BRP Inc. (TSX:DOO) today reported its financial results for the three-month period ended April 30, 2018. All financial information is in Canadian dollars unless otherwise noted. The complete financial results are available at www.sedar.com, as well as in the Quarterly Reports section of BRP’s website.
“Business is off to a very strong start. Record results for the first quarter are setting the stage for a solid year,” said José Boisjoli, President and CEO. “Our momentum continues with strong gains and we are outperforming in all product lines.”
“Our steady growth is largely attributable to the dedication and excellent execution of our teams globally. We are also encouraged by the global economic landscape. Even with the possible impact of commodities and transport costs, we are confident to be able to deliver our increased guidance,” Boisjoli concluded.
Highlights for the quarter vs Q1 FY18:
- Revenues of $1,136.7 million, an increase of $159.8 million or 16.4%;
- Gross profit of $281.6 million representing 24.8% of revenues, an increase of $54.5 million or 160 basis points;
- Normalized EBITDA [1] of $126.6 million representing 11.1% of revenues, an increase of $26.0 million;
- Net income of $13.4 million, an increase of $18.3 million, which resulted in a diluted earnings per share of $0.13, an increase of $0.18 per share;
- Normalized net income [1] of $53.5 million, an increase of $10.7 million, which resulted in a normalized diluted earnings per share [1] of $0.52, an increase of $0.14 per share.
- Announcement of a direct distribution model in Russia, during summer 2018, to support its growth strategy and increase its presence in the country.
- Expansion of the SSV lineup with the addition of two Can-Am Maverick Sport packages with a 60-inch wide wheel base.
- FY2019 guidance increased to reflect higher demand for BRP products.
QUARTERLY REVIEW BY CATEGORIES
Year-Round Products
Revenues from Year-Round Products increased by $130.5 million, or 32.9%, to $526.6 million for the three-month period ended April 30, 2018, compared with $396.1 million for the corresponding period ended April 30, 2017. The increase was primarily attributable to a higher volume of SSV and 3WV sold, partially offset by an unfavourable foreign exchange rate variation of $8 million.
Seasonal Products
Revenues from Seasonal Products increased by $26.1 million, or 8.0%, to $350.4 million for the three-month period ended April 30, 2018, compared with $324.3 million for the corresponding period ended April 30, 2017. The increase resulted primarily from a higher volume of PWC sold, partially offset by an unfavourable foreign exchange rate variation of $5 million.
Propulsion Systems
Revenues from Propulsion Systems decreased by $10.8 million, or 10.6%, to $91.1 million for the three-month period ended April 30, 2018, compared with $101.9 million for the corresponding period ended April 30, 2017. The decrease was mainly attributable to a lower volume of motorcycle engines sold.
PAC (Parts, Accessories, Clothing and other services)
Revenues from PAC increased by $14.0 million, or 9.1%, to $168.6 million for the three-month period ended April 30, 2018, compared with $154.6 million for the corresponding period ended April 30, 2017. The increase was mainly attributable to a higher volume of SSV and PWC accessories. Operating expenses increased by $28.7 million, or 17.2%, to $195.4 million for the three-month period ended April 30, 2018, compared with $166.7 million for the three-month period ended April 30, 2017. The increase was mainly attributable to higher selling and marketing expenses for continued product investments and to an unfavourable foreign exchange rate variation of $10 million.
The Company’s first-quarter FY2019 MD&A, financial statements and webcast presentation are posted in the Quarterly Reports section of BRP’s website, while its Annual Information Form can be found in the Annual Reports section.
About BRP
We are a global leader in the world of powersports vehicles and propulsion systems built on over 75 years of ingenuity and intensive consumer focus. Our portfolio of industry-leading and distinctive products includes Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, Can-Am on- and off-road vehicles, Evinrude and Rotax marine propulsion systems as well as Rotax engines for karts, motorcycles and recreational aircraft. We support our lines of product with a dedicated parts, accessories and clothing business to fully enhance your riding experience. With annual sales of CA$4.5 billion from over 100 countries, our global workforce is made up of over 10,000 driven, resourceful people.
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