2M, or $0.14 per share on a
diluted basis, up 96.1% and 75.0%, respectively;
- Adjusted EBITDA was $12.4M, up $1.8M or 17.3%.
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in thousands of dollars, except per-share amounts and
percentages |
Q1 |
2020 |
2019 |
Change |
Revenue |
$88,419 |
$87,477 |
1.1% |
Gross profit |
$30,142 |
$27,054 |
11.4% |
% of revenue |
34.1% |
30.9% |
n/a |
Adjusted net earnings (1) |
$7,180 |
$3,661 |
96.1% |
%
of revenue |
8.1% |
4.2% |
n/a |
Adjusted net earnings per share |
$0.14 |
$0.08 |
75.0% |
Adjusted EBITDA(1) |
$12,357 |
$10,531 |
17.3% |
%
of revenue |
14.0% |
12.0% |
n/a |
Adjusted EBITDA per share |
$0.24 |
$0.23 |
4.3% |
(1) Non-IFRS measures are described in the 'Glossary' section of
the MD&A |
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A word from the President
“I am happy with our first quarter results,
despite the inherent challenges of COVID‑19. Total revenue reached
$88.4 million, a slight increase of 1.1% over last year. Meanwhile,
our adjusted EBITDA grew by 17.3% to $12.4 million, representing an
adjusted EBITDA margin of 14% compared to 12% in Q1-2019.
“With a working capital ratio of 2.4 and a net
interest-bearing debt to adjusted EBITDA ratio sitting at 0.2x, our
strong balance sheet provides us the financial flexibility to
explore acquisition opportunities, while ensuring the security of
our dividend,” stated Mr. Marcel Bourassa, President and Chief
Executive Officer of Savaria.
“While the majority of people want to stay in
their own homes as long as possible, COVID-19 has perhaps
reinforced the desire for people to seek ways of making their homes
accessible or more suitable for home medical care. To this end, we
have adopted a new campaign, “Stay at home with Savaria®”, to
promote our full portfolio of products, including stairlifts, home
elevators, adapted vehicles, patient lifts, slings, medical beds
and therapeutic surfaces. More than ever, as seniors and their
family members look for solutions for aging in place, they can turn
to Savaria.
“On March 20th, in light of COVID-19 challenges,
we provided a $1,000 bonus to our 1,450 employees. Worldwide, all
ten of our factories are open for business and I wish to thank the
incredible commitment of our employees for continuing to serve our
clients during these unprecedented times,” concluded
Mr. Bourassa.
Outlook 2020
Providing a full year outlook in the midst of the current
COVID-19 pandemic remains challenging. However, given the
Corporation’s financial liquidity and strong balance sheet, we
believe our post pandemic future bodes well, as our product
offering is aligned with demographics.
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 1,450
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 May 13, 2020, at 8:30 a.m.
(EST)
Savaria will host a conference call on
Wednesday, May 13, 2020 at 8:30 a.m. Eastern Time with financial
analysts to discuss results of the quarter ended March 31, 2020.
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)
231-8191Webcast (EN):
https://produceredition.webcasts.com/starthere.jsp?ei=1313966&tp_key=bee94a683c
link to the replay of the webcast will be
available on the Corporation’s website at www.savaria.com
For further information: |
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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 :
www.facebook.com/savariabettermobilityTwitter:
twitter.com/Mobilityforlife
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