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Savaria Presents Its First Quarter Results - Revenue up 55% and Adjusted EBITDA up 31%

LAVAL, Québec, May 15, 2019 (GLOBE NEWSWIRE) -- Savaria Corporation (“Savaria”) (SIS.TO), one of the global leaders in the accessibility industry, announces today its results for first quarter 2019 ended on March 31, 2019.

Highlights:

  • Revenue of $87.5 million, up $30.9 million or 54.6%;
  • Gross margin of $27.1 million, up $8.3 million or 44.4%;
  • Operating income of $6.9 million, up $1.4 million or 26.2%;
  • Net earnings of $4.1 million, up $0.3 million or 7.8%;
  • EBITDA of $10.5 million, up $3.1 million or 42.2%;
  • Adjusted EBITDA(1) of $10.4 million, up $2.5 million or 31.1%;
  • Acquisition in March 2019 of Florida Lifts LLC, a leading elevator and platform lift distributor in the center and the south of Florida.
(in thousands, except per-share amounts and percentages) Quarters Ended March 31
(Unaudited)
2019 2018 Change
Revenue  $87,477  $56,592 54.6%
Gross margin  $27,054  $18,729 44.4%
% of revenue 30.9% 33.1% n/a
Net income  $4,065  $3,772 7.8%
% of revenue 4.6% 6.7% n/a
Earnings per share – diluted $0.09 $0.09 n/a
Adjusted EBITDA(1)  $10,388  $7,924 31.1%
% of revenue 11.9% 14% n/a
Adjusted EBITDA per share – diluted $0.23 $0.19 21.1%


(1) Earnings before interest, taxes, depreciation, amortization and various items as specified in the table Reconciliation of EBITDA and adjusted EBITDA with Net income below (see section  “Compliance with International Financial Reporting Standards”).

A Word from the President

“The results of our first quarter met our expectations. Efforts in all divisions are being made to progress to our annual financial goals and I fully expect the improvement trends to continue throughout the year,” declared Marcel Bourassa, President and Chief Executive Officer of Savaria.

“We closed a bought deal private placement of $70.8 million in April 2019, providing us with a strengthened balance sheet for our continued acquisition program for complementary products and new distribution networks. The integration of our recent acquisitions remains at the forefront of our business strategy for 2019, and opportunities to grow with new products, particularly in North America are also part of our vision for the year”, concluded Mr. Bourassa.

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, elevators for home and commercial use, as well as ceiling lifts. It also manufactures and markets a comprehensive selection of pressure management products for the medical market, medical beds for the long-term care market, mattress overlays and foam pillows for the retail market and certain products for the industrial market. In addition, Savaria converts and adapts vehicles to be wheelchair accessible. Savaria records approximately 75% of its revenue outside of Canada, primarily in the United States. It operates a sales network of some 500 dealers worldwide and 29 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 and adjusted EBITDA 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. Reconciliation between EBITDA and adjusted EBITDA with net income is provided in the section below.

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.

Q1-2019 Results Webcast and conference call on May 16, 2019, at 8:30 a.m. (EDT)

Savaria will host a conference call on Thursday, May 16, 2019 at 8:30 am Eastern Time with financial analysts to discuss results of the first quarter ended March 31, 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 URL (EN): https://event.on24.com/wcc/r/2003556/1C507E0E35E903A428DBB20BAE70EDB3

A replay of the webcast and a recording of the question and answer session will be available on the Corporation’s website at www.savaria.com.

For further information:

Nicolas Rimbert, CFA    Marcel Bourassa
Vice President, Corporate Development  President and Chief Executive Officer
nrimbert@savaria.com    marcel.bourassa@savaria.com 
1-800-931-5655, ext. 239 1-800-661-5112

www.savaria.com
Facebook: www.facebook.com/savariabettermobility
Twitter: twitter.com/Mobilityforlife

Complete financial statements and the Management’s Report for first quarter 2019 will be available shortly on Savaria’s website and on SEDAR (www.sedar.com).

Reconciliation of EBITDA and adjusted EBITDA with Net Income

(in thousands) Quarters Ended
March 31 (Unaudited)
2019 2018
Net income $4,065 $3,772
Plus:    
Interest cost  1,270 406
Income tax expense  1,320 1,335
Depreciation of fixed assets  1,935 650
Amortization of intangible assets  1,871 1,192
Less:    
Interest income 7 3
EBITDA $10,454 $7,352
Plus:    
Stock-based compensation 321 215
Business acquisition costs, realized and unrealized 288 357
Value adjustment on acquired inventories 147 -
Restructuring costs for Garaventa Lift's operations 324 -
Less:    
Revenue related to the amendment of Visilift purchase agreement 1,146 -
Adjusted EBITDA $10,388 $7,924