Savaria has a strong finish to the second quarter despite headwinds

LAVAL, Quebec, Aug. 09, 2023 (GLOBE NEWSWIRE) -- Savaria Corporation (“Savaria”) (TSX: SIS), a global leader in the accessibility industry, is pleased to announce its results for the second quarter of fiscal 2023.

Highlights – Q2 2023 compared to Q2 2022

  • Revenue was $198.4M, compared to $192.1M in 2022, an increase of 3.3%, due to organic growth of 3.4% coming from both segments and a positive foreign exchange impact of 3.8%, partially offset by the divestiture of the Norway operations.
    • Worldwide Accessibility organic growth stood at 2.8% while the growth in North America reached 12.1%;
    • Patient Care organic growth stood at 5.3%;
  • Gross profit was $67.1M, up $1.5M or 2.3%, representing 33.8% of revenue compared to 34.1% in Q2 2022.
  • Operating income was $16.2M, down $1.5M or 8.5%, representing 8.2% of revenue compared to 9.2% in Q2 2022.
  • Adjusted EBITDA* was $29.0M, down $2.4M or 7.8%, compared to Q2 2022.
  • Adjusted EBITDA margin* stood at 14.6%, down 180 bps compared to 16.4% in Q2 2022.
  • Net earnings were $8.8M, or $0.14 per share on a diluted basis, compared to $8.1M or $0.13 per share on a diluted basis in Q2 2022.
  • Available funds* of $119.5M, as of June 30, 2023, to support working capital, investments and growth opportunities.
in thousands of dollars, except per-share amounts and percentages 2023  2022 Change 2023  2022 Change
Revenue$198,396 $192,061 3.3%$410,021 $375,597 9.2%
Gross profit$67,105 $65,582 2.3%$139,138 $124,103 12.1%
% of revenue 33.8% 34.1%(30) bps 33.9% 33.0%90 bps
Net earnings$8,789 $8,125 8.2%$14,828 $13,472 10.1%
% of revenue 4.4% 4.2%20 bps 3.6% 3.6%- 
Diluted net earnings per share$0.14 $0.13 7.7%$0.23 $0.21 9.5%
Adjusted net earnings*$8,789 $8,890 (1.1)%$17,176 $15,656 9.7%
% of revenue 4.4% 4.6%(20) bps 4.2% 4.2%- 
Adjusted net earnings per share*$0.14 $0.14 - $0.27 $0.24 12.5%
Adjusted EBITDA*$29,022 $31,469 (7.8)%$60,236 $55,891 7.8%
% of revenue 14.6% 16.4%(180) bps 14.7% 14.9%(20) bps

*Non-IFRS measures are described and reconciled in sections 3, 6 and 8 of the MD&A

A Word from the President

“We had a great second quarter although it may not be readily apparent. With a closer look, we see that Accessibility in North America reached $86.4 million in revenue - a strong 12.1% organic increase compared to one year earlier. Accessibility in Europe suffered a disruption due to the implementation of a new ERP system. This affected sales and profitability in the quarter and caused an overall estimated shortfall of $5 million in adjusted EBITDA. We have confidence, with the ERP issues behind us, that the positive trend will continue,” said Marcel Bourassa, President and Chief Executive Officer.

“The Patient Care segment had a terrific quarter with revenue up 8.9% overall from last year (5.3% organic growth) and an adjusted EBITDA margin of 19.4%. Our facility in Mexico continues to expand with 50 employees in place and new manufacturing equipment up and running to grow our capabilities in this strategically located plant.

“As we reviewed our rapid growth over the past two years, we took a deep look at opportunities to better integrate our different companies and business segments. We have recently launched a new company-wide initiative called Savaria One, and with the guidance of an independent consulting firm, we have laid out a plan for the coming 24 months. Our plan consists of many actions to help us achieve operational and sales excellence across Savaria.

“I believe we are on track to exceed our previously stated goal of $1 billion in revenue by the end of 2025. As always, I thank the 2,250 employees of Savaria for working together to hit these goals,” concluded Mr. Bourassa.

Second Quarter Results - Q2 2023 compared to Q2 2022


Revenue reached $198.4M, up $6.3M or 3.3%. The growth was mainly due to organic growth of 3.4% coming from both segments and a positive foreign exchange impact of 3.8%, partially offset by the divestiture of the Norway operations.

  • Accessibility segment (76% of Q2-23 revenue): Revenue was $150.6M, an increase of $2.4M or 1.6%. Organic revenue growth stood at 2.8%.
  • Patient Care segment (24% of Q2-23 revenue): Revenue was $47.8M, an increase of $3.9M or 8.9%. Organic revenue growth stood at 5.3%.


Adjusted EBITDA and adjusted EBITDA margin stood at $29.0M and 14.6%, respectively, compared to $31.5M and 16.4% for Q2 2022.

  • Accessibility segment: Adjusted EBITDA and adjusted EBITDA margin stood at $21.4M and 14.2%, respectively, compared to $26.5M and 17.9% for Q2 2022.
  • Patient Care segment: Adjusted EBITDA and adjusted EBITDA margin stood at $9.3M and 19.4%, respectively, compared to $6.7M and 15.3% for Q2 2022.

Six-Month Results - YTD 2023 compared to YTD 2022


The Corporation generated revenue of $410.0M, up $34.4M or 9.2%. The increase is mainly due to organic growth of 8.3% and a positive foreign exchange impact of 2.9%. The growth was also partially offset by the aforementioned divestiture.


Adjusted EBITDA and adjusted EBITDA margin stood at $60.2M and 14.7%, respectively, compared to $55.9M and 14.9% in 2022.


Savaria generated $16.2M of cash from operations which were primarily used to invest in capital projects, pay interest and dividends.

As at June 30, 2023, the Corporation had a net debt position of $372.9M and a ratio of net debt to adjusted EBITDA of 2.99 compared to 3.07 as of December 31, 2022.


Savaria is expecting revenue growth of approximately 8-10%, when normalizing for the impact of the Norwegian auto division divestiture, with and 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 undertook a project to measure, baseline and better understand its global energy consumption through a comprehensive carbon footprint calculation of its Scope 1 and Scope 2 greenhouse gas emissions. The data gleaned from this study will help guide future energy efficiency initiatives.

Moreover, Savaria is also in the process of finalizing its ESG governance structure, and has formed an executive management committee responsible for steering the firm’s overall ESG strategy. To that end, the committee has engaged external consultants to help it design and implement a global ESG KPI reporting structure and system for Savaria. As part of this mandate, the committee will develop an action plan to identify and close any gaps in assessing Savaria’s preparedness to meet its ESG reporting obligations ahead of potential upcoming regulations.

Savaria Corporation ( is a global leader 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, including ceiling lifts and slings. In addition, Savaria converts and adapts vehicles for personal and commercial uses. The Corporation operates a sales network of dealers worldwide and direct sales offices in North America, Europe (UK, Netherlands, Switzerland, Italy, Germany, Poland and Czech Republic), Australia and China. Savaria employs approximately 2,250 people globally and its plants are located across Canada, the United States, Mexico, Europe and China.

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 net earnings, adjusted net earnings per share, available funds, net debt and ratio of net debt to adjusted EBITDA 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 sections 3, 6 and 8 of Savaria’s MD&A, which is posted on Savaria’s website at, and filed with SEDAR at Reconciliation of adjusted net earnings and adjusted EBITDA with net earnings 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 Canada. Any statement in this press release that is not a statement of historical fact may be deemed to be a forward-looking statement. When used in this press release, the words “believe”, “could”, “should”, “intend”, “expect”, “estimate”, “assume” and other similar expressions are generally intended to identify forward-looking statements. It is important to know that the forward-looking statements in this document describe the Corporation’s expectations as at the date hereof, which are not guarantees of future performance of Savaria or its industry, and involve known and unknown risks and uncertainties that may cause Savaria’s or the industry’s outlook, actual results or performance to be materially different from any future results or performance expressed or implied by such statements. The Corporation’s actual results could be materially different from its expectations if known or unknown risks affect its business, or if its estimates or assumptions turn out to be inaccurate.

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 Canada.

Results webcast and conference call on August 10, 2023, at 8:30 a.m. (EDT)

Savaria will host a conference call on Thursday, August 10 at 8:30 a.m. Eastern Daylight Time with financial analysts to discuss results of the quarter and fiscal year ended June 30, 2023. Investors and members of the media are invited to participate on a listen-only basis.

Conference call access:

To register:
Webcast (en):

Link to the replay of the webcast will be available on the Corporation’s website at

For further information:  
Marcel Bourassa
Chairman, President and Chief Executive Officer
Stephen Reitknecht, CPA, CA
Chief Financial Officer
1.800.661.5112, ext. 3370

Reconciliation of adjusted net earnings and adjusted EBITDA with net earnings is provided below. Complete financial statements and the management’s report for Q2 2023 will be available shortly on Savaria’s website and on SEDAR

Reconciliation of adjusted net earnings and adjusted EBITDA with net earnings

in thousands of dollars, except per-share 2023 2022  2023  2022 
Net earnings$8,789$8,125 $14,828 $13,472 
Other expenses  1,025  3,157  2,864 
Income taxes related to other expenses*  (260) (809) (680)
Adjusted net earnings*$8,789$8,890 $17,176 $15,656 
Adjusted net earnings per share*$0.14$0.14 $0.27 $0.24 
Income taxes related to other expenses*  260  809  680 
Income tax expense 2,930 3,177  5,315  5,284 
Depreciation of fixed assets 2,230 2,182  4,182  3,981 
Depreciation of right-of-use assets 2,527 2,562  4,918  5,194 
Amortization of intangible assets 7,501 7,493  15,346  16,396 
Net finance costs 4,507 6,436  11,542  7,811 
Stock-based compensation 538 469  948  889 
Adjusted EBITDA*$29,022$31,469 $60,236 $55,891 
Diluted weighted average number of shares 64,797,135 64,489,238  64,719,889  64,510,442 

*Non-IFRS measures are described and reconciled in sections 3, 6 and 8 of the MD&A