BRP reports FY2018 Q1 results
Results for Q1 FY2018 vs Q1 FY2017:
• Record revenues of $956 million, a 3% increase;
• Gross profit of $207 million representing 21.7% of revenues, an increase of 7% and 80 basis points respectively;
• Normalized EBITDA of $81 million, a 41% increase;
• Normalized net income of $28 million resulting in a normalized diluted earnings per share of $0.25, an increase of $0.21 per share;
• Net loss of $19 million, a decrease of $129 million primarily due to an unfavourable non-cash foreign exchange rate variation impact on the U.S.-denominated long-term debt, which resulted in a diluted loss per share of $0.17, a decrease of $1.13 per share; and
• FY2018 guidance increased to reflect higher demand for BRP products.
• Approval by the Board of Directors of a quarterly dividend of $0.08 per share, a first in the Company’s history; and
• Announcement of a substantial issuer bid to purchase for cancellation up to $350 million of the Company’s shares.
Valcourt, Québec, June 1, 2017 – BRP Inc. (TSX:DOO) today reported its financial results for the three-month period ended April 30, 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.
“I am very pleased with BRP’s performance in the start of this new fiscal year, with excellent first quarter revenues and profitability. Our side-by-side business continues on its positive trend with great demand for the Can-Am Defender and Maverick X3 vehicles (SSV),” said José Boisjoli, president and CEO. “Even though the Sea-Doo season is only just starting, we can see a good momentum in the watercraft business. Our Parts, Accessories and Clothing business has also performed very well this quarter, due to good end-of-season snowmobile arts sales and to strong interest in our new SSV accessories.”
“I consider that we are in an excellent position to reach our strategic objectives as the entire team remains aligned towards their realisation. We are introducing today our new Can-Am off-road line-up with several innovations, and I am sure it will be well received by the market,” said Boisjoli. “What’s more, snowmobile spring orders from dealers were higher than planned. All this, combined with the excellent results from the first quarter, have led us to increase our guidance.”
In closing, Boisjoli added: “The Board of Directors approved yesterday the declaration of a quarterly dividend and the launch of a substantial issuer bid. These decisions reflect our solid financial position, strong ongoing cashflow generation ability and confidence in BRP’s fundamental value. We are proud to be in a position to return capital to all shareholders while maintaining our ability to pursue our growth opportunities.”
Highlights for the Three-Month Period Ended April 30, 2017
Revenues increased by $26.3 million, or 2.8%, to $956.2 million for the three-month period ended April 30, 2017, compared with $929.9 million for the corresponding period ended April30, 2016.The revenue increase was primarily attributable to higher wholesale of Seasonal Products and PAC. The increase includes an unfavourable foreign exchange rate variation of$1million.
Gross profit increased by $13.1 million, or 6.7%,to $207.2 million for the three-month period ended April30, 2017, compared with $194.1 million for the corresponding period ended April30, 2016.The gross profit increase includes a favourable foreign exchange rate variation of $9million. Gross profitmargin percentage increased by80 basispoints to 21.7%from20.9% forthe three-month period ended April 30, 2016.The increase in gross profit margin percentagewasprimarily due to a favourable productmix in SSVand a favourable foreign exchange ratevariation, partially offsetby a lower volume of Spyder vehiclesand higher production costs.