Savaria Corporation (“Savaria”) (TSX: SIS), one of the global
leaders in the accessibility industry, announces today its results
for the second quarter 2019 ended on June 30, 2019.
Quarter ended June 30, 2019
Highlights
- Revenue for the quarter was $94.0M, up $29.8M or 46.3% compared
to Q2 2018.
- Gross margin was $32.0M, up $10.3M or 47.6% compared to Q2
2018.
- Adjusted EBITDA(1) stood at $14.4M, up $4.3M, or 43.0% compared
to Q2 2018.
- Adjusted EBITDA margin(1) stood at 15.3% compared to 15.6% in
Q2 2018 As anticipated, the decrease in adjusted EBITDA margin was
mainly due to the blending of Garaventa Lift’s operations, acquired
in Q3 2018, which has a higher structural cost base with Savaria’s
legacy operations. Excluding Garaventa Lift and the favourable
impact related to the adoption of IFRS 16 – Leases, adjusted EBITDA
margin stood at 17.4%.
- Garaventa Lift’s adjusted EBITDA margin stood at 9.4%, compared
to 7.3% in Q1 2019, in line with ongoing integration efforts.
- Adjusted net earnings(1) for the quarter stood at $6.2M, up
8.0% compared to Q2 2018. On a per share basis, it stood at $0.13,
flat, compared to the same period in 2018.
- Net earnings for the quarter were $5.5M, or $0.11 per share, on
a diluted basis, down 13.9% and 21.4%, respectively, compared to Q2
2018, due mainly to a one-time favourable insurance claim
settlement of $1.6M in 2018.
- On April 24, 2019, the Corporation completed a bought deal
private placement financing consisting of 5,000,000 common shares
at a price of $14.15 per share, for gross proceeds totalling
$70.8M.
- On June 18, 2019, Savaria announced it had entered into an
agreement to acquire all of the outstanding shares of Silvalea Ltd
and its sister company D-ansermed Ltd, a manufacturer of patient
transfer slings and accessories, based in Newton Abbot, UK, for
approximately $7.8M (£4.6M). The transaction was completed on July
1, 2019.
(in thousands of dollars, except per-share amounts and percentages
- Unaudited) |
Q2 |
YTD |
2019 |
2018 |
Change |
2019 |
2018 |
Change |
Revenue |
$93,992 |
$64,235 |
46.3% |
$181,469 |
$120,827 |
50.2% |
Gross margin |
$32,040 |
$21,702 |
47.6% |
$59,094 |
$40,431 |
46.2% |
% of revenue |
34.1% |
33.8% |
n/a |
32.6% |
33.5% |
n/a |
Adjusted net earnings (1) |
$6,207 |
$5,747 |
8.0% |
$9,877 |
$9,776 |
1.0% |
% of revenue |
6.6% |
8.9% |
n/a |
5.4% |
8.1% |
n/a |
Adjusted net earnings per share – diluted |
$0.13 |
$0.13 |
- |
$0.21 |
$0.23 |
(8.7)% |
Adjusted EBITDA(1) |
$14,360 |
$10,040 |
43.0% |
$24,748 |
$17,938 |
38.0% |
% of revenue |
15.3% |
15.6% |
n/a |
13.6% |
14.8% |
n/a |
Adjusted EBITDA per share – diluted |
$0.30 |
$0.23 |
30.4% |
$0.53 |
$0.41 |
29.3% |
(1) Non-IFRS measures are described in the
‘Glossary” section of the MD&A
A Word from the President
“We succeeded to reach our best quarter in the
Corporation’s history for both revenue and adjusted EBITDA at $94
million in revenue and adjusted EBITDA of $14.4 million, up 46% and
43% respectively over Q2 2018,” declared Marcel Bourassa, President
and Chief Executive Officer of Savaria.
“The integration of our recent acquisitions has
been our unrelenting focus for many months and this helped us
attain an adjusted EBITDA to revenue ratio of 15.3% in the second
quarter, in line with expectations and on track to achieve our
margin target for the full year. We have made good progress with
efficiency gains in productivity, overall labour and materials, and
feel confident to be able to continue these trends throughout the
remainder of the year and into 2020.
“As we near the one-year anniversary of our
acquisition of Garaventa Lift, it is important to recall that we
purchased the company based on an annual adjusted EBITDA of $8.3
million. In the first 6 months of 2019, which include the
seasonally weak Q1, Garaventa Lift has delivered an adjusted EBITDA
of $5.3 million. This improvement is a testament to the hard work
and collaboration between the Savaria and Garaventa Lift management
teams.
“Finally, with our strong balance sheet, we
remain well-positioned to evaluate potential acquisitions that
align with our business strategy,” concluded Mr. Bourassa.
Outlook 2019
With results to date in line with expectations,
management remains confident in its ability to deliver on plan for
2019, and as such, reiterates its previously disclosed full year
outlook of $385M to $400M in revenue and $55M to $60M in adjusted
EBITDA.
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
and Poland), Australia and China. Savaria employs approximately
1,400 people globally and its plants are located in Canada Laval
and Magog (Québec), Brampton, Beamsville and Toronto (Ontario) and
Surrey (British Columbia), in the United States at Greenville
(South Carolina), in Huizhou (China) and in Milan (Italy).
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
per share, adjusted net earnings and adjusted net earnings per
share 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 Savaria’s MD&A, which is posted on
Savaria’s website at www.savaria.com, and filed with SEDAR at
www.sedar.com.
Cautionary Notice Regarding
Forward-Looking Statements
The statements set forth in this press release,
which describe Savaria’s objectives, projections, estimates,
expectations or forecasts, may constitute forward-looking
statements within the meaning of securities legislation. Positive
or negative verbs such as “will”, “plan”, “evaluate”, “estimate”,
“believe”, “expect” and other related expressions are used to
identify such statements. Savaria would like to point out that, by
their very nature, forward-looking statements involve risks and
uncertainties such that its results, or the measures it adopts,
could differ materially from those indicated or underlying these
statements, or could have an impact on the degree of realization of
a particular projection. Major factors that may lead to a material
difference between Savaria’s actual results and the projections or
expectations set forth in the forward-looking statements include
the effects of the integration of acquired businesses and the
ability to achieve projected synergies, fluctuations in margins,
competition, exchange rate variations, and such other risks as
described in detail from time to time in documents filed by Savaria
with securities regulatory authorities in Canada. Unless otherwise
required by applicable securities laws, Savaria disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. The forward-looking information in this press release
is based on information available as of the date of the
release.
Q2-2019
Results Webcast and conference call on August 15, 2019, at 8:30
a.m. (EDT)
Savaria will host a conference call on Thursday,
August 15, 2019 at 8:30 a.m. Eastern Time with financial analysts
to discuss results of the second quarter ended June 30, 2019.
Investors and members of the media are invited to participate on a
listen-only basis.
Conference call access:
Local Dial-in Numbers: (647) 427-7450 or (514)
807-9895
North American Toll Free Number: 1 (888)
231-8191
Webcast (EN):
https://event.on24.com/wcc/r/2063085/F4122BBF557DB63722BF8DE143B03A2A
A link to the replay of the webcast will be
available on the Corporation’s website at www.savaria.com.
For further information: |
|
|
Mauro Ferrara, CPA, CA |
Marcel Bourassa |
Chief Financial Officer |
President and Chief Executive Officer |
mferrara@savaria.com |
mbourassa@savaria.com |
1-800-931-5655, ext. 227 |
1-800-661-5112 |
www.savaria.comFacebook:
www.facebook.com/savariabettermobilityTwitter:
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