Savaria Corporation (“Savaria”) (TSX: SIS), a global leader in
the accessibility industry, is pleased to announce its results for
fiscal 2022.
Highlights – Fiscal 2022 compared to
2021
- Revenue was $789.1M, up $128.1M or 19.4%, due to organic growth
of 12.7% originating from all segments and to 8.9% growth from
acquisition partially offset by a negative foreign exchange impact
of 2.2%;
- Gross
profit was $254.4M, up $38.8M or 18.0%, representing 32.2% of
revenue compared to 32.6% in 2021;
- Operating income was $63.9M, up
$28.1M or 78.2%, representing 8.1% of revenue compared to 5.4% in
2021;
- Adjusted
EBITDA* was $120.2M, up $20.0M or 19.9%;
- Adjusted
EBITDA margin* stood at 15.2%, flat compared to 2021;
- Net
earnings were $35.3M, or $0.55 per share on a diluted basis,
compared to $11.5M or $0.19 in 2021;
- Funds available* of $125,7M as of
December 31, 2022, to support working capital, investments and
growth opportunities.
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Q4 |
YTD |
in
thousands of dollars, except per-share amounts and
percentages |
2022 |
2021 |
Change |
2022 |
2021 |
Change |
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Revenue |
$212,100 |
$189,529 |
11.9% |
$789,091 |
$660,983 |
19.4% |
Gross profit |
$66,222 |
$59,670 |
11.0% |
$254,369 |
$215,536 |
18.0% |
% of revenue |
31.2% |
31.5% |
(30) bps |
32.2% |
32.6% |
(40) bps |
Net earnings |
$11,258 |
$945 |
1091.3% |
$35,311 |
$11,535 |
206.1% |
% of revenue |
5.3% |
0.5% |
480 bps |
4.5% |
1.7% |
280 bps |
Diluted net earnings per share |
$0.18 |
$0.02 |
800.0 % |
$0.55 |
$0.19 |
189.5 % |
Adjusted net earnings * |
$12,555 |
$6,452 |
94.6% |
$39,388 |
$23,301 |
69.0% |
% of revenue |
5.9% |
3.4% |
250 bps |
5.0% |
3.5% |
150 bps |
Adjusted net earnings per share * |
$0.19 |
$0.10 |
90.0 % |
$0.61 |
$0.37 |
64.9 % |
Adjusted EBITDA * |
$33,310 |
$29,250 |
13.9% |
$120,225 |
$100,250 |
19.9% |
% of revenue |
15.7% |
15.4% |
30 bps |
15.2% |
15.2% |
- |
* Non-IFRS
measures are described and reconciled in sections 3 and 6 of the
MD&A |
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A Word from the President
“It was another year of business pressures, yet this showcased
one of the key qualities of Savaria – that we are agile. We
demonstrated this with our ability to get a new facility in Mexico
up and running in less than a year to better serve our North
American dealer network. Earlier in 2022, we acquired UK-based
Ultron Technologies making us more vertically integrated with
software and electronic circuit boards," said Marcel Bourassa,
President and Chief Executive Officer.
“We grew our revenue 123% over the past 2 years from $354.5
million (2020) to $789.1 million (2022). We also doubled our
adjusted EBITDA in this same timeframe from $59.8 million to $120.2
million. Those numbers are transformative for Savaria.
Our results were delivered in spite of the many challenges we
faced. Our strategies and our employees’ teamwork and dedication
underscore my optimism for growth of 8-10% each year over the next
three years, reaching our revenue goal of $1 billion at the end of
2025,” concluded Mr. Bourassa.
Fourth Quarter Results –
Q4 2022 compared to Q4 2021
Revenue
Revenue reached $212.1M, up $22.6M or 11.9%. The growth was
mainly due to strong organic growth of 12.1%.
- Accessibility segment (70% of Q4-22 revenue):
Revenue was $148.2M, an increase of $10.9M or 8.0%. Organic revenue
growth stood at 8.7%.
- Patient Care segment (21% of Q4-22 revenue):
Revenue was $45.7M, an increase of $5.3M or 13.2%. Organic revenue
growth stood at 8.7%.
- Adapted Vehicles segment (9% of Q4-22
revenue): Revenue was $18.2M, an increase of $6.3M or
53.0%. Organic revenue growth stood at 62.1%.
Adjusted EBITDA
Adjusted EBITDA and adjusted EBITDA margin, both before head
office costs, stood at $34.0M and 16.0%, respectively, compared to
$30.1M and 15.9% for Q4 2021.
-
Accessibility segment: Adjusted EBITDA and
adjusted EBITDA margin, both before head office costs, stood at
$24.7M and 16.7%, respectively, compared to $24.2M and 17.7%.
- Patient
Care segment: Adjusted EBITDA and adjusted EBITDA margin,
both before head office costs, stood at $7.0M and 15.3%,
respectively, compared to $5.3M and 13.1%.
- Adapted
Vehicles segment: Adjusted EBITDA and adjusted EBITDA
margin, both before head office costs, stood at $2.3M and 12.7%,
respectively, compared to $0.6M and 5.2%.
Net Earnings and Adjusted Net
Earnings
Net earnings for the quarter were $11.3M or $0.18 per share on a
diluted basis, compared to $0.9M or $0.02 per share in Q4 2021.
Adjusted net earnings stood at $12.6M, or $0.19 per share,
compared to $6.5M or $0.10 per share in Q4 2021.
Twelve-Month Results - Fiscal 2022
compared to 2021
Revenue
The Corporation generated revenue of $789.1M, up
$128.1M or 19.4%. The increase is mainly due to organic growth of
12.7% and the acquisition of Handicare in 2021. The growth was
partially offset by a negative foreign exchange impact of 2.2%.
Adjusted EBITDA
Adjusted EBITDA and adjusted EBITDA margin, both
before head office costs, stood at $126.5M and 16.0%, respectively,
compared to $106.1M and 16.0% in 2021.
Net Earnings and Adjusted Net
Earnings
The Corporation’s net earnings stood at $35.3M
or $0.55 per share on a diluted basis, compared to $11.5M or $0.19
per share in 2021.
Adjusted net earnings were $39.4M or $0.61 per
share on a diluted basis, compared to $23.3M or $0.37 in 2021.
Liquidity and Capital
Resources
Savaria generated $90.7M of cash from operating activities which
were primarily used to invest in capital projects, repay debt, and
pay interest and dividends.
As at December 31, 2022, the Corporation had a net debt position
of $369.4M and a ratio of net debt to adjusted EBITDA of 3.07
compared to 3.73 as of December 31, 2021.
Outlook
Savaria is expecting revenue growth of approximately 8-10% with
expected adjusted EBITDA margins of approximately 16% in fiscal
2023, based on the following assumptions:
- Organic growth coming from the
Accessibility and Patient Care segments is expected to continue due
to a combination of high backlog levels, cross-selling and strong
demand.
- Successful integration of Handicare
and progress toward achieving the next strategic phase of synergies
progressing in-line with management’s plan.
- Management’s ability to continue to
effectively manage supply chain challenges.
This outlook excludes the financial contribution from any new
acquisition.
Environmental, Social and Governance (“ESG”)
Values
As a global leader within the accessibility
industry, Savaria is committed to minimizing its environmental
footprint and upholding the highest social and governance
standards. We believe that promoting environmentally and socially
responsible behaviour across our organization is key to achieving
sustainable growth and long-term value creation.
As we advance an ESG strategy that will
positively impact our company and the communities in which we
operate, our first step is to identify the ESG risks and
opportunities that are critical to our business. To that end, and
with the support of external consultants, we have conducted our
first materiality assessment to validate the most important ESG
issues prioritized by our stakeholders. The results of this
assessment have helped to narrow our focus and guide our
decision-making with respect to our ESG plan.
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, Mexico,
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 before
head office costs, adjusted EBITDA margin before head office costs,
adjusted net earnings, adjusted net earnings per share, available
funds and net debt 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 sections 3 and 6 of Savaria’s
MD&A, which is posted on Savaria’s website at www.savaria.com,
and filed with SEDAR at www.sedar.com. Reconciliation of adjusted
net earnings and adjusted EBITDA with net earnings is presented in
the section below.
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.
Results webcast and conference call on March 16,
2023, at 8:30 a.m. (EDT)
Savaria will host a conference call on Thursday,
March 16 at 8:30 a.m. Eastern Daylight Time with financial analysts
to discuss results of the quarter and fiscal year ended December
31, 2022. Investors and members of the media are invited to
participate on a listen-only basis.
Conference call access:
Canada Toll Free Number:
Toronto: 1 (647) 484-0477
Montreal: 1 (438) 320-0340
North American Toll Free Number: 1 (800)
458-4121Webcast (EN): https://app.webinar.net/n6v58EdZEoWLink to
the replay of the webcast will be available on the Corporation’s
website at www.savaria.com
For further information: |
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Marcel BourassaChairman, President and Chief Executive
Officer1.800.661.5112mbourassa@savaria.com |
Stephen Reitknecht, CPA, CAChief Financial Officer1.800.661.5112,
ext. 3370sreitknecht@savaria.com |
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www.savaria.comFacebook :
www.facebook.com/savariabettermobilityTwitter: twitter.com/Mobilityforlife
Reconciliation of adjusted net earnings and adjusted EBITDA with
net earnings is provided below. Complete financial statements and
the management’s report for fiscal 2022 will be available shortly
on Savaria’s website and on SEDAR (www.sedar.com).
Reconciliation of adjusted net earnings and adjusted
EBITDA with net earnings
in
thousands of dollars, except per-share |
Q4 |
YTD |
2022 |
2021 |
2022 |
2021 |
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Net earnings |
$11,258 |
$945 |
$35,311 |
$11,535 |
Other expenses |
1,699 |
6,132 |
5,320 |
13,296 |
Income taxes related to other expenses * |
(402) |
(625) |
(1,243) |
(1,530) |
Adjusted net earnings * |
$12,555 |
$6,452 |
$39,388 |
$23,301 |
Adjusted net earnings per share * |
$0.19 |
$0.10 |
$0.61 |
$0.37 |
Income taxes related to other expenses * |
402 |
625 |
1,243 |
1,530 |
Income tax expense |
2,408 |
2,905 |
12,161 |
8,593 |
Depreciation of fixed assets |
2,009 |
1,761 |
8,053 |
6,838 |
Depreciation of right-of-use assets |
2,728 |
2,827 |
10,567 |
9,418 |
Amortization of intangible assets |
6,757 |
7,759 |
30,482 |
33,067 |
Net finance costs |
6,177 |
6,357 |
16,469 |
15,756 |
Stock-based compensation |
274 |
564 |
1,862 |
1,747 |
Adjusted EBITDA* |
$33,310 |
$29,250 |
$120,225 |
$100,250 |
Diluted weighted average number of shares |
64,513,288 |
64,643,890 |
64,491,541 |
62,239,543 |
* Non-IFRS
measures are described and reconciled in sections 3 and 6 of the
MD&A |
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