Laval, Québec, Canada, September 20, 2018– Savaria Corporation (“Savaria”) (TSX: SIS) announces today that its Board of Directors has approved a 17% increase to its monthly dividend, raising it to 3.5 cents per month from 3.0 cents. On an annual basis, this represents an increase of 6 cents and raises its dividend to 42 cents per share. This increase will apply to the dividends payable monthly starting on October 16, 2018 to shareholders of record of the Corporation at the close of business on October 2, 2018. This is an eligible dividend within the meaning of the Income Tax Act.
Having closed the acquisition of Garaventa Lift, Savaria is now forecasting revenue of CAD$ 285 million and adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA*”) in a range of CAD$ 44 million to CAD$ 45 million for 2018. For 2019, Savaria preliminarily forecasts revenue of CAD$ 400 million and adjusted EBITDA* in a range of CAD$ 60 million to CAD$ 62 million, excluding any new acquisitions.
“Our financial position following the acquisition of Garaventa Lift remains strong, and we are optimistic about the growth of our industry supported by the aging of the population and the need of our products to improve mobility. I would also like to express my gratitude to our employees for their devotion and hard work,” said Marcel Bourassa, Chairman, President and Chief Executive Officer of Savaria.
* It should be noted that adjusted EBITDA is not a performance measure defined by the International Financial Reporting Standards (“IFRS”), but we, as well as investors and analysts, consider that this performance measure facilitates the evaluation of our ongoing operations and our ability to generate cash flows to fund our cash requirements, including our capital expenditures program. Note that our definition of this measure may differ from the one used by other public corporations.
About Savaria Corporation
Savaria Corporation 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, elevators for home and commercial use, as well as ceiling lifts. It 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. In addition, Savaria converts and adapts vehicles to be wheelchair accessible. The Corporation records approximately 75% of its revenue outside of Canada, primarily in the United States. It operates a sales network of some 500 dealers worldwide and 28 direct sales offices in North America, Europe (Switzerland, Germany, Italy, Czech Republic and Poland), Australia and China. Savaria employs approximately 1,400 people globally and its plants are located in Canada: Laval and Magog (Québec), Brampton, Beamsville and Toronto (Ontario) and Surrey (British Columbia), in the United States at Greenville (South Carolina), in Huizhou (China) and in Milan (Italy).
The statements set forth in this press release, which describe Savaria’s objectives, projections, estimates, expectations or forecasts, may constitute forward-looking statements within the meaning of securities legislation. Positive or negative verbs such as “will”, “plan”, “evaluate”, “estimate”, “believe”, “expect” and other related expressions are used to identify such statements. Savaria would like to point out that, by their very nature, forward-looking statements involve risks and uncertainties such that its results, or the measures it adopts, could differ materially from those indicated or underlying these statements, or could have an impact on the degree of realization of a particular projection. Major factors that may lead to a material difference between Savaria’s actual results and the projections or expectations set forth in the forward-looking statements include the effects of the integration of acquired businesses and the ability to achieve projected synergies, fluctuations in margins sales, competition, exchange rate variations, and such other risks as described in detail from time to time in documents filed by Savaria with securities regulatory authorities in Canada. Unless otherwise required by applicable securities laws, Savaria disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking information in this press release is based on information available as of the date of the release.
For further information:
Hélène Bernier, CPA, CA