Mr. Marcel Bourassa reports

STRONG RESULTS FOR SAVARIA IN ITS FIRST QUARTER 2023

Savaria Corp. has released its results for the first quarter of 2023.

Highlights -- Q1 2023 compared with Q1 2022:

• Revenue was $211.6-million compared with $183.5-million in 2022, an increase of 15.3 per cent, due to organic growth of 13.5 per cent originating from all segments and positive foreign exchange impact of 1.8 per cent.
• Gross profit was $72.0-million, up $13.5-million or 23.1 per cent, representing 34.0 per cent of revenue compared with 31.9 per cent in Q1 2022.
• Operating income was $15.5-million, up $6.6-million or 75.1 per cent, representing 7.3 per cent of revenue compared with 4.8 per cent in Q1 2022.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $31.2-million, up $6.8-million or 27.8 per cent.
• Adjusted EBITDA margin stood at 14.7 per cent, up 140 basis points compared with 13.3 per cent in Q1 2022.
• Net earnings for the quarter were $6.0-million, or nine cents per share on a diluted basis, compared with $5.3-million or eight cents per share on a diluted basis in Q1 2022.
• Available funds of $135.0-million, as of March 31, 2023, to support working capital, investments and growth opportunities.

A word from the president

"We are off to a beautiful start this year with our first quarter results delivering both sales growth and increased profitability. Our revenue reached $212-million, an increase of 15.3 per cent year over year with 13.5-per-cent organic growth. Our gross profit increased 23.1 per cent and reached 34.0 per cent for the quarter. Adjusted EBITDA increased 27.8 per cent compared to last year," said Marcel Bourassa, president and chief executive officer.

"Typically, our first quarter is slower due to weather constraints on construction starts, affecting commercial lifts and home elevators, but diversification of our portfolio over the past few years has reduced this impact. Our patient care segment grew revenue by 17.2 per cent compared to the same period in 2022 with strong organic growth of 13.2 per cent including new health care facility contracts.

"We are currently looking at new objectives for 2025 that include strategic investments in people, products and processes. We are confident in hitting our previously stated goal of $1-billion in revenue at the end of 2025 and can now see growth beyond this time frame. I thank my employees around the world and our valued dealer partners, all of whom have helped us achieve these fantastic results," concluded Mr. Bourassa.

Outlook

Savaria is expecting revenue growth of approximately 8 to 10 per cent, when normalizing for the impact of the Norwegian auto division divesture, with an adjusted EBITDA margin of approximately 16 per cent 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. It believes that promoting environmentally and socially responsible behaviour across the organization is key to achieving sustainable growth and long-term value creation.

Following the completion of its first ESG materiality assessment, Savaria recently undertook a project to measure, baseline and better understand its global energy consumption and greenhouse gas emissions. It looks forward to providing further updates and findings in its inaugural ESG report due out later this year.

About Savaria Corp.

Savaria is a global leader in the accessibility industry. It provides accessibility solutions for the physically challenged to increase comfort, mobility and 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 and 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 (United Kingdom, 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.

Results webcast and conference call on May 11, 2023, at 8:30 a.m. EDT

Savaria will host a conference call on Thursday, May 11, at 8:30 a.m. Eastern Daylight Time, with financial analysts to discuss results of the quarter ended March 31, 2023. Investors and members of the media are invited to participate on a listen-only basis.

Conference call access

Please register.

Canada toll-free number:  1-855-513-1368

North American toll-free number:  1-844-543-0451

A link to the replay of the webcast will be available on the corporation's website.

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