Savaria Announces 2020 Q2 Results: Revenue of $84.7M and Adjusted EBITDA margin at 17.1%
August 12 2020 - 5:17PM
Savaria Corporation (“Savaria”) (TSX: SIS), one of the global
leaders in the accessibility industry, is pleased to announce today
its results for the second quarter of fiscal 2020.
Highlights
- Revenue was $84.7M, down $9.3M, or 9.9%;
- Gross profit was $29.3M, down $2.8M, or 8.6%, representing
34.6% of revenue compared to 34.1%;
- Adjusted net earnings stable, coming in at $6.3M, or $0.12 per
share on a diluted basis;
- Adjusted EBITDA was $14.5M, up $0.3M or 1.8%.
in thousands of dollars, except per-share amounts and
percentages |
Q2 |
YTD |
2020 |
2019 |
Change |
2020 |
2019 |
Change |
Revenue |
$84,668 |
$93,992 |
(9.9) % |
$173,087 |
$181,469 |
(4.6) % |
Gross profit |
$29,269 |
$32,040 |
(8.6) % |
$59,411 |
$59,094 |
0.5% |
% of revenue |
34.6% |
34.1% |
n/a |
34.3% |
32.6% |
n/a |
Adjusted net earnings (1) |
$6,257 |
$6,207 |
0.8% |
$13,437 |
$9,877 |
36.0% |
% of revenue |
7.4% |
6.6% |
n/a |
7.8% |
5.4% |
n/a |
Adjusted net earnings per share (1) |
$0.12 |
$0.13 |
(7.7) % |
$0.26 |
$0.21 |
23.8 % |
Adjusted EBITDA(1) |
$14,470 |
$14,217 |
1.8% |
$26,827 |
$24,748 |
8.4% |
% of revenue |
17.1% |
15.1% |
n/a |
15.5% |
13.6% |
n/a |
Adjusted EBITDA per share |
$0.28 |
$0.30 |
(6.7) % |
$0.53 |
$0.53 |
- |
(1) Non-IFRS
measures are described in the 'Glossary' section of the
MD&A |
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A word from the President
“Despite the challenging climate presented by
COVID-19, we generated revenue of $84.7 million in the second
quarter of 2020 and adjusted EBITDA stood at $14.5 million, an
increase of 1.8% compared to the same period in 2019. We have
continued to effectively manage costs by product and location,”
stated Mr. Marcel Bourassa, President and Chief Executive
Officer of Savaria.
“Our theme Stay at Home with Savaria may resonate with people
during the pandemic. We see encouraging statistics in U.S. housing
starts and more people are investing in their homes, perhaps in
lieu of travelling. Both of these scenarios provide a foundation
for our home elevator and accessibility products sales. We have
implemented many processes at Savaria to keep our employees safely
working during the COVID-19 pandemic and it remains a key priority
for us to continue monitoring the ongoing safety protocols at all
our facilities to minimize risk for all our staff and
customers.
“I am optimistic for the last half of 2020 based on our strong
sales bookings in July 2020 for accessibility products,” concluded
Mr. Bourassa.
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 1,430
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 (United Kingdom).
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.
Forward-Looking Statements
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 August 13, 2020, at 8:30 a.m.
(EST)
Savaria will host a conference call on Thursday,
August 13, 2020 at 8:30 a.m. Eastern Time with financial analysts
to discuss results of the quarter ended June 30, 2020. 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)
231-8191Webcast (EN):
https://produceredition.webcasts.com/starthere.jsp?ei=1351518&tp_key=34fb20a815
link to the replay of the webcast will be available on the
Corporation’s website at www.savaria.com
For further information: |
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Marcel BourassaChairman,
President and Chief Executive Officer1.800.661.5112 |
Mauro Ferrara, CPA-CAChief
Financial Officer1.800.931.5655, ext. 227mferrara@savaria.com |
Nicolas Rimbert, CFAVice
President, Corporate Development1.800.931.5655, ext.
239nrimbert@savaria.com |
www.savaria.comFacebook
: www.facebook.com/savariabettermobilityTwitter: twitter.com/Mobilityforlife
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