LAVAL, Quebec, March 08, 2018 (GLOBE NEWSWIRE) -- Savaria Corporation (TSX: SIS), one of North America’s leaders in the accessibility industry, discloses its results for fiscal 2017.
Savaria delivered unprecedented results in 2017 through business acquisitions and growth of its existing business.
- Revenue of $180.5 million, up $60.8 million or 50.8%;
- Gross margin of $63.9 million, up $23.4 million or 57.6%;
- Operating income of $22.6 million, up $5.2 million or 29.7%;
- Net earnings of $19.2 million, up $7 million or 56.5%;
- Adjusted EBITDA(1) of $31.1 million, up $10.3 million or 49.4%;
- Acquisition in February 2017 of Premier Lifts, Inc.’s assets, a leading elevator distributor in the Baltimore-Washington area;
- Acquisition in June 2017 of Span-America Medical Systems, Inc. ("Span");
- Acquisition in July 2017 of a 27,000-square-foot building in Toronto, Ontario, to consolidate under one roof the Toronto area's Adapted Vehicles' activities;
- Conclusion in August 2017 of an agreement to acquire the assets of Visilift LLC;
- 10-cent or 38.5% increase in dividend per share on an annual basis; since September 2017, dividend paid monthly rather than quarterly;
- Acquisition of Master Lifts Australia Pty Ltd. ("Master Lifts")’s assets, a leading elevator distributor based in Brisbane, Australia.
|(in thousands, except per-share amounts |
December 31, (Unaudited)
|Years Ended |
|% of revenue||37||%||35.9||%||n/a||35.4||%||33.9||%||n/a|
|% of revenue||15.4||%||12.1||%||n/a||10.7||%||10.3||%||n/a|
|Earnings per share – diluted||$0.20||$0.10||100%||$0.47||$0.34||38||%|
|% of revenue||17.6||%||19.3||%||n/a||17.2||%||17.4||%||n/a|
|Adjusted EBITDA per share – diluted||$0.24||$0.16||50||%||$0.77||$0.58||33||%|
|(1)||Earnings before interest, taxes, depreciation, amortization, realized and unrealized business acquisition costs, the value adjustment on acquired inventories and compensation expense on share options granted (see section Compliance with International Financial Reporting Standards)|
A Word from the President
“Our 2017 results are driven by sustained demand for accessibility products that help the aging population keep their mobility. Revenue rose 51% over 2016 to $180.5 million. This increase results from the acquisition of Span and Premier Lifts, as well as from our organic growth of approximately 10% in units sold of residential elevators and commercial and residential vertical platform lifts. Our adjusted EBITDA increased 49% over 2016, at $31.1 million or 17% of revenue. Our four 2017 acquisitions, which cost some $120 million, are contributing to Savaria's growth by adding a new distribution network for our ceiling lift products, new products (pressure management products, medical beds and octagonal glass elevators), a new sales territory (Australia) and an enhanced direct sales network for our residential elevators (Baltimore-Washington),” declared Marcel Bourassa, President and Chief Executive Officer of Savaria.
“These acquisitions are expected to have a strong positive impact on Savaria in 2018, both in terms of revenue and EBITDA. Savaria’s healthy balance sheet will continue to support organic growth as well as strategic acquisitions in the upcoming year,” concluded Mr. Bourassa.
Factoring in the benefits of the acquisition of Master Lifts that was completed in December 2017, the Corporation forecasts an increase of 48% of revenue to some $268 million and an adjusted EBITDA to a range of $42.5-$44.5 million for fiscal 2018, excluding any new acquisitions.
Savaria Corporation (savaria.com) is one of North America’s 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. Following its recent acquisition, Savaria 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, primarily foam products. In addition, Savaria converts and adapts vehicles to be wheelchair accessible. It also operates a network of franchisees and corporate stores through which new and recycled accessibility equipment is sold. Savaria records around 66% of its revenue outside Canada, primarily in the United States. It operates a sales network of some 400 retailers in North America and employs some 800 people. Its plants are located in Laval and Magog (Quebec), Brampton, Beamsville and Toronto (Ontario), Greenville (South Carolina), Huizhou (China) and Brisbane (Australia).
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, 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 net income for the period and EBITDA, adjusted EBITDA and adjusted EBITDA per share is provided in the Reconciliation of EBITDA, adjusted EBITDA and adjusted EBITDA per share with Net Income 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.
For further information:
|Hélène Bernier, CPA, CA|
Vice President, Finance
1-800-931-5655, ext. 248
President and Chief Executive Officer
Reconciliation of EBITDA, adjusted EBITDA and adjusted EBITDA per share with net income is provided below. Complete financial statements and the management’s report for fiscal 2017 will be available shortly on Savaria’s website and on SEDAR (www.sedar.com).
Reconciliation of EBITDA, adjusted EBITDA and adjusted EBITDA per share with Net Income
|(in thousands, except per-share amounts)||Quarters Ended|
December 31, (Unaudited)
|Income tax expense (recovery)||(2,286)||1,510||1,757||4,953|
|Depreciation of fixed assets||613||353||2,199||1,309|
|Amortization of intangible assets||1,911||172||3,971||691|
|Compensation expense on share options granted||315||104||890||357|
|Business acquisition costs, realized and unrealized||149||47||1,650||753|
|Value adjustment on acquired inventories||-||-||446||-|
|Diluted weighted average number of common||42,168||38,073||40,599||35,916|
|Adjusted EBITDA per share - diluted||$0.24||$0.16||$0.77||$0.58|
Source: Savaria Corporation