Laval, Québec, Canada, January 20, 2020 – Savaria Corporation (“Savaria”) (TSX: SIS), one of the global leaders in the accessibility industry, provides today its outlook for fiscal 2020. Savaria estimates revenue to be approximately CAD 395 million for the year with an adjusted EBITDA(1) margin ranging between 15 and 16 percent.
Savaria will continue to focus on its core accessibility segment, benefiting from strong demographic growth. Consolidated adjusted EBITDA(1) margin is anticipated to improve over 2019 as a result of a more favorable product mix and on-going Garaventa Lift acquisition-related integration synergies. The patient handling segment should benefit from healthy growth stemming from ceiling lift and sling product offerings.
Seasonality is expected to mirror 2019. This outlook excludes any potential 2020 acquisitions and Savaria remains steadfast in maintaining a net interest-bearing debt-to-adjusted EBITDA(1) ratio of less than two. The projections are based on a Canadian to US dollar exchange rate of 1.30.
A word from the President
“Savaria continues to benefit from the aging population demographic. Both the U.S. and Canada are expected to see 20% of their population to be over 65 in just 10 years from now. As people look for ways to stay safely in their homes longer, Savaria, in line with its mission, continues to bring the best products and service to this market. We remain optimistic and dedicated to deliver solid results to our shareholders,” declared Marcel Bourassa, President and Chief Executive Officer of Savaria.
(1) Adjusted EBITDA is defined as earnings before net finance costs, income tax expense, depreciation, amortization, other net expenses (income) and stock-based compensation expense.
About Savaria Corporation
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 (UK).
For further information:
Mauro Ferrara, CPA, CA
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.