Savaria Corp T.SIS

SAVARIA EARNINGS: BEAT.. REV 211 VS 183 & EPS .09 VS .08

[Humanist]

Strong Results for Savaria in its First Quarter 2023
https://www.globenewswire.com/news-release/2023/05/10/2666140/0/en/Strong-Results-for-Savaria-in-its-First-Quarter-2023.html

May 10, 2023 17:05 ET | Source: Savaria Corporation Follow
                                                  EnglishFrench
LAVAL, Qubec, May 10, 2023 (GLOBE NEWSWIRE) -- Savaria Corporation (“Savaria”) (TSX: SIS), a global leader in the accessibility industry, is pleased to announce its results for the first quarter of 2023.
Highlights – Q1 2023 compared to Q1 2022

• Revenue was $211.6M compared to $183.5M in 2022, an increase of 15.3%, due to organic growth of 13.5% originating from all segments and positive foreign exchange impact of 1.8%;
• Gross profit was $72.0M, up $13.5M or 23.1%, representing 34.0% of revenue compared to 31.9% in Q1 2022;
• Operating income was $15.5M, up $6.6M or 75.1%, representing 7.3% of revenue compared to 4.8% in Q1 2022;
• Adjusted EBITDA* was $31.2M, up $6.8M or 27.8%,;
• Adjusted EBITDA margin* stood at 14.7%, up 140 bps compared to 13.3% in Q1 2022;
• Net earnings for the quarter were $6.0M, or $0.09 per share on a diluted basis, compared to $5.3M or $0.08 per share on a diluted basis in Q1 2022;
• Available funds* of $135.0M, as of March 31, 2023, to support working capital, investments and growth opportunities.

in thousands of dollars, except per-share  amounts and percentages	Q1
	2023	2022	Change
Revenue	$211,625	$183,536	15.3%
Gross profit	$72,033	$58,521	23.1%
% of revenue	34.0%	31.9%	210 bps
Net earnings	$6,039	$5,347	12.9%
% of revenue	2.9%	2.9%	-
Diluted net earnings per share	$0.09	$0.08	12.5 %
Adjusted net earnings *	$8,387	$6,766	24.0%
% of revenue	4.0%	3.7%	30 bps
Adjusted net earnings per share *	$0.13	$0.10	30.0%
Adjusted EBITDA *	$31,214	$24,422	27.8%
% of revenue	14.7%	13.3%	140 bps
* Non-IFRS measures are described and reconciled in sections 3, 6 and 8 of the MD&A

A Word from the President
“We are off to a beautiful start this year with our first quarter results delivering both sales growth and increased profitability. Our revenue reached $212 million, an increase of 15.3% year over year with 13.5% organic growth. Our gross profit increased 23.1% and reached 34.0% for the quarter. Adjusted EBITDA increased 27.8% compared to last year," said Marcel Bourassa, President and Chief Executive Officer. 
“Typically, our first quarter is slower due to weather constraints on construction starts, affecting commercial lifts and home elevators, but diversification of our portfolio over the past few years has reduced this impact. Our Patient Care segment grew revenue by 17.2% compared to the same period in 2022 with strong organic growth of 13.2% including new healthcare facility contracts.”
“We are currently looking at new objectives for 2025 that include strategic investments in people, products and processes. We are confident in hitting our previously stated goal of $1 billion in revenue at the end of 2025 and can now see growth beyond this timeframe. I thank my employees around the world and our valued dealer partners, all of whom have helped us achieve these fantastic results,” concluded Mr. Bourassa.  
First Quarter Results – Q1 2023 compared to Q1 2022
REVENUE
Revenue reached $211.6M, up $28.1M or 15.3%. The growth was mainly due to strong organic growth of 13.5%.

• Accessibility segment (72% of Q1-23 revenue): Revenue was $151.4M, an increase of $21.0M or 16.1%. Organic growth stood at 14.4%.
• Patient Care segment (23% of Q1-23 revenue): Revenue was $48.8M, an increase of $7.2M or 17.2%. Organic growth stood at 13.2%.
• Adapted Vehicles segment (5% of Q1-23 revenue): Revenue was $11.4M, a decrease of $0.1M or 0.8%, impacted by negative foreign exchange impact. Organic growth stood at 3.7%.

ADJUSTED EBITDA
Adjusted EBITDA and adjusted EBITDA margin stood at $31.2M and 14.7%, respectively, compared to $24.4M and 13.3% for Q1 2022.

• Accessibility segment: Adjusted EBITDA and adjusted EBITDA margin stood at $23.4M and 15.5%, respectively, compared to $20.5M and 15.7% for Q1 2022.
• Patient Care segment: Adjusted EBITDA and adjusted EBITDA margin stood at $9.8M and 20.1%, respectively, compared to $5.3M and 12.8% for Q1 2022.
• Adapted Vehicles segment: Adjusted EBITDA and adjusted EBITDA margin stood at $0.6M and 5.4%, respectively, compared to $0.6M and 4.9% for Q1 2022.

LIQUIDITY AND CAPITAL RESOURCES
Savaria generated $16.0M of cash from operating activities which were primarily used to invest in capital projects, pay interest, and dividends.
As at March 31, 2023, the Corporation had a net debt position of $358.9M and a ratio of net debt to adjusted EBITDA of 2.83 compared to 3.07 as of December 31, 2022.
Outlook
Savaria is expecting revenue growth of approximately 8-10%, when normalizing for the impact of the Norwegian auto division divesture, with an adjusted EBITDA margin 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 initiatives and strong demand.
• Successful integration of Handicare and progress toward achieving the next strategic phase of synergies 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.
Following the completion of its first ESG materiality assessment, Savaria recently undertook a project to measure, baseline and better understand its global energy consumption and greenhouse gas emissions. We look forward to providing further updates and findings in our inaugural ESG report due out later this year.
Results webcast and conference call on May 11, 2023, at 8:30 a.m. (EDT)
Savaria will host a conference call on Thursday, May 11 at 8:30 a.m. Eastern Daylight Time with financial analysts to discuss results of the quarter ended March 31, 2023. Investors and members of the media are invited to participate on a listen-only basis.
Conference call access:
To register: https://register.vevent.com/register/BI1a122aa18d9b46a69bbb7e0b300d70fe
Canada Toll Free Number: 1 [phone]
North American Toll Free Number: 1 [phone]
Webcast (EN): https://edge.media-server.com/mmc/p/8hzv5qsw
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 [e-mail]	Stephen Reitknecht, CPA, CA Chief Financial Officer 1.800.661.5112, ext. 3370 [e-mail]

www.savaria.com
facebook.com/savariabettermobility
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 Q1 2023 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	Q1
	2023	2022
Net earnings	$6,039	$5,347
Other expenses	3,157	1,839
Income taxes related to other expenses *	(809)	(420)
Adjusted net earnings *	$8,387	$6,766
Adjusted net earnings per share *	$0.13	$0.10
Income taxes related to other expenses *	809	420
Income tax expense	2,385	2,107
Depreciation of fixed assets	1,952	1,799
Depreciation of right-of-use assets	2,391	2,632
Amortization of intangible assets	7,845	8,903
Net finance costs	7,035	1,375
Stock-based compensation	410	420
Adjusted EBITDA*	$31,214	$24,422
Diluted weighted average number of shares	64,642,997	64,522,496
* Non-IFRS measures are described and reconciled in sections 3, 6 and 8 of the MD&A