BRP Releases First Quarter Results


Valcourt, Québec-based BRP recently released its first-quarter results (a three-month period ended April 30, 2015), which featured several highlights, including revenues of $898.1 million, an 18 percent increase compared to the corresponding period ended April 30, 2014.

It also included a Normalized EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of $91.5 million, a 62 percent increase compared to the same period last year. BRP also reports a net income of 83.1 million and a normalized net income of $37.2 million (a 124 percent increase), which resulted in a normalized diluted earnings per share of $0.31;

"We were able to deliver strong results thanks to the good work our team has done in delivering all our projects,' says José Boisjoli, President and CEO. "Production at our manufacturing sites was on schedule and markets reacted well to our latest product introductions. Despite headwinds from a volatile currency situation, difficult market conditions in Russia and in Latin America and a more aggressive competitive environment, our first quarter was slightly better than planned.'

Other Q1 Points of Interest
Revenues increased by $139.5 million, or 18.4 percent, to $898.1 million for the three-month period ended April 30, 2015, compared with $758.6 million for the corresponding period the previous year. The revenue increase was mainly due to higher wholesale in seasonal products. The increase includes a favourable foreign exchange rate variation of $36 million mainly due to the strengthening of the US dollar against the Canadian dollar, partially offset by the strengthening of the Canadian dollar against the euro.

Year-Round Products
Revenues from Year-Round Products increased by $32.7 million, or 8.9 percent, to $398.1 million for the three-month period ended April 30, 2015, compared with $365.4 million for the corresponding period ended April 30, 2014. The increase was primarily attributable to higher volumes following the introduction of the Maverick X ds side-by-side models and the expected industry growth. The increase in revenues includes a favourable foreign exchange rate variation of $20 million.

Seasonal Products
Revenues from Seasonal Products increased by $86.6 million, or 46.9 percent, to $271.2 million for the three-month period ended April 30, 2015, compared with $184.6 million for the corresponding period ended April 30, 2014. The increase resulted primarily from a higher volume of PWC sold due to earlier shipments following the completion of the production ramp-up at the Querétaro, Mexico facility and from additional deliveries to sustain the expected retail increase during the upcoming season. The increase in revenues includes a favourable foreign exchange rate variation of $12 million.

Propulsion Systems
Revenues from Propulsion Systems increased by $5.2 million, or 5.3 percent, to $102.5 million for the three-month period ended April 30, 2015, compared with $97.3 million for the corresponding period ended April 30, 2014. The increase in revenues was primarily attributable to a favourable mix of outboard engines sold due to the E-TEC G2 introduction and a favourable foreign exchange rate variation of $2 million.

PAC (Parts, Accessories, Clothing and other services)
Revenues from PAC increased by $15.0 million, or 13.5 percent, to $126.3 million for the three-month period ended April 30, 2015, compared with $111.3 million for the corresponding period ended April 30, 2014. The increase was mainly attributable to a higher volume of Year-Round Products and outboard engines PAC resulting from new product introduction. The increase includes a favourable foreign exchange rate variation of $2 million.

Gross profit increased by $39.5 million, or 22.8 percent, to $212.9 million for the three-month period ended April 30, 2015, compared with $173.4 million for the corresponding period ended April 30, 2014. The gross profit increase includes a favourable foreign exchange rate variation of $6 million. Gross profit margin percentage increased by 80 basis points to 23.7 percent from 22.9 percent for the three-month period ended April 30, 2014. The increase in gross profit margin percentage was primarily due to increased volume of PWC sold, partially offset by an unfavourable mix in PWC and roadsters.

Operating expenses increased by $4.1 million, or 2.8 percent, to $149.1 million for the three-month period ended April 30, 2015, compared with $145.0 million for the three-month period ended April 30, 2014. This increase was mainly due to an unfavourable foreign exchange impact of $10 million.

Normalized net income reached $37.2 million, an increase of $20.6 million, which resulted in normalized diluted earnings per share of $0.31, an increase of $0.17 per share. The increase was primarily due to higher operating income, partially offset by higher income taxes expense.

Conference Call and Webcast Presentation
On June 11, BRP hosted a conference call and webcast to discuss BRP's FY2016 first-quarter results were hosted by Boisjoli and BRP CFO, Sébastien Martel. A slide presentation and link to the audio webcast will be posted at http://investors.brp.com in the Event Calendar section.

A replay of the conference call will be available 30 days following the original broadcast. The complete financial results are also available at www.sedar.com.

BRP's portfolio includes Sea-Doo watercraft, Evinrude and Rotax marine propulsion systems, Ski-Doo and Lynx snowmobiles, Can-Am all-terrain and side-by-side vehicles, Can-Am Spyder roadsters as well as Rotax engines for karts, motorcycles and recreational aircraft. BRP supports its line of products with a dedicated parts, accessories and clothing business. With annual sales of over CA$3.5 billion from 107 countries, the Company employs approximately 7,600 people worldwide.