Valcourt, Québec, December 12, 2014 — BRP Inc. (TSX: DOO) today reported its financial results for the three- and nine-month periods ended October 31, 2014. All financial information is in Canadian dollars unless otherwise noted. The complete financial results are available at www.sedar.com.
- Revenues of $918 million, gross profit margins of 26.1%;
- Normalized EBITDA of $134.1 million;
- Net income of $37.2 million;
- Normalized net income of $71.9 million, a 22% increase compared to the same period last year, which resulted in a normalized diluted earnings per share of $0.60;
- Great feedback from dealers and media following the launch of the 2015 cruiser-type
- Can-Am Spyder F3 and the launch of the Can-Am Maverick X ds model; and
- Financial guidance revised to account for the significant decline in the value of the
- Russian ruble versus the euro since the end of the third quarter.
“Building on the second-quarter momentum in Seasonal Products, third-quarter Revenues grew 6% and Normalized net income increased 22% compared to the same period last year. We started shipping new products, including the Can-Am Maverick X ds side-by-side model, during the last few weeks and with dealer inventories at healthy levels in North America, we expect a strong fourth quarter for Year-Round Products,” said José Boisjoli, president and CEO.
Commenting on the guidance for Fiscal Year 2015, Boisjoli added: “Earlier this year, we identified a currency risk in Russia and the situation has deteriorated significantly with a steep decline in the value of the ruble since the end of October. The outcome is higher costs for imported products and this affects our distributor’s sales to consumers. With six weeks remaining before the end of the fiscal year, we are adjusting our guidance to reflect the potential financial impact. I am nevertheless pleased with our results because the other main drivers of our earlier guidance are largely unchanged and this speaks volumes about the quality of our execution.”
Highlights for the Three- and Nine-Month Periods Ended October 31, 2014
Revenues increased by $52.0 million, or 6.0%, to $918.0 million for the three-month period ended October 31, 2014, compared with $866.0 million for the corresponding period ended October 31, 2013. The revenue increase was mainly due to higher wholesale in snowmobiles along with an increased wholesale of their related PAC. The increase was partially offset by lower wholesale in Year-Round Products. The increase in revenues includes a favourable foreign exchange rate variation of $29 million mainly related to the strengthening of the U.S. dollar and the euro against the Canadian dollar.
Revenues increased by $165.4 million, or 7.2%, to $2,456.6 million for the nine-month period ended October 31, 2014, compared with $2,291.2 million for the corresponding period ended October 31, 2013. The revenue increase was mainly due to higher wholesale in Seasonal Products and their related PAC, partially offset by lower wholesale and higher sales program costs in Year-Round Products. The revenue increase includes a favourable foreign exchange rate variation of $113 million mainly related to the strengthening of the U.S. dollar and the euro against the Canadian dollar.