SIS Savaria Corporation

Savaria Corporation (“Savaria”) (TSX: SIS), one of the global leaders in the accessibility industry, is pleased to announce its results for fiscal 2024.

Highlights – Fiscal 2024 compared to 2023

• Revenue was $867.8M, up $30.8M or 3.7%, mainly due to organic growth of 3.7% and a positive foreign exchange impact of 1.4%, partially offset by the divestitures of Van-Action, Freedom Motors and the operations in Norway, net of the acquisition of Matot.
  • Accessibility organic growth stood at 3.4%, including growth of 8.4% coming from North America and partially offset by a contraction of 2.5% in Europe.
  • Patient Care organic revenue increased by 4.5%.
• Gross profit was $321.7M, up $35.7M or 12.5%, representing 37.1% of revenue, an increase of 290 bps compared to 34.2% in 2023.
• Operating income was $84.1M, up $12.0M or 16.6%, representing 9.7% of revenue compared to 8.6% in 2023.
• Adjusted EBITDA* was $161.2M, up $31.2M or 24.0%, representing $2.25 per share, up $0.30.
• Adjusted EBITDA margin* stood at 18.6% up 310 bps compared to 15.5% in 2023.
  • Accessibility adjusted EBITDA margin reached 19.8%.
  • Patient Care adjusted EBITDA margin stood at 19.1%.
• Net earnings were $48.5M or $0.68 per share on a diluted basis, compared to $37.8M or $0.57 per share in 2023.
• The ratio of net debt to adjusted EBITDA* stood at 1.63 in comparison to 2.07 as at December 31, 2023.
• Available funds* of $242.8M to support working capital, investments and growth opportunities.

	Q4									YTD
in thousands of dollars, except per-share amounts	2024			2023			Change			2024			2023			Change
Revenue	$	223,340		$	216,839			3.0	%	$	867,762		$	836,954			3.7	%
Gross profit	$	84,224		$	74,322			13.3	%	$	321,712		$	286,020			12.5	%
% of revenue		37.7	%		34.3	%		340	bps		37.1	%		34.2	%		290	bps
Operating income	$	21,772		$	19,843			9.7	%	$	84,137		$	72,150			16.6	%
Net earnings	$	14,333		$	10,959			30.8	%	$	48,510		$	37,841			28.2	%
Diluted net earnings per share	$	0.20		$	0.16			25.0	%	$	0.68		$	0.57			19.3	%
Adjusted net earnings*	$	19,269		$	12,848			50.0	%	$	64,795		$	42,909			51.0	%
Adjusted net earnings per share*	$	0.26		$	0.19			36.8	%	$	0.90		$	0.65			38.5	%
Adjusted EBITDA*	$	42,867		$	35,105			22.1	%	$	161,230		$	130,075			24.0	%
Adjusted EBITDA per share*	$	0.59		$	0.49			20.4	%	$	2.25		$	1.95			15.4	%
% of revenue		19.2	%		16.2	%		300	bps		18.6	%		15.5	%		310	bps

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

Words from the Executive Chairman and from the President & CEO “Our record-breaking year finished with an adjusted EBITDA of $161.2M, a 24% improvement over 2023, largely attributable to our Savaria One program that successfully achieved cost improvements across the business. With a net-debt-to-adjusted-EBITDA ratio now at 1.6, and $243 million of available funds, we have the flexibility for acquisitions or investments to adapt to economic uncertainties. I am extremely pleased and proud of our achievements in 2024,” said Marcel Bourassa, Executive Chairman.

“In 2024, we saw 8% revenue growth in North America in Accessibility as well as a significant increase in adjusted EBITDA margin in Europe in Accessibility. Our Patient Care segment finished the year with its best-ever sales quarter with a 23.1% adjusted EBITDA margin. In 2025, Savaria One will focus on new growth opportunities. We are currently launching a new through-the-floor home lift globally: the Savaria Luma. This beautiful 2-stop lift is an ideal product for the aging population looking to skip the stairs – another offering in the case they may not want a stairlift.

“With our many Savaria One initiatives positively impacting procurement, production and overall efficiencies, we have built an even stronger foundation for our future growth. In spite of pressure from trade measures, we have confidence in our agility to overcome future challenges,” said Sébastien Bourassa, President and Chief Executive Officer.

Fourth Quarter Results - Q4 2024 compared to Q4 2023

REVENUE

Revenue reached $223.3M, up $6.5M or 3.0%. The increase was mainly due to organic growth of 0.9% and a positive foreign exchange impact of 2.1%. The revenue contribution from the acquisition of Matot was fully offset by the divestitures of Van-Action and Freedom Motors.

• Accessibility segment (76% of Q4-24 revenue): Revenue was $170.3M, a decrease of $3.4M or 1.9%. Organic contraction was 4.0%.
• Patient Care segment (24% of Q4-24 revenue): Revenue was $53.0M, an increase of $9.9M or 22.9%. Organically, revenue increased by 20.6%.

OPERATING INCOME

Operating income was $21.8M, up $1.9M or 9.7%, representing an operating margin of 9.7% compared to 9.2% in Q4 2023. The increase was mainly attributable to the contribution from additional revenue and higher gross margins while partially offset by increased strategic initiatives expenses.

ADJUSTED EBITDA

Adjusted EBITDA and adjusted EBITDA margin stood at $42.9M and 19.2%, respectively, compared to $35.1M and 16.2% for Q4 2023.

• Accessibility segment: Adjusted EBITDA and adjusted EBITDA margin stood at $33.3M and 19.6%, respectively, compared to $28.7M and 16.5% for Q4 2023.
• Patient Care segment: Adjusted EBITDA and adjusted EBITDA margin stood at $12.2M and 23.1%, respectively, compared to $7.9M and 18.3% for Q4 2023.

Twelve-Month Results - YTD 2024 compared to YTD 2023

REVENUE

The Corporation generated revenue of $867.8M, up $30.8M or 3.7%. The increase is mainly due to organic growth of 3.7% and a positive foreign exchange impact of 1.4%. The growth was partially offset by the aforementioned divestitures, as well as the divestiture of the operations in Norway in 2023, net of the acquisition of Matot.

OPERATING INCOME

Operating income was $84.1M, up $12.0M or 16.6%, representing an operating margin of 9.7% compared to 8.6% in 2023.

ADJUSTED EBITDA

Adjusted EBITDA and adjusted EBITDA margin stood at $161.2M and 18.6%, respectively, compared to $130.1M and 15.5% in 2023.

LIQUIDITY AND CAPITAL RESOURCES

Savaria generated $120.1M of cash from operations which was primarily used to invest in capital projects, a business acquisition, repay debt and pay interest and dividends.

As at December 31, 2024, the Corporation had a net debt position of $262.7M and a ratio of net debt to adjusted EBITDA of 1.63 compared to 2.07 as of December 31, 2023.

Outlook

Savaria’s fiscal 2025 forecast projects revenue of approximately $925M, with an adjusted EBITDA margin between 17% and 20%. We anticipate revenue growth of 5-8%, driven by volume and price increases, new product launches, and favorable foreign exchange effects across the Accessibility and Patient Care segments. However, given the current macro environment and potential tariff impacts, we have tempered our growth expectations.

Despite these geopolitical uncertainties, the completion of Savaria One positions us well to sustain profitability. Structural improvements have enhanced production capacity, increased operational efficiencies, and generated meaningful cost savings through streamlined procurement.

As one of the global leaders in the accessibility industry with extensive operations in Canada and the United States, Savaria is assessing its supply chain and evaluating strategies to optimize its North American manufacturing footprint. These efforts aim to maintain competitiveness and ensure continued service for our valued dealer partners.

The above-mentioned outlook is a “forward-looking statement” within the meaning of the securities laws of Canada and subject to the Corporation’s disclosure statement.

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.

By delivering products and solutions that promote accessibility, health, and wellness, improving operational efficiencies and resource usage, and engaging our employees and stakeholders, we’ll create a stronger, more resilient business that will continue to be an industry leader while delivering positive social change.

We recognize this work requires long-term vision, planning, and collaboration, yet also must be grounded in clear actions and an ongoing commitment to transparency.

Savaria is working towards the publication of its 2024 ESG report, which will provide additional sustainability related disclosures and an update on the Company's ongoing ESG strategy and initiatives. Until then, Savaria's 2023 ESG report can be found under the investor relations section of our website at savaria.com.

Savaria Corporation (savaria.com) 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 elevators for home and commercial use, stairlifts for straight and curved stairs, vertical and inclined wheelchair lifts and dumbwaiters. In addition, Savaria manufactures and markets a comprehensive selection of pressure management products, medical beds, as well as an extensive line of medical equipment and solutions for the safe movement of patients, such as transfer, lifting and repositioning aids. 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) and Australia. Savaria employs approximately 2,500 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 EBITDA per share, 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 savaria.com, and filed with SEDAR+ at sedarplus.ca. 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 March 6, 2025, at 8:30 a.m. (EST)

Savaria will host a conference call on Thursday, March 6th at 8:30 a.m. Eastern Standard Time with financial analysts to discuss results of the period ended December 31, 2024. Investors and members of the media are invited to participate on a listen-only basis.

Conference call access: To register: https://register.vevent.com/register/BI4b09594fce5745358691b26898deb28d Webcast (en): https://edge.media-server.com/mmc/p/j7mdr24h

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

For further information:
Sébastien Bourassa President and Chief Executive Officer sb@savaria.com 1.800.661.5112	Stephen Reitknecht, CPA Chief Financial Officer sreitknecht@savaria.com 1.800.661.5112, ext. 3370	facebook.com/savariabettermobilitytwitter.com/Mobilityforlifewww.savaria.com

Reconciliation of adjusted net earnings and adjusted EBITDA with net earnings is provided below. Complete financial statements and the management’s report for fiscal 2024 will be available shortly on Savaria’s website and on SEDAR+ sedarplus.ca.

Reconciliation of adjusted net earnings and adjusted EBITDA with net earnings

	Q4						YTD
in thousands of dollars, except per-share amounts	2024			2023			2024			2023
Net earnings	$	14,333		$	10,959		$	48,510		$	37,841
Strategic initiatives expenses		5,520			2,018			21,579			3,148
Other expenses		949			522			569			3,679
Income tax related to strategic initiatives and other expenses		(1,533	)		(651	)		(5,863	)		(1,759	)
Adjusted net earnings*	$	19,269		$	12,848		$	64,795		$	42,909
Adjusted net earnings per share*	$	0.26		$	0.19		$	0.90		$	0.65
Income tax related to strategic initiatives and other expenses		1,533			651			5,863			1,759
Income tax expense		5,033			4,103			17,155			12,474
Depreciation of fixed assets		2,510			2,197			9,368			8,461
Depreciation of right-of-use assets		3,194			2,611			11,690			10,061
Amortization of intangible assets		8,205			7,511			31,131			30,610
Net finance costs		2,406			4,781			18,472			21,835
Stock-based compensation		717			403			2,756			1,966
Adjusted EBITDA*	$	42,867		$	35,105		$	161,230		$	130,075
Adjusted EBITDA per share*	$	0.59		$	0.49		$	2.25		$	1.95
Diluted weighted average number of shares		72,357,117			71,031,225			71,651,011			66,476,434

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