Savaria Announces Record-breaking Second Quarter and Raises Guidance for 2016


Laval, Quebec, August 10, 2016 Savaria Corporation (TSX: SIS), one of North America’s leaders in the accessibility industry, discloses its results for its second quarter ended June 30, 2016.


Second quarter results including Revenue, Operating income and adjusted EBITDA reached unprecedented levels.

Quarter ended June 30, 2016

  • Record revenue of $30.1 million, up $5.7 million or 23.2%;
  • Record gross margin of $9.8 million, up $2.3 million or 31.3%;
  • Record operating income of $3.9 million, up $769,000 or 24.9%;
  • Record adjusted EBITDA(1) of $5.1 million, up $1.6 million or 44%;
  • Net proceeds of $19.1 million following the issuance of 2,600,000 common shares as part of a bought deal private placement;
  • Successful closing of asset purchase of Shoppers Home Health Care's automotive division.

Six months ended June 30, 2016

  • Record revenue of $56.3 million, up $11.6 million or 26.1%;
  • Record gross margin of $18.3 million, up $4.7 million or 35%;
  • Record operating income of $7.6 million, up $2.7 million or 55.5%;
  • Record adjusted EBITDA of $9 million, up $2.6 million or 40.4%.

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

A Word from the President

"Both our revenue and adjusted EBITDA have broken all of the Corporation previous records for quarterly performance. I am very pleased that the growth is coming from all sectors of our business. We remain focused on controlling costs of operation and improving productivity which is reflected in our ratio of adjusted EBITDA/revenue which was 16.9% for the second quarter. Revenue was up 23.2% over last year’s second quarter while adjusted EBITDA was up 44% over the same period," declared Marcel Bourassa, President and Chief Executive Officer of Savaria.

"Positive results are expected in the fourth quarter for Silver Cross Automotive with integration into our Silver Cross platform, bringing the total number of stores to 24 locations, 10 of which are corporate.

"Our ceiling lift offering is on track for a September product launch at the National Association of Elevator Contractors (NAEC) show in Montreal.

"Our strong financial position puts us in an excellent position for investing in product development and significant strategic acquisitions," concluded Mr. Bourassa.

Outlook 2016              

The Corporation adjusts its forecast for the twelve-month period ending December 31, 2016, by increasing revenue to approximately $118 million and EBITDA to a range of $17.5-$18.5 million, excluding any new acquisitions.


As per the Corporation’s dividend policy, the Board of Directors has declared a dividend of 5 cents ($0.05) per common share for the second quarter of 2016. The dividend is payable on September 2, 2016, to shareholders of record of the Corporation at the close of business on August 19, 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 more than 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 June 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