Laval, Québec, Canada – February 9, 2022 – Savaria Corporation (“Savaria”) (TSX: SIS), a global leader in the accessibility industry, is pleased to provide preliminary results for its 2021 year-end and financial guidance for its fiscal 2022.
A Word from the President
“Our revenue should be approximately $660 million for the year ending December 31, 2021, with an adjusted EBITDA(1) of approximately $100 million – a major milestone for us – resulting in an expected 15.1% adjusted EBITDA margin(1). This year was perhaps one of the toughest to manage in our history, with challenges at every turn. From skyrocketing freight costs to material cost increases and labour shortages, all while managing our facilities to ensure the health and safety of our employees during the pandemic - we had our work cut out for us. But as a testament to the perseverance of our 2,200 employees, reaching 40 countries, we will attain our business goals. I am so proud of our staff and what we were able to achieve together,” stated Marcel Bourassa, President and Chief Executive Officer of Savaria.
“I am also happy to report that the integration of Handicare and Savaria is going very well. Our complementary product mix and the addition of sales territories to each business is well-timed for the market needs. For 2022, we are projecting revenue in excess of $775 million with adjusted EBITDA(1) in the range of $120 million to $130 million. This transformative acquisition brought us talent, new territories, fresh ideas and an expanded vision for future success,” concluded Mr. Bourassa.
(1) Please refer to the sections below entitled “Preliminary 2021 Results” and “Compliance with International Financial Reporting Standards (“IFRS”)”.
Preliminary 2021 Results
- Revenue should be approximately $660 million compared to $354 million in 2020.
- Adjusted EBITDA should be approximately $100 million compared to $60 million in 2020.
- Operating income should be approximately $35 million compared to $39 million in 2020 reflecting additional margin from Handicare offset by higher amortization of acquisition-related intangible assets and on-going integration costs.
These preliminary results are based on information available to Savaria as of the date of this release and are subject to revision upon the finalization of its annual consolidated financial statements. Financial results for the year ended December 31, 2021, will be released after market hours on March 23, 2022. Savaria will not provide any additional comments or details until after the annual audited consolidated financial statements have been published.
Outlook
Savaria expects to generate revenue in excess of $775 million with adjusted EBITDA(1) in the range of $120 million to $130 million in fiscal 2022, based on the following assumptions:
- Considering Handicare acquisition date of March 4, 2021, Handicare will be consolidated for a period of 12 months in fiscal 2022 compared to 10 months in fiscal 2021.
- Organic growth coming from the Accessibility and Patient Care segments is expected due to strong demand.
- The integration and anticipated synergies of Handicare are progressing in-line with management’s plan.
- Management’s ability to continue to effectively manage supply chain challenges, including higher freight costs and availability, as well as overall inflation costs.
- This outlook excludes the financial contribution from any new acquisition.
Compliance with International Financial Reporting Standards (“IFRS”)
The financial information appearing in this press release has been prepared in accordance with IFRS. However, Savaria uses EBITDA, adjusted EBITDA, and adjusted EBITDA margin, 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. We believe that many of our readers analyze the financial performance of the Corporation’s activities based on these non-IFRS financial measures as such measures allow for easier comparisons between periods. These measures should be considered as a complement to financial performance measures in accordance with IFRS. They do not substitute and are not superior to them. Additional details as well as definitions for these non-IFRS measures can be found in Savaria’s Q3 2021 MD&A, dated November 10, 2021, which is posted on Savaria’s website at www.savaria.com, and filed with SEDAR at www.sedar.com.
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 2,200 people globally and its plants are located across Canada, the United States, Europe and China.
Forward-Looking Statements
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.
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For further information:
Marcel Bourassa |
Stephen Reitknecht, CPA, CA |