Savaria Announces Results for its Third Quarter of 2016 and Raises Guidance Again!


Laval, Quebec, November 2, 2016 Savaria Corporation (TSX: SIS), one of North America’s leaders in the accessibility industry, discloses its results for its third quarter ended September 30, 2016.


Once again, third quarter 2016 results including Revenue, Operating income and adjusted EBITDA reached unprecedented levels.

Quarter Ended September 30, 2016

  • Record revenue of $32.4 million, up $8.4 million or 35.2%;
  • Record gross margin of $11.2 million, up $3.8 million or 52.4%;
  • Record operating income of $4.9 million, up $2 million or 70.7%;
  • Record adjusted EBITDA(1) of $5.6 million, up $1.8 million or 47.8%;
  • 30% increase of Savaria's dividend, raising it from 20 cents per year to 26 cents, resulting in a quarterly dividend of 6.5 cents per common share;
  • Savaria added to the S&P/TSX Small Cap Index.

Nine Months Ended September 30, 2016

  • Record revenue of $88.7 million, up $20.1 million or 29.3%;
  • Record gross margin of $29.4 million, up $8.6 million or 41.1%;
  • Record operating income of $12.5 million, up $4.7 million or 61.1%;
  • Record adjusted EBITDA of $14.6 million, up $4.4 million or 43.2%.

(1)Earnings before interest, taxes, depreciation, amortization and business acquisition costs (see section Compliance with
Financial Reporting Standards)

A Word from the President

"Our third quarter is furthering our second quarter in terms of growth and profitability. Our revenue has increased by 35% while our adjusted EBITDA increased by 48% compared to the third quarter of 2015. These record results reflect the strong demand for our accessibility products and our tight control of operational costs. Our ratio of adjusted EBITDA / Revenue meets our expectations by reaching 17%, thanks to the efforts and dedication of all our employees. Our Adapted Vehicles segment had its best quarter ever with 147 conversions, an increase of 47% compared to the third quarter of 2015," declared Marcel Bourassa, President and Chief Executive Officer of Savaria.

"Our new ceiling lift, the Monarch, has been launched to our retailers last September at the National Association of Elevator Contractors (NAEC) show in Montreal.I am very confident that this new product will contribute positively to our results as of fiscal 2017.

"Our strong financial position enables us to develop new products and to keep an eye open for new acquisitions and thus keep furthering the execution of our strategic plan," concluded Mr. Bourassa.

Outlook 2016

The Corporation adjusts its forecast for the twelve-month period ending December 31, 2016, increasing revenue to approximately $119 million and adjusted EBITDA to a range of $19-$20 million.


As per the Corporation’s dividend policy, the Board of Directors has declared a dividend of 6.5 cents ($0.065) per common share for the third quarter of 2016. The dividend is payable on November 25, 2016, to shareholders of record of the Corporation at the close of business on November 11, 2016. This is an eligible dividend within the meaning of the Income Tax Act.

Savaria Corporation ( 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).

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 and adjusted EBITDA 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. Reconciliation between net income for the period and EBITDA and adjusted EBITDA is provided in the Reconciliation of EBITDA and adjusted EBITDA with Net Income 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.


For further information:

Hélène Bernier, CPA, CA
Vice President, Finance
1-800-931-5655, ext. 248

Marcel Bourassa
President and Chief Executive Officer

Reconciliation of EBITDA and adjusted EBITDA with net income provided below.
Complete financial statements and the management’s report for quarter ended September 30, 2016 will be available shortly on Savaria’s website and on SEDAR (


Reconciliation of EBITDA and adjusted EBITDA with Net Income

IMPORTANT: Safety notice for current owners of Savaria residential elevators