BRP REPORTS FISCAL YEAR 2016 THIRD-QUARTER RESULTS
|BRP reports fiscal year 2016 third-quarter results|
BRP's Can-Am Defender utility side-by-side vehicle was launched September 18, 2015. © BRP 2015
VALCOURT, QC, Dec. 11, 2015 /CNW Telbec/ - BRP Inc. (TSX: DOO) today reported its financial results for the three- and nine-month periods ended October 31, 2015. All financial information is in Canadian dollars unless otherwise noted. The complete financial results are available at www.sedar.com.
"Thanks to our geographic, manufacturing and product diversification and our solid execution, we delivered strong results for the third quarter," said José Boisjoli, president and CEO. "During the quarter, we entered the largest segment of the side-by-side industry by launching the Can‑Am Defender utility model and it has received very positive reviews by media and dealers alike. On the ATV and PWC side, our products performed well by registering continued market share gains."
In closing, Boisjoli added: "While considering the volatile economic situation in many regions, I am pleased with how we have progressed so far this year. We have delivered on our plan and we continue to gain momentum with our network worldwide. I remain confident that we will reach our objectives for FY2016."
Highlights for the Three- and Nine-Month Periods Ended October 31, 2015
Revenues increased by $92.2 million, or 10.0%, to reach $1,010.2 million for the three-month period ended October 31, 2015, compared with $918.0 million for the corresponding period ended October 31, 2014. The revenue increase was primarily due to a favourable foreign exchange rate variation of $75 million mainly related to the strengthening of the U.S. dollar against the Canadian dollar.
Revenues increased by $263.8 million, or 10.7%, to reach $2,720.4 million for the nine-month period ended October 31, 2015, compared with $2,456.6 million for the corresponding period ended October 31, 2014. The revenue increase was mainly due to higher wholesale in Seasonal Products and PAC. The increase includes a favourable foreign exchange rate variation of $156 million mainly due to the strengthening of the U.S. dollar against the Canadian dollar, partially offset by the strengthening of the Canadian dollar against the euro.
QUARTERLY REVIEW BY CATEGORIES
Revenues from Year-Round Products increased by $32.6 million, or 14.3%, to reach $260.1 million for the three-month period ended October 31, 2015, compared with $227.5 million for the corresponding period ended October 31, 2014. The increase resulted from a favourable product mix of SSV and ATV sold and a favourable foreign exchange rate variation of $24 million.
Revenues from Seasonal Products increased by $23.1 million, or 5.1%, to reach $476.0 million for the three-month period ended October 31, 2015, compared with $452.9 million for the corresponding period ended October 31, 2014. The increase resulted primarily from a favourable foreign exchange rate variation of $28 million, partially offset by a lower volume of snowmobiles sold due to lower deliveries in Russia as a result of the continuing economic slowdown experienced in this country.
Revenues from Propulsion Systems increased by $15.2 million, or 18.2%, to reach $98.5 million for the three-month period ended October 31, 2015, compared with $83.3 million for the corresponding period ended October 31, 2014. The increase in revenues was attributable to a favourable mix of outboard engines sold with the introduction of the Evinrude E-TEC G2 engine, and a favourable foreign exchange rate variation of $9 million.
PAC (Parts, Accessories, Clothing and other services)
Revenues from PAC increased by $21.3 million, or 13.8%, to reach $175.6 million for the three-month period ended October 31, 2015, compared with $154.3 million for the corresponding period ended October 31, 2014. The increase was attributable to a higher volume of outboard engines PAC with the introduction of the Evinrude E-TEC G2 engine, and a favourable foreign exchange rate variation of $14 million.
Gross profit increased by $6.4 million, or 2.7%, to reach $246.0 million for the three-month period ended October 31, 2015, compared with $239.6 million for the corresponding period ended October 31, 2014. The gross profit increase includes an unfavourable foreign exchange rate variation of $5 million. Gross profit margin percentage decreased by 170 basis points to 24.4% from 26.1% for the three-month period ended October 31, 2014. The decrease in gross profit margin percentage was primarily due to the unfavourable foreign exchange variation, partially offset by a favourable mix and, to a lesser extent, by general price increases.
Operating expenses increased by $1.2 million, or 0.9%, to $142.1 million for the three-month period ended October 31, 2015, compared with $140.9 million for the three-month period ended October 31, 2014. This increase was mainly due to an unfavourable foreign exchange impact of $3 million.
Normalized net income stood at $72.8 million, an increase of $0.9 million, which resulted in a normalized diluted earnings per share  of $0.62, an increase of $0.02 per share.
Fiscal Year 2016 Guidance
BRP's financial guidance targets presented on September 11, 2015 are adjusted as follows:
The above targets are based on a number of economic and market assumptions the Company has made in preparing its Fiscal Year 2016 financial guidance, including assumptions regarding the performance of the economies in which it operates, foreign exchange currency fluctuations, market competition and tax laws applicable to its operations. The Company cautions that the assumptions used to prepare the forecasts for Fiscal Year 2016, although reasonable at the time they were made, may prove to be incorrect or inaccurate. In addition, the above forecasts do not reflect the potential impact of any non-recurring or other special items or of any new material commercial agreements, dispositions, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after December 10, 2015. The financial impact of such transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them. We therefore cannot describe the expected impact in a meaningful way or in the same way we present known risks affecting our business. Accordingly, our actual results could differ materially from our expectations as set forth in this news release. The outlook provided constitutes forward-looking statements within the meaning of applicable securities laws and should be read in conjunction with the "Caution Concerning Forward-Looking Statements" section.
Conference Call and Webcast Presentation
Today at 9 a.m. (EST), BRP Inc. will host a conference call and webcast to discuss BRP's FY2016 third-quarter results released this morning. The call will be hosted by José Boisjoli, president and CEO, and Sébastien Martel, CFO. A slide presentation and link to the audio webcast will be posted in the Event Calendar section.
To listen to the conference call by phone, for the English integral version (event number 4228032), please dial 514-861-1681 or 800-766-6630 (toll-free in North America). For the French version (event number 4228034), please dial 514-392-1478 or 866-225-0198 (toll-free in North America). Click here for international dial-in numbers.
A replay of the conference call will be available two hours after the call for 30 days following the original broadcast.
To listen to an instant replay of the call, please dial 514-861-2272 or 800-408-3053. For the English integral version, please enter the pass code 8754491. For the French translation, enter 1224679.
Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am, Spyder, Defender, E-TEC, G2 and the BRP logo are trademarks of Bombardier Recreational Products Inc. or its affiliates. All other trademarks are the property of their respective owners.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
BRP undertakes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable Canadian securities laws. In the event that BRP does update any forward-looking statement, no inference should be made that BRP will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
Normalized EBITDA is defined as net income before financing costs, financing income, income taxes expense (recovery), depreciation expense and normalized elements. Normalized Net Income is defined as net income before normalized elements adjusted to reflect the tax effect on these elements. Normalized income taxes expense is defined as income taxes expense adjusted to reflect the tax effect on normalized elements. Normalized earnings per share - basic and normalized earnings per share – diluted are calculated respectively by dividing the normalized net income by the weighted average number of shares – basic and the weighted average number of shares – diluted. The Company refers the reader to the "Selected Consolidated Financial Information" section of the MD&A for the reconciliations of Normalized EBITDA and Normalized Net Income presented by the Company to the most directly comparable IFRS measure.
 See "Non-IFRS Measures" section.
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SOURCE BRP Inc.