Savaria Corporation

Savaria Corporation

March 06, 2017 16:09 ET

Savaria Presents the Best Year of Its History - Revenue is up 26% and Adjusted EBITDA is up 41%

LAVAL, QUEBEC--(Marketwired - March 6, 2017) - Savaria Corporation (TSX:SIS), one of North America's leaders in the accessibility industry, discloses its results for its fourth quarter ended December 31, 2016 and for fiscal 2016.


Fiscal 2016 results including Revenue, Operating income and adjusted EBITDA1 reached unprecedented levels.

Twelve months Ended December 31, 2016

  • Record revenue of $119.7 million, up $24.5 million or 25.7%;

  • Record gross margin of $40.6 million, up $11 million or 37.2%;

  • Record operating income of $17.4 million, up $6 million or 53%;

  • Record adjusted EBITDA of $20.5 million, up $5.9 million or 40.6%.

Quarter ended December 31, 2016

  • Revenue of $31 million, up $4.4 million or 16.5%;

  • Gross margin of $11.1 million, up $2.4 million or 27.8%;

  • Record operating income of $5 million, up $1.3 million or 35.9%;

  • Record adjusted EBITDA of $5.9 million, up $1.5 million or 34.5%.

(in thousands, except per-share amounts and percentages) Quarters Ended
December 31,
Years Ended December 31,
2016 2015 Change 2016 2015 Change
Revenue $30,986 $26,605 16.5% $119,728 $95,263 25.7%
Gross margin $11,134 $8,713 27.8% $40,569 $29,577 37.2%
As a % of revenue 35.9% 32.7% n/a 33.9% 31% n/a
Net income $3,740 $2,867 30.4% $12,301 $8,944 37.5%
As a % of revenue 12.1% 10.8% n/a 10.3% 9.4% n/a
Earnings per share - diluted $0.10 $0.09 11.1% $0.34 $0.28 21.4%
Adjusted EBITDA $5,882 $4,372 34.5% $20,467 $14,559 40.6%
As a % of revenue 19% 16.4% n/a 17.1% 15.3% n/a
Adjusted EBITDA per share - diluted $0.15 $0.13 15.4% $0.54 $0.45 20%
  1. Earnings before interest, taxes, depreciation, amortization and business acquisition costs (see section Compliance with International Financial Reporting Standards)

A Word from the President

"Savaria's performance reached new heights in 2016, both in terms of revenue and adjusted EBITDA. Revenue reached $120 million, up 26% from 2015, while adjusted EBITDA reached some $20 million, up 41% from 2015. Cost control enabled us to achieve a ratio of adjusted EBITDA on revenue of 17%, our best annual performance ever," declared Marcel Bourassa, President and Chief Executive Officer of Savaria.

"Several key events occurred in 2016. In May, we completed the acquisition of the automotive division of Shoppers Drug Mart. This transaction gave us the opportunity to add sales offices for vehicle conversions in Victoria and Vancouver, BC, Edmonton and Calgary, AB, and London and Waterloo, ON. These new sales offices should enable us to increase the number of vehicle conversions in 2017 to approximately 800 units, 35% more than in 2016. In September, we began marketing a new patient lift, the "Monarch". This new product is expected to generate an additional $3 million in revenue in 2017. In June, Savaria completed a bought deal private placement of 2.6 million shares at $7.80 per share and in November, the Bourassa family completed a secondary offering of 1.75 million Savaria shares at $11.34 per share.

"As at December 31, 2016, we had more than $51 million in cash. This enables us to consider strategic transactions in 2017, whether it is marketing new products or acquiring new territories or sales networks. With the growing needs of people with reduced mobility coupled with the aging of the population, we look toward our future with optimism. Thanks to the dedication of our 500 employees, we are securing our leadership position in the accessibility market in North America," concluded Mr. Bourassa.

Outlook 2017

Factoring in the benefits of the acquisition of Premier Lifts that was completed in February, the Corporation forecasts revenue of approximately $143 million and adjusted EBITDA in a range of $25.5-$26.5 million for the twelve-month period ending December 31, 2017.

Savaria Corporation ( is one of North America's leaders in the accessibility industry. It provides accessibility solutions for the elderly and physically challenged to increase their mobility and independence. The diversity of 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, elevators for home and commercial use, as well as patient lifts. In addition, it converts and adapts vehicles to be wheelchair accessible. It also operates a network of franchisees and corporate stores through which new and recycled accessibility equipment is sold and, in certain locations, vehicle conversions are performed. Savaria operates a plant located in Huizhou, China, which increases its competitive edge. Savaria records close to 60% of its revenue outside Canada, primarily in the United States. It operates a sales network of some 400 retailers and affiliates in North America and employs some 500 people. Its principal places of business are located in Laval, QC, Brampton, ON, 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 and adjusted EBITDA 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. Reconciliation between net income for the period and EBITDA and adjusted EBITDA is provided in the Reconciliation of EBITDA and adjusted 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 and adjusted EBITDA with net income provided below.

Complete financial statements and the management's report for fiscal 2016 will be available shortly on Savaria's website and on SEDAR (

Reconciliation of EBITDA and Adjusted EBITDA with Net Income

(in thousands of dollars - Unaudited) Quarters Ended
December 31,
Years Ended December 31,
2016 2015 2016 2015
Net income $3,740 $2,867 $12,301 $8,944
Plus :
Interest on long-term debt 154 130 613 563
Interest and bank charges 33 31 212 186
Income tax expense 1,510 976 4,953 3,288
Depreciation of fixed assets 353 286 1,309 1,062
Amortization of intangible assets 172 152 691 747
Interest income 127 70 365 231
EBITDA $5,835 $4,372 $19,714 $14,559
Business acquisition costs, realized and unrealized 47 - 753 -
Adjusted EBITDA $5,882 $4,372 $20,467 $14,559

Contact Information