Laval, Quebec, March 26, 2015– Savaria Corporation (“Savaria”) (TSX: SIS), North America’s leader in the accessibility industry, discloses its results for its fourth quarter ended December 31, 2014 and for fiscal 2014.
Fourth-Quarter and Fiscal 2014 Highlights
Three months ended December 31, 2014
- Revenue of $21.5 million, up 12.4%;
- Operating income of $2.3 million, up $929,000 or 68%;
- EBITDA of $3 million, up $987,000 or 48%;
- Net cash flows generated from operating activities of $3.8 million (2013-$1.5 million).
Year ended December 31, 2014
- Revenue of $82.9 million, up 9.5%;
- Operating income up $1.3 million, amounting to $8.8 million in 2014, an increase of 17%;
- EBITDA of $11.2 million, up $1.6 million or 17%. This is the highest annual EBITDA in the history of Savaria;
- Private placement in April 2014, resulting in net proceeds of $17.5 million;
- Acquisition of the assets of Silver Cross in September 2014, enabling Savaria to become a franchisor of stores through which both new and recycled home accessibility equipment is sold and to operate a lead generation program to capture and distribute leads to over 100 affiliates in North America;
- Increase of 14% of the quarterly dividend in third quarter, raising it from 3.5 cents to 4 cents per share;
- Net cash flows generated from operating activities of $9.2 million (2013-$7 million).
A Word from the President
"2014 was an exceptional year for Savaria in many aspects. First, revenue jumped over the $80 million threshold for the first time in the history of Savaria. EBITDA also reached a record high, at $11.2 million or 13.5% of revenue compared to 12.6% in 2013. Our gross margin was 30.5% compared to 29.4% in 2013," declared Marcel Bourassa, President and Chief Executive Officer of Savaria.
"In April 2014, an issuance of shares resulted in net proceeds of $17.5 million, improving our already strong balance sheet. In September 2014, we purchased the assets of Silver Cross, enabling us to increase the number of internet leads from 3,500 to 10,500 leads per year; in the coming years, we plan to increase the number of franchises across Canada from our current 16.
"Our increased efforts to develop new products have been successful. We have commercialized a new stairlift for curved stairs, the Stairfriend, and developed a new stairlift for straight stairs. Furthermore, we have developed a vehicle conversion based on the frame of the Ram ProMaster, able to carry up to seven passengers, including three in wheelchairs. The new vehicle was unveiled in February at the NMEDA annual conference, in Daytona, Florida. Both products will be introduced to market in the third quarter of 2015.
"Our strong financial position enables us to stay abreast of business opportunities that may arise in the accessibility market, and to continue to develop new markets and new products," concluded Mr. Bourassa.
Outlook 2015
For the twelve-month period ending December 31, 2015, we forecast revenue to be about $92 million, and EBITDA to be in the $13.5-$14.5 million bracket.
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 over 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 some 60% of its revenue outside Canada, primarily in the United States. It operates a sales network of some 700 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.
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For more information, please contact:
Hélène Bernier, CPA, CA
Vice-President, Finance
1-800-931-5655, ext. 248
www.savaria.com
Marcel Bourassa
President and Chief Executive Officer
1-800-661-5112