BRP completes Manitou acquisition, releases FY 2019 2Q results

BRP has completed its previously announced acquisition of Triton Industries, Inc., manufacturer of premium luxury and performance pontoon boats under the Manitou brand.

As the second boat acquisition complementing the company’s existing outboard engine portfolio, Manitou’s addition to BRP’s Marine Group further solidifies the company’s position in the marine industry, the company stated in a news release.

BRP’s goal is to continue, over time, to transform the customer experience, drive opportunities for dealers, provide overall efficiencies to the new BRP Marine Group and bring innovation to the marine industry, the company added.

The company also reported overall financial results for the three- and six-month periods ending July 31, 2018.

“We outpaced the North American powersports industry with 16 percent growth in retail this quarter,” said President and CEO José Boisjoli. “Our Sea-Doo PWC retail was very strong in all markets. Based on the solid first half of the year and a positive outlook for the remaining six months, we are comfortable increasing our guidance with a normalized EPS growth rate of 30 percent to 35 percent for FY19, despite inflationary and other headwinds.”

Three- and Six-Month Highlights (Results in Canadian dollars)

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Revenues increased by $183.9 million, or 18 percent, to $1.20 billion for the three-month period ended July 31, 2018, compared with $1.02 Billion for the corresponding period ended July 31, 2017.

The revenue increase was mainly due to higher wholesale in year-round products and seasonal products, partially offset by an unfavorable foreign exchange rate variation of $7 million.

The company's North American retail sales for powersports vehicles and outboard engines increased by 14 percent for the three-month period ended July 31, 2018 compared with the three- month period ended July 31, 2017, mainly due to an increase in PWC and SSV sales.

As of July 31, 2018, North American dealer inventories for powersports vehicles and outboard engines increased by 8 percent compared to July 31, 2017.

Gross profit increased by $64.1 million, or 29.7 percent, to $280.1 million for the three-month period ended July 31, 2018, compared with $216.0 million for the corresponding period ended July 31, 2017. The gross profit increase includes a favorable foreign exchange rate variation of $5 million.

Revenues increased by $343.7 million, or 17.2 percent, to $2.34 billion for the six-month period ended July 31, 2018, compared with $2 billion for the corresponding period ended July 31, 2017.

The revenue increase was primarily attributable to higher wholesale of year-round products and seasonal products, partially offset by an unfavorable foreign exchange rate variation of $19 million.

The company's North American retail sales for powersports vehicles and outboard engines increased by 12 percent for the six-month period ended July 31, 2018 compared with the six-month period ended July 31, 2017, mainly due to an increase in SSV and PWC.

Gross profit increased by $118.6 million, or 26.8 percent, to $561.7 million for the six-month period ended July 31, 2018, compared with $443.1 million for the corresponding period ended July 31, 2017.

The gross profit increase includes a favorable foreign exchange rate variation of $1 million.

Revenues from marine engines, boats and PAC remained stable at $128.8 million for the three-month period ended July 31, 2018, compared with $129.5 million for the corresponding period ended July 31, 2017.

North American outboard engine retail sales increased on a percentage basis by low-single digits compared with the three-month period ended July 31, 2017.

Today at 9 a.m. (ET), BRP Inc. will host a conference call and webcast to discuss BRP's FY2019 second-quarter results The call will be hosted by Boisjoli and Sébastien Martel, CFO.

To listen to the English-only conference call by phone (event number 4270254), please dial 514-392-0235 or 800-564-3880 (toll-free in North America). Click here for international dial-in numbers.

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