Savaria Corporation (“Savaria”) (TSX: SIS), a global leader in
the accessibility industry, is pleased to announce its results for
the third quarter ended September 30, 2021.
Highlights – Q3 2021 vs. Q3
2020
- Revenue
was $180.8M, up $90.0M or 99.1%, mainly due to the acquisition of
Handicare;
- Gross
profit was $58.5M, up $25.9M or 79.6%, representing 32.4% of
revenue compared to 35.9% in Q3 2020;
- Adjusted
EBITDA was $26.3M, up $9.4M or 55.6%;
- Adjusted
EBITDA margin stood at 14.6%, compared to 18.6% in Q3 2020;
- Net earnings
were $9.1M or $0.15 per share on a diluted basis. Adjusted net
earnings were $9.6M or $0.15 per share on a diluted basis, up $1.3M
or 16.3%;
- Funds available
of $138.0M to support working capital, investments and growth
opportunities;
- Savaria has now
paid for 100% of the shares of Handicare.
in thousands of dollars, except per-shareamounts and
percentages |
Q3 |
YTD |
|
2021 |
|
|
2020 |
|
Change |
|
2021 |
|
|
2020 |
|
Change |
Revenue |
$ |
180,758 |
|
$ |
90,808 |
|
99.1 |
% |
$ |
471,454 |
|
$ |
263,895 |
|
78.7 |
% |
Gross Profit (1) |
$ |
58,508 |
|
$ |
32,583 |
|
79.6 |
% |
$ |
155,712 |
|
$ |
91,994 |
|
69.3 |
% |
% of revenue |
|
32.4 |
% |
|
35.9 |
% |
n/a |
|
|
33.0 |
% |
|
34.9 |
% |
n/a |
|
Net earnings |
$ |
9,125 |
|
$ |
8,127 |
|
12.3 |
% |
$ |
21,341 |
|
$ |
19,749 |
|
8.1 |
% |
%
of revenue |
|
5.0 |
% |
|
8.9 |
% |
n/a |
|
|
4.5 |
% |
|
7.5 |
% |
n/a |
|
Diluted net earnings per share |
$ |
0.15 |
|
$ |
0.16 |
|
(6.3 |
)% |
$ |
0.35 |
|
$ |
0.39 |
|
(10.3 |
)% |
Adjusted net earnings (2) |
$ |
9,588 |
|
$ |
8,241 |
|
16.3 |
% |
$ |
27,014 |
|
$ |
21,678 |
|
24.6 |
% |
%
of revenue |
|
5.3 |
% |
|
9.1 |
% |
n/a |
|
|
5.7 |
% |
|
8.2 |
% |
n/a |
|
Diluted adjusted net earnings per share (2) |
$ |
0.15 |
|
$ |
0.17 |
|
(11.8 |
)% |
$ |
0.44 |
|
$ |
0.43 |
|
2.3 |
% |
Adjusted EBITDA(2) |
$ |
26,312 |
|
$ |
16,914 |
|
55.6 |
% |
$ |
70,999 |
|
$ |
43,741 |
|
62.3 |
% |
% of revenue |
|
14.6 |
% |
|
18.6 |
% |
n/a |
|
|
15.1 |
% |
|
16.6 |
% |
n/a |
|
(1) Cost of sales and selling and administrative expenses of
Handicare for periods prior to Q3 2021 have been restated in
accordance with Savaria's accounting policies, with no impact on
earnings before income tax |
(2) Non-IFRS measures
are described in section 3 of the MD&A |
A Word from the President
" I am very pleased with our third-quarter
results for 2021, given that we delivered strong bookings and sales
year-over-year in a challenging environment. Our adjusted EBITDA
for the quarter was negatively impacted by inflationary pressures,
including soaring freight costs, and without these challenges,
adjusted EBITDA would have exceeded $30 million. The good news is
that we witnessed a decrease in exorbitant freight costs more
recently. Our adjusted EBITDA margin, meanwhile, attained 14.6% in
the third quarter, but without the incremental costs, it would have
hit approximately 17%.
" On the business side, we are on track to start
producing the Handicare Freecurve stairlift in Ontario by the end
of the year, providing us with a competitive advantage in
production and shipping lead times for our North American dealer
network. There is also encouraging data for Savaria in terms of new
home construction with heightened sales expectations for new homes
in the upcoming six months due to U.S. homebuilding confidence
rising in October.
" Looking ahead, the price increase we announced
this summer will positively affect our results beginning in the
fourth quarter. Based on ongoing strength in bookings and our
current backlog, I remain confident that adjusted EBITDA will
exceed $100 million for fiscal 2021.
" In closing, I would like to thank our
2,300 employees around the world as they work together to share
innovations and efficiencies to always improve client safety,"
concluded Mr. Bourassa.
Third Quarter Results
RevenueRevenue reached $180.8M,
up $90.0M or 99.1%, compared to Q3 2020. The growth was mainly due
to the acquisition of Handicare. Organic revenue growth was 3.5% in
the quarter and was partially offset by a negative foreign currency
exchange impact.
-
Accessibility segment (75% of Q3-21 revenue):
Revenue was $135.7M, an increase of $67.1M or 97.9%, compared to Q3
2020. Acquisition growth stood at 97.7% and organic revenue growth
stood at 2.7%;
-
Patient Handling segment (19% of Q3-21 revenue):
Revenue was $34.8M, an increase of $17.4M or 100.5%, compared to Q3
2020. Acquisition growth stood at 93.1% and organic revenue growth
stood at 11.0%;
-
Adapted Vehicles segment (6% of Q3-21 revenue):
Revenue was $10.3M in Q3 2021, an increase of $5.4M or 110%,
compared to Q3 2020. Acquisition growth stood at 121.5% and organic
contraction stood at 11.5%.
Adjusted EBITDA
Q3 2021 adjusted EBITDA and adjusted EBITDA margin, both before
head office costs, stood at $28.4M and 15.7%, respectively,
compared to $17.6M and 19.4% for Q3 2020. The Corporation’s
Accessibility and Patient Handling segments adjusted EBITDA margins
decreased versus prior year due to additional costs related to the
supply chain, including shipping costs and also due to reduction of
subsidies from the COVID-19 employment retention government of
Canada program. These impacts were partially offset by the
Handicare acquisition’s positive impact and cost containment
efforts. Across all segments, increases in absolute dollars reflect
the acquisition of Handicare.
-
Accessibility segment: Adjusted EBITDA and
adjusted EBITDA margin, both before head office costs, stood at
$24.7M and 18.2%, respectively, compared to $15.3M and 22.3% for Q3
2020.
- Patient
Handling segment: Adjusted EBITDA and adjusted EBITDA
margin, both before head office costs, stood at $3.1M and 8.8%,
respectively, compared to $2.0M and 11.7% for Q3 2020.
- Adapted
Vehicles segment: Adjusted EBITDA and adjusted EBITDA
margin, both before head office costs, stood at $0.6M and 6.1%,
respectively, compared to $0.3M and 5.8% for Q3 2020.
Net Earnings and Adjusted Net
Earnings
Net earnings were $9.1M or $0.15 per share on a diluted basis,
compared to $8.1M or $0.16 per share for the same period in
2020.
Adjusted net earnings stood at $9.6M, or $0.15 per share,
compared to $8.2M or $0.17 per share in Q3 2020. The increase was
due to the acquisition of Handicare.
Nine-Month Results
Revenue
For the nine-month period ended September 30,
2021, the Corporation generated revenue of $471.5M, up $207.6M or
78.7%, compared to the same period in 2020. The growth is largely
due to the acquisition of Handicare. Organic revenue growth of 3.0%
was fully offset by a negative foreign exchange impact.
Adjusted EBITDA
For the nine-month period ended September 30,
2021, adjusted EBITDA and adjusted EBITDA margin, both before head
office costs, stood at $75.9M and 16.1%, respectively, compared to
$45.5M and 17.2% for the same in 2020.
Net Earnings and Adjusted Net
Earnings
For the nine-month period ended September 30,
2021, the Corporation’s net earnings stood at $21.3M, or $0.35 per
share on a diluted basis, compared to $19.7M, or $0.39 per share
for the same period in 2020. The Corporation’s adjusted net
earnings stood at $27.0M, or $0.44 per share, compared to $21.7M or
$0.43 per share, respectively, compared to the same period in
2020.
Liquidity and Capital
Resources
Savaria generated $50.1M of cash from operations which were
primarily used to invest in capital projects, repay debt and
interests and pay dividends.
As at September 30, 2021, the Corporation had a net
interest-bearing debt position of $307.4M.
Outlook
The uncertainty around the future impact of the ongoing global
pandemic makes it difficult to predict future performance, however,
considering its financial performance year-to-date, coupled with
current backlog levels, and the Corporation’s confidence in the
strategic integration plan with Handicare which is underway,
Savaria remains optimistic it will achieve its previously stated
goal of generating an adjusted EBITDA in excess of $100M(1) during
fiscal 2021.
(1) See section 13 “Outlook” of Q3 Management Discussion &
Analysis for detail on the assumptions supporting this amount.
About Savaria Corporation
Savaria Corporation (savaria.com) is a global leader 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,
including ceiling lifts and slings. In addition, Savaria converts
and adapts vehicles for personal and commercial uses. The
Corporation operates a sales network of dealers worldwide and
direct sales offices in North America, Europe (UK, Netherlands,
Switzerland, Italy, Germany, Poland and Czech Republic), Australia
and China. Savaria employs approximately 2,300 people globally and
its plants are located across Canada, the United States, Europe and
China.
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.
Reconciliation between net earnings and adjusted net earnings,
adjusted EBITDA and adjusted EBITDA per share is presented in the
section below.
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 November 11, 2021,
at 8:30 a.m. (ET) |
Savaria will host a conference
call on Thursday, November 11, 2021 at 8:30 a.m. Eastern Time with
financial analysts to discuss results of the quarter ended
September 30, 2021. Investors and members of the media are invited
to participate on a listen-only basis. |
Conference call access:
Local Dial-in Numbers: (647) 792-1241 or (514)
669-6115
North American Toll Free Number: 1 (866)
248-8441Webcast (EN):
https://produceredition.webcasts.com/starthere.jsp?ei=1510411&tp_key=e4847d76d0link
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
Officer1.800.661.5112mbourassa@savaria.com |
Stephen Reitknecht, CPA, CAChief Financial Officer1.800.661.5112,
ext. 3370sreitknecht@savaria.com |
Nicolas Rimbert, CFAVice President, Corporate
Development1.800.931.5655, ext. 239nrimbert@savaria.com |
Pierre BoucherMaisonBrison
Communications514-731-0000pierre@maisonbrison.com |
Chris MakuchMaisonBrison
Communications416-953-3337chris@maisonbrison.com |
|
www.savaria.comFacebook :
www.facebook.com/savariabettermobility Twitter: twitter.com/Mobilityforlife
|
|
|
|
|
Reconciliation
of adjusted net earnings and adjusted EBITDA with net
earnings |
|
in thousands of dollars, except per-share |
Q3 |
YTD |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Net earnings |
$ |
9,125 |
|
$ |
8,127 |
|
$ |
21,341 |
|
$ |
19,749 |
|
Other expenses |
|
683 |
|
|
140 |
|
|
6,418 |
|
|
2,465 |
|
Income taxes related to other expenses |
|
(220 |
) |
|
(26 |
) |
|
(745 |
) |
|
(536 |
) |
Adjusted net earnings (1) |
$ |
9,588 |
|
$ |
8,241 |
|
$ |
27,014 |
|
$ |
21,678 |
|
Diluted adjusted net earnings per share (1) |
$ |
0.15 |
|
$ |
0.17 |
|
$ |
0.44 |
|
$ |
0.43 |
|
Income taxes related to other expenses |
|
220 |
|
|
26 |
|
|
745 |
|
|
536 |
|
Income tax expense |
|
4,403 |
|
|
2,630 |
|
|
8,564 |
|
|
5,996 |
|
Depreciation of fixed assets |
|
1,905 |
|
|
1,340 |
|
|
5,230 |
|
|
4,030 |
|
Depreciation of right-of-use assets |
|
2,554 |
|
|
1,050 |
|
|
6,591 |
|
|
3,082 |
|
Amortization of intangible assets |
|
4,590 |
|
|
1,861 |
|
|
12,273 |
|
|
5,686 |
|
Net finance costs |
|
2,489 |
|
|
1,527 |
|
|
9,399 |
|
|
1,786 |
|
Stock-based compensation |
|
563 |
|
|
239 |
|
|
1,183 |
|
|
947 |
|
Adjusted EBITDA(1) |
$ |
26,312 |
|
$ |
16,914 |
|
$ |
70,999 |
|
$ |
43,741 |
|
Diluted weighted average number of shares |
|
64,639,035 |
|
|
51,075,977 |
|
|
61,428,909 |
|
|
50,886,140 |
|
(1) Non-IFRS measures
are described in section 3 of the MD&A |
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