Laval, Québec, Canada – March 15, 2023 - Savaria Corporation (“Savaria”) (TSX: SIS), a global leader in the accessibility industry, is pleased to announce its results for fiscal 2022.
Highlights – Fiscal 2022 compared to 2021
- Revenue was $789.1M, up $128.1M or 19.4%, due to organic growth of 12.7% originating from all segments and to 8.9% growth from acquisition partially offset by a negative foreign exchange impact of 2.2%;
- Gross profit was $254.4M, up $38.8M or 18.0%, representing 32.2% of revenue compared to 32.6% in 2021;
- Operating income was $63.9M, up $28.1M or 78.2%, representing 8.1% of revenue compared to 5.4% in 2021;
- Adjusted EBITDA* was $120.2M, up $20.0M or 19.9%;
- Adjusted EBITDA margin* stood at 15.2%, flat compared to 2021;
- Net earnings were $35.3M, or $0.55 per share on a diluted basis, compared to $11.5M or $0.19 in 2021;
- Funds available* of $125.7M as of December 31, 2022, to support working capital, investments and growth opportunities.
A Word from the President
“It was another year of business pressures, yet this showcased one of the key qualities of Savaria – that we are agile. We demonstrated this with our ability to get a new facility in Mexico up and running in less than a year to better serve our North American dealer network. Earlier in 2022, we acquired UK-based Ultron Technologies making us more vertically integrated with software and electronic circuit boards," said Marcel Bourassa, President and Chief Executive Officer.
“We grew our revenue 123% over the past 2 years from $354.5 million (2020) to $789.1 million (2022). We also doubled our adjusted EBITDA in this same timeframe from $59.8 million to $120.2 million. Those numbers are transformative for Savaria.
Our results were delivered in spite of the many challenges we faced. Our strategies and our employees’ teamwork and dedication underscore my optimism for growth of 8-10% each year over the next three years, reaching our revenue goal of $1 billion at the end of 2025,” concluded Mr. Bourassa.
Fourth Quarter Results – Q4 2022 compared to Q4 2021
Revenue reached $212.1M, up $22.6M or 11.9%. The growth was mainly due to strong organic growth of 12.1%.
- Accessibility segment (70% of Q4-22 revenue): Revenue was $148.2M, an increase of $10.9M or 8.0%. Organic revenue growth stood at 8.7%.
- Patient Care segment (21% of Q4-22 revenue): Revenue was $45.7M, an increase of $5.3M or 13.2%. Organic revenue growth stood at 8.7%.
- Adapted Vehicles segment (9% of Q4-22 revenue): Revenue was $18.2M, an increase of $6.3M or 53.0%. Organic revenue growth stood at 62.1%.
Adjusted EBITDA and adjusted EBITDA margin, both before head office costs, stood at $34.0M and 16.0%, respectively, compared to $30.1M and 15.9% for Q4 2021.
- Accessibility segment: Adjusted EBITDA and adjusted EBITDA margin, both before head office costs, stood at $24.7M and 16.7%, respectively, compared to $24.2M and 17.7%.
- Patient Care segment: Adjusted EBITDA and adjusted EBITDA margin, both before head office costs, stood at $7.0M and 15.3%, respectively, compared to $5.3M and 13.1%.
- Adapted Vehicles segment: Adjusted EBITDA and adjusted EBITDA margin, both before head office costs, stood at $2.3M and 12.7%, respectively, compared to $0.6M and 5.2%.
Net Earnings and Adjusted Net Earnings
Net earnings for the quarter were $11.3M or $0.18 per share on a diluted basis, compared to $0.9M or $0.02 per share in Q4 2021.
Adjusted net earnings stood at $12.6M, or $0.19 per share, compared to $6.5M or $0.10 per share in Q4 2021.
Twelve-Month Results - Fiscal 2022 compared to 2021
The Corporation generated revenue of $789.1M, up $128.1M or 19.4%. The increase is mainly due to organic growth of 12.7% and the acquisition of Handicare in 2021. The growth was partially offset by a negative foreign exchange impact of 2.2%.
Adjusted EBITDA and adjusted EBITDA margin, both before head office costs, stood at $126.5M and 16.0%, respectively, compared to $106.1M and 16.0% in 2021.
Net Earnings and Adjusted Net Earnings
The Corporation’s net earnings stood at $35.3M or $0.55 per share on a diluted basis, compared to $11.5M or $0.19 per share in 2021.
Adjusted net earnings were $39.4M or $0.61 per share on a diluted basis, compared to $23.3M or $0.37 in 2021.
Liquidity and Capital Resources
Savaria generated $90.7M of cash from operating activities which were primarily used to invest in capital projects, repay debt, and pay interest and dividends.
As at December 31, 2022, the Corporation had a net debt position of $369.4M and a ratio of net debt to adjusted EBITDA of 3.07 compared to 3.73 as of December 31, 2021.
Savaria is expecting revenue growth of approximately 8-10% with expected adjusted EBITDA margins of approximately 16% in fiscal 2023, based on the following assumptions:
- Organic growth coming from the Accessibility and Patient Care segments is expected to continue due to a combination of high backlog levels, cross-selling and strong demand.
- Successful integration of Handicare and progress toward achieving the next strategic phase of synergies progressing in-line with management’s plan.
- Management’s ability to continue to effectively manage supply chain challenges.
This outlook excludes the financial contribution from any new acquisition.
Environmental, Social and Governance (“ESG”) Values
As a global leader within the accessibility industry, Savaria is committed to minimizing its environmental footprint and upholding the highest social and governance standards. We believe that promoting environmentally and socially responsible behaviour across our organization is key to achieving sustainable growth and long-term value creation.
As we advance an ESG strategy that will positively impact our company and the communities in which we operate, our first step is to identify the ESG risks and opportunities that are critical to our business. To that end, and with the support of external consultants, we have conducted our first materiality assessment to validate the most important ESG issues prioritized by our stakeholders. The results of this assessment have helped to narrow our focus and guide our decision-making with respect to our ESG plan.
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 2,300 people globally and its plants are located across Canada, the United States, Mexico, 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 before head office costs, adjusted EBITDA margin before head office costs, adjusted net earnings, adjusted net earnings per share, available funds and net debt 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 sections 3 and 6 of Savaria’s MD&A, which is posted on Savaria’s website at www.savaria.com, and filed with SEDAR at www.sedar.com. Reconciliation of adjusted net earnings and adjusted EBITDA with net earnings is presented in the section below.
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 16, 2023, at 8:30 a.m. (EDT)
Savaria will host a conference call on Thursday, March 16 at 8:30 a.m. Eastern Daylight Time with financial analysts to discuss results of the quarter and fiscal year ended December 31, 2022. Investors and members of the media are invited to participate on a listen-only basis.
Conference call access:
Canada Toll Free Number:
Toronto: 1 (647) 484-0477
Montreal: 1 (438) 320-0340
North American Toll Free Number: 1 (800) 458-4121
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
Reconciliation of adjusted net earnings and adjusted EBITDA with net earnings is provided below. Complete financial statements and the management’s report for fiscal 2022 will be available shortly on Savaria’s website and on SEDAR (www.sedar.com).