Laval, Quebec, May 15, 2012 – Savaria Corporation (TSX: SIS), Canada’s leader in the accessibility industry, today disclosed its results for the first quarter ended March 31, 2012.
- Revenue of $15.2 million, compared with $15.5 million in 2011;
- Earnings before interest, income taxes, depreciation and amortization (“EBITDA”) of $1 million, compared with $809,000 in 2011, an increase of 26 %;
- Net income of 1.6 cents per share(1) compared with 0.8 cent per share(1) in 2011;
- Declaration of a dividend of 9.4 cents ($0.094) per common share.
(1) basic and diluted
A Word from the President
“Revenue for first quarter 2012 is similar to first quarter 2011, in spite of a drop of $616,000 in revenue from the Adapted Vehicles segment. This drop has been partially offset by an increase of $334,000 or 3%, in revenue from the Accessibility segment. Our EBITDA increased by 26% for first quarter 2012 compared with 2011, which is a very promising start for 2012", declared Marcel Bourassa, President and Chief Executive Officer of Savaria.
“To benefit from the current low interest rates and in order to streamline our operations, Savaria has acquired, in April, a 125,000-square-foot building in Brampton, Ontario. This transaction will allow substantial annual savings.
We are confident that our presence in North America and China will benefit our shareholders, given the nature of our industry, which is to bring solutions to people with mobility challenges”, concluded Mr. Bourassa.
Operating Results (Comparative Analysis with First Quarter 2011)
- For first quarter 2012, the corporation achieved revenue of $15.2 M, compared with $15.5 M in 2011, down by 1.8% or $282,000.
- Gross margin is down by $279,000 for the first quarter and represents 27.8% of revenue, compared with 29.1% in 2011.
- Operating income is slightly down, by 3.9% or $29,000, from $735,000 in 2011 to $706,000 in 2012.
- Net income for first quarter is up by 103%, from $177,000 in 2011 to $360,000 in 2012, an increase of $183,000.
Savaria Corporation (savaria.com) is Canada’s leader and the second largest North American company in the accessibility industry focused on meeting the needs of people with mobility challenges. Savaria designs, manufactures and distributes primarily elevators for residential and commercial use, as well as stairlifts and vertical and inclined platform lifts. In addition, it converts and adapts wheelchair accessible automotive vehicles and also offers scooters and motorized wheelchairs. The diversity of its product line, one of the world’s most comprehensive, enables the Corporation to stand out by proposing an integrated and customized solution for its customers’ mobility needs. Its operations in China have substantially grown since 2006 and the collaboration with Savaria’s other Canadian facilities increases its competitive edge on the market. The Corporation records slightly over 50% of its sales outside Canada, primarily in the United States. It has a sales network of some 600 retailers in North America and employs 400 people at its head office in Laval and at its plants in Montreal (Quebec), Brampton and London (Ontario), Calgary (Alberta) and Huizhou (China).
Compliance with IFRS
The information appearing in this press release has been prepared in accordance with IFRS. However, the Corporation uses EBITDA for analysis purposes to measure its financial performance. This measure has no standardized definition in accordance with IFRS and is therefore regarded as a non-IFRS measure. This measure may therefore not be comparable to similar measures reported by other companies. A reconciliation between net income for the period and EBITDA is provided in the Financial Highlights section below.
Cautionary Notice Regarding Forward-Looking Statements
Certain information in this press release may constitute “forward-looking statement” regarding Savaria, including, without being limited thereto, understanding of the elements that might affect the Corporation’s future, relating to its financial or operating performance, the costs and schedule of future acquisitions, supplementary capital expenditure requirements and legislative matters. Most frequently, but not invariably, forward-looking statements are identified by the use of such terms as “plan”, “expect”, “should”, “could”, “budget”, “expected”, “estimated” “forecast”, “intend”, “anticipate”, “believe”, variants thereof (including negative variants) or statements that certain events, results or shares “could”, “should” or “will” occur or be achieved. Such statements involve known and unknown risks, uncertainties and other factors liable to cause Savaria’s actual results, performance or achievements to differ materially from those set forth in or underlying the forward-looking statements. Such factors notably include general, economic, competitive, political and social uncertainties. Although Savaria has attempted to identify the key elements liable to cause actual measures, events or results to differ from those described in the forward-looking statements, other factors could have an impact on the reality and produce unexpected results. The forward-looking statements contained herein are valid at the date of this press release. As there can be no assurance that these forward-looking statements will prove accurate, actual future results and events could differ materially from those anticipated therein. Accordingly, readers are strongly advised not to unduly rely on these forward-looking statements.