Skip to main content

BRP Reports Fiscal Year 2020 Third Quarter Results

Written by Customer Service on . Posted in Earnings Releases And Operating Results.

Highlights for the quarter vs Q3 FY19:
BRP North American Powersports retail sales grew 24% in the quarter with side-by-side vehicles (SSV) retail growing more than 30%;Revenues of $1,643.6 million, an increase of $249.4 million or 17.9%;Gross profit of $441.9 million representing 26.9% of revenues, an increase of $85.1 million;Net income of $135.3 million, an increase of $45.1 million, which resulted in a diluted earnings per share of $1.49, an increase of $0.57 per share or 62.0%;Normalized net income[1] of $136.7 million, an increase of $33.8 million, which resulted in a normalized diluted earnings per share[1] of $1.51, an increase of $0.47 per share or 45.2%;Normalized EBITDA[1] of $268.2 million representing 16.3% of revenues, an increase of $65.0 million or 32.0%;Raised the lower end of the guidance for end-of-year with Normalized EPS growth of 19% to 23% compared to last year.In addition, during the three-month period ended October 31, 2019:BRP completed its aquisition of Telwater Pty Ltd, an Australian manufacturer selling boats under brands such as Quintrex, Stacer and Savage.The Company publicly introduced six different electric vehicle concepts.[1] See the reconciliation table in “Non-IFRS Measures” section.VALCOURT, Quebec, Nov. 27, 2019 (GLOBE NEWSWIRE) — BRP Inc. (TSX:DOO; NASDAQ:DOOO) today reported its financial results for the three- and nine-month periods ended October 31, 2019. All financial information is in Canadian dollars unless otherwise noted. The complete financial results are available at Sedar, as well as in the Quarterly Reports section of BRP’s website.“We delivered once again a solid financial performance and our best third quarter ever. Our industry is performing well globally, and we continue to outpace it with double digit growth. As we look ahead, our strong third quarter results allow us to raise the lower end of the guidance for our full year normalized EPS range with expected growth of 19% to 23%,” stated José Boisjoli, President and CEO. “Due to the strength of our strategy and the seamless execution by our people, we are on track to deliver industry-leading results for FY20. Our efforts are paying off and we don’t intend to ease up,” he added.Highlights for the Three- and Nine-Month Periods Ended October 31, 2019Revenues increased by $249.4 million, or 17.9%, to $1,643.6 million for the three-month period ended October 31, 2019, compared with $1,394.2 million for the corresponding period ended October 31, 2018. The revenue increase was mainly due to higher wholesale of Year-Round Products and Seasonal Products.
     
The Company’s North American retail sales for powersports vehicles and outboard engines increased by 21% for the three-month period ended October 31, 2019 compared with the three-month period ended October 31, 2018. The increase was driven by higher wholesale of Year-Round Products and snowmobile.Gross profit increased by $85.1 million, or 23.9%, to $441.9 million for the three-month period ended October 31, 2019, compared with $356.8 million for the corresponding period ended October 31, 2018. The gross profit increase includes an unfavourable foreign exchange rate variation of $4 million. Gross profit margin percentage increased by 130 basis points to 26.9% from 25.6% for the three-month period ended October 31, 2018. The increase of 130 basis points was primarily due to a higher volume of Year-Round Products and PWC sold and from a favourable mix in snowmobile and SSV. The increase was partially offset by higher sales program costs and by higher commodity and production costs.Operating expenses increased by $34.2 million, or 17.1%, to $233.9 million for the three-month period ended October 31, 2019, compared with $199.7 million for the three-month period ended October 31, 2018. This increase was mainly attributable to continued product investments.Revenues increased by $698.9 million, or 18.7%, to $4,436.8 million for the nine-month period ended October 31, 2019, compared with $3,737.9 million for the corresponding period ended October 31, 2018. The revenue increase was primarily attributable to higher wholesale of Year-Round Products and a favourable foreign exchange rate variation of $22 million.
           
The Company’s North American retail sales for powersports vehicles and outboard engines increased by 13% for the nine-month period ended October 31, 2019 compared with the nine-month period ended October 31, 2018, mainly due to an increase in Year-Round Products, partially offset by lower retail of outboard engines.Gross profit increased by $151.8 million, or 16.5%, to $1,070.3 million for the nine-month period ended October 31, 2019, compared with $918.5 million for the corresponding period ended October 31, 2018. Gross profit margin percentage decreased by 50 basis points to 24.1% from 24.6% for the nine-month period ended October 31, 2018. The decrease was primarily due to higher commodity, production and distribution costs and higher sales program costs, partially offset by higher volume of Year-Round Products sold and a favourable product mix of Seasonal Products.Operating expenses increased by $91.0 million, or 15.9%, to $663.4 million for the nine-month period ended October 31, 2019, compared with $572.4 million for the nine-month period ended October 31, 2018. The increase was mainly attributable to higher expenses to support for the launch of various products such as the Can-Am Ryker, continued product investments, costs related to the modernization of information systems and additional operating expenses resulting from acquisition of companies in the Marine segment, partially offset by lower variable employee compensation expenses.

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.