Laval, Quebec, May 14, 2013– Savaria Corporation (TSX: SIS), North America’s leader in the accessibility industry, today disclosed its results for first quarter ended March 31, 2013.
Highlights
- Revenue for 1st quarter is up 13% from $15.2 million in 2012 to $17.2 million in 2013. This is the highest quarterly revenue in the Corporation’s history for a 1st quarter;
- Net income for 1st quarter is up 242% or $872,000, from $360,000 in 2012 to $1.2 million in 2013;
- Earnings before interest, taxes, depreciation and amortization ("EBITDA") is up 124% or $1.3 million, from $1 million in 2012 to $2.3 million in 2013.
A Word from the President
"Our first quarter of 2013 is a great follow-up to our strong fourth quarter of 2012. We report the best first quarter of our history, both in terms of revenue and net income. In addition, our EBITDA is reaching 10 cents per share, an increase of 127% compared to first quarter 2012, representing 13% of revenue," declared Marcel Bourassa, President and Chief Executive Officer of Savaria.
"This first quarter, historically the weakest of the year, is very encouraging and confirms the relevance of our business plan. To meet increased demand going along with this revenue increase, our factory in Huizhou, China will move to a new location around mid-May 2013. The new 75,000-square-foot plant , double the current size, is eight kilometers from the existing plant.
"The addition of our stairlift for curved stairs to our product line is still scheduled for third quarter 2013 and we are very confident of its success on the market.
"The performance of the last two quarters allows us to be optimistic for the rest of 2013", concluded Mr. Bourassa.
Operating Results (Comparative Analysis with First Quarter 2012)
- For first quarter 2013, revenue is $ 17.2 million compared to $ 15.2 million in 2012, an increase of $ 2 million or 12.9%.
- Gross margin for first quarter of 2013 is up by $ 703,000, representing 28.7% of revenue compared to 27.8% in first quarter 2012. These savings are the result of the relocation of the Brampton plant in the building acquired in 2012.
- Operating income for first quarter 2013 is up by $ 1.1 million or 152%, from $ 706,000 in 2012 to $ 1.8 million in 2013.
- Net income for first quarter is up by 242%, from $ 360 000 in 2012 to $ 1.2 million in 2013, an increase of $ 872,000.
- EBITDA for first quarter is up $ 1.3 million, from $ 1 million in 2012 to $ 2.3 million in 2013, an increase of 124%.
Savaria Corporation (savaria.com) is North America's leader in the accessibility industry focused on meeting the needs of people with mobility challenges. Savaria designs, manufactures, installs and distributes primarily elevators for home and commercial use, as well as stairlifts and vertical and inclined platform lifts. In addition, it converts and adapts wheelchair accessible automotive vehicles and offers scooters and motorized wheelchairs. The diversity of its product line, one of the world’s most comprehensive, enables the Corporation to stand out by proposing an integrated and customized solution for its customers’ mobility needs. Its operations in China have substantially grown since 2006 and the collaboration with Savaria’s other Canadian facilities increases its competitive edge in the market place. The Corporation records slightly over 50% of its revenue outside Canada, primarily in the United States. It has a sales network of some 600 retailers in North America and employs some 360 people at its head office in Laval and at its plants in Montreal (Quebec), Brampton and London (Ontario), Calgary (Alberta) and Huizhou (China).
Compliance with International Financial Reporting Standards (“IFRS”)
The information appearing in this press release has been prepared in accordance with IFRS. However, the Corporation uses EBITDA for analysis purposes to measure its financial performance. This measure has no standardized definition in accordance with IFRS and is therefore regarded as a non-IFRS measure. This measure may therefore not be comparable to similar measures reported by other companies. Reconciliation between net income for the period and EBITDA is provided in the Financial Highlights section below.
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.
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For more information, please contact:
Helene Bernier, CA
Vice-President, Finance
helene.bernier@savaria.com
1-800-931-5655, ext. 248
www.savaria.com
Marcel Bourassa
Chairman of the Board, President and
Chief Executive Officer
1-800-661-5112