Savaria Corporation (TSX:SIS), Canada's leader in the accessibility industry,
today disclosed its results for the fourth quarter and fiscal year ended
December 31, 2011.
Fiscal 2011 Highlights
-- Revenue of $65.3 million, similar to 2010's level;
-- Earnings before interest, income tax, depreciation and amortization
("EBITDA") of $5.1 million or 22 cents per share(1), compared to $5.4
million or 24 cents per share(1) in 2010;
-- Net income of 9 cents per share(1) compared to 12 cents per share(1) in
2010;
-- Integration of the four subsidiaries acquired in 2010;
-- Launch of two new inclined platform lifts, the Delta and the Omega, at
the National Association of Elevator Contractors ("NAEC") Convention
held in September 2011.
(1) basic and diluted
A Word from the President
"Results for fiscal 2011 were similar to those for 2010 in spite a difficult
first six-month period. Our EBITDA of $5.1 million was down 6.3% from 2010, but
up 2% considering an equivalent exchange rate to 2010. We made good progress in
integrating our four 2010 acquisitions. Our Adapted Vehicles Segment now
features an expanded product offering for our customers. A rear-entry mini-van
is now available along with the dual entry and side entry models. Today, our
production accounts for more than 70% of the conversions carried out in Canada.
With the integration of the two retailers acquired in 2010, Concord Elevator
(London) Ltd and Concord Elevator (Alberta) Ltd, specializing in the
installation and maintenance of elevators and platform lifts, we now serve the
direct sales market in Montreal, Toronto, Calgary and Edmonton," indicated
Marcel Bourassa, President and Chief Executive Officer of Savaria.
"In September 2011, thanks to a manufacturing and distribution agreement with
the Austrian company Lehner, we launched two new products that broaden our
offering of platform lifts. They are the Delta, for straight staircases, and the
Omega, for curved staircases.
I am pleased we are able to declare a dividend for the eight consecutive year.
This dividend is in the amount of 9.4 cents per share. Although the U.S.
residential construction market remains weak and is having an adverse impact on
home elevator sales, the future looks promising given the aging population,
which will increase the demand for mobility products. With our employees and our
600 loyal retailers, we are the leader in our industry," concluded Mr. Bourassa.
Operating Results (Comparative Analysis for the Fourth Quarter and Fiscal 2010)
-- The Corporation achieved revenue of $16.4 M for the fourth quarter of
2011, a decrease of 5.8% or $1 M from $17.4 M for 2010. Revenue for
fiscal 2011 was stable at $65.3 M. The unfavourable change in the U.S.
dollar in relation to the Canadian dollar represented $1.2 M. The
contribution of the subsidiaries acquired in 2010 totalled $3.8 M,
amounting to $884,000 for the Accessibility segment and $2.9 M for the
Adapted Vehicles segment.
-- The gross margin for the fourth quarter of 2011 decreased by $192,000
and represented 28% of revenue, compared with 27.5% in 2010. For fiscal
2011, the gross margin was stable at $18.2 M or 27.9% as a percentage of
revenue.
-- Operating income for the fourth quarter of 2011 posted a slight decline
of 4.5% or $49,000, slipping from $1.1 M in 2010 to $1 M in 2011.
Changes in presentation subsequent to the implementation of
International Financial Reporting Standards ("IFRS") had a negative
impact of $111,000 on 2010 operating income. Operating income for fiscal
2011 was down by $999,000 or 22.7%. The increase in operating costs
stood at $586,000, whereas the impact of the subsidiaries acquired in
2010 on such costs came to $655,000.
-- Net income for the fourth quarter was down 18.4%, from $488,000 in 2010
to $398,000 in 2011, a decrease of $90,000. For fiscal 2011, net income
was down by $567,000, from $2.6 M in 2010 to $2 M in 2011.
Dividend
The Corporation's Board of Directors has declared a dividend of 9.4 cents
($0.094) per common share, payable on April 24, 2012 to shareholders of record
of the Corporation at the close of business on April 10, 2012. This is an
eligible dividend within the meaning of the Income Tax Act.
Transition to IFRS
Due to their coming into effect on January 1, 2011, the Corporation has started
to present its financial results for fiscal 2011, as well as corresponding
figures for 2010, in accordance with IFRS. For further information in this
regard, the reader is referred to Note 31, Explanation of Transition to IFRS, of
the consolidated financial statements as at December 31, 2011.
Savaria Corporation (www.savaria.com) is Canada's leader and the second largest
North American company in the accessibility industry focused on meeting the
needs of people with mobility challenges. Savaria designs, manufactures 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 also 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 since 2006 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 sales outside
Canada, primarily in the United States. It has a sales network of some 600
retailers in North America and employs some 400 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 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. A reconciliation between net income 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.
Complete financial statements and the management's report for the year ended
December 31, 2011 will be available shortly on Savaria's website and on SEDAR
(www.sedar.com).
Financial Highlights
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(in thousands, except
per share amounts, Quarters Ended
percentages and December 31, Years Ended
exchange rates) (Unaudited) December 31,
-------------------------------------------------------
2011 2010 Change 2011 2010 Change
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Average effective
exchange rate (1) 1.0966 1.1017 (0.5)% 1.0645 1.1018 (3.4)%
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Revenue $16,358 $17,372 (5.8)% $65,274 $65,236 0.1%
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Gross margin as a %
of revenue 28% 27.5% n/a 27.9% 27.9% n/a
----------------------------------------------------------------------------
Operating costs $3,548 $3,698 (4.1)% $14,838 $14,252 4.1%
As a % of revenue 21.7% 21.3% n/a 22.7% 21.8% n/a
----------------------------------------------------------------------------
Operating income $1,037 $1,086 (4.5)% $3,395 $4,394 (22.7)%
As a % of revenue 6.3% 6.3% n/a 5.2% 6.7% n/a
----------------------------------------------------------------------------
EBITDA (2) $1,147 $1,109 3.4% $5,076 $5,414 (6.2)%
----------------------------------------------------------------------------
EBITDA per share -
diluted $0.05 $0.05 -% $0.22 $0.24 (8.3)%
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Gain (loss) on
foreign exchange $(178) $(302) (41.1)% 137 (256) 154%
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Net income $398 $488 (18.4)% $2,001 $2,568 (22.1)%
----------------------------------------------------------------------------
Earnings per share -
basic and diluted $0.017 $0.02 (15)% $0.09 $0.12 (25)%
----------------------------------------------------------------------------
Dividends declared
per share - - n/a $0.102 $0.084 n/a
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Weighted average
number of shares
outstanding -
diluted 23,230 22,466 3.4% 23,246 22,314 4.2%
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As at Dec. 31, As at Dec.
2011 31, 2010
------------------------------------------------------------------
Total assets $42,413 $47,350
------------------------------------------------------------------
Total liabilities $22,268 $25,272
------------------------------------------------------------------
Equity $20,145 $22,078
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(1) Rate at which revenue is recognized, being the exchange rate calculated
considering foreign exchange contracts applied to the periods in question
(2) Reconciliation of EBITDA with net income provided in the following table
Although EBITDA is not recognized according to IFRS, it is used by management,
investors and analysts to assess the Corporation's financial and operating
performance.
Reconciliation of EBITDA with Net Income
----------------------------------------------------------------------------
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(in thousands of dollars - Quarters Ended Years Ended
unaudited) December 31, December 31,
------------------------------------------------
2011 2010 2011 2010
----------------------------------------------------------------------------
Net income $398 $488 $2,001 $2,568
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Plus:
Interest on long-term debt 139 162 569 532
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Interest expense and banking
fees 25 37 181 149
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Income tax expense 237 39 877 892
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Depreciation of fixed assets 150 139 688 507
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Amortization of intangible
assets 204 249 792 819
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Less:
Interest income 6 5 32 52
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EBITDA $1,147 $1,109 $5,076 $5,415
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