© BRP 2015
  • Strong revenues of $898.1 million, an 18% increase compared to the first quarter of FY2015;
  • Normalized EBITDA[1]of $91.5 million, a 62% increase compared to the same period last year;
  • Net income of $83.1 million;
  • Normalized net income[1]of $37.2 million, a 124% increase, which resulted in a normalized diluted earnings per share[1]of $0.31;
  • FY16 financial guidance reaffirmed; and
  • 100,000thCan-Am Spyder assembled on April 22, 2015.

Valcourt, Québec, June 11, 2015— BRP Inc. (TSX: DOO) today reported its financial results for the three-month period ended April 30, 2015. All financial information is in Canadian dollars unless otherwise noted. The complete financial results are available at www.sedar.com.

“We were able to deliver strong results thanks to the good work our team has done in delivering all our projects. Production at our manufacturing sites was on schedule and markets reacted well to our latest product introductions,” said José Boisjoli, president and CEO.“Despite headwinds from a volatile currency situation, difficult market conditions in Russia and in Latin America and a more aggressive competitive environment, our first quarter was slightly better than planned.”

Highlights for the Three-Month Period Ended April 30, 2015

Revenues increased by $139.5 million, or 18.4%, to $898.1 million for the three-month period ended April 30, 2015, compared with $758.6 million for the corresponding period ended April 30, 2014. The revenue increase was mainly due to higher wholesale in Seasonal Products. The increase includes a favourable foreign exchange rate variation of $36 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.

                    Net Income data                                                                                            Three-month periods ended
(in millions of Canadian dollars) April 30,
April 30,
Revenues by category
   Year-Round Products
   Seasonal Products
   Propulsion Systems
$ 398.1
$ 365.4
Total Revenues
   Cost of sales
Gross profit
   As a percentage of revenues
Operating expenses
   Selling and marketing
   Research and development
   General and administrative
   Other operating expenses (income)
23.7% 74.8
22.9% 67.3
Total operating expenses 149.1 145.0
Operating income
   Net financing costs
   Foreign exchange gain on long-term debt
Income before income taxes
   Income taxes expense (recovery)
Net income $ 83.1 $ 28.0
   Attributable to shareholders
   Attributable to non-controlling interest
$ 83.1
$ 28.0
Normalized EBITDA [1]
Normalized net income [1]
$ 91.5
$ 56.6
Earnings per share - basic
Earnings per share - diluted
Normalized earnings per share – basic [2]
Normalized earnings per share – diluted [2]
$ 0.70
$ 0.24

[1]              For a reconciliation of Net income to Normalized net income and Normalized EBITDA, see the Reconciliation Tables in the MD&A.

Normalized EBITDA and Normalized Net Income are non-IFRS measures that the Company uses to assess its operating performance. 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. See “Non-IFRS Measures” section included in the MD&A.

[2]       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.


Year-Round Products

Revenues from Year-Round Products increased by $32.7 million, or 8.9%, to $398.1 million for the three-month period ended April 30, 2015, compared with $365.4 million for the corresponding period ended April 30, 2014. The increase was primarily attributable to higher volumes following the introduction of the Maverick X ds side-by-side models and the expected industry growth. The increase in revenues includes a favourable foreign exchange rate variation of $20 million.

Seasonal Products

Revenues from Seasonal Products increased by $86.6 million, or 46.9%, to $271.2 million for the three-month period ended April 30, 2015, compared with $184.6 million for the corresponding period ended April 30, 2014. The increase resulted primarily from a higher volume of PWC sold due to earlier shipments following the completion of the production ramp-up at the Querétaro, Mexico facility and from additional deliveries to sustain the expected retail increase during the upcoming season. The increase in revenues includes a favourable foreign exchange rate variation of $12 million.

Propulsion Systems

Revenues from Propulsion Systems increased by $5.2 million, or 5.3%, to $102.5 million for the three-month period ended April 30, 2015, compared with $97.3 million for the corresponding period ended April 30, 2014. The increase in revenues was primarily attributable to a favourable mix of outboard engines sold due to the E-TEC G2 introduction and a favourable foreign exchange rate variation of $2 million.

PAC (Parts, Accessories, Clothing and other services)

Revenues from PAC increased by $15.0 million, or 13.5%, to $126.3 million for the three-month period ended April 30, 2015, compared with $111.3 million for the corresponding period ended April 30, 2014. The increase was mainly attributable to a higher volume of Year-Round Products and outboard engines PAC resulting from new product introduction. The increase includes a favourable foreign exchange rate variation of $2 million.

Gross profit increased by $39.5 million, or 22.8%, to $212.9 million for the three-month period ended April 30, 2015, compared with $173.4 million for the corresponding period ended April 30, 2014. The gross profit increase includes a favourable foreign exchange rate variation of $6 million. Gross profit margin percentage increased by 80 basis points to 23.7% from 22.9% for the three-month period ended April 30, 2014. The increase in gross profit margin percentage was primarily due to increased volume of PWC sold, partially offset by an unfavourable mix in PWC and roadsters.

Operating expenses increased by $4.1 million, or 2.8%, to $149.1 million for the three-month period ended April 30, 2015, compared with $145.0 million for the three-month period ended April 30, 2014. This increase was mainly due to an unfavourable foreign exchange impact of $10 million.

Normalized net income reached $37.2 million, an increase of $20.6 million, which resulted in normalized diluted earnings per share of $0.31, an increase of $0.17 per share. The increase was primarily due to higher operating income, partially offset by higher income taxes expense.

Fiscal Year 2016 Guidance

BRP’s financial guidance targets as presented on March 27, 2015 are reconfirmed and remain as follows:

Financial Metric
FY16 Guidance vs FY15 Results
   Year-Round Products
Up 7% to 11%
   Seasonal Products Flat to up 4%
   Propulsion Systems Up 7% to 10%
   PAC Up 10% to 15%
Total Company Revenues Up 5% to 9%
Normalized EBITDA Up 6% to 10%
Effective Tax Rate[1] 27% - 29%      Up from a normalized income            
                      tax rate of 22.0% in FY15
Normalized Net Income[2] Down 9% to flat         Flat to up 7%, adjusting FY15
                                tax rate using FY16 estimated tax rate
Normalized Earnings per Share – Diluted $1.50 - $1.65
Capital Expenditures $200M to $220M

[1] Effective tax rate based on Normalized Earnings before Normalized Income Tax.
[2] Assuming $135M of depreciation expense compared to $113M in FY15.

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 June 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. (EDT), BRP Inc. will host a conference call and webcast to discuss BRP's FY2016 first-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 at http://investors.brp.comin the Event Calendar section.

To listen to the conference call by phone, for the English integral version (event number 4217419), please dial 514-861-1681 or 800-766-6630 (toll-free in North America). For the French version (event number 4217420), please dial 514-392-1478 or 866-542-4146 (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 2429394. For the French translation, enter 7312904.

About BRP

BRP (TSX: DOO) is a global leader in the design, development, manufacturing, distribution and marketing of powersports vehicles and propulsion systems. Its portfolio includes Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, Can-Am all-terrain and side-by-side vehicles, Can-Am Spyder roadsters, Evinrude and Rotax marine propulsion systems as well as Rotax engines for karts, motorcycles and recreational aircraft. BRP supports its line of products with a dedicated parts, accessories and clothing business. With annual sales of over CA$3.5 billion from 107 countries, the Company employs approximately 7,600 people worldwide.


Ski-Doo, Lynx, Sea-Doo, Evinrude, Rotax, Can-Am, Spyder, Maverick, X, F3, Spark, 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.

For media enquiries:  Johanne Denault / Manager, Corporate Communications / Tel.: 450.532.5173
For investor relations: Philippe Deschênes / Financial Analyst / Tel.: 450.532.6462


Certain information included in this release, including, but not limited to, statements relating to our Fiscal Year 2016 financial outlook (including revenues, gross profit margin, operating expenses, Normalized EBITDA, Effective Tax Rate, 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 are typically 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. Forward looking statements, by their very nature, involve inherent risks and uncertainties and are based on several assumptions, both general and specific. BRP cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the Company or the power sports industry to be materially different from the outlook or any future results or performance implied 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 2016 financial guidance, including assumptions regarding the performance of the economies in which it operates, market competition, tax laws applicable to its operations and foreign exchange currency fluctuation. In addition, many factors could cause the Company’s actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following: impact of adverse economic conditions on consumer spending; decline in social acceptability of the Company’s products; fluctuations in foreign currency exchange rates; high levels of indebtedness; unavailability of additional capital; unfavourable weather conditions; seasonal sales fluctuations; the Company’s ability to comply with product safety, health, environmental and noise pollution laws; dependence on dealers, distributors, suppliers, financing sources and other strategic partners who may be sensitive to economic conditions; large fixed cost base; inability of dealers and distributors to secure adequate access to capital; supply problems, termination or interruption of supply arrangements or increases in the cost of materials; restrictive covenants in the Company’s financing and other material agreements; competition in product lines; loss of members of management team or employees who possess specialized market knowledge and technical skills; inability to maintain and enhance reputation and brands; adverse determination in any significant product liability claim against the Company; significant product repair and/or replacement due to product warranty claims or product recalls; reliance on a network of independent dealers and distributors to manage the retail distribution of products; dependence on customer relationships for the sale of original equipment manufacturer products; unsuccessful management of inventory; risks associated with international operations; inability to enhance existing products and develop and market new products; protection of intellectual property; failure of information technology systems; declining prices for used versions of products and oversupply by competitors; 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 to carry proper insurance coverage; public company expenses; conduct of business through subsidiaries; and significant influence by our principal shareholders holding multiple voting shares. 

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.


This press release makes reference to financial results in accordance with IFRS, and also makes reference to certain non-IFRS measures. Normalized EBITDA, normalized net income (loss), normalized basic earnings (loss) per share and normalized diluted earnings (loss) per share are measures that are not defined by the IFRS. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations from the management’s perspective. BRP believes non-IFRS measures are important supplemental measures of operating performance because they eliminate items that have less bearing on the Company’s operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS measures. Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess the Company’s ability to meet its future debt service, capital expenditure and working capital requirements.

Source BRP Media Centre ©

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