Laval, Quebec, August 7, 2014– Savaria Corporation (TSX: SIS), North America’s leader in the accessibility industry, discloses its results for its second quarter ended June 30, 2014.
- Record revenue for a quarter, at $22 million, up 13.3%, from $19.4 million same quarter in 2013;
- Operating income of $2.6 million, up 33.2% compared to same quarter in 2013;
- Earnings before interest, taxes, depreciation and amortization ("EBITDA") of $2.7 million, up 6.9%, compared to $2.5 million in same quarter 2013;
- Declaration of a dividend of 3.5 cents per common share;
- Inflow of net proceeds of $17.6 million following the conclusion of a private placement.
A Word from the President
"Results for the second quarter of this year show a growth in demand for accessibility products. Once again, we have achieved best ever results in revenue and EBITDA, with quarterly revenue of $22 million, up 13.3% compared to the second quarter of 2013, and our operating results increased 33.2%," declared Marcel Bourassa, President and Chief Executive Officer of Savaria.
"With more than $17 million in cash, we are in a great position to expand our organic growth strategy and realize any interesting potential acquisition," concluded Mr. Bourassa.
Operating Results (Comparative Analysis with Second Quarter and First Semester of 2013)
- In the second quarter of 2014, revenue is up $2.6 million or 13.3%, from $19.4 million in second quarter of 2013 to $22 million in 2014. For the first semester of 2014, revenue is up $3.1 million or 8.4%, from $36.6 million to $39.7 million.
- The gross margin for the second quarter of 2014 is up by $801,000, at 30.6% of revenue compared to 30.5% in the second quarter of 2013. For the first semester, the gross margin is up by $1 million, at 29.9% of revenue compared to 29.6% in 2013.
- Operating income for the second quarter of 2014 increased by $643,000 or 33.2% from $1.9 million in 2013 to $2.6 million in 2014. For the first semester, operating income increased by $339,000 or 9.1%, from $3.7 million in 2013 to $4.1 million in 2014. Were it not for an income of $350,000 recorded in the first semester of 2013, operating income for the first semester of 2014 would have been up $689,000 or 20.5%.
- At $1.5 million, net income for the second quarter of 2014 is up 8.5%, from $1.4 million for the second quarter of 2013, an increase of $121,000. For the first semester, net income is up 3.5%, from $2.7 million to $2.8 million, an increase of $94,000.
- EBITDA for the second quarter is up $173,000, from $2.5 million in 2013 to $2.7 million in 2014, an increase of 6.9%. For the first semester 2014, EBITDA is up $115,000, from $4.8 million in 2013 to $4.9 million in 2014, an increase of 2.4%. Were it not for the income of $350,000 recorded in 2013, the increase in EBITDA for the semester would have been $465,000 or 10.4%.
During the second quarter, the Corporation completed a private placement, issuing 5,750,000 common shares, resulting in net proceeds of $17.6 million. As at June 30, 2014, 29,554,614 common shares were outstanding compared to 23,010,864 as at June 30, 2013.
As per the Corporation’s dividend policy, the Board of Directors has declared a dividend of 3.5 cents ($0.035) per common share, payable on August 29, 2014 to shareholders of record of the Corporation at the close of business on August 15, 2014. This is an eligible dividend within the meaning of the Income Tax Act.
Savaria Corporation (savaria.com) is North America's leader in the accessibility industry focused on meeting the needs of people with mobility challenges. Savaria designs, manufactures, installs and distributes primarily elevators for home and commercial use, as well as stairlifts and vertical and inclined platform lifts. In addition, it converts and adapts minivans to be wheelchair accessible. 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 and the collaboration with Savaria’s other Canadian facilities increases its competitive edge in the market place. The Corporation records some 60% of its revenue outside Canada, primarily in the United States. It has a sales network of some 600 retailers in North America and employs some 410 people at its head office in Laval and at its plants and sales offices in Montreal (Quebec), Brampton and London (Ontario), Calgary (Alberta) and Huizhou (China).
Compliance with International Financial Reporting Standards (“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. 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 statements” 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.