BRP Inc. on Thursday reported its financial results for the quarter
ending April 30, 2013. All financial information is in Canadian dollars unless otherwise
noted. The complete financial results are available at www.sedar.com.
“We are pleased to report our first results as a public
company and we take this opportunity to welcome our new shareholders to BRP,”
said BRP president and CEO José Boisjoli. “Our first quarter puts us on track
for a strong performance this year. Our revenues from our year-round products
increased by 27 percent during the quarter, led by the sales of our Can-Am Spyder
ST and Maverick side-by-side vehicle which add to our solid track record of
successfully introducing new products and generating strong consumer acceptance.”
Boisjoli continued, “During Q1, we also launched the new
Rotax 900 ACE snowmobile engine, which was well received by the network, and we
registered strong spring orders of snowmobiles to be delivered during the
second half of the year. In addition, our Spyder retail sales performance has continued
to outpace the on-highway motorcycle industry.
“International growth is at the heart of our business
strategy. We are pleased with our 8 percent revenue increase from the international
market, especially given the challenging economic situation in Western Europe. The construction of our second Mexican
manufacturing site, in Querétaro, is on schedule,” he concluded.
Fiscal Year 2014
First Quarter Revenues Highlights
Revenues for the quarter ending April 30, 2013, were $804.3
million, an increase of 5.5 percent or $41.6M compared to Q1 of FY13. Revenues
increased by 12 percent when excluding the impact of the exit of the sport boat
business in the fall 2012. The increase in revenues includes a favorable
foreign exchange rate variation of $13 million mainly related to the
strengthening of the U.S. dollar against the Canadian dollar. BRP’s revenues
are derived from the sales of its seasonal products (Ski-Doo and Lynx
snowmobiles and Sea-Doo watercraft), Year-round products—Can-Am ATV and
side-by-side vehicles and the Spyder—along with its propulsion systems (Rotax
engines and Evinrude outboard engines) and related parts, accessories and clothing
Revenues for seasonal products decreased by $46.9 million,
or 18.5 percent, to $206.7 million for the quarter ending April 30, 2013,
compared with $253.6 million for the corresponding period last year. The
decrease in revenues is attributable to the reduction of $44 million of
revenues following BRP’s decision announced in the fall of 2012 to exit the
sport boat business.
Revenues for year-round products increased by $87 million,
or 27.4 percent, to $404.7 million for the quarter ending April 30, 2013, up
from $317.7 million for the corresponding period last year. The increase is
primarily due to the introduction of new models such as the Can-Am Spyder ST and the Maverick
Revenues for propulsion systems remained stable at $92.9
million for the quarter ending
April 30, 2013, compared with $93.1 million for the
corresponding period last year despite the cold weather during North America’s spring, which impacted sales of outboard
& Clothing (PAC)
Revenues for PAC increased by $1.7 million, or 1.7 percent,
up to $100 million for the quarter ending April 30, 2013, up from $98.3 million
for the corresponding period last year.
Gross profit reached $218 million or 27.1 percent of
revenues, an increase of 2.7 percent or $5.8 million for the quarter ending
April 30, 2013, up from $212.2 million for the corresponding period last year.
The gross profit margin decreased by 70 basis points primarily due to
additional manufacturing costs in year-round products in order to increase
production flexibility to better respond to market demand and to additional
expenses supporting the watercraft transfer to the Querétaro, Mexico, facility.
Operating expenses increased by $8.9 million, or 7.2 percent,
to $131.9 million for the quarter endin April 30, 2013, up from $123 million
for the corresponding period last year. The increase was primarily due to
higher advertising expenses in all product categories, higher stock-based
compensation in relation to the initial public offering of the company and
higher investments in research and development projects.
Normalized net income increased by $3.8 million, or 7.7
percent to $53.4 million for the quarter ending April 30, 2013, compared with
$49.6 million for the corresponding period last year.
BRP Inc. hosted a conference call and webcast Thursday to
discuss the company’s 2014 first quarter earnings results. The call was hosted
by Boisjoli and CFO Claude Ferland. A slide presentation and link to the audio
webcast will be posted at http://investors.brp.com
in the financial presentations section.
A replay of the conference call will be available for a
one-week period by accessing the same link on BRP’s website.