Laval, Québec, Canada – May 11, 2021 - Savaria Corporation (“Savaria”) (TSX: SIS), a global leader in the accessibility industry, is pleased to announce its results for the first quarter of fiscal 2021.
• Revenue was $112.1M, up $23.7M or 26.8%;
• Gross profit was $38.9M, up $8.8M or 29.2%, representing 34.7% of revenue compared to 34.1% in Q1 2020;
• Adjusted EBITDA was $17.3M, up $4.9M or 39.9% compared to Q1 2020. Adjusted EBITDA margin stood at 15.4%, compared to 14.0% in Q1 2020;
• Adjusted net earnings were $7.9M or $0.14 per share on a diluted basis, up $0.8M or 10.5%.
A Word from the President
"During this challenging period of global pandemic, I am proud of our 2300 employees who have continued to serve our worldwide customers, all the while maintaining each other’s safety. We successfully closed a game-changing acquisition with Handicare Group AB on March 4, 2021. At over $520 million of enterprise value, this acquisition significantly solidified Savaria's position as the global leader in manufacturing of accessibility equipment. It has always been my vision to offer the best accessibility product portfolio to the world. From a stairlift to a wheelchair platform lift, to a luxury home elevator, a medical bed, patient lift and sling or wheelchair van, our products help people with mobility challenges," stated Mr. Marcel Bourassa, President and Chief Executive Officer of Savaria.
"We continue to work hard on synergies between Handicare, Span, Garaventa Lift and Savaria, including costs savings for materials, leveraging know-how and staffing expertise and most important, the expansion of sales. To that end, we generate sales in over 40 countries with 30 direct sales offices, over 1000 dealers and 15 manufacturing / distribution facilities, in 12 countries across almost one million square feet.
"In May 2017, I forecasted that Savaria would reach an annual revenue of $500 million within 5 years and we will exceed that in 2021, one year ahead of schedule. We can now see a path to sales exceeding $1 billion – a personal goal of mine – by the end of 2025. To get there, we will focus on product innovation and continuous improvement, production efficiencies and organic sales growth taking advantage of our demographic tailwinds.
"We reiterate our previous forecast from March 2021 that our adjusted EBITDA for 2021 will exceed $100 million. Along with the positioning of our Stay at Home with Savaria™ campaign, we should benefit from a robust housing market in North America. Of note, strong housing starts in Canada (31% increase YoY Feb 20211), and the US (41% YoY Feb 20212) indicate positive trends for the home elevator market," concluded Mr. Bourassa.
1 CMHC (Canada Mortgage & Housing Corporation) February 2021
2 NAHB (National Association Home Builders) February 2021
About Savaria Corporation
Savaria Corporation (savaria.com) is a global leader 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, including ceiling lifts and slings. In addition, Savaria converts and adapts vehicles for personal and commercial uses. The Corporation operates a sales network of dealers worldwide and direct sales offices in North America, Europe (UK, Netherlands, Switzerland, Italy, Germany, Poland and Czech Republic), Australia and China. Savaria employs approximately 2300 people globally and its plants are located across Canada, the United States, Europe and China.
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 May 12, 2021, at 8:30 a.m. (ET)
Savaria will host a conference call on Wednesday, May 12, 2021 at 8:30 a.m. Eastern Time with financial analysts to discuss results of the quarter ended March 31, 2021. 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
A link to the replay of the webcast will be available on the Corporation’s website at savaria.com
For further information:
Stephen Reitknecht, CPA, CA
Nicolas Rimbert, CFA