Laval, Quebec, August 7, 2013– Savaria Corporation (TSX: SIS), North America’s leader in the accessibility industry, today announced its results for the second quarter ended June 30, 2013.
Highlights
- Revenue for 2nd quarter is up 11% from $17.5 million in 2012 to $19.4 million in 2013. This is the highest quarterly revenue in the Corporation’s history;
- Net income for 2nd quarter is up 106% or $734,000, from $691,000 in 2012 to $1.4 million in 2013;
- Earnings before interest, taxes, depreciation and amortization ("EBITDA") are $2.5 million for the 2nd quarter of 2013 compared to $1.6 million in 2012, an increase of 58% or $924,000. This is the highest quarterly EBITDA in the history of the Corporation;
- Transfer of plant operations in China to a new location to double the production area;
- Payment of a first quarterly dividend of two cents ($0.02) per common share, following the adoption of a new dividend policy.
A Word from the President
"The second quarter of 2013 is the best quarter in the history of Savaria, both in revenue and EBITDA. Record revenue of $19.4 million, combined with an excellent productivity from our various divisions, have resulted in a record quarterly EBITDA of $2.5 million, or 11 cents per common share," declared Marcel Bourassa, President and Chief Executive Officer of Savaria.
"This May, our Chinese plant has more than doubled its area, from 35,000 square feet to 75,000 square feet. This will help it increase its production capacity in order to meet the growing demand for accessibility products coming from our Brampton plant.
"The development of our stairlift for curved staircases is progressing as planned and it will be launched in September. This product will be offered through our 600 North American retailers as well as our direct sales offices in Montreal, Toronto, Calgary and Edmonton. We are looking forward to the coming quarters with enthusiasm, given the growing demand for accessibility products facilitating the movement of people with mobility challenges", concluded Mr. Bourassa.
Operating Results (Comparative Analysis with Second Quarter and First Semester of 2012)
- In the second quarter of 2013, revenue is up $1.9 million or 11%, from $17.5 million in second quarter 2012 to $19.4 million. For the first semester of 2013, revenue is up $3.9 million or 11.9%, from $32.7 million to $36.6 million.
- Gross margin for the second quarter of 2013 is up $1 million, at 30.5% of revenue, compared to 27.9% in the second quarter of 2012. For the first semester of 2013, gross margin is up $1.7 million, at 29.6% of revenue compared to 27.8% in 2012. This increase is due to the increase in revenue and to the cost savings following the relocation of the Brampton plant in the building acquired in 2012.
- Operating income for the second quarter of 2013 is up $846,000 or 78% from $1.1 million in 2012 to $1.9 million in 2013. For the first semester of 2013, operating income increased $1.9 million or 107% from $1.8 million to $3.7 million.
- Net income for the second quarter of 2013 is up 106% from $691,000 in 2012 to $1.4 million in 2013, an increase of $734,000. For the first semester of 2013, net income is up 153% from $1.1 million to $2.7 million, an increase of $1.6 million.
- EBITDA for the second quarter of 2013 is up by $924,000 or 58%, from $1.6 million in 2012 to $2.5 million in 2013. For the first semester of 2013, EBITDA is up $2.2 million or 83.3%, from $2.6 million in 2012 to $4.8 million in 2013.
Dividend
The Corporation’s Board of Directors has declared a dividend of 2 cents ($0.02) per common share, payable on August 29, 2013 to shareholders of record of the Corporation at the close of business on August 15, 2013. 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, installs and distributes primarily elevators for home and commercial use, as well as stairlifts and vertical and inclined platform lifts. In addition, it converts and adapts wheelchair accessible automotive vehicles and offers scooters and motorized wheelchairs. 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 slightly over 50% of its revenue outside Canada, primarily in the United States. It has a sales network of some 600 retailers in North America and employs some 360 people at its head office in Laval and at its plants 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 Financial Highlights 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:
Helene 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