Highlights for the quarter vs Q2 FY17:
• Revenues of $1,027 million, a 20% increase and a record for a second quarter;
• Gross profit of $214 million representing 20.8% of revenues, an increase of 24% and 70 basis points respectively;
• Normalized EBITDA[1] of $82 million, a 84% increase;
• Net income of $100 million, an increase of $169 million resulting in a diluted earnings per share of $0.89, an increase of $1.50 per share;
• Normalized net income[1] of $21 million resulting in a normalized diluted earnings per share[1] of $0.18, an increase of $0.17 per share;
• Declaration of a quarterly dividend of $0.08 per share;
• Completion of the Company's substantial issuer bid (SIB) launched in June 2017 with the repurchase of 8,599,508 subordinate voting shares for a total consideration of $350.0 million; and
• Introduction of the most powerful factory-built SSV on the market, the 172 hp Can-Am Maverick X3 Turbo R model.

 

Valcourt, Québec, September 1, 2017 – BRP Inc. (TSX:DOO) today reported its financial results for the three- and six-month periods ended July 31, 2017. 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.

“Our team’s execution has once again been excellent this quarter, leading to very positive financial results,” said José Boisjoli, president and CEO. “We are clearly seeing the effect of our product innovation strategy that responds to consumer needs as our side-by-side business, particularly the new Maverick X3 and Defender vehicles, is performing well in all regions, and our all-terrain and watercraft products are providing better than expected results in many countries around the world.”

“BRP continues to outpace the off-road industry, due in part to the excellent momentum in our dealer network, which is an important factor in our success. The continued growth of our offroadbusiness provided a solid first half and helped balance yearly profitability,” Boisjoli continued. “For the back end of FY2018, I am confident that our retail momentum will continue as planned, leading to the successful delivery of our guidance, which was adjusted to reflect the impact of our recent SIB.”

Highlights for the Three- and Six-Month Periods Ended July 31, 2017

Revenues increased by $170.9 million, or 20.0%, to $1,027.0 million for the three-month period ended July 31, 2017, compared with $856.1 million for the corresponding period ended July 31, 2016. The revenue increase was mainly due to higher wholesale in Year-Round Products and Seasonal Products. The increase includes a favourable foreign exchange rate variation of $8 million.

Gross profit increased by $41.7 million, or 24.2%, to $213.7 million for the three-month period ended July 31, 2017, compared with $172.0 million for the corresponding period ended July 31, 2016. The gross profit increase includes an unfavourable foreign exchange rate variation of $4 million. Gross profit margin percentage increased by 70 basis points to 20.8% from 20.1% for the three-month period ended July 31, 2016. The increase in gross profit margin percentage was primarily due to a favourable product mix in SSV and a higher volume of SSV and PWC sold, partially offset by higher sales program costs driven by the increase in retail sales and higher production costs.

Revenues increased by $197.2 million, or 11.0%, to $1,983.2 million for the six-month period ended July 31, 2017, compared with $1,786.0 million for the corresponding period ended July 31, 2016. The revenue increase was primarily attributable to higher wholesale of Year-Round Products and Seasonal Products. The increase includes a favourable foreign exchange rate variation of $7 million.

Gross profit increased by $54.8 million, or 15.0%, to $420.9 million for the six-month period ended July 31, 2017, compared with $366.1 million for the corresponding period ended July 31, 2016. The gross profit increase includes a favourable foreign exchange rate variation of $5 million. Gross profit margin percentage increased by 70 basis points to 21.2% from 20.5% for the six-month period ended July 31, 2016. The increase in gross profit margin percentage was primarily due to a favourable product mix in SSV, partially offset by higher production costs and higher sales program costs driven by the increase in retail sales.

 

See press release for further information