Savaria: Revenue Up by 9 % Compared to Second Quarter 2011
AUG 9, 2012 - 10:40 ET
FOR: SAVARIA CORPORATION
LAVAL, QUEBEC--(Marketwire - Aug. 9, 2012) - Savaria Corporation (TSX:SIS), North America's leader in the accessibility industry, today disclosed its results for the second quarter ended June 30, 2012.
- Revenue of $17.5 million compared to $16 million in 2011, an increase of 9.1%;
- Operating income up by 245%, from $316,000 in 2011 to $1.1 M in 2012;
- Earnings before interest, income tax, depreciation and amortization ("EBITDA") of 7 cents per share(1) compared to 3 cents per share(1) in 2011;
- Acquisition of a 125,000-square-foot plant located in Brampton, Ontario.
|(1) basic and diluted|
A Word from the President
"We had a very good second quarter of 2012. Our revenue is up by 9.1%, thanks mainly to our Accessibility division, while we kept our operating costs at the same level as second quarter 2011. Our operating income went from $316,000 in 2011 to $1.1 M in 2012, an increase of 245%, while our EBITDA rose from 3 cents per share to 7 cents per share" declared Marcel Bourassa, President and Chief Executive Officer of Savaria.
"To better control our costs and take advantage of the current low interest rates, we acquired a 125,000-square-foot plant last April 13. It is located about 5 km from our previous facility in Brampton, Ontario; our operations were transferred there during the first week of July. We seized the opportunity of this move to streamline our operations and thus, improve our productivity while increasing quality control. We forecast that this investment will result in savings of approximately $1 M on an annualized basis."
"We're very positive about our position in an industry bound to grow given the aging population," concluded Mr. Bourassa.
Operating Results (Comparative Analysis with the Second Quarter and First Semester of 2011)
- In the second quarter of 2012, the Corporation reported revenue of $17.5 M compared to $16 M in 2011, an increase of $1.5 M or 9.1%. For the first semester of 2012, revenue is up $1.2 M or 3.7%, from $31.5 M to $32.7 M.
- Gross margin for the second quarter of 2012 is up by $719,000 and represents 27% of revenue compared to 25% in 2011. For the first semester of 2012, gross margin is up by $440,000 and accounts for 27.4% of revenue versus 27% in 2011.
- Operating income for the second quarter of 2012 is up by $774,000 or 245%, from $316,000 in 2011 to $1.1 M in 2012. For the first semester of 2012, the increase amounts to $745,000 or 71%, from $1.1 M to $1.8 M.
- Net income for the second quarter is up by 394% from $140,000 in 2011 to $691,000 in 2012, an increase of $551,000. For the first semester, net income is up 232% from $317,000 to $1.1 M, an increase of $734,000.
- EBITDA for the second quarter is up $813,000, from $788,000 in 2011 to $1.6 M in 2012, an increase of 103%. For the first semester, EBITDA is up $1 M, from $1.6 M in 2011 to $2.6 M in 2012, an increase of 64.1%.
Savaria Corporation (www.savariaconcord.com) is North America's leader 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 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 close to 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 International Financial Reporting Standards ("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. Reconciliation between net income for the period 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 quarter ended June 30, 2012 will be available shortly on Savaria's website and on SEDAR (www.sedar.com).
|(in thousands, except per-share amounts and percentages - unaudited)||Quarters Ended
|Six-Month Periods Ended
|Gross margin as a % of revenue||27||%||25||%||n/a||27.4||%||27||%||n/a|
|As a % of revenue||21||%||23||%||n/a||22||%||23.7||%||n/a|
|As a % of revenue||6.2||%||2||%||n/a||5.5||%||3.3||%||n/a|
|Gain (loss) on foreign change||$65||$51||27.5||%||$35||$(198||)||118||%|
|Earnings per share - diluted||$0.03||$0.006||400||%||$0.045||$0.014||221||%|
|EBITDA per share - diluted||$0.07||$0.03||133||%||$0.11||$0.07||83.3||%|
|Dividends declared per share||-||-||n/a||$0.094||$0.102||n/a|
|Weighted average number of common shares outstanding - diluted||23,126||23,451||(1.4||)%||23,137||23,351||(0.9||)%|
|As at June 30, 2012||As at Dec. 31, 2011|
|(1) 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
|(in thousands of dollars - unaudited)||Quarters Ended
|Six-Month Periods Ended June 30,|
|Interest on long-term debt||194||138||318||281|
|Interest expense and banking fees||20||87||45||130|
|Income tax expense||340||40||490||152|
|Depreciation of fixed assets||176||183||353||353|
|Amortization of intangible assets||188||205||380||387|
Helene Bernier, CPA, CA
1-800-931-5655, ext. 248
President and Chief Executive Officer