Savaria Announces 2020 Results: Revenue of $354.5M and Adjusted EBITDA at $59.8M
LAVAL, Québec, March 24, 2021 (GLOBE NEWSWIRE) — Savaria Corporation (“Savaria”) (TSX: SIS), a global leader in the accessibility industry, is pleased to announce today its results for fiscal 2020.
Highlights of the year 2020
- Revenue for the year was $354.5M, down $19.8M or 5.3%;
- Gross profit was $122.1M, down $3.2M or 2.5%, representing 34.5% of revenue compared to 33.5% in 2019;
- Adjusted net earnings were $28.5M, or $0.56 per share on a diluted basis; up $1.8M or 6.5%;
- Adjusted EBITDA was $59.8M, up $4.2M or 7.5%.
|in thousands of dollars, except per-share amounts and percentages||Q4||YTD|
|% of revenue||33.3||%||35.3||%||n/a||34.5||%||33.5||%||n/a|
|Adjusted net earnings (1)||$||6,851||$||8,834||(22.4||)%||$||28,529||$||26,777||6.5||%|
|% of revenue||7.6||%||9.2||%||n/a||8.0||%||7.2||%||n/a|
|Adjusted net earnings per share (1)||$||0.13||$||0.17||(23.5||)%||$||0.56||$||0.55||1.8||%|
|% of revenue||17.7||%||15.8||%||n/a||16.9||%||14.9||%||n/a|
|Adjusted EBITDA per share (1)||$||0.31||$||0.30||3.3||%||$||1.17||$||1.14||2.6||%|
|(1) Non-IFRS measures are described in the ‘Glossary’ section of the MD&A|
A Word from the President
“Our revenue for 2020 reached $354.5 million, a decrease of 5.3% compared to 2019 and an increase of 24% when compared to 2018. Adjusted EBITDA reached $59.8 million, an increase of 7.5% compared to 2019 and of 48% over 2018,” stated Mr. Marcel Bourassa, President and Chief Executive Officer of Savaria.
“Our financial results for 2020 were very good, especially as I consider the many challenges we had to address related to the pandemic, including working quickly and consistently to protect our employees and customers. Throughout the year, our employees worked diligently to follow safety protocols and meet production goals. More than ever, we believe that the senior population – in excess of 60 million just in North America – will invest in equipment to remain in their homes, therefore supporting our Stay at Home with Savaria™ motto.
“We entered a new chapter for Savaria on March 5, 2021 with the acquisition of Handicare Group AB. The strength of this combination brings us to over 2,300 employees, a global reach into more than 40 countries with over 1,000 dealers, and over 50 staff in research and development. I believe this is a new dimension for Savaria, now as the global leader in accessibility.
“The integration with Handicare is underway, and over the coming months, Savaria will work with the Handicare team to develop a strategic plan focused on accelerating innovation, growing sales, and developing new markets. While we are still early in the process, I am confident that Savaria will be able to deliver an adjusted EBITDA in excess of $100 million in 2021.
“Finally, our recent financing has provided us with available funds of more than $100 million, which allows ample flexibility to finance further expansion projects or smaller acquisitions. I thank all my employees and dealer partners for their extraordinary efforts in 2020,” concluded Mr. Bourassa.
About Savaria Corporation
Savaria Corporation (savaria.com) is a global leader 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, including ceiling lifts and slings. In addition, Savaria converts and adapts vehicles for personal and commercial uses. The Corporation operates a sales network of dealers worldwide and direct sales offices in North America, Europe (UK, Netherlands, Switzerland, Italy, Germany, Poland and Czech Republic), Australia and China. Savaria employs approximately 2,300 people globally and its plants are located across Canada, the United States, Europe and China.
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.
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 March 25, 2021, at 8:30 a.m. (ET)
Savaria will host a conference call on Thursday, March 25, 2021 at 8:30 a.m. Eastern Time with financial analysts to discuss results of the quarter and fiscal year ended December 31, 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) 231-8191
Webcast (EN): https://produceredition.webcasts.com/starthere.jsp?ei=1442073&tp_key=715ed9732f
link to the replay of the webcast will be available on the Corporation’s website at www.savaria.com
|For further information:|
Chairman, President and Chief Executive Officer
|Stephen Reitknecht, CPA, CA
Chief Financial Officer
1.800.661.5112, ext. 3370
|Nicolas Rimbert, CFA
Vice President, Corporate Development
1.800.931.5655, ext. 239