LAVAL, Québec, March 23, 2022 (GLOBE NEWSWIRE) -- 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
Revenue
Revenue 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) 248-8441
Webcast (EN): https://produceredition.webcasts.com/starthere.jsp?ei=1535849&tp_key=ad095ba4a7
link to the replay of the webcast will be available on the Corporation’s website at www.savaria.com
| For further information: | |
| Marcel Bourassa Chairman, President and Chief Executive Officer 1.800.661.5112 | Stephen Reitknecht, CPA, CA Chief Financial Officer 1.800.661.5112, ext. 3370 sreitknecht@savaria.com |
www.savaria.com
Facebook : www.facebook.com/savariabettermobility
Twitter: 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. | ||||||||
