Savaria Corporation (“Savaria”) (TSX: SIS), a global leader in
the accessibility industry, is pleased to announce its results for
fiscal 2021.
Highlights - Fiscal 2021 vs. Fiscal
2020
- Revenue
was $661.0M, up $306.5M or 86.5%, mainly due to the acquisition of
Handicare;
- Gross
profit was $215.5M, up $93.4M or 76.5%, representing 32.6% of
revenue compared to 34.5%;
- Adjusted
EBITDA was $100.3M, up $40.5M or 67.7%;
- Adjusted
EBITDA margin stood at 15.2%, compared to 16.9%;
- Net earnings
were $11.5M or $0.19 per share on a diluted basis. Adjusted net
earnings were $23.3M or $0.37 per share on a diluted basis, down
18.3% and $0.19, respectively;
- Acquisition of
Handicare Group AB on March 4, 2021, further strengthening
Savaria’s position as a global leader in the accessibility
industry;
- Funds available
of $129.6M to support working capital, investments and growth
opportunities.
in thousands of dollars, except per-share amounts and
percentages |
Q4 |
YTD |
2021 |
2020 |
Change |
2021 |
2020 |
Change |
Revenue |
$189,529 |
|
$90,601 |
|
109.2% |
|
$660,983 |
|
$354,496 |
|
86.5% |
|
Gross Profit (1) |
$59,670 |
|
$30,131 |
|
98.0% |
|
$215,536 |
|
$122,125 |
|
76.5% |
|
% of revenue |
31.5% |
|
33.3% |
|
n/a |
|
32.6% |
|
34.5% |
|
n/a |
|
Net earnings (1) |
$945 |
|
$6,714 |
|
(85.9) % |
|
$11,535 |
|
$26,463 |
|
(56.4)% |
|
%
of revenue |
0.5% |
|
7.4% |
|
n/a |
|
1.7% |
|
7.5% |
|
n/a |
|
Diluted net earnings per share (1) |
$0.02 |
|
$0.13 |
|
(84.6) % |
|
$0.19 |
|
$0.52 |
|
(63.5)% |
|
Adjusted net earnings (1)(2) |
$6,452 |
|
$6,851 |
|
(5.8)% |
|
$23,301 |
|
$28,529 |
|
(18.3)% |
|
%
of revenue |
3.4% |
|
7.6% |
|
n/a |
|
3.5% |
|
8.0% |
|
n/a |
|
Diluted adjusted net earnings per share (1)(2) |
$0.10 |
|
$0.13 |
|
(23.1)% |
|
$0.37 |
|
$0.56 |
|
(33.9)% |
|
Adjusted EBITDA(2) |
$29,250 |
|
$16,049 |
|
82.3% |
|
$100,250 |
|
$59,790 |
|
67.7% |
|
% of revenue |
15.4% |
|
17.7% |
|
n/a |
|
15.2% |
|
16.9% |
|
n/a |
|
|
|
|
|
|
|
|
(1)
In accordance with Savaria's accounting policies, cost of sales,
selling and administrative and tax expenses of Handicare for
periods prior to Q4 2021 have been restated based on the evaluation
of the fair value of assets acquired and liabilities assumed
finalized during the year ended December 31, 2021. |
(2)
See section Compliance with International Financial Reporting
Standards (“IFRS”) below regarding non-IFRS measures. |
A Word from the President
“Looking back on 2021, Savaria experienced its
most transformative year ever. We propelled forward to be a world
leader in accessibility with our acquisition of Handicare. I am
happy to see our revenue reached $661 million, an increase of 86.5%
over 2020. Our adjusted EBITDA was $100.3 million, an increase of
67.7% compared to 2020,” said Marcel Bourassa, President and Chief
Executive Officer of Savaria.
“What I can see clearly is how we will work together with our
integrated teams to reach our revenue goal of $1 billion in 2025.
This can be achieved without new acquisitions, yet we have the
flexibility, due to our current balance sheet, to make acquisitions
that add sales territory or complementary products. Our current
product line-up to improve millions of people’s mobility, reaches
into 40 countries through 1,500 dealers backed by 2,250 employees,
making us one-of-a-kind in our industry. Our recent projects and
new initiatives will yield more competitive advantages for us, and
with Handicare, we are benefiting from new expertise and
complementary talent. As always, I thank all Savaria employees for
consistently working to reach our goals,” concluded Mr.
Bourassa.
Fourth Quarter Results
RevenueRevenue reached $189.5M,
up $98.9M or 109.2%, compared to Q4 2020. The growth was mainly due
to the acquisition of Handicare. Organic revenue growth was 6.7% in
the quarter and was partially offset by a negative foreign currency
exchange impact.
-
Accessibility segment (73% of Q4-21 revenue):
Revenue was $137.3M, an increase of $71.4M or 108.2%, compared to
Q4 2020. Acquisition growth stood at 106.7% and organic revenue
growth stood at 3.6%;
-
Patient Care segment (21% of Q4-21 revenue):
Revenue was $40.3M, an increase of $20.6M or 104.8%, compared to Q4
2020. Acquisition growth stood at 90.2% and organic revenue growth
stood at 17.1%;
-
Adapted Vehicles segment (6% of Q4-21 revenue):
Revenue was $11.9M, an increase of $6.9M or 139.6%, compared to Q4
2020. Acquisition growth stood at 132.8% and organic growth stood
at 6.8%.
Adjusted EBITDA
Q4 2021 adjusted EBITDA and adjusted EBITDA margin, both before
head office costs, stood at $30.1M and 15.9%, respectively,
compared to $16.7M and 18.4% for Q4 2020.
-
Accessibility segment: Adjusted EBITDA and
adjusted EBITDA margin, both before head office costs, stood at
$24.2M and 17.7%, respectively, compared to $13.2M and 20.1% for Q4
2020.
- Patient
Care segment: Adjusted EBITDA and adjusted EBITDA margin,
both before head office costs, stood at $5.3M and 13.1%,
respectively, compared to $3.1M and 15.7% for Q4 2020.
- Adapted
Vehicles segment: Adjusted EBITDA and adjusted EBITDA
margin, both before head office costs, stood at $0.6M and 5.2%,
respectively, compared to $0.4M and 7.2% for Q4 2020.
Net Earnings and Adjusted Net
Earnings
Net earnings were $0.9M or $0.02 per share on a diluted basis,
compared to $6.7M or $0.13 per share for the same period in
2020.
Adjusted net earnings stood at $6.5M, or $0.10 per share,
compared to $6.9M or $0.13 per share in Q4 2020. The decrease is
mainly caused by higher amortization of acquisition-related
intangible assets, net finance costs and other expenses, partially
offset by the acquisition of Handicare.
Twelve-Month Results
Revenue
For the twelve-month period ended December 31,
2021, the Corporation generated revenue of $661.0M, up $306.5M or
86.5%, compared to the same period in 2020. The growth is largely
due to the acquisition of Handicare. Organic revenue growth of 4.0%
was partially offset by a negative foreign exchange impact.
Adjusted EBITDA
For the twelve-month period ended December 31,
2021, adjusted EBITDA and adjusted EBITDA margin, both before head
office costs, stood at $106.1M and 16.0%, respectively, compared to
$62.1 and 17.5% for the same period in 2020.
Net Earnings and Adjusted Net
Earnings
For the twelve-month period ended December 31,
2021, the Corporation’s net earnings stood at $11.5M or $0.19 per
share on a diluted basis, compared to $26.5M or $0.52 per share for
the same period in 2020. Adjusted net earnings, excluding
amortization of intangible assets related to acquisitions, were
$41.8M or $0.67 per share on a diluted basis, compared to $31.8M or
$0.63 in 2020, up 31.3% and $0.04, respectively.
Liquidity and Capital
Resources
Savaria generated $57.3M of cash from operations which were
primarily used to invest in capital projects, repay debt, and pay
interest and dividends.
As at December 31, 2021, the Corporation had a net
interest-bearing debt position of $315.4M.
Outlook
Savaria expects to generate revenue in excess of $775 million
with adjusted EBITDA 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.
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 2,250 people globally and
its plants are located across Canada, the United States, 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 per share,
adjusted net earnings and adjusted net earnings per share 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 section 3 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 24, 2022 at 8:30 a.m. (EDT)
Savaria will host a conference call on Thursday,
March 24 at 8:30 a.m. Eastern Daylight Time with financial analysts
to discuss results of the quarter and fiscal year ended December
31, 2021. Investors and members of the media are invited to
participate on a listen-only basis.
Conference call access:
Local Dial-in Numbers: (647) 792-1241 or (514)
669-6115
North American Toll Free Number: 1 (866)
248-8441Webcast (EN):
https://produceredition.webcasts.com/starthere.jsp?ei=1535849&tp_key=ad095ba4a7link
to the replay of the webcast will be available on the Corporation’s
website at www.savaria.com
For further information: |
|
Marcel BourassaChairman, President and Chief Executive
Officer1.800.661.5112 |
Stephen Reitknecht, CPA, CAChief Financial Officer1.800.661.5112,
ext. 3370sreitknecht@savaria.com |
|
|
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 2021 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 |
2021 |
2020 |
2021 |
2020 |
Net earnings (1) |
$945 |
|
$6,714 |
|
$11,535 |
|
$26,463 |
|
Other expenses (1) |
6,132 |
|
175 |
|
13,296 |
|
2,640 |
|
Income taxes related to other expenses (1) (2) |
(625) |
|
(38) |
|
(1,530) |
|
(574) |
|
Adjusted net earnings (1)(2) |
$6,452 |
|
$6,851 |
|
$23,301 |
|
$28,529 |
|
Diluted adjusted net earnings per share (1)(2) |
$0.10 |
|
$0.13 |
|
$0.37 |
|
$0.56 |
|
Income taxes related to other expenses (1)(2) |
625 |
|
38 |
|
1,530 |
|
574 |
|
Income tax expense (1) |
2,904 |
|
2,352 |
|
8,593 |
|
8,348 |
|
Depreciation of fixed assets and right-of-use assets |
4,588 |
|
2,234 |
|
16,256 |
|
9,346 |
|
Amortization of intangible assets (1) |
7,759 |
|
2,313 |
|
33,067 |
|
7,999 |
|
Net finance costs |
6,358 |
|
2,159 |
|
15,756 |
|
3,945 |
|
Stock-based compensation |
564 |
|
102 |
|
1,747 |
|
1,049 |
|
Adjusted EBITDA(1)(2) |
$29,250 |
|
$16,049 |
|
$100,250 |
|
$59,790 |
|
Diluted weighted average number of shares |
64,643,890 |
|
51,184,915 |
|
62,239,543 |
|
50,907,698 |
|
|
|
|
|
|
(1) In accordance with Savaria's accounting
policies, cost of sales, selling and administrative and tax
expenses of Handicare for periods prior to Q4 2021 have been
restated based on the evaluation of the fair value of assets
acquired and liabilities assumed finalized during the year ended
December 31, 2021. |
(2) See section Compliance with International
Financial Reporting Standards (“IFRS”) below regarding non-IFRS
measures. |
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