Savaria Corporation (“Savaria”) (TSX: SIS), a manufacturer and distributor of automobiles and elevators designed for the disabled, disclosed its results for the second quarter ended June 30, 2010.
The company recorded revenues of $16.9 million for the second quarter, an increase of 12.2% over the same period the prior year. Concord London, Savaria’s new subsidiary, contributed $1.4 million to this growth in revenues.
The number of accessibility products delivered by the Accessibility segment was down 7% while elevator units increased by 1%. Revenues for the Adapted Transportation segment remained stable for the second quarter.
Operating earnings increased by 27% to $1.4 million compared to the second quarter of 2009 due to an increase in gross margins.
Savaria also announced today that it has acquired Freedom Motors Inc. and Liberty Motor Co. Inc., both located in Oakville, Ontario and specializes in converting mini-vans for disabled individuals. Savaria paid $3.6 million in cash and issued 100,000 common shares for the acquisition of both companies.
"By bringing these two companies under the Savaria umbrella, we are now able to collaborate on our product designs, manufacturing capabilities and customer service in order to offer customers the best in class on all fronts," stated Marcel Bourassa, President and CEO of Savaria. "We expect this to result in the doubling of the number of vehicle conversions that we currently perform on an annual basis," added Mr. Bourassa.
Savaria, a company based in Canada, designs, manufactures and distributes primarily elevators for residential and commercial use, as well as stairlifts and vertical and inclined platform lifts. Savaria also converts and adapts automotive vehicles for the disabled.
Savaria’s stock price has spiked 26.85% to trade at $1.37 since the news release.