LAVAL, QUEBEC, Nov 11 (MARKET WIRE) --
Savaria Corporation (TSX: SIS), Canada's leader in the accessibility
industry, today discloses its financial results for the third quarter
ended September 30, 2009.
Third-Quarter Highlights
- Repurchase of 4.7 million common shares by the Corporation, being the
equivalent of 17% of its capital stock;
- Sustained sales for the Corporation, despite unfavourable economic
conditions;
- Significant growth of the Corporation's operations in Asia;
- Substantial increase in cash flows from operating activities, which
rise to $1,243,088.
The Corporation generated third-quarter revenues of $14,350,000 from its
continuing business operations, compared with revenues of approximately
$14,681,000 for the corresponding quarter of 2008. The Corporation's
sustained revenues can be explained by current conditions in the U.S.
real estate market, which temporarily brought down Savaria's export
potential in the same territory. Revenues from sales in Europe and Asia
amounted to $1,400,514, up 66% over $843,666 for the corresponding
quarter of the previous fiscal year.
"In light of the rather challenging global economic context, we are
obviously pleased with these results, which attest to both the relevance
of our products and our ability to increase efficiencies," indicated
Marcel Bourassa, President and Chief Executive Officer of the
Corporation. "Based on a progressive and diversified growth strategy, we
already expect Savaria to achieve significant breakthroughs in
high-business-potential foreign markets. The aging population is
definitely an issue worldwide that will allow us to continue to
capitalize on our expertise in equipment for people with mobility
challenges on more than one continent," added the President and Chief
Executive Officer.
The Corporation posted net earnings of 1 cent per share in the third
quarter of 2009, compared with 2.3 cents for the corresponding period of
2008(1). Gross profit as a percentage of sales worked out to 26.7% for
the third quarter of 2009, an increase of 2.1% over the figure obtained
in the third quarter of 2008.
(1) The recent repurchase of 17% of the Corporation's capital stock could
logically lead to an increase in net earnings per share as of the next
quarter.
Cash flows from operating activities totalled $1,243,088 for the third
quarter of 2009, up 93% over $644,506 for the third quarter of 2008.
These inflows come primarily from foreign exchange contracts of $1
million cashed-in in advance. During the same period, the Corporation's
long-term debt increased by $4 million. This increase was planned for the
repurchase of 4.7 million common shares, being the equivalent of 17% of
the Corporation's capital stock, at a price of 90 cents per share(2).
(2) Fees of 2.9 cents were added for each of the repurchased shares, for
a total of 92.9 cents per share.
"We are obviously pleased that the Corporation benefits from such
substantial cash flows. This liquidity not only attests to our sound and
effective management, but also provides us with the flexibility to pursue
our expansion. As for the repurchase of 17% of our capital stock, this is
excellent news for our present and future investors, given that the value
of their shares and dividends will likely rise in the short and long
term. All in all, there is no doubt in our minds that the outlook for
Savaria's future is very bright," concluded Marcel Bourassa.
New Markets, New Products
Thanks to its Huizhou-based Chinese plant employing more than 70 people,
the Corporation can bank on steadily deploying its efforts in Asia in
order to diversify and multiply its revenue streams. With its efficient
production and marketing teams, Savaria aims to ensure the gradual
development of this fast-growing market.
Van-Action, a wholly-owned subsidiary of Savaria, recently finalized the
tests prerequisite to marketing a new wheelchair-accessible vehicle
equipped with both a rear and a side entry. Unique in North America, the
vehicle is now offered to the adapted taxi industry, which has further
diversified the Corporation's operations and revenue streams.
Forward-Looking Statements
Certain statements in this press release may be forward-looking.
Forward-looking statements involve known and unknown risks, uncertainties
or other factors that may cause the Corporation's actual results,
performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. The reader is warned against the risk of
giving excessive credibility to these forward-looking statements.
Compliance with Canadian Generally Accepted Accounting Principles
The information appearing in this press release has been prepared in
accordance with Canadian generally accepted accounting principles
("GAAP"). However, the Corporation uses earnings before interest, income
taxes and amortization ("EBITDA") for analysis purposes to measure its
financial performance. This measure has no standardized definition in
accordance with GAAP and is therefore regarded as a non-GAAP measure.
This measure may therefore not be comparable to similar measures reported
by other companies. A reconciliation between net earnings and EBITDA is
provided in the Financial Highlights section below.
Savaria Corporation
(www.savariaconcord.com) is Canada's leader and the second largest
accessibility company in North America responding to the needs of people
with mobility challenges. The Corporation designs, manufactures and
distributes primarily elevators for residential and commercial use, as
well as stairlifts and inclined platform lifts. Through its subsidiary
Van-Action, Savaria converts and adapts automotive vehicles for the
disabled and offers scooters and motorized wheelchairs as well. Its line
of products, one of the world's most comprehensive, enables Savaria to
stand out by proposing an integrated and customized solution for its
disabled and elderly customers' mobility needs. Savaria records
approximately 60% of its sales outside Canada, primarily in the United
States, and is currently penetrating the Chinese market. The Corporation
has a network of some 600 retailers in North America and employs more
than 370 people in its plants in Ville Saint-Laurent, Quebec, Brampton,
Ontario and Huizhou, China.
Complete financial statements and the management's report for the quarter
ended September 30, 2009 will shortly be available on Savaria's website
and at SEDAR (www.sedar.com).
Savaria Corporation
Financial Highlights
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(in thousands of
dollars, except
per-share amounts,
percentages and
exchange rates Quarters Ended Nine-Month Periods Ended
- unaudited) September 30, September 30,
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2009 2008 Change 2009 2008 Change
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Average effective
exchange rate(1) 1.0642 1.0289 0.0353 1.0650 1.0151 0.0499
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Sales $14,350 $14,681 (2.3)% $40,204 $40,557 (0.9)%
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Gross profit as
a % of sales 26.7% 24.6% n/a 26.8% 21.8% n/a
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Selling and
administrative
expenses $3,023 $2,631 14.9% $8,562 $8,066 6.1%
Selling and
administrative
expenses
as a % of sales 21.1% 17.9% n/a 21.3% 19.9% n/a
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Operating earnings
(loss) $599 $796 (24.7)% $1,602 $2,198 (27.1)%
Operating earnings
(loss) as a % of
sales 4.2% 5.4% n/a 4.0% 5.4% n/a
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EBITDA(2) $413 $1,357 (69.6)% $2,819 $3,232 (12.8)%
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EBITDA per share $0.016 $0.050 (68)% $0.105 $0.119 (11.8)%
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Cash flows from
operating
activities $1,243 $645 92.7% $3,877 $(427) 1,008%
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Exchange gain
(loss) $(472) $400 (218)% $(317) $611 (152)%
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Net earnings $224 $631 (64.5)% $1,442 $1,696 (15.0)%
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Net earnings
per share -
basic and
diluted $0.009 $0.023 (60.9)% $0.054 $0.062 (12.9)%
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Dividends
declared
per share - - n/a $0.03 $0.063 n/a
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Weighted average
number of common
shares outstanding
- diluted 26,047 27,298 (4.6)% 26,722 27,414 (2.5)%
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As at Sept. 30, 2009 As at Dec. 31, 2008
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Total assets $41,537 $40,683
Total liabilities $21,745 $22,844
Shareholders' equity $19,792 $17,839
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(1) Calculated considering the hedge accounting applied to foreign exchange
contracts maturing during the period
(2) Reconciliation of EBITDA with net earnings provided in the following
table
Reconciliation of Earnings before Interest, Income Taxes and Amortization
("EBITDA") with Net Earnings
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(in thousands of dollars Quarters Ended Nine-Month Periods
- unaudited) September 30, Ended September 30,
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2009 2008 2009 2008
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Net earnings $224 $631 $1,442 $1,696
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Plus:
Interest on long-term debt 70 27 223 93
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Interest expense and banking fees 29 44 98 169
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Income taxes (117) 486 479 733
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Amortization of fixed assets 104 73 287 276
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Amortization of deferred
development costs 74 70 224 211
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Amortization of intangible assets 34 38 102 114
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Less:
Interest income and dividends 5 12 36 60
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Earnings before interest,
income taxes and amortization
("EBITDA") $413 $1,357 $2,819 $3,232
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Contacts:
Savaria Corporation
Marcel Bourassa
Chairman of the Board, President and Chief Executive Officer
1-800-931-5655
Savaria Corporation
Helene Bernier, CA
Vice-President, Finance
1-800-931-5655
www.savariaconcord.com
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