LAVAL, Québec, April 11, 2019 (GLOBE NEWSWIRE) -- Savaria Corporation (“Savaria” or the “Corporation”)
(TSX: SIS), one of the global leaders in the accessibility industry, entered into an agreement on April 1, 2019 with a
syndicate of underwriters led by Desjardins Capital Markets to sell 5,000,000 common shares (the “Shares”), on a bought deal
private placement basis, at a price of $14.15 per Share (the “Offering Price”), for gross proceeds to the Corporation of
$70,750,000 (the “Offering”).
In relation to the Offering, in addition to the 71,000 Shares that insiders of Savaria had initially committed
to subscribe for, Savaria announces that Marcel Bourassa, its President and Chief Executive Officer, has further committed to
subscribe, at the option of the syndicate, for up to an additional 283,000 Shares at the Offering Price for aggregate proceeds of
$4,004,450 (the “Additional Shares”).
In the event that the Additional Shares are purchased by Marcel Bourassa in full, he, along with Jean-Marie
Bourassa, the Chief Financial Officer of the Corporation, and Sebastien Bourassa, the Vice President, Operations and Integration of
the Corporation, would subscribe for a total of 354,000 Shares for aggregate proceeds of $5,009,100, representing 7.1% of the
Shares sold under the Offering.
Preliminary Results for the First Quarter of 2019
In the context of the Offering, Savaria announces its preliminary results for the first quarter of 2019. The
Corporation expects first quarter revenue to be approximately $84 million and adjusted EBITDA(1) to be slightly over $10
million, an increase of 48% and 26%, respectively, over the comparable period in 2018.
These preliminary results are based on information available to Savaria as of the date of this release and are
subject to revision upon the finalization of Savaria’s quarterly consolidated financial statements. Financial results for the first
quarter ended March 31, 2019 will be reported on May 15, 2019.
At the same time, Savaria is also reaffirming its full fiscal year 2019 forecast with respect to revenue of $385
to $400 million and adjusted EBITDA in a range of $55 to $60 million.
(1) |
This measure is presented for information purposes only and represents a measure of financial condition used
especially in financial circles. It represents the following calculation: earnings before interest, taxes, depreciation,
amortization, realized and unrealized business acquisition costs, the value adjustment on acquired inventories, stock-based
compensation, provision for restructuring costs of Garaventa’s operations in China, proceeds from insurance claim, gain on
financial instrument and litigation costs. It does not have a standardized meaning prescribed by IFRS and therefore may not be
comparable to similar measures presented by other public corporations. |
Profile
Savaria Corporation (savaria.com) is one of the global leaders in the accessibility industry. It provides
accessibility solutions for the physically challenged to increase their comfort, their mobility and their independence. Its product
line is one of the most comprehensive on the market. Savaria designs, manufactures, distributes and installs accessibility
equipment, such as stairlifts for straight and curved stairs, vertical and inclined wheelchair lifts, elevators for home and
commercial use, as well as ceiling lifts. It also manufactures and markets a comprehensive selection of pressure management
products for the medical market, medical beds for the long-term care market, mattress overlays and foam pillows for the retail
market and certain products for the industrial market. In addition, Savaria converts and adapts vehicles to be wheelchair
accessible. Savaria records approximately 75% of its revenue outside of Canada, primarily in the United States. It operates a sales
network of some 500 dealers worldwide and 28 direct sales offices in North America, Europe (Switzerland, Germany, Italy, Czech
Republic and Poland), Australia and China. Savaria employs approximately 1,400 people globally and its plants are located in
Canada: Laval and Magog (Québec), Brampton, Beamsville and Toronto (Ontario) and Surrey (British Columbia), in the United States at
Greenville (South Carolina), in Huizhou (China) and in Milan (Italy).
Cautionary Notice Regarding Forward-Looking Statements
The statements set forth in this press release, which describe Savaria’s objectives, projections, estimates,
expectations or forecasts, may constitute forward-looking statements within the meaning of securities legislation. Positive or
negative verbs such as “will”, “plan”, “evaluate”, “estimate”, “believe”, “expect” and other related expressions are used to
identify such statements. Savaria would like to point out that, by their very nature, forward-looking statements involve risks and
uncertainties such that its results, or the measures it adopts, could differ materially from those indicated or underlying these
statements, or could have an impact on the degree of realization of a particular projection. Major factors that may lead to a
material difference between Savaria’s actual results and the projections or expectations set forth in the forward-looking
statements include the state of the financial markets, the effects of the integration of acquired businesses and the ability to
achieve projected synergies, fluctuations in margins, competition, exchange rate variations, and such other risks as described in
detail from time to time in documents such as its annual management report (MD&A) as filed by Savaria with securities
regulatory authorities in Canada. Unless otherwise required by applicable securities laws, Savaria disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
The forward-looking information in this press release is based on information available as of the date of the release.
For further information:
www.savaria.com
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