Laval, Quebec, September 11, 2017– Savaria Corporation (TSX: SIS) («Savaria» or the «Company»), one of North America’s leaders in the accessibility industry, announced today that its Board of Directors approved a 10 cent increase of the Company’s dividend, raising it from 26 cents ($0.26) to 36 cents ($0.36) per common share per year, representing an increase of 38%; the dividends, formerly paid quarterly, will now be paid monthly. The Board of Directors also declared the first monthly dividend of 3 cents ($0.03) per common share payable on October 16, 2017 to shareholders of record of the Corporation at the close of business on October 2, 2017. This is an eligible dividend within the meaning of the Income Tax Act.
A Word from the President
“We have completed the acquisition of Span-America, our financial position is excellent and we are producing solid cash flow. We therefore have decided to increase our dividend by 10 cents, or 38%, which will now be paid monthly (3 cents per month),” declared Marcel Bourassa, President and Chief Executive Officer of Savaria.
“Considering the aging population and its desire to age at home, we expect continued growth of over 10% in our lift division over the next five years and we maintain our objective to generate revenue of some $500 million by the end of 2021,” concluded Mr. Bourassa.
Savaria Corporation (savaria.com) is one of North America’s 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, as well as elevators for home and commercial use. Following its recent acquisition, Savaria also manufactures and markets a comprehensive selection of pressure management products for the medical market, medical beds for the long-term care market, mattress overlays and foam pillows for the retail market and certain products for the industrial market, primarily foam products. In addition, Savaria converts and adapts vehicles to be wheelchair accessible. It also operates a network of franchisees and corporate stores through which new and recycled accessibility equipment is sold. Factoring in its most recent acquisition, Savaria will record around 70% of its revenue outside Canada, primarily in the United States. It operates a sales network of some 400 retailers in North America and employs some 800 people. Its principal plants are located in Laval and Magog (Quebec), Brampton and Beamsville (Ontario), Greenville (South Carolina) and Huizhou (China).
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.
For further information:
Hélène Bernier, CPA, CA