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LAVAL, QUEBEC -- (Marketwired) -- 08/06/15 -- Savaria Corporation (TSX: SIS), North America's leader in the accessibility industry, discloses its results for its second quarter ended June 30, 2015.
Three months ended June 30, 2015
Six months ended June 30, 2015
A Word from the President
"We met our second-quarter-of-2015 targets, both in revenue and EBITDA. Our increase in revenue of 11% is due mainly to an increase in the sale of stairlifts. The number of units sold of our "Stairfriend" for curved stairs increased from 40 in the second quarter of 2014 to 86 in the same quarter of 2015, and the number of stairlifts for straight stairs went up from 323 to 596 for the same periods. This upward trend is expected to continue during the upcoming quarters," declared Marcel Bourassa, President and Chief Executive Officer of Savaria.
"Our record EBITDA of $3.5 million, up 30.6% from the second quarter of 2014 and representing 14.4% of our revenue, clearly proves our growth capacity and focus on profitability.
"In the Adapted Vehicles segment, I am pleased to announce that our accessible conversion for the Ram Promaster van was successfully crash-tested in conjunction with the MGA Research Corporation. This vehicle carries up to seven people, including three in wheelchairs; the production phase will start in August 2015 and will enable us to increase revenue in this segment.
"The results of our last quarter attest once again to the growing demand for accessibility products; indeed, the mobility needs of the aging population are clearly growing in both the residential and commercial sectors. With the completion in April of a second private placement of $13.5 million, we have nearly $29 million in cash, giving us the flexibility to execute our growth strategy and to seize acquisition opportunities," concluded Mr. Bourassa.
For the twelve-month period ending December 31, 2015, we forecast revenue to reach about $92 million, and EBITDA to be in the $13.5-$14.5 million bracket.
As per the Corporation's dividend policy, the Board of Directors has declared a dividend of 4 cents ($0.04) per common share, payable on August 31, 2015 to shareholders of record of the Corporation at the close of business on August 17, 2015. This is an eligible dividend within the meaning of the Income Tax Act.
Savaria Corporation (savaria.com) is North America's leader in the accessibility industry focused on meeting the needs of people with mobility challenges. Savaria designs, manufactures, distributes and installs primarily elevators for home and commercial use, as well as stairlifts and vertical and inclined platform lifts. With the acquisition of Silver Cross, the Corporation now operates a lead generation program to capture and distribute leads on potential customers to close to 100 affiliates in North America; also, it is a franchisor of stores through which new and recycled accessibility equipment is sold. In addition, Savaria converts and adapts minivans to be wheelchair accessible. The diversity of its product line, one of the world's most comprehensive, enables the Corporation to stand out by proposing an integrated and customized solution for its customers' mobility needs. Its operations in China have substantially grown and the collaboration with Savaria's other Canadian facilities increases its competitive edge in the market place. The Corporation records more than 60% of its revenue outside Canada, primarily in the United States. It operates a sales network of some 400 active retailers and affiliates in North America and employs some 430 people at its head office in Laval and at its plants and sales offices in Montreal (Quebec), Brampton and London (Ontario), Calgary (Alberta) and Huizhou (China).
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 for analysis purposes to measure its financial performance. This measure has no standardized definition in accordance with IFRS and is therefore regarded as a non-IFRS measure. This measure may therefore not be comparable to similar measures reported by other companies. Reconciliation between net income for the period and EBITDA is provided in the Reconciliation of EBITDA 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.
Reconciliation of EBITDA with net income provided below.
Complete financial statements and the management's report for quarter ended June 30, 2015 will be available shortly on Savaria's website and on SEDAR (www.sedar.com).
Reconciliation of EBITDA with Net IncomeContacts: Helene Bernier, CPA, CA Vice President, Finance 1-800-931-5655, ext. 248 Marcel Bourassa President and Chief Executive Officer 1-800-661-5112 NEXT ARTICLE
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