Savaria Continues Growth in Spite of Strengthening Canadian Dollar
Wednesday, March 31, 2004 8:25:15 AM ET
LAVAL, Quebec, Mar 31, 2004 (BUSINESS WIRE) -- Savaria Corporation (TSX:SIS):
-- 14.2% revenue Growth Q4 2003 versus Q4 2002.
-- 7.3% revenue Growth Year 2003 versus Year 2002
-- 8.5 cents net earnings per diluted share
-- $4.2 million cash & temporary investments at December 31st,
-- New product introduction, "ULTIMO", residential elevator
Savaria Corporation (www.savaria.com), one of North Americas leading
accessibility companies that facilitates and ensures mobility for the physically
challenged, today announced the 2003 year-end financial results.
Revenues for the 4th Quarter ended December 31st, 2003 increased by 14.2% over
the 4th Quarter in 2002, growing from $4.2 million to $4.8 million. Revenues for
the Year Ended December 31st 2003 increased by 7.3% to $17.5 million from $16.3
million in 2002. Savaria sold approximately 23% more units in order to achieve
this net increase of 7.3%, as a result of the approximately 20% increase in the
value of the Canadian Dollar. For the year ended December 31st 2003, Savaria
recorded Net Earnings, before dividends on preferred shares, of $1.88 million,
which represents a decrease of 12.4% over 2002 Net Earnings. This decrease is
attributable to significant investment in infrastructure, particularly in
selling and administrative expenses where almost $1 million more was spent in
2003 than in 2002. In May 2003, Savaria relocated to a new 70,000 sq.ft. owned
assembly facility in Laval, Quebec. Overall, these expenditures have positioned
Savaria to be able to manage growth in production, sales and marketing.
Net Earnings per share for the Year Ended December 31st 2003 were 8.5 cents (22
million average shares on a fully diluted basis) compared with 10.3 cents in
2002 (20.9 million average shares on a full diluted basis).
"Despite the challenge of the significantly stronger Canadian Dollar, Savaria
continues its growth and by providing on-going support to our more than 300
strong dealer network, we are confident that our revenue will continue to
increase on an annual basis. The introduction to the market of our newest
product, a residential elevator called the "ULTIMO", will have a positive impact
on revenues in 2004 and beyond and should represent about 10% of revenues for
2004," stated Marcel Bourassa, CEO. As at December 31st 2003, Savaria had cash
and temporary investments of $4.2 million and is debt-free. Together with
Savarias strong on-going free cash flow generating capability, this provides
Savaria with flexibility for organic growth and growth by acquisition.
Savaria reports a change in the accounting of the gain on foreign exchange
contracts during the First and Second Quarters of 2003. Some of the gains are
reported in deferred revenues as at December 31st, 2003. "This accounting change
in the presentation of the contracts has no impact on the cash flow of Savaria
and will result in the earnings being reported in 2004 instead of 2003,"
declared Jean-Marie Bourassa, CFO.
"I firmly believe that Savaria is well positioned for accelerated growth as a
result of the ageing demographic population segment that Savaria caters to.
Around the globe, more than 800,000 people turn 65 years old every month. In
this segment of the population, 14.6% are in need of accessibility products
either for residential or general public applications," stated Marcel Bourassa,
The 2003 Annual Report will be mailed in early May and the Annual General
Meeting of Shareholders will take place May 29, 2004.
Please see our web-site www.savaria.com for complete Audited Financial
Savaria is one of North Americas leading accessibility companies. Savaria
designs, manufactures and distributes equipment to remove barriers and
facilitate mobility for persons with physical challenges, through a distribution
channel of more than 300 dealers. Savaria generates 63% of its Revenues from the
USA and about 32% from Canada.
FORWARD LOOKING STATEMENTS:
Certain statements may constitute forward-looking statements. Such
forward-looking statements involve risks, uncertainties and other factors, which
may cause actual results, performance or achievements of the Corporation to be
materially different from future results, performance or achievements expressed
or implied by such forward-looking statements.
SOURCE: Savaria Corporation
CONTACT: Savaria Corporation
Mr. Marcel Bourassa, 800-931-5655
Mr. Gary Perkins, 800-225-2744
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