Savaria Corporation (TSX:SIS), North America's leader in the accessibility
industry, today disclosed its results for its third quarter ended September 30,
2013.
Third-Quarter Highlights
-- Record revenue of $20 million, up 24% from revenue of $16.2 million in
2012;
-- Net income is up $1.9 million, from a loss of $425,000 in 2012 to a gain
of $1.5 million in 2013, or 7 cents per share, for a cumulative of 18
cents per share for the first three quarters;
-- Earnings before interest, taxes, depreciation and amortization
("EBITDA") amounted to $2.7 million, up $2.6 million, representing 12
cents per share, for a cumulative of 32 cents per share for the first
three quarters. This is the highest quarterly EBITDA in the history of
the Corporation;
-- Presentation of a new stairlift for curved stairs, the Stairfriend, at
the National Association of Elevator Contractors ("NAEC") Convention
held in September 2013.
A Word from the President
"The third quarter results continue the outstanding trend seen in Savaria's
previous three quarters; we have reached an all-time high for our Corporation.
For the first time in our history, our quarterly revenue has reached the 20
million dollar mark. Our cumulative gross margin for 2013 is at 29.6%, an
increase of 2.3% compared to the same period of 2012. Our EBITDA is $2.7
million, or 12 cents per share, for the quarter and a record cumulative 32 cents
for the first nine months. At 13.2% of revenue, it is a tangible result of our
unrelenting efforts in order to improve our productivity," declared Marcel
Bourassa, President and Chief Executive Officer of Savaria.
"These outstanding results concur with the status of Savaria as the leader in
the accessibility industry in North America. Indeed, we are the only company to
offer such a comprehensive equipment offering, including stairlifts and platform
lifts, both for straight and curved stairs, residential and commercial
elevators, and vehicle conversions. In October, we started installing, in
Ontario and China, our new Stairfriend stairlift for curved staircase; we
believe this product will have a positive impact on the 2014 results.
"Ultimately, our strong balance sheet enables us to maintain a dividend policy
highly appreciated by our shareholders, without restricting our development
strategy", concluded Mr. Bourassa.
Operating Results (Comparative Analysis with Third Quarter and First Nine Months
of 2012)
-- In the third quarter of 2013, revenue is up $3.8 million or 23.8%, from
$16.2 million in third quarter 2012 to $20 million. For the first nine
months of 2013, revenue is up $7.7 million or 15.9%, from $48.9 million
to $56.6 million.
-- Gross margin for the third quarter of 2013 is up $1.7 million, at 29.6%
of revenue, compared to 26.1% in the third quarter of 2012. For the
first nine months of 2013, gross margin is up $3.4 million, at 29.6%
compared to 27.3% in 2012. This improvement is due to the increase in
revenue and to the cost savings following the relocation of the Brampton
plant in the building acquired in 2012.
-- Operating income for the third quarter of 2013 is up $2.6 million, from
a loss of $135,000 in 2012 to a gain of $2.4 million in 2013. For the
first nine months of 2013, operating income amounts to $6.1 million, an
increase of $4.4 million or 269%.
-- Net income for the third quarter of 2013 went from a loss of $425,000 in
2012 to a gain of $1.5 million in 2013, an increase of $1.9 million. For
the first nine months of 2013, net income amounts to $4.2 million,
increasing by $3.5 million.
-- EBITDA for the third quarter of 2013 went from $62,000 or 0.3 cent per
share in 2012, to $2.7 million or 12 cents per share in 2013, an
increase of $2.6 million. For the first nine months of 2013, EBITDA
amounts to $7.5 million or 32 cents per share, compared to $2.7 million
or 12 cents per share in 2012, up by $4.8 million.
Dividend
The Corporation's Board of Directors has declared a dividend of 2 cents ($0.02)
per common share, payable on December 9, 2013 to shareholders of record of the
Corporation at the close of business on November 25, 2013. This is an eligible
dividend within the meaning of the Income Tax Act.
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
and the collaboration with Savaria's other Canadian facilities increases its
competitive edge in the market place. The Corporation records some 60% 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.
Complete financial statements and the management's report for quarter ended
September 30, 2013 will be available shortly on Savaria's website and on SEDAR
(www.sedar.com).
Financial Highlights
============================================================================
(in thousands,
except per-
share amounts
and
percentages - Quarters Ended Nine-Month Periods Ended
unaudited) September 30, September 30,
-------------------------------------------------------------
2013 2012 Change 2013 2012 Change
----------------------------------------------------------------------------
Revenue $ 20,019 $ 16,166 23.8% $ 56,619 $ 48,869 15.9%
----------------------------------------------------------------------------
Gross margin as
a % of revenue 29.6% 26.1% n/a 29.6% 27.3% n/a
----------------------------------------------------------------------------
Operating
costs $ 3,506 $ 3,502 0.1% $ 10,975 $ 10,680 2.8%
As a % of
revenue 17.5% 21.7% n/a 19.4% 21.9% n/a
----------------------------------------------------------------------------
Operating
income $ 2,420 $ (135) 1,893% $ 6,134 $ 1,661 269%
As a % of
revenue 12.1% (0.8)% n/a 10.8% 3.4% n/a
----------------------------------------------------------------------------
Gain (loss) on
foreign
exchange $ (128)$ (151) 15.2% $ 94 $ (117) 180%
----------------------------------------------------------------------------
Net income
(loss) $ 1,517 $ (425) 457% $ 4,174 $ 626 567%
----------------------------------------------------------------------------
Earnings per
share -
diluted $ 0.06 $ (0.02) 400% $ 0.18 $ 0.03 500%
----------------------------------------------------------------------------
EBITDA (1) $ 2,690 $ 62 4,239% $ 7,493 $ 2,682 179%
----------------------------------------------------------------------------
EBITDA per
share - basic
and diluted $ 0.12 $ 0.003 3,908% $ 0.32 $ 0.12 167%
----------------------------------------------------------------------------
Dividends
declared per
share $ 0.02 - n/a $ 0.12 $ 0.094 n/a
----------------------------------------------------------------------------
Weighted
average number
of common
shares
outstanding -
diluted 23,524 23,145 n/a 23,400 23,141 n/a
============================================================================
As at Sep. 30, As at Dec. 31,
2013 2012
---------------------------------------------
Total assets $ 49,155 $ 49,380
---------------------------------------------
Total
liabilities $ 28,578 $ 30,156
---------------------------------------------
Shareholders'
equity $ 20,577 $ 19,224
=============================================
(1) Reconciliation of EBITDA with net income provided in the following
table.
Although EBITDA is not recognized according to IFRS, it is used by management,
investors and analysts to assess the Corporation's financial and operating
performance.
Reconciliation of EBITDA with Net Income (loss)
============================================================================
(in thousands
of dollars - Quarters Ended Nine-Month Periods
unaudited) September 30, Ended September 30,
------------------------------ ------------------------------
2013 2012 2013 2012
----------------------------------------------------------------------------
Net income
(loss) $ 1,517 $ (425) $ 4,174 $ 626
----------------------------------------------------------------------------
Plus :
Interest on
long-term debt 147 204 477 522
----------------------------------------------------------------------------
Interest
expense and
banking fees 45 23 91 68
----------------------------------------------------------------------------
Income tax
expense
(recovery) 591 (141) 1 601 349
----------------------------------------------------------------------------
Depreciation of
fixed assets 220 235 601 588
----------------------------------------------------------------------------
Amortization of
intangible
assets 178 176 561 556
----------------------------------------------------------------------------
Less:
Interest income 8 10 12 27
----------------------------------------------------------------------------
EBITDA $ 2,690 $ 62 $ 7,493 $ 2,682
============================================================================
FOR FURTHER INFORMATION PLEASE CONTACT:
Helene Bernier, CPA, CA
Vice-President, Finance
1-800-931-5655, ext. 248
helene.bernier@savaria.com
Marcel Bourassa
President and Chief Executive Officer
1-800-661-5112
marcel.bourassa@savaria.com
www.savaria.com
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