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News Release

BRP reports third quarter fiscal year 2014 results

Highlights:

  • Record quarterly revenues of $866.0 million, an increase of 18% compared to the corresponding period of FY2013
  • Net income of $48.2 million, an increase of 52% compared to the third quarter FY2013, which resulted in basic earnings pershare of $0.41, an increase of $0.10 compared to the corresponding period of FY2013;
  • Normalized net income[1] of $59.0 million, an increase of 39% compared to the third quarter FY2013, which resulted in normalized basic earnings per share[1] of $0.50, an increase of $0.08 compared to the corresponding period of FY2013;
  • Updating FY2014 normalized basic EPS[1] guidance to $1.49 - $1.54 from $1.45 - $1.50

[1] Please see definitions of Normalized net income and Normalized earnings per share on Page 2 of this release below Net Income Data table

Valcourt, Québec, December 12, 2013 — BRP Inc. (TSX: DOO) today reported its financial results for the three- and nine-month periods ended October 31, 2013. All financial information is in Canadian dollars unless otherwise noted. The complete financial results are available at www.sedar.com.

"The strong performance in our third quarter was primarily driven by strong shipments of snowmobiles both in North America and internationally. Our results were also buoyed by consumer enthusiasm for our Year-Round products led by our new models of side–by-side vehicles which have been well received worldwide. With solid results through nine months of the fiscal year, we are on track to meet our Revenue and Normalized EBITDA guidance for the year and we are very excited about the line-up of new products for the coming model year 2014,‖ said José Boisjoli, president and CEO.

"I am very pleased with this performance and particularly proud of the fact that we were able to deliver strong quarterly results as we approach our 10th anniversary as a standalone company. I would like to take this opportunity to thank our employees, our dealers and distributors for their hard work and continued loyal support,‖ he continued.

Highlights for the Three- and Nine-Month Periods Ended October 31, 2013

Revenues increased by $132.1 million, or 18.0%, to $866.0 million for the three-month periodended October 31, 2013, up from $733.9 million for the corresponding period endedOctober 31, 2012. The increase in revenues includes a favourable foreign exchange ratevariation of $37 million, mainly related to the strengthening of the U.S. dollar and the Euroagainst the Canadian dollar.

Revenues increased by $186.5 million, or 8.9%, to $2,291.2 million for the nine-month periodended October 31, 2013, up from $2,104.7 million for the corresponding period endedOctober 31, 2012. The revenues were negatively impacted by the exit of the sport boatbusiness that accounted for $71 million in revenues for the nine-month period ended October31, 2012. Excluding the exit of the sport boat business, revenues would have increased by12.7% or $257.5 million. The increase in revenue includes a favourable foreign exchange ratevariation of $61 million, mainly related to the strengthening of the U.S. dollar and the Euroagainst the Canadian dollar.

Seasonal Products

Revenues from Seasonal Products increased by $106.3 million, or 38.5%, to $382.5 million forthe three-month period ended October 31, 2013, compared with $276.2 million for thecorresponding period ended October 31, 2012. The increase in revenues results mainly from ahigher volume and from a favourable product mix of snowmobiles sold following increasedorders for the model year 2014 resulting from dealers and distributors' demand. Theseincremental orders were mainly shipped in the third quarter. The increase in revenues includesa favourable foreign exchange rate variation of $14 million.

North American Seasonal Products retail sales, excluding the sport boat business, registered anincrease in the mid-twenty per cent range as compared to the third quarter of Fiscal 2013.

Year-Round Products

Revenues from Year-Round Products increased by $2.2 million, or 0.9%, to $249.6 million forthe three-month period ended October 31, 2013, up from $247.4 million for the correspondingperiod ended October 31, 2012. The increase is primarily due to higher wholesale and afavourable product mix in side-by-side vehicles, for an increase of approximately 38%compared with the corresponding period ended October 31, 2012. The increase was mainlyoffset by a 20% reduction in ATV sales compared with the corresponding period ended October31, 2012. This reduction is mainly due to the introduction during the previous fiscal year of newATV models such as the Can-Am Outlander two-passenger family and mud-ready models. Theincrease in revenues includes a favourable foreign exchange rate variation of $12 million.

North American Year-Round Products retail sales increased on a percentage basis by midsingledigits compared with the third quarter of Fiscal 2013.

Propulsion Systems

Revenues from Propulsion Systems increased by $7.6 million, or 9.3%, to $89.6 million for thethree-month period ended October 31, 2013, compared with $82.0 million for the correspondingperiod ended October 31, 2012. The increase in revenues is mainly due to a favourable foreignexchange rate variation of $6 million.

PAC (Parts, Accessories & Clothing)

Revenues from PAC increased by $16.0 million, or 12.5%, to $144.3 million for the three-monthperiod ended October 31, 2013, up from $128.3 million for the corresponding period endedOctober 31, 2012. The increase is primarily due to a higher volume driven by the increase ofYear-Round Products business. The revenue increase includes a favourable foreign exchangerate variation of $5 million.

Gross profit increased by $46.5 million, or 26.2%, to $223.9 million for the three-month periodended October 31, 2013, up from $177.4 million for the corresponding period endedOctober 31, 2012. Gross profit margin percentage increased by 170 basis points to 25.9% from24.2% for the three-month period ended October 31, 2012. The increase in gross profit marginpercentage was primarily due to higher volumes in Seasonal Products, a favourable product mix and a favourable foreign exchange rate variation of $12 million. The increase was partially offsetby the costs related to the transfer of PWC manufacturing to the Querétaro, Mexico facility.

Operating expenses decreased by $3.9 million, or 2.9%, to $128.9 million for the three-monthperiod ended October 31, 2013, down from $132.8 million for the three-month period endedOctober 31, 2012. This decrease is mainly due to restructuring costs of $17.1 million that wererecorded in connection with the closure of the sport boat business during the three-monthperiod ended October 31, 2012, partially offset by higher stock-based compensation in relationto the initial public offering of the subordinate voting shares of the Company, higher advertisingexpenses to support the introduction of new products and a negative foreign exchange impactof $3 million.

Normalized net income increased by $16.6 million to $59.0 million for the three-month periodended October 31, 2013, compared with $42.4 million for the corresponding period last year.The increase is primarily due to higher wholesale and favourable product mix in SeasonalProducts.

Fiscal year 2014 Outlook

Other than a reduction to the Effective Tax Rate, and the resulting increase to Normalized NetIncome and Normalized Earnings per Share (as highlighted), BRP's financial guidance targetsas presented on June 13, 2013 are reconfirmed and remain as follows:

Financial Metrics

FY15 Guidance vs FY14 Results
Revenues
     Seasonal Products
Flat to up low single-digit %
     Year-Round ProductsUp high double-digit %
     Propulsion SystemsUp mid to high single-digit %
     PACUp high single-digit %
Total Company RevenuesUp high single-digit %
Normalized EBITDAUp low double-digit %
Effective Tax Rate (on normalized earnings before income tax)26%-27% (revised from 28%-29%)
Normalized Net IncomeUp mid double-digit % (revised from Up lowdouble-digit %)
Normalized Earnings per Share - Basic(assuming 112.6 million shares)$1.49 - $1.54 (revised from $1.45 - $1.50)
CAPEXFlat

The above guidance excludes the effects of fluctuations in currency exchange rates. Inaddition, the Company made a number of economic and market assumptions in preparing its FY2014 financial guidance, including assumptions regarding the performance of the economiesin which it operates, market competition and tax laws applicable to its operations. The Companycautions that the assumptions used to prepare the forecasts for FY2014, although reasonable atthe time they were made, may prove to be incorrect or inaccurate. In addition, the aboveforecasts do not reflect the potential impact of any non-recurring or other special items or of anynew material commercial agreements, dispositions, mergers, acquisitions, other businesscombinations or other transactions that may be announced or that may occur after December12, 2013. The financial impact of such transactions and non-recurring and other special itemscan be complex and depends on the facts particular to each of them. We therefore cannotdescribe the expected impact in a meaningful way or in the same way we present known risksaffecting our business. Accordingly, our actual results could differ materially from ourexpectations as set forth in this news release. The outlook provided constitutes forward-lookingstatements within the meaning of applicable securities laws and should be read in conjunctionwith the "Caution Concerning Forward-Looking Statements" section.

Conference call and Webcast presentation
Today at 10 a.m. (EST), BRP Inc. will host a conference call and webcast to discuss BRP'sFY2014 third quarter earnings results released this morning. The call will be hosted by JoséBoisjoli, president and CEO and Claude Ferland, CFO. A slide presentation and link to theaudio webcast will be posted at http://investors.brp.com in the Event Calendar section.

To listen to the conference call by phone, for the integral version please dial 1-514-861-4190 or1-877-461-2815 (toll-free in North America), or 00 800 6578 9898 for overseas callers. To listento the English version only, please dial 1-514-392-1478 or 1-866-225-0198 (toll-free in NorthAmerica), or 00 800 6578 9898 for overseas calls. For the French version only, please dial 1-514-392-9196 or 1-866-225-2055 (toll-free in North America), or 00 800 6578 9898 for overseascalls. In all cases, the event number is 4175835.

A replay of the conference call will be available two hours after the call for 90 daysfollowing the original broadcast.

About BRP
BRP (TSX: DOO) is a global leader in the design, development, manufacturing, distribution andmarketing of powersports vehicles. Distributed in 105 countries, its portfolio of brands andproducts includes Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, Can-Am all-terrain andside-by-side vehicles, Can-Am roadsters, Evinrude outboard engines as well as Rotaxpropulsion systems. BRP employs approximately 6,800 people worldwide.

www.brp.com
@BRPNews

Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am and the BRP logo are trademarks of BombardierRecreational Products Inc. or its affiliates.

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For information:  
Johanne Denault
Manager, Corporate Communications
Tel: 450.532.5173
johanne.denault@brp.com
Jon Reider
Investor relations
Tel: 450-532-6311
jon.reider@brp.com

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
Certain information included in this release, including, but not limited to, statements relating to our Fiscal 2014financial outlook (including revenues, gross profit margin, operating expenses, Normalized EBITDA, Effective TaxRate, Normalized net income and Normalized earnings per share), and other statements that are not historical facts,are "forward-looking statements" within the meaning of Canadian securities laws. Forward-looking statements aretypically identified by the use of terminology such as "may", "will", "would", "should", "could", "expects", "forecasts","plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "outlook", "predicts", "projects", "likely"or "potential" or the negative or other variations of these words or other comparable words or phrases. Forwardlooking statements, by their very nature, involve inherent risks and uncertainties and are based on severalassumptions, both general and specific. BRP cautions that its assumptions may not materialize and that currenteconomic conditions render such assumptions, although reasonable at the time they were made, subject to greateruncertainty. Such forward-looking statements are not guarantees of future performance and involve known andunknown risks, uncertainties and other factors which may cause actual the actual results or performance of theCompany or the power sports industry to be materially different from the outlook or any future results or performanceimplied by such statements. Key assumptions used in determining forward-looking information are set forth below.

Key Assumptions
The Company made a number of economic and market assumptions in preparing its 2014 financial guidance,including assumptions regarding the performance of the economies in which it operates, market competition, tax lawsapplicable to its operations and foreign exchange currency fluctuation. In addition, many factors could cause theCompany's actual results, level of activity, performance or achievements or future events or developments to differmaterially from those expressed or implied by the forward-looking statements, including, without limitation, thefollowing: impact of adverse economic conditions on consumer spending; decline in social acceptability of theCompany's products; fluctuations in foreign currency exchange rates; high levels of indebtedness; unavailability ofadditional capital; unfavourable weather conditions; seasonal sales fluctuations; the Company's ability to comply withproduct safety, health, environmental and noise pollution laws; dependence on dealers, suppliers, financing sourcesand other strategic partners who may be sensitive to economic conditions; large fixed cost base; inability of dealersand distributors to secure adequate access to capital; supply problems, termination or interruption of supplyarrangements or increases in the cost of materials; restrictive covenants in the Company's financing and othermaterial agreements; competition in product lines; loss of members of management team or employees who possessspecialized market knowledge and technical skills; inability to maintain and enhance reputation and brands; adversedetermination in any significant product liability claim against the Company; significant product repair and/orreplacement due to product warranty claims or product recalls; reliance on a network of independent dealers anddistributors to manage the retail distribution of products; dependence on customer relationships for the sale of originalequipment manufacturer products; unsuccessful management of inventory; risks associated with internationaloperations; inability to enhance existing products and develop and market new products; protection of intellectualproperty; failure of information technology systems; declining prices for used versions of products and oversupply bycompetitors; unsuccessful execution of manufacturing strategy; changes in tax laws and unanticipated tax liabilities;higher fuel costs; deterioration in relationships with employees; pension plan liabilities; natural disasters; failure tocarry proper insurance coverage; public company expenses; conduct of business through subsidiaries; and significantinfluence by our principal shareholders holding multiple voting shares.

BRP undertakes no obligation to update or revise forward-looking statements to reflect future events, changes incircumstances, or changes in beliefs, unless required by applicable Canadian securities laws. In the event that BRPdoes update any forward-looking statement, no inference should be made that BRP will make additional updates withrespect to that statement, related matters, or any other forward-looking statement.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding BRP's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.