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BRP Reports Fiscal Year 2016 Third-Quarter Results

Date: 12/15/2015 6:29:29 AM Category: Manufacturer News
Highlights: 
  • Revenues of $1,010.2 million, a 10.0% increase compared to the third quarter of FY2015;
  • Normalized EBITDA[1]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 millioncompared to the same period last year;
  • Normalized net income[1]of $72.8 million resulting in a normalized diluted earnings per share[1]of $0.62; and
  • Launch of the Can-Am Defender side-by-side vehicle in the largest segment of the off-road vehicle market.
Valcourt, Québec, December 11, 2015— 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 
Year-Round Products 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. 
Seasonal Products 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. 
Propulsion Systems 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[1]stood at $72.8 million, an increase of $0.9 million, which resulted in a normalized diluted earnings per share [1]of $0.62, an increase of $0.02 per share.
Source: www.brp.com
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