Laval, Québec, Canada, January 20, 2020 – Savaria Corporation (“Savaria”) (TSX: SIS), one of the global leaders in the accessibility industry, provides today its outlook for fiscal 2020. Savaria estimates revenue to be approximately CAD 395 million for the year with an adjusted EBITDA(1) margin ranging between 15 and 16 percent.
Savaria will continue to focus on its core accessibility segment, benefiting from strong demographic growth. Consolidated adjusted EBITDA(1) margin is anticipated to improve over 2019 as a result of a more favorable product mix and on-going Garaventa Lift acquisition-related integration synergies. The patient handling segment should benefit from healthy growth stemming from ceiling lift and sling product offerings.
Seasonality is expected to mirror 2019. This outlook excludes any potential 2020 acquisitions and Savaria remains steadfast in maintaining a net interest-bearing debt-to-adjusted EBITDA(1) ratio of less than two. The projections are based on a Canadian to US dollar exchange rate of 1.30.
A word from the President
“Savaria continues to benefit from the aging population demographic. Both the U.S. and Canada are expected to see 20% of their population to be over 65 in just 10 years from now. As people look for ways to stay safely in their homes longer, Savaria, in line with its mission, continues to bring the best products and service to this market. We remain optimistic and dedicated to deliver solid results to our shareholders,” declared Marcel Bourassa, President and Chief Executive Officer of Savaria.
(1) Adjusted EBITDA is defined as earnings before net finance costs, income tax expense, depreciation, amortization, other net expenses (income) and stock-based compensation expense.
About Savaria Corporation
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 and elevators for home and commercial use. It also manufactures and markets a comprehensive selection of pressure management products for the medical market, medical beds for the long-term care market, as well as an extensive line of medical equipment and solutions for the safe handling of patients. In addition, Savaria converts and adapts vehicles to be wheelchair accessible. The Corporation operates a sales network of dealers worldwide and direct sales offices in North America, Europe (Switzerland, Germany, Italy, Czech Republic, Poland and United Kingdom), Australia and China. Savaria employs approximately 1,500 people globally and its plants are located across Canada in Laval and Magog (Québec), Brampton, Beamsville and Toronto (Ontario) and Surrey (British Columbia), in the United States at Greenville (South Carolina), in Huizhou (China), in Milan (Italy) and in Newton Abbot (UK).