Savaria Corporation (“Savaria”) (TSX: SIS), one of the global
leaders in the accessibility industry, is pleased to announce today
its results for the third quarter of fiscal 2020.
Highlights
- Revenue was $90.8M, down $5.6M, or 5.8%;
- Gross profit was $32.6M, up $0.4M, or 1.4%, representing 35.9%
of revenue compared to 33.3%;
- Adjusted net earnings stable at $8.2M, or $0.17 per share on a
diluted basis;
- Adjusted EBITDA was $16.9M, up $1.3M or 8.1%.
in
thousands of dollars, except per-shareamounts and percentages |
|
Q3 |
YTD |
|
2020 |
2019 |
Change |
2020 |
2019 |
Change |
Revenue |
|
$90,808 |
$96,434 |
(5.8) % |
$263,895 |
$277,903 |
(5.0) % |
Gross profit |
|
$32,583 |
$32,134 |
1.4% |
$91,994 |
$91,228 |
0.8% |
% of revenue |
|
35.9% |
33.3% |
n/a |
34.9% |
32.8% |
n/a |
Adjusted net earnings (1) |
|
$8,241 |
$8,066 |
2.2% |
$21,678 |
$17,943 |
20.8% |
% of revenue |
|
9.1% |
8.4% |
n/a |
8.2% |
6.5% |
n/a |
Adjusted net earnings per share (1) |
|
$0.17 |
$0.16 |
6.2% |
$0.43 |
$0.37 |
16.2 % |
Adjusted EBITDA(1) |
|
$16,914 |
$15,652 |
8.1% |
$43,741 |
$40,400 |
8.3% |
% of revenue |
|
18.6% |
16.2% |
n/a |
16.6% |
14.5% |
n/a |
Adjusted EBITDA per share (1) |
|
$0.33 |
$0.31 |
6.5% |
$0.86 |
$0.84 |
2.4 % |
(1) Non-IFRS
measures are described in the 'Glossary' section of the
MD&A |
A word from the President
“I am very satisfied with the results of the third quarter of
2020. Our revenue and adjusted EBITDA numbers show investors that,
despite a global pandemic, we can perform. We have focused our
efforts on our core segment of accessibility products which
represents approximately 75% of revenue and 90% of our adjusted
EBITDA,” stated Mr. Marcel Bourassa, President and Chief Executive
Officer of Savaria.
“Recently, we implemented a marketing campaign for the Savaria
Vuelift® glass elevator product line, as we see strong growth
potential for this innovative home elevator. We have seen keen
interest from builders and architects for the Vuelift® products
because of their luxury aesthetic, ease of installation for both
new and retrofit construction, and because it can be installed in a
variety of locations. We therefore believe we can reach sales of
600 units per year by the end of 2023, which would represent
approximately $30 million in revenue across our global market.
“We are excited to open our new showroom and warehouse in
Boynton Beach, Florida next month, which will offer a large array
of demonstration models including an octagonal Vuelift® elevator
and our newest product, the Vuelift® Mini home elevator. The south
Florida market has proven to be a highly desirable demographic for
Savaria with both luxury homeowners and those with accessibility
needs.
“As a result of our strong balance sheet, we are well positioned
to take advantage of good acquisition opportunities that may arise.
We continue to safeguard our employees and customers as much as
possible during the pandemic and I thank our worldwide team for
their ongoing support," 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 1,400
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 November
12, 2020, at 8:30 a.m. (EST)
Savaria will host a conference call on Thursday,
November 12, 2020 at 8:30 a.m. Eastern Time with financial analysts
to discuss results of the quarter ended September 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=1395987&tp_key=751aaca965
link to the replay of the webcast will be available on the
Corporation’s website at www.savaria.com
For further information: |
|
|
Marcel BourassaChairman, President and Chief Executive
Officer1.800.661.5112 |
Stephen Reitknecht, CPA, CAChief Financial Officer1.800.661.5112,
ext. 3370sreitknecht@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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