Laval, Quebec, November 21, 2016– With its fiscal year end approaching December 31, Savaria Corporation (TSX: SIS) (“Savaria” or the “Corporation”), one of North America’s leaders in the accessibility industry, forecasts the following results for 2017, excluding any new acquisitions:
- Revenue of $139 million, an increase of 17% over the projected 2016 result of $119 million;
- EBITDA between $25 and $26 million, representing around 30% growth over the 2016 projected EBITDA of $19 to $20 million.
A Word from the President
“With the aging of the population and their desire to stay at home, the demand for the products that Savaria designs, builds and distributes will continue to grow. Two initiatives from 2016 will contribute to the 17% revenue increase and approximately 30% EBITDA increase predicted for 2017.
“Firstly, wheelchair accessible van sales will increase in 2017 by way of the company's newest division Silver Cross Automotive, formed with the June 2016 asset purchase of Shoppers Home Healthcare's automotive division. Silver Cross Automotive distributes through 8 locations in BC, Alberta and Ontario.
“Secondly, the Corporation's new ceiling lift, designed and manufactured by Savaria in Magog (Quebec), is forecasted to add incremental sales starting in January 2017. Focused initially on the home care market, Savaria sees a demand for this product from aging seniors looking to stay at home longer. The product will be distributed through Silver Cross stores as well as our current distribution network in North America and eventually through new distribution channels,” declared Marcel Bourassa, President and Chief Executive Officer of Savaria.
Savaria Corporation (savaria.com) is one of North America’s leaders in the accessibility industry. It provides accessibility solutions for the elderly and physically challenged to increase their mobility and independence. The diversity of 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. In addition, it 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, as well as vehicle conversion in certain locations. Savaria operates a plant located in Huizhou (China), which increases its competitive edge. The Corporation records close to 60% of its revenue outside Canada, primarily in the United States. It operates a sales network of some 400 retailers and affiliates in North America and employs some 500 people. Its principal places of business are located in Laval (Quebec), Brampton (Ontario) 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
Vice President, Finance
1-800-931-5655, ext. 248
President and Chief Executive Officer