Introduction of the new Can-Am Defender utility side-by-side line was a third quarter highlight.
BRP, manufacturer of Can-Am side-by-sides, recently announced their fiscal year 2016 third-quarter (ending Oct. 31, 2015) results. Financial highlights in Canadian dollars include:
- Revenues of $1,010.2 million, a 10.0% increase compared to the third quarter of FY2015;
- Normalized EBITDA of $141.5, a 5.5% increase compared to the same period last year;
- Net income of $65.5 million, an increase of $28.3 million compared to the same period last year;
- Normalized net income of $72.8 million resulting in a normalized diluted earnings per share of $0.62;
- Guidance remains unchanged for the full fiscal year
A summary of highlights from the earnings call that relate to the side-by-side market include:
- BRP is tracking to reach the objective of signing 75 to 85 new dealers for the year
- Launched the Can-Am Defender side-by-side vehicle in the largest segment of the off-road vehicle market
- Defender has been well received by side-by-side, farm and hunting media
- First Defender units shipped in November and full production should be reached by end of February
- Season to date side-by-side market is up mid-single digits while Can-Am is down mid-single digit driven by soft start to season, but US retail was up mid-single digits in September and October
- Western Canada market is weak from the impact of low oil prices
- Competition in the side-by-side market is higher driven by numerous new model introductions
- Management expects industry growth in the utility segment for side-by-sides to be mid-single digits in the near future.
Learn more: phx-corporate-ir.net (PDF – Earnings Call Transcript)