Good morning, afternoon, evening. My name is Catherine, and I will be your conference operator today. Today's call is being recorded. And at this time, I'd like to welcome everyone to Savari Corporation's Quarter two twenty twenty one Conference Call. All lines have been placed on mute to prevent any background noise.
After the speakers' remarks, there will be a question and answer session. This call may contain forward looking statements, which are subject to the disclosure statement contained in Savara's most recent press release issued on the 08/11/2021, with respect to the quarter two twenty twenty one results. Thank you. Mr. Barasza, you may now begin your conference.
Thank you, Ms. Catherine. Okay. We have a very, very interesting q two, okay, that we put, okay, in the in the the press release that we gave yesterday. So we we find that our acquisition of Endicare, it's even more interesting than ever, I think that's a perfect fit fit fix.
Okay? Fit with my increase. Okay? Fit with Savaria. Okay?
That's a good compliment. Okay? A good compliment on talents. Talents is always very important when we make an acquisition. And after that, okay, a good complimentary on their operation.
Okay? I think they are outstanding the way that they manufacture a curved stylus. So, what is very interesting, we will have this equipment of manufacturing. Okay? A curved stylus that will begin in by the end of the year in Toronto to manufacture this outstanding products, okay, and the way that we they manufacture that.
Okay? So we will learn from that. And after that, the curved cell lift can be delivered in the maximum three days after the after the orders. That's very impressive, and I like it very much. So they they they bring that's important.
Okay? They bring that, okay, to to our company, and they bring the cross setting of our products of the our our house, okay, to other people, okay, in in Europe. Okay? So that event begin, okay, to to make some credit, but and thank them. But a big improvement would be the by the people of Endcare.
Okay? That's that's their niche. Okay? They know, okay, about that. They I think that would change, okay, our vision of setting Savaria projects in Europe and and other country.
So we speak about yesterday about the 100 millions. Okay? That's why I'm comfortable with this number. And after that, okay, we will, we speak about the reaching, okay, our goal of, 1,000,000,000 by 2025. And on that, we are very, very, happy what we see to to reach, this number without key acquisition.
And just maybe small small one to my people. Okay? My specialist. Okay? We speak about that.
My specialists are are there on the phone. Okay? So we will begin the question shortly. I just want to to say, okay, we we see some residential strongly, okay, order, And we see that the the commercial will come, okay, slowly, okay, after the pandemic will will be, pandemic will be resolved a little bit. So we are very, very enthusiastic about that.
So, we'll begin the the call, Kathleen. Thank you for your introduction. And mister Render, mister Sebastian, and Steve are on the call, okay, to answer to you guys. So, again, thank you for to to be part of our story. Okay.
Just the story. Okay. We had we need people to say our story. Oh, a great story. That's another great chapter that we have this morning.
And, plus, we have Maison Bresson, okay, that will work for Savaria in communication. So thank you, mister for the for the house. Okay? And mister Boucher to to to be the the head, okay, of this maison brisson. That is they are very good in communication.
Thanks again. So we are ready, Kacreen, okay, for the call.
Okay. Thank you, Marcel. So basically, let me start to discuss the progress on the integration with Endicare. The second quarter was the first quarter to include the full contribution of Endicare. We had a very good start to our integration plan.
We set up multiple committees that meet every two weeks to discuss opportunities and make sure we keep on track. These committees have been mostly meeting on Teams so far, but with travel restriction lifting, we have begun to meet in person, which give us a much better perspective. Example, in q two, we had a chance to go to St. Louis to meet the team of RENDY to discuss about the patient's pending. We have met in person with the team of Endicare in Toronto.
In terms of synergies, we started to look at both cost of goods sold and indirect cost, including corporate cost, mainly being a public company, purchasing, integrating some of our products. While we are making some headway on those savings, aside from certain administration saving, most of these are not reflected in our results of q two as we're still in early days. Also, a major project underway is a capital investment at our factory in Toronto to accommodate the production of the free curve study for Vendicare. The layout of the new production line has been designed. Special equipment has been ordered from Europe, including welding robot, vending machine, and we have begun to train our operating team.
We are continuing to expect to start production by the end of q four. The project will bring a high degree of automation to a factory in Toronto, and we cut lead time, as Marcel said, from three to four weeks to three days, providing us a significant competitive advantage. So thank you to the team in Netherlands, which is lead by peak. I will now pass it on to Nick for some cross selling initiatives.
Thank you, Sebastian. With respect to cross selling, we've begun an in-depth review of our respective product lines, both within acceptability and patient handling. Our sales leaders are working together and currently laying the groundwork for collaborative commercial strategy across all our brands. We're managing and organizing our dealer channels in The U. S.
And Canada to accommodate the significant interest we've received for North American made curb stairlift. In Europe, we've introduced our broader accessibility lineup to HandyCare sales team, including our Vuelift glass elevator. And Handy Care dealers in Europe have also begun placing their first orders for Garaventa's incline platform lift. Within Patient Handling, we are exploring how best to optimize our sales efforts to better serve our customers. This will involve the introduction of Span's bed frames and pressure care products within Handy Care sales channel, collaborating on a joint sling line and leveraging Handy Care service and installation infrastructure.
We're also looking to jointly attend industry trade shows, further bringing our sales teams together. While cross selling takes the most time to set up and develop, in the long term, we believe it has
the most upside potential. However,
we should not expect meaningful results from these activities in the short term as our people need time to learn the products and how best to sell them. While we're in the midst of our integration with Handicare, we're still looking and get to do some tuck in acquisitions. And as we mentioned in the past, these might include a dealer in the strategic region or a small manufacturer of a complementary product. We're well positioned to take advantage of these opportunities as they arise. And with that, I'll pass it back to Sebastien for some brief comments.
Thank you, Nick. I just want to bring to your attention a few supply chain challenges we have experienced in our business recently. Like many other companies, we have faced headwinds with regards to supply chain, delays in receiving our orders, a significant increase in our cost of container, difficulty to our direct labor. We do our best to continue to be proactive. And despite this challenge, we were able to deliver strong results in the quarter.
Also, we have recently implemented some price increase to our customer in most of our brands to help mitigate inflation. We are hopeful to see some small margin improvement in Q4. I will now turn it on to Steve for a financial review.
Thanks, Sebastian, and good morning, everyone, and thanks for being on the call this morning. I'm going to begin with some remarks regarding our Q2 twenty twenty one consolidated financial metrics. For the quarter, the corporation generated revenue of 179,000,000 more than double the $85,000,000 reported in the second quarter last year, mainly due to the acquisition of HandyCare. Gross profit and gross margin stood at $65,000,000 and 36.5%, respectively, compared to twenty nine million dollars and 34.6% for the corresponding period last year. The increase in gross profit over prior year was attributable to a favorable product mix with the acquisition of HandyCare.
Adjusted EBITDA and adjusted EBITDA margins stood at $27,400,000 and 15.3% respectively compared to $14,500,000 and 17.1% in Q2 twenty twenty. Significant increase in adjusted EBITDA was mainly attributable to the acquisition of Handy Care and ongoing corporation wide cost containment efforts, partially offset by a reduction in the COVID-nineteen employment retention government of cannabis subsidies. Turning now to segmented results. Revenue from our Accessibility segment was $130,800,000 in Q2 twenty twenty one, more than double when compared to $60,200,000 generated in Q2 twenty twenty. The increase in revenue is mainly attributable to the acquisition of HandyCare, which contributed an increase of 109.6% and also organic growth of 12.4%, driven by the economic recovery from the global pandemic.
This growth was partially offset by a negative foreign currency impact of 4.8% for the quarter. Adjusted EBITDA and adjusted EBITDA margin, both before head office costs, stood at $23,400,000 and 17.9%, respectively, compared to $12,300,000 and 20.4% for Q2 twenty twenty. The significant increase in adjusted EBITDA is due to the acquisition of HandyCare, while the decrease in adjusted EBITDA margin is due to the reduction in COVID-nineteen employment retention and Government of Canada subsidies, partially offset by cost containment efforts. Revenue from our Patient Handling segment was $36,100,000 for the quarter, an increase of $14,800,000 or 69.7% when compared to Q2 twenty twenty. This increase was primarily driven by the acquisition of HandyCare, which contributed 77.3% of growth, partially offset by the negative foreign currency impact of 7.7% for the quarter.
Adjusted EBITDA and adjusted EBITDA margin, both before head office costs stood at $4,700,000 and 12.9% respectively compared to $2,800,000 and 13% for Q2 twenty twenty. Similarly to the Accessibility segment, the significant increase in adjusted EBITDA is due to the acquisition of HandyCare, while the decrease in adjusted EBITDA margin is due to the reduction in COVID-nineteen employment retention in Government of Canada subsidies, partially offset by cost containment efforts. Revenue from the Adapted Vehicles segment was $11,700,000 an increase of $8,600,000 or 270.7% when compared to the same period in 2020. Adjusted EBITDA and adjusted EBITDA margin, both before head office costs, finished at $1,300,000 and 11.2 percent, respectively, compared to negligible amounts in Q2 twenty twenty. The increases in revenue and adjusted EBITDA and adjusted EBITDA margin when comparing Q2 twenty twenty one to Q2 twenty twenty were again mainly due to the acquisition of Handicare, the economic recovery from the global pandemic and partially offset by a reduction in COVID-nineteen employment retention of government of Canada subsidies.
In Q2 twenty twenty one, net finance costs stood at 5,400,000.0 up $3,900,000 from the $1,500,000 for the same period last year. The increase is mainly due to higher interest expenses as a result of additional long term credit facilities related to the acquisition of HandyCare. Net earnings reached $6,600,000 or $0.10 per diluted share compared to $6,100,000 or $0.12 per diluted share for the corresponding period last year. When we exclude onetime costs, adjusted earnings were $9,500,000 or $0.15 per share, up over 50% versus $6,300,000 or $0.12 per share for the corresponding period last year. Now we're going turn to capital resources and liquidity.
Driven by the solid profitability, Severe had generated cash flow from operations of $14,400,000 in the quarter. We used this cash to primarily reduce debt, invest in capital projects and pay dividends. As of 06/30/2021, the corporation had a net interest bearing debt position of $279,000,000 and was in compliance with all of its covenants. On a pro form a last twelve months adjusted EBITDA basis, the corporation's debt to adjusted EBITDA ratio was approximately 3.5x. In addition, Savaria has liquidity in excess of 125,000,000 to fund the future projects and investments across the company.
Now taking a look forward, the uncertainty around the future impacts of the ongoing global pandemic makes it difficult to predict future performance. However, considering our financial performance year to date with an adjusted EBITDA of $44,700,000 coupled with current backlog levels and our confidence in the strategic integration plan of HandyCare, we remain optimistic we will achieve our previously stated goal of generating an adjusted EBITDA in excess of $100,000,000 for fiscal twenty twenty one. Please refer to our MD and A for the underlying assumptions used to prepare this guidance. With a strong product portfolio reaching over 40 countries, our increased distribution network combined with slowing demand for mobility products, we are very well positioned for future growth. And on that note, I will turn the call back over to Marcel.
Thank you, Steve. Thank you, Nicolas and Sebastien, okay, to make your comments. Okay? And you know the guy that people know me since twenty years. Okay?
My English is not improving at all. Okay? Excuse me for that. Okay? The other thing that I can say, okay, right now, okay, that our ratio, okay, debt of EBITDA, okay, seems high a little bit.
But what we see, okay, coming in the next two years, I will I am not nervous at all, okay, to have this ratio, okay, right now over over three, but going back, okay, smaller, okay, in a couple of years. So, that was, thanks for my guidance. K? But you can read that on our MD and A. But what is very important, okay, is your question that you have to ask to our guy, okay, my guy, okay, or, to myself.
So, Kathleen, can you pass can you do some question from our people to our analysts?
Cool. You. If like to ask a question, please signal by pressing star one on your telephone keypad. You. Thank you.
We'll now take the first question from Derek Lazard at TD Securities. Please go ahead.
There's a lot going on, but my first question is maybe on the the organic revenue growth. Probably the best you've seen in in two years. And I
know you did catch the
recovery, but just wondering if there was anything else driving that number that you'd like to highlight.
Steve? Derek, with respect to organic revenue growth and again, thank you for highlighting about it's been the highest in a couple of years here. It's really on the back of the residential sector that continues to be very, very strong. So in terms of what we would highlight is just that the commercial hasn't come back yet. I think that a lot of the landlords and various of these building owners, they're waiting to see sustained foot traffic before they make certain investments.
So right now, it's really being driven by the residential, which is carrying us through here. That's, I guess, probably the best color I can give you as it relates to what's driving the organic growth and accessibility.
Okay. And maybe just switch gears. Curious on the on your view with respect to the evolution of margins this year, particularly, as you mentioned, you're dealing with numerous disruptions to the the supply chain. I guess I'm I'm particularly curious about how it relates to some of the the Handicare synergies, and and maybe, on on your your lead times and ability to to meet your, current customer demand.
Okay. Derek, maybe Sebastian will commit after me. Okay? But me, I see very organic growth in the in the future. Okay?
Some that was not very good on the last, okay, couple of years, okay, about our growth. Okay? And I I share with my people, okay, that we have to be better. And we will we were better in q two, and we will continue to be a lot better, okay, by this mix of products right now available, okay, to and to get. In the past, okay, they were selling just straight Telif and Curse Telif, okay, on accessibility project.
But right now, they have our house. All our products is accessible for our people in the in Europe, okay, and other country. So it's quite exciting. Okay? And mister Oliver mentioned that, like, it's not overnight that we can make out this synergy, but it will come.
Okay? Because the dealer, okay, prefer to to to buy more product, okay, from the same place. Okay? Because they know, okay, what kind of service they can have, okay, right now with Enscare. And that would would be just a very good compliment, okay, to to Enscare, okay, with our team, okay, to to carry the service, okay, and installation and everything that I think that will be driving this, okay, what we will see in the coming years.
So I am quite excited, okay, to to be in this mix of products that we can offer to to anybody. So I think the the growth, okay, will be there. I am very optimistic, okay, what, what we have to see. And more important, I see now that, okay, in the beginning, okay, This is good acquisition to good people, okay, from from Garaventa. Okay.
That's another good complement, okay, to their product. So that that we'll see some some good increase in that, Derek. And, Sebastian, you have some more to to add? Yeah. I think, Derek, that's a very
good question. I think sometime we have to be careful the way we answer because sometimes we have competitor listening on the call. But if you go back to what is public, we see that in the first two years, we make 12,000,000 of synergies, and it was mostly a few a few basket. The curve stairlift, which we are doing in Toronto, there's more opportunity on purchasing, maybe not the best year because of inflation, but you can see purchasing, we are looking at it. And cross selling, we said it it started, with the view lifting of that.
The the the surge will will happen next year with some of the dealers around with Endicare in Toronto. And I think early time, yes, it's a bit longer than it was before, not because necessary of supply chain, but our backlog is quite high right now on the residential sector. So maybe we are one or two mix more than than we were in in the past.
Okay. And thanks for that. And and, so maybe just one housekeeping for Steve. Can you just, kinda give us the the cadence and maybe a level of CapEx we should expect, particularly given the investment in the Toronto plant?
Significant part of the Toronto plant investment has actually already been made. That project, I'd say, we're probably half spent on that already. Our level of CapEx on a go forward basis is going to be in line with our Q2 run rate and year to date where we're sitting.
Okay. Thank you.
We'll now take the next question from Michael Doumet at Scotiabank. Please go ahead.
Hi. Good morning, everybody.
Hi, Michael.
First question, The first question again on legacy accessibility. I mean, you've indicated, again, on this call as well, in the last couple of quarters, it's very strong residential and commercial's lagged. Are you getting market signals that commercial is on the cusp of a rebound? I guess the way I'm thinking about it, if we're not seeing that now with the reopening, you know, when should we expect that to start to play out?
So, mister Reza, I will complement you with my my answer to that. Okay? You know that many commercial sites, okay, was was not in operation, okay, during the pandemic. Okay. And they are not in operation even right now.
So it would take maybe a little time. Okay? But how the improvement, okay, on the on commercial, okay, part of that, okay, have to be accessible, okay, to these people, okay, that need, okay, more mobility. So I will ask mister Reimbert to complement a little bit my answer.
Yes. Yes. Sure, Marcelo. It is difficult, Michael. So we don't have a crystal ball that tells exactly what quarter it's going to pick up.
I guess in our mind, it's just a question of it's more when as opposed to if. A lot of these commercial investments that we're seeing upgrades to various buildings, they're waiting, right? I'm not sure if you've been downtown recently, but it's still I won't say ghost town, but it's very much the foot traffic is much, much lower than what we've seen previously. Even that the economies are opening up, it is taking some time for restaurants to have the confidence. I mean, they're just trying to hire staff and bring people back in.
Schools as well, right? I mean, we're seeing schools open up. And then in certain areas, schools are going back virtual because of the smaller outbreaks that are happening. So I think there's just a lot of uncertainty on the commercial space. And so before they're making those investments, they do want to see, I guess, a more sustained recovery.
So with that being said, I think to our previous comments, the residential is really carrying us here and organic growth, which is very positive, and we're seeing some very good momentum there. And then commercial, whether it's this quarter or next quarter,
I mean, it will come back,
and that will help sustain that momentum in organic growth. So we're not overly nervous about it. We have, as Bastian mentioned, a very good backlog as it relates to our residential orders. So we're quite confident where we are now. And when commercial does come back, we'll be prepared.
Got it. That's very helpful. Thank you. And maybe just on the residential, quarter over quarter, has the strength Well, has the backlog strengthened by this point? Just I I guess if you're tracking residential permits, trying to get a sense for, you know, if you're still seeing positive momentum in residential here.
Well, maybe Sebastian will complement, like, me, okay, on that. But I can see me. I see the number. Okay? And the number is quite important.
Okay? And we see our essential elevators is like our order is, like, triple what we have, like, last year at the same time. It's why we are very optimistic when we speak to to our dealers. Okay? And even on the direct installation, okay, we have very strong number, okay, from the where we have direct installation.
But for sure, okay, the dealer is very important in our operation, and they are very optimistic, okay, what the what they have orders, okay, with us. So I think it's just nice nice sales coming. Sebastian, you want to complement my answer? I think we are very lucky. We have a
good backlog in residential, so that that give us a bit of more certainty for the the end of the year to make sure we can have a good growth again. So I think, for sure, we have done a lot of marketing activity on our Vuelift. We don't always end up with a sales of Vuelift. Sometimes we end up with other products, say, like, a clear for Infinity. But, definitely, we have been doing quite good on the residential sector.
And I think the pandemic has had people still don't travel. They want to stay home, do a lot of project. So we think, we are lucky.
Great. And maybe just one more, and thanks for the color, the way. But I wanted to ask a question on the new line in Brampton for Sterilefts. Can you talk to the additional capacity that's expected to come online? Know, I guess from what I've understood, Handicure has been shipping Sterilist to North America through freight.
So, therefore, I guess, should we think about the sales coming online out of Brampton as replacing, you know, the old sales, or should be they be incremental? I'm just trying to gauge whether this is a revenue story or a margin story at first.
So if you wanna can go. Okay. I think it's a combination of both, differently. We were a bit subsidizing the the freight, so we are doing it to save some freight. But the biggest thing is really the opportunity to manufacture a curve study in a short lead time.
So we are going to see a lot of cross selling. And at the beginning of the project, my team asking, why are you buying welding robots, Sebastian? You're you are going They are not going to work. So you guys don't worry about it.
We are doing it for the future. And, definitely, we are planning to do much more than, what is the sales of Medicare right now. So we're going to be ready for to have a good day next year on the current service.
And just to add on that. Okay? Just I will add a little compliment on that. Okay? That you know that over years over years, a product that is very good on the margin.
Okay? Over 20%, okay, is this Pertheliq. Okay? That would be a major product for us in the future. Okay?
And with this help, okay, of manufacturing ourselves and delivering in three days, okay, all across North America. I don't want, okay, to be too much optimistic. Okay? But I am very optimistic about to manufacture something, okay, and and deliver that in the in less than three days. So thank you for your questions.
Next one, please.
We'll now take the next question from Nick Agostino at Laurentian Bank Securities. Please go ahead.
Yes. Good And
congrats on the results. Very impressive. Certainly, applaud the organic growth rate. Guess my questions first is on the patient handling and ceiling lift. You guys talked about, I guess, realizing cost synergies.
As we all know, I think HandyCare, has done a good job when it comes to ceiling lift sales in general. I'm just wondering from a sales synergy perspective, is there anything that that you guys have have learned that you can use when it comes to selling the ceiling lift into the North American market? Your your your product that is that that these guys were already doing from a marketing or or just sales in general?
Yeah. Just Nick will answer this question after me. Okay? But I just mentioned, okay, I I speak about AccessVD AccessVD AccessVD. Okay?
But our product, okay, from from Span, okay, and Enzacare, okay, on the patient leave. Okay? That's the present directly 20% of our sales. Okay? We have not forget that.
Okay? And I think, okay, the the the the cross selling of the two company on that, okay, that would be just, okay, in the future, okay, with when we'll be full time, okay, knowing exactly where it sells, okay, where it combines some sells. I think it would be great, but I am sure sure that Nicolas is more appropriate to answer to you, Nick. So Nicolas?
Yes, yes. Thank you, Marcelo. So in terms of what we've learned, I believe that was your question, Nick, what maybe we've learned from, I guess, from Handicare for our own operations in terms of selling more Sealing Lift product in North America? First, I would say that the Sealing Lift and Sling part of the business was actually very strong in the second quarter, and it has been for most of the year. So there's been a very good rebound in sales of those products and those categories.
So again, Handy Care contributed much of that in the quarter. What we're seeing and what we're working on together is trying to kind of put our sales forces together and realize where we might be able to open up more pockets of growth for us, whether it be going into certain of Span's channels, which are complementary to Handy Care's channels, whether it be looking at the products that we have and seeing where we might be able to use kind of the best of both, right? So if there are certain R and D projects that we're working on independently, maybe we join forces there and see if we can be a bit more efficient in how we go about our R and D spending and in development. So there's a lot to do on both the synergy side, whether it be on the tracks. That is something as well, looking at kind of how the tracks are installed.
We're looking at whether it be utilizing handicares, I think I mentioned that in the call, service installation infrastructure, to kind of promote, I guess, not only maintenance programs on some of our existing products, we weren't necessarily able to service them, but also looking at how we might be able to leverage them. And we're looking at our own contracts where currently we don't necessarily have our own installation capacity, and we're using third parties. So maybe those are opportunities for us to now use handicare's folks to do that work. So there's a lot that we're working on. It's still early days.
The cross selling is maybe the biggest potential for us, both on patient handling and accessibility. So it does take the most time for it to really kind of develop and kind of percolate there. Please follow-up with this in the subsequent quarters and how those are developing.
Okay. I appreciate that color.
I guess and then my second question is just looking at and answer as you wish, but we're halfway through Q3. We certainly hear the optimism when it comes to the EBITDA for the full year. We got the sense as to where residential versus commercial sits. Can you maybe talk to some of the other products, the platforms and just straight stair sales? Are are you seeing an upticks as we're moving through the year and into Q3?
And even on the vehicle side, you guys had a nice I know it's still small, but it's a nice snapback in terms of that demand. Does it look like it's going to be sustainable in the second half of the year? And I know in the past, you were restructuring your own division the sorry, Adaptive Vehicles that is to get it worth of 10%. You're there now with the HandyCare. How much more margin can you you think you can push it higher on the vehicle side as you do your own restructuring?
Okay. Steve will answer after, just a little comment that I will do. Okay? It's, just, that, I think we will go with that, okay, to a ratio of 13%. And, for sure, maybe we can add some synergy both together.
And I am don't forget, okay, the the people, okay, in wheelchair, okay, are just need need some some transportation. Okay? I am very optimistic that we can add some growth in that, okay, and meet our objective, okay, for a combined 13% in the future. So, Steve, do you have something to add to me?
Marcel, maybe I'll take this. Maybe just to start on the beginning of Nick's question there, you had mentioned the other products. So yes, as you can imagine, straight stairlifts along with curved stairlifts have been performing well going into the residential, our residential clients. We talked about platform lifts. So, mini platform lifts, whether it be the vertical platforms or the incline platform lifts, lots of that is sold into the commercial setting.
So I think we addressed that earlier about commercial is a bit slower. So as you can imagine, sales of those products kind of coincide with how our commercial sales are going. And then finally, maybe on the vehicles, we did have a good uptick here in this quarter. It was nice to see the organic growth come back within that segment for us. Handicare as well contributed.
So when you look at the margins there, I think it was a combination of their business having some good margins as well as those improvements that you had mentioned that we're making here in our facility here at VanAction, I guess, over the past, call it, twelve months or so to kind of realign ourselves for lower production volumes. So it's a combination of all of that. Where the margins go is, I mean, it's difficult for me to just really kind of guide you there. But I think where we are today is a pretty good point. And we'll see over the next quarter or two, we can make some incremental improvements on top of that.
Thank you, Nick. Thank you, guys.
We'll now take the next question from Zachary Evershed at National Bank Financial. Please go ahead.
Good morning.
Good morning,
for taking my questions. Most of them have already been answered, by the previous questions, so just one for me. But I'd be interested to hear about your plans for your marketing program. Can you give us the rundown?
Oh, very good question. Okay. And I would try to to answer that, okay, without, okay, that I will announce something that is not already announced. Okay? But we are very fortunate, you know, that we make an acquisition and we're still in good situation, okay, to put an aggressive marketing point, okay, marketing strategy, okay, to to sell our to go to on cross selling.
Many company make a huge acquisition, but after that, okay, well, they don't have money. But now we have 125,000,000 to do a good strategic plan, okay, on marketing in Europe, okay, and even in the in the West Of The States, okay, when we will manufacture in Toronto the first service. So I put again, okay, that we have 125,000,000, okay, to use, okay, to push this association, okay, this great partnership that we are with the we have with the with EnvyCare. Okay? So what is the amount?
Okay. I will you will have an answer to me, okay, next quarter. And we have already a strategic plan, okay, for that, but you will see the color of that in the in our next quarter, okay, and our next conference call that we will have in three months. That's my answer.
I'll turn it over.
Appreciate it.
Thank you. Thank you.
We'll now take the next question from Luis Chitaurus at Desjardins Securities. Please go ahead.
Thank you. Good morning. So
I'm calling on behalf of Credit Karma. Just one question for me. Can you provide more details on your initiatives in Europe? Have you been successful at cross selling any care product there? And how would you characterize the market's level of interest for the Vuelift currently in Europe?
Thank you.
Okay. Thank you. And maybe Sebastien I will speak to answer more degree about this question. Okay? But, you know, it's just a start.
Okay? We start, okay, to since since the acquisition on March 4. K? So it takes times. Okay?
But what is very important at the beginning, okay, is how our team, okay, from end care are interested by our products. Okay? And they are very interested. Okay. This is growth opportunity in that.
Okay? Nothing is easy. But when you have, okay, some products to an organization, okay, the magic, okay, of synergy is there. So we feel, okay, and what's very important, okay, that our team at end care are very, very enthusiastic, okay, to work with us to sell our product in Europe. So that's
So maybe after the fact, if I compliment. Okay?
Yeah. Yeah.
So, basically, where where where we started to have some small success, if we can call it this week, in Europe. And they have introduced a government of that inclined platform to their to their dealers, and we already have some small success. So some people have they they have interest to give more of a one stop shop. So do you think that's a start? If you live in Europe, I think, it took some time to start, but we are at the beginning of trend in Germany and then in Swiss.
So I think that that that's a start. And do think that we are making some training with the end of care team and still the guy with the team every week? That's something which is on the agenda. People know it's important. So definitely, that that's going on.
And the stairlift, I would say, America, yes, some of our dealer has maybe reached to end care, but a lot of them are kind of waiting at terminal to start. So the so that's really I think next year, you will see more numbers on cross selling of Sterileaf in North America once we manufacture it. So I think that that does just start. I think, of course, we are aligning our r and d for maybe for the for the future, what we want to do in the future, you have, okay, some products that we might bring over there. So, definitely, a one stop shop is is another pipeline.
Thank you, Sebastian.
Thank you. That's helpful. I'll turn it
over. It
appears there are no further questions at this time. Mr. Barreza, I'd like to turn the conference back to you for any additional or closing remarks.
Okay. So, thank you guys to be there, okay, for for this call. I think, again, okay, our story, our growth story, okay, you have to, you take care of the communication of that. Thank you very much. Thank you again for, Maisons Brisson, and thank you, my internal guy, to to participate at this call, and, everybody is very enthusiastic.
So, thank you, and I will see you in three months. Bye bye.
That concludes today's call. Thank you for your participation. You may now disconnect.