Highlights for the quarter vs Q1 FY18:
• Revenues of $1,136.7 million, an increase of $159.8 million or 16.4 percent;
• Gross profit of $281.6 million representing 24.8 percent of revenues, an increase of $54.5 million or 160 basis points;
• Normalized EBITDA [1] of $126.6 million representing 11.1 percent 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.
Valcourt, Quebec – BRP Inc. (TSX:DOO) 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.”
Highlights for the Three-Month Period Ended April 30, 2018
Revenues increased by $159.8 million, or 16.4 percent, to $1,136.7 million for the three-month period ended April 30, 2018, compared with $976.9 million for the corresponding period ended April 30, 2017. The revenue increase was primarily attributable to higher wholesale of Year-Round Products, partially offset by an unfavourable foreign exchange rate variation of $13 million.
BRP’s North American retail sales for powersports vehicles and outboard engines increased by 9 percent for the three-month period ended April 30, 2018 compared with the three-month period ended April 30, 2017, mainly due to an increase in SSV.
|
As at April 30, 2018, North American dealer inventories for powersports vehicles and outboard engines increased by 9% compared to April 30, 2017, driven mainly by PWC. Net Income data
|
|
Three-month periods ended
|
|
(in millions of Canadian dollars)
|
April 30,
2018
|
April 30,
2017
|
|
Restated [1]
|
|
Revenues by category
|
|
Year-Round Products
|
$526.6
|
$396.1
|
|
Seasonal Products
|
350.4
|
324.3
|
|
Propulsion Systems
|
91.1
|
101.9
|
|
PAC
|
168.6
|
154.6
|
|
Total Revenues
|
1,136.7
|
976.9
|
|
Cost of sales
|
855.1
|
749.8
|
|
Gross profit
|
281.6
|
227.1
|
|
As a percentage of revenues
|
24.8%
|
23.2%
|
|
Operating expenses
|
|
Selling and marketing
|
83.0
|
70.5
|
|
Research and development
|
55.6
|
50.1
|
|
General and administrative
|
48.7
|
43.5
|
|
Other operating expenses
|
8.1
|
2.6
|
|
Total operating expenses
|
195.4
|
166.7
|
|
Operating income
|
86.2
|
60.4
|
|
Net financing costs
|
11.5
|
11.8
|
|
Foreign exchange loss on long-term debt
|
41.5
|
44.2
|
|
Income before income taxes
|
33.2
|
4.4
|
|
Income tax expense
|
19.8
|
9.3
|
|
Net income (loss)
|
$13.4
|
$(4.9)
|
|
Attributable to shareholders
|
$13.3
|
$(5.1)
|
|
Attributable to non-controlling interest
|
$0.1
|
$0.2
|
|
Normalized EBITDA [2]
|
$126.6
|
$100.6
|
|
Normalized net income [2]
|
$53.5
|
$42.8
|