Record Year for Savaria - Increased revenue and adjusted EBITDA
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@GlobeNewswire on 15 Mar 2023, 17:05
LAVAL, Qubec, March 15, 2023 (GLOBE NEWSWIRE) -- Savaria Corporation (“Savaria”) (TSX: SIS), a global leader in the accessibility industry, is pleased to announce its results for fiscal 2022.
Highlights – Fiscal 2022 compared to 2021 - Revenue was $789.1M, up $128.1M or 19.4%, due to organic growth of 12.7% originating from all segments and to 8.9% growth from acquisition partially offset by a negative foreign exchange impact of 2.2%;
- Gross profit was $254.4M, up $38.8M or 18.0%, representing 32.2% of revenue compared to 32.6% in 2021;
- Operating income was $63.9M, up $28.1M or 78.2%, representing 8.1% of revenue compared to 5.4% in 2021;
- Adjusted EBITDA* was $120.2M, up $20.0M or 19.9%;
- Adjusted EBITDA margin* stood at 15.2%, flat compared to 2021;
- Net earnings were $35.3M, or $0.55 per share on a diluted basis, compared to $11.5M or $0.19 in 2021;
- Funds available* of $125,7M as of December 31, 2022, to support working capital, investments and growth opportunities.
| | | | | | |
| Q4 | YTD |
in thousands of dollars, except per-share amounts and percentages | 2022 | 2021 | Change | 2022 | 2021 | Change |
| | | | | | |
Revenue | $212,100 | $189,529 | 11.9% | $789,091 | $660,983 | 19.4% |
Gross profit | $66,222 | $59,670 | 11.0% | $254,369 | $215,536 | 18.0% |
% of revenue | 31.2% | 31.5% | (30) bps | 32.2% | 32.6% | (40) bps |
Net earnings | $11,258 | $945 | 1091.3% | $35,311 | $11,535 | 206.1% |
% of revenue | 5.3% | 0.5% | 480 bps | 4.5% | 1.7% | 280 bps |
Diluted net earnings per share | $0.18 | $0.02 | 800.0 % | $0.55 | $0.19 | 189.5 % |
Adjusted net earnings * | $12,555 | $6,452 | 94.6% | $39,388 | $23,301 | 69.0% |
% of revenue | 5.9% | 3.4% | 250 bps | 5.0% | 3.5% | 150 bps |
Adjusted net earnings per share * | $0.19 | $0.10 | 90.0 % | $0.61 | $0.37 | 64.9 % |
Adjusted EBITDA * | $33,310 | $29,250 | 13.9% | $120,225 | $100,250 | 19.9% |
% of revenue | 15.7% | 15.4% | 30 bps | 15.2% | 15.2% | - |
* Non-IFRS measures are described and reconciled in sections 3 and 6 of the MD&A |
| | | | | | |
A Word from the President “It was another year of business pressures, yet this showcased one of the key qualities of Savaria – that we are agile. We demonstrated this with our ability to get a new facility in Mexico up and running in less than a year to better serve our North American dealer network. Earlier in 2022, we acquired UK-based Ultron Technologies making us more vertically integrated with software and electronic circuit boards," said Marcel Bourassa, President and Chief Executive Officer.
“We grew our revenue 123% over the past 2 years from $354.5 million (2020) to $789.1 million (2022). We also doubled our adjusted EBITDA in this same timeframe from $59.8 million to $120.2 million. Those numbers are transformative for Savaria.
Our results were delivered in spite of the many challenges we faced. Our strategies and our employees’ teamwork and dedication underscore my optimism for growth of 8-10% each year over the next three years, reaching our revenue goal of $1 billion at the end of 2025,” concluded Mr. Bourassa.
Fourth Quarter Results – Q4 2022 compared to Q4 2021 Revenue Revenue reached $212.1M, up $22.6M or 11.9%. The growth was mainly due to strong organic growth of 12.1%.
- Accessibility segment (70% of Q4-22 revenue): Revenue was $148.2M, an increase of $10.9M or 8.0%. Organic revenue growth stood at 8.7%.
- Patient Care segment (21% of Q4-22 revenue): Revenue was $45.7M, an increase of $5.3M or 13.2%. Organic revenue growth stood at 8.7%.
- Adapted Vehicles segment (9% of Q4-22 revenue): Revenue was $18.2M, an increase of $6.3M or 53.0%. Organic revenue growth stood at 62.1%.
Adjusted EBITDA Adjusted EBITDA and adjusted EBITDA margin, both before head office costs, stood at $34.0M and 16.0%, respectively, compared to $30.1M and 15.9% for Q4 2021.
- Accessibility segment: Adjusted EBITDA and adjusted EBITDA margin, both before head office costs, stood at $24.7M and 16.7%, respectively, compared to $24.2M and 17.7%.
- Patient Care segment: Adjusted EBITDA and adjusted EBITDA margin, both before head office costs, stood at $7.0M and 15.3%, respectively, compared to $5.3M and 13.1%.
- Adapted Vehicles segment: Adjusted EBITDA and adjusted EBITDA margin, both before head office costs, stood at $2.3M and 12.7%, respectively, compared to $0.6M and 5.2%.
Net Earnings and Adjusted Net Earnings Net earnings for the quarter were $11.3M or $0.18 per share on a diluted basis, compared to $0.9M or $0.02 per share in Q4 2021.
Adjusted net earnings stood at $12.6M, or $0.19 per share, compared to $6.5M or $0.10 per share in Q4 2021.
Twelve-Month Results - Fiscal 2022 compared to 2021 Revenue The Corporation generated revenue of $789.1M, up $128.1M or 19.4%. The increase is mainly due to organic growth of 12.7% and the acquisition of Handicare in 2021. The growth was partially offset by a negative foreign exchange impact of 2.2%.
Adjusted EBITDA Adjusted EBITDA and adjusted EBITDA margin, both before head office costs, stood at $126.5M and 16.0%, respectively, compared to $106.1M and 16.0% in 2021.
Net Earnings and Adjusted Net Earnings The Corporation’s net earnings stood at $35.3M or $0.55 per share on a diluted basis, compared to $11.5M or $0.19 per share in 2021.
Adjusted net earnings were $39.4M or $0.61 per share on a diluted basis, compared to $23.3M or $0.37 in 2021.
Liquidity and Capital Resources Savaria generated $90.7M of cash from operating activities which were primarily used to invest in capital projects, repay debt, and pay interest and dividends.
As at December 31, 2022, the Corporation had a net debt position of $369.4M and a ratio of net debt to adjusted EBITDA of 3.07 compared to 3.73 as of December 31, 2021.
Outlook Savaria is expecting revenue growth of approximately 8-10% with expected adjusted EBITDA margins of approximately 16% in fiscal 2023, based on the following assumptions:
- Organic growth coming from the Accessibility and Patient Care segments is expected to continue due to a combination of high backlog levels, cross-selling and strong demand.
- Successful integration of Handicare and progress toward achieving the next strategic phase of synergies progressing in-line with management’s plan.
- Management’s ability to continue to effectively manage supply chain challenges.
This outlook excludes the financial contribution from any new acquisition.
Environmental, Social and Governance (“ESG”) Values As a global leader within the accessibility industry, Savaria is committed to minimizing its environmental footprint and upholding the highest social and governance standards. We believe that promoting environmentally and socially responsible behaviour across our organization is key to achieving sustainable growth and long-term value creation.
As we advance an ESG strategy that will positively impact our company and the communities in which we operate, our first step is to identify the ESG risks and opportunities that are critical to our business. To that end, and with the support of external consultants, we have conducted our first materiality assessment to validate the most important ESG issues prioritized by our stakeholders. The results of this assessment have helped to narrow our focus and guide our decision-making with respect to our ESG plan.