Highlights – Q3 2021 vs. Q3 2020
- Revenue was
$180.8M , up$90.0M or 99.1%, mainly due to the acquisition of Handicare; - Gross profit was
$58.5M , up$25.9M or 79.6%, representing 32.4% of revenue compared to 35.9% in Q3 2020; - Adjusted EBITDA was
$26.3M , up$9.4M or 55.6%; - Adjusted EBITDA margin stood at 14.6%, compared to 18.6% in Q3 2020;
- Net earnings were
$9.1M or$0.15 per share on a diluted basis. Adjusted net earnings were$9.6M or$0.15 per share on a diluted basis, up$1.3M or 16.3%; - Funds available of
$138.0M to support working capital, investments and growth opportunities; - Savaria has now paid for 100% of the shares of Handicare.
in thousands of dollars, except per-share amounts and percentages | Q3 | YTD | ||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||
Revenue | $ | 180,758 | $ | 90,808 | 99.1 | % | $ | 471,454 | $ | 263,895 | 78.7 | % | ||||
Gross Profit (1) | $ | 58,508 | $ | 32,583 | 79.6 | % | $ | 155,712 | $ | 91,994 | 69.3 | % | ||||
% of revenue | 32.4 | % | 35.9 | % | n/a | 33.0 | % | 34.9 | % | n/a | ||||||
Net earnings | $ | 9,125 | $ | 8,127 | 12.3 | % | $ | 21,341 | $ | 19,749 | 8.1 | % | ||||
% of revenue | 5.0 | % | 8.9 | % | n/a | 4.5 | % | 7.5 | % | n/a | ||||||
Diluted net earnings per share | $ | 0.15 | $ | 0.16 | (6.3 | )% | $ | 0.35 | $ | 0.39 | (10.3 | )% | ||||
Adjusted net earnings (2) | $ | 9,588 | $ | 8,241 | 16.3 | % | $ | 27,014 | $ | 21,678 | 24.6 | % | ||||
% of revenue | 5.3 | % | 9.1 | % | n/a | 5.7 | % | 8.2 | % | n/a | ||||||
Diluted adjusted net earnings per share (2) | $ | 0.15 | $ | 0.17 | (11.8 | )% | $ | 0.44 | $ | 0.43 | 2.3 | % | ||||
Adjusted EBITDA(2) | $ | 26,312 | $ | 16,914 | 55.6 | % | $ | 70,999 | $ | 43,741 | 62.3 | % | ||||
% of revenue | 14.6 | % | 18.6 | % | n/a | 15.1 | % | 16.6 | % | n/a | ||||||
(1) Cost of sales and selling and administrative expenses of Handicare for periods prior to Q3 2021 have been restated in accordance with Savaria's accounting policies, with no impact on earnings before income tax | ||||||||||||||||
(2) Non-IFRS measures are described in section 3 of the MD&A |
A Word from the President
" I am very pleased with our third-quarter results for 2021, given that we delivered strong bookings and sales year-over-year in a challenging environment. Our adjusted EBITDA for the quarter was negatively impacted by inflationary pressures, including soaring freight costs, and without these challenges, adjusted EBITDA would have exceeded
" On the business side, we are on track to start producing the Handicare Freecurve stairlift in
" Looking ahead, the price increase we announced this summer will positively affect our results beginning in the fourth quarter. Based on ongoing strength in bookings and our current backlog, I remain confident that adjusted EBITDA will exceed
" In closing, I would like to thank our 2,300 employees around the world as they work together to share innovations and efficiencies to always improve client safety," concluded Mr. Bourassa.
Third Quarter Results
Revenue
Revenue reached
- Accessibility segment (75% of Q3-21 revenue): Revenue was
$135.7M , an increase of$67.1M or 97.9%, compared to Q3 2020. Acquisition growth stood at 97.7% and organic revenue growth stood at 2.7%; - Patient Handling segment (19% of Q3-21 revenue): Revenue was
$34.8M , an increase of$17.4M or 100.5%, compared to Q3 2020. Acquisition growth stood at 93.1% and organic revenue growth stood at 11.0%; - Adapted Vehicles segment (6% of Q3-21 revenue): Revenue was
$10.3M in Q3 2021, an increase of$5.4M or 110%, compared to Q3 2020. Acquisition growth stood at 121.5% and organic contraction stood at 11.5%.
Adjusted EBITDA
Q3 2021 adjusted EBITDA and adjusted EBITDA margin, both before head office costs, stood at
- Accessibility segment: Adjusted EBITDA and adjusted EBITDA margin, both before head office costs, stood at
$24.7M and 18.2%, respectively, compared to$15.3M and 22.3% for Q3 2020. - Patient Handling segment: Adjusted EBITDA and adjusted EBITDA margin, both before head office costs, stood at
$3.1M and 8.8%, respectively, compared to$2.0M and 11.7% for Q3 2020. - Adapted Vehicles segment: Adjusted EBITDA and adjusted EBITDA margin, both before head office costs, stood at
$0.6M and 6.1%, respectively, compared to$0.3M and 5.8% for Q3 2020.
Net Earnings and Adjusted Net Earnings
Net earnings were
Adjusted net earnings stood at
Nine-Month Results
Revenue
For the nine-month period ended
Adjusted EBITDA
For the nine-month period ended
Net Earnings and Adjusted Net Earnings
For the nine-month period ended
Liquidity and Capital Resources
Savaria generated
As at
Outlook
The uncertainty around the future impact of the ongoing global pandemic makes it difficult to predict future performance, however, considering its financial performance year-to-date, coupled with current backlog levels, and the Corporation’s confidence in the strategic integration plan with Handicare which is underway, Savaria remains optimistic it will achieve its previously stated goal of generating an adjusted EBITDA in excess of
(1) See section 13 “Outlook” of Q3 Management Discussion & Analysis for detail on the assumptions supporting this amount.
About
Compliance with International Financial Reporting Standards (“IFRS”)
The information appearing in this press release has been prepared in accordance with IFRS. However, Savaria uses EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA per share, adjusted net earnings and adjusted net earnings per share for analysis purposes to measure its financial performance. These measures have no standardized definitions in accordance with IFRS and are therefore regarded as non-IFRS measures. These measures may therefore not be comparable to similar measures reported by other companies. Additional details for these non-IFRS measures can be found in Savaria’s MD&A, which is posted on Savaria’s website at www.savaria.com, and filed with SEDAR at www.sedar.com. Reconciliation between net earnings and adjusted net earnings, adjusted EBITDA and adjusted EBITDA per share is presented in the section below.
Forward-Looking Statements
This press release includes certain statements that are “forward-looking statements” within the meaning of the securities laws of
A change affecting an assumption can also have an impact on other interrelated assumptions, which could increase or diminish the effect of the change. As a result, the Corporation cannot guarantee that any forward-looking statement will materialize and, accordingly, the reader is cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements do not take into account the effect that transactions or special items announced or occurring after the statements are made may have on the Corporation’s business. For example, they do not include the effect of sales of assets, monetizations, mergers, acquisitions, other business combinations or transactions, asset write-downs or other charges announced or occurring after forward-looking statements are made.
Unless otherwise required by applicable securities laws, Savaria disclaims any intention or obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing risks and uncertainties include the risks set forth under “Risks and Uncertainties” in Savaria’s latest Annual MD&A as well as other risks detailed from time to time in reports filed by Savaria with securities regulators in
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link to the replay of the webcast will be available on the Corporation’s website at www.savaria.com
For further information: | ||
Chairman, President and Chief Executive Officer 1.800.661.5112 mbourassa@savaria.com | Chief Financial Officer 1.800.661.5112, ext. 3370 sreitknecht@savaria.com | Vice President, Corporate Development 1.800.931.5655, ext. 239 nrimbert@savaria.com |
514-731-0000 pierre@maisonbrison.com | 416-953-3337 chris@maisonbrison.com |
www.savaria.com
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Twitter: twitter.com/Mobilityforlife
Reconciliation of adjusted net earnings and adjusted EBITDA with net earnings | ||||||||||||
in thousands of dollars, except per-share | Q3 | YTD | ||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
Net earnings | $ | 9,125 | $ | 8,127 | $ | 21,341 | $ | 19,749 | ||||
Other expenses | 683 | 140 | 6,418 | 2,465 | ||||||||
Income taxes related to other expenses | (220 | ) | (26 | ) | (745 | ) | (536 | ) | ||||
Adjusted net earnings (1) | $ | 9,588 | $ | 8,241 | $ | 27,014 | $ | 21,678 | ||||
Diluted adjusted net earnings per share (1) | $ | 0.15 | $ | 0.17 | $ | 0.44 | $ | 0.43 | ||||
Income taxes related to other expenses | 220 | 26 | 745 | 536 | ||||||||
Income tax expense | 4,403 | 2,630 | 8,564 | 5,996 | ||||||||
Depreciation of fixed assets | 1,905 | 1,340 | 5,230 | 4,030 | ||||||||
Depreciation of right-of-use assets | 2,554 | 1,050 | 6,591 | 3,082 | ||||||||
Amortization of intangible assets | 4,590 | 1,861 | 12,273 | 5,686 | ||||||||
Net finance costs | 2,489 | 1,527 | 9,399 | 1,786 | ||||||||
Stock-based compensation | 563 | 239 | 1,183 | 947 | ||||||||
Adjusted EBITDA(1) | $ | 26,312 | $ | 16,914 | $ | 70,999 | $ | 43,741 | ||||
Diluted weighted average number of shares | 64,639,035 | 51,075,977 | 61,428,909 | 50,886,140 | ||||||||
(1) Non-IFRS measures are described in section 3 of the MD&A |
Source:
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