Laval, Québec, Canada, March 25, 2020 – Savaria Corporation (“Savaria”) (TSX: SIS), one of the global leaders in the accessibility industry, is pleased to announce today its results for fiscal 2019.
- Revenue for the year was $374.3M, up $88.3M, or 30.9%;
- Gross profit was $125.3M, up $31.9M, or 34.1%;
- Adjusted net earnings for the year were $26.8M, or $0.55 per share on a diluted basis, up 37.4% and 25.0%, respectively;
- Adjusted EBITDA was $55.6M, up $15.3M or 37.9%.
A Word from the President
“Our results for fiscal 2019 were in line with our expectations as the four key metrics of revenue, gross profit, adjusted net earnings and adjusted EBITDA all grew more than 30% compared to last year. This is a strong indicator that everyone at Savaria worked hard to deliver these results,” declared Mr. Bourassa, President and Chief Executive Officer of Savaria.
“As stated during the course of the year, our primary focus for 2019 was on the integration of Garaventa Lift and Span, as well the acquisition and integration of Florida Lifts and Silvalea. Moreover, the bought-deal private placement of $70M in April 2019 further strengthened our balance sheet in preparation for future strategic acquisitions.
In addition to the anticipated organic growth in revenue generated by our core residential elevators and accessibility lifts, growth in 2020 is anticipated to be further fueled by three key product categories.
First, the patient lift line is expected to perform well, with growth being driven by an expanded product offering and an emphasis on business development.
Second, following the acquisition of Silvalea in 2019, Savaria has begun to transfer its extensive sling knowledge to Span’s operations in Greenville, South Carolina. This will allow Span to manufacture and market patient slings in North America while leveraging its domestic U.S. production capabilities and allowing for a bundled offering of slings with patient lifts. We have also made investments in personnel with corporate account backgrounds and significant sales experience within the patient lift category. Savaria is targeting to capture 5% of the estimated North American market by the end of 2021, which would represent approximately $20M in total annual revenue.
Third, Savaria will launch and market its new Vuelift Mini home elevator in 2020. This panoramic glass elevator with integrated hoist way is now available with a diameter of only 42" making it ideal for smaller spaces and allowing for easier installations centered inside a spiral staircase. This product will be sold through Savaria’s dealers and by its Garaventa Lift distribution teams in Europe.
I would like to thank our 1,500 global employees for their dedication to our vision of offering the best accessibility products to an aging population. Our industry is strong and will gain significance in the coming years. Savaria is well-positioned as a worldwide leader to serve this growing market’s needs,” concluded Mr. Bourassa.
While the effects of COVID-19 on our business are difficult to predict, Savaria is focused on the unchanged mobility product needs of an aging population. Our main supply system – our factory in Huizhou, China – went back into production February 19, 2020 after a vigilant effort to implement health and safety protocols that protected our staff during the local outbreak.
In other facilities, we have implemented procedures to protect our employees and clients with by-appointment only showroom and store access, protocols for on-site visits, and restricted staff travel. We anticipate that some sales may be delayed with the current restrictions in place for North America, Europe and Australia. We are monitoring closely the impact of COVID-19 and defer to our risks and uncertainties section in our 2019 annual Management’s Discussion and Analysis.
As we have been stating since early 2019, we remain focused on operational synergies and the integration processes of our recent Span and Garaventa Lift acquisitions. Our balance sheet is healthier than ever, placing us in a solid position to take advantage of growth opportunities.
As of March 25, 2020, we are not in a position to reaffirm our guidance for our fiscal 2020, although our first quarter results seem to be aligning with our expectations.
Savaria Corporation (savaria.com) 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 and elevators for home and commercial use. It also manufactures and markets a comprehensive selection of pressure management products for the medical market, medical beds for the long-term care market, as well as an extensive line of medical equipment and solutions for the safe handling of patients. In addition, Savaria converts and adapts vehicles to be wheelchair accessible. The Corporation operates a sales network of dealers worldwide and direct sales offices in North America, Europe (Switzerland, Germany, Italy, Czech Republic, Poland and United Kingdom), Australia and China. Savaria employs approximately 1,500 people globally and its plants are located across Canada in Laval and Magog (Québec), Brampton, Beamsville and Toronto (Ontario) and Surrey (British Columbia), in the United States at Greenville (South Carolina), in Huizhou (China), in Milan (Italy) and in Newton Abbot (United Kingdom).
Compliance with International Financial Reporting Standards (“IFRS”)
The information appearing in this press release has been prepared in accordance with IFRS. However, Savaria uses EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA per share, adjusted net earnings and adjusted net earnings per share for analysis purposes to measure its financial performance. These measures have no standardized definitions in accordance with IFRS and are therefore regarded as non-IFRS measures. These measures may therefore not be comparable to similar measures reported by other companies. Additional details for these non-IFRS measures can be found in Savaria’s MD&A, which is posted on Savaria’s website at savaria.com, and filed with SEDAR at sedar.com.
This press release includes certain statements that are “forward-looking statements” within the meaning of the securities laws of Canada. Any statement in this press release that is not a statement of historical fact may be deemed to be a forward-looking statement. When used in this press release, the words “believe”, “could”, “should”, “intend”, “expect”, “estimate”, “assume” and other similar expressions are generally intended to identify forward-looking statements. It is important to know that the forward-looking statements in this document describe the Corporation’s expectations as at the date hereof, which are not guarantees of future performance of Savaria or its industry, and involve known and unknown risks and uncertainties that may cause Savaria’s or the industry’s outlook, actual results or performance to be materially different from any future results or performance expressed or implied by such statements. The Corporation’s actual results could be materially different from its expectations if known or unknown risks affect its business, or if its estimates or assumptions turn out to be inaccurate. A change affecting an assumption can also have an impact on other interrelated assumptions, which could increase or diminish the effect of the change. As a result, the Corporation cannot guarantee that any forward-looking statement will materialize and, accordingly, the reader is cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements do not take into account the effect that transactions or special items announced or occurring after the statements are made may have on the Corporation’s business. For example, they do not include the effect of sales of assets, monetizations, mergers, acquisitions, other business combinations or transactions, asset write-downs or other charges announced or occurring after forward-looking statements are made.
Unless otherwise required by applicable securities laws, Savaria disclaims any intention or obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing risks and uncertainties include the risks set forth under “Risks and Uncertainties” in Savaria’s latest Annual MD&A as well as other risks detailed from time to time in reports filed by Savaria with securities regulators in Canada.
Results Webcast and conference call on March 26, 2020, at 8:30 a.m. (EST)
Savaria will host a conference call on Thursday, March 26, 2020 at 8:30 a.m. Eastern Time with financial analysts to discuss results of the quarter and fiscal year ended December 31, 2019. Investors and members of the media are invited to participate on a listen-only basis.
Conference call access:
Local Dial-in Numbers: 647.427.7450 or 514.807.9895
North American Toll Free Number: 1.888.231.8191
Webcast URL (EN): https://event.on24.com/wcc/r/2225130/5CF90FC9BA3F5D7830CF2BCEFF0550F4
A link to the replay of the webcast will be available on the Corporation’s website at savaria.com.
For further information:
Mauro Ferrara, CPA, CA
Nicolas Rimbert, CFA