Savaria Corp T.SIS

Ink Research

[retiredcf]

As the share price of global mobility equipment maker Savaria (SIS) was straddling its 200-day moving average, the stock took a quick elevator down in early September when the company announced a common stock financing priced at $14.50 per share. When the deal closed on September 22nd, Savaria raised just over $92 million in gross proceeds from a combined bought deal ($63M) and private placement with the Caisse de depot et placement du Quebec ($29M). CEO Marcel Bourassa participated in the bought deal along with three of his children who are also insiders of the company. The CEO was buying again following the November 1st release of Q3 earnings.

In the three months ended September 30th, revenue grew 4.3% from a year earlier to $210.1 million. The rise was led by 4.8% sales growth of its Accessibility segment which focuses on the design, manufacture, and distribution of a portfolio of commercial accessibility products including elevators, home elevators, stair-lifts, and platform lifts. The segment made up the bulk of Q3 sales at just over $166.3 million. The $43.8 million in remaining sales came from a 2.4% rise in the Patient Care segment which focuses on a range of lift products used in healthcare facilities and in home care settings. Diluted net earnings per share rose to $0.18 from $0.16. Meanwhile, net debt dropped to just over $290.2 million from just over $369.4 million a year earlier, while reported trailing 12-months adjusted EBITDA rose to just over $127.1 million from just over $120.2 million a year ago. As far as the future goes, by fiscal 2025, the company is striving to achieve $1 billion in revenue which compares to just over $789.0 million in 2022 sales. With sales on the rise, investors appear to have pushed the up button on the stock. It is nice to see insiders going along for the ride.