Issue link: https://read.dmtmag.com/i/231891
6 • December 30, 2013 • Powersports Business www.PowersportsBusiness.com FINANCIAL BRP reports record fiscal Q3 2014 revenues Snowmobiles, side-by-side sales drive growth SEASONAL PRODUCTS BRP reported record revenues of $866.0 million during its fiscal third quarter of 2014 ended Oct. 31, 2013, an increase of 18 percent compared to the corresponding period of fiscal year 2013. "The strong performance in our third quarter was primarily driven by strong shipments of snowmobiles both in North America and internationally. Our results were also buoyed by consumer enthusiasm for our Year-Round products led by our new models of side–by-side vehicles which have been well received worldwide. With solid results through nine months of the fiscal year, we are on track to meet our revenue and normalized EBITDA guidance for the year, and we are very excited about the lineup of new products for the coming model year 2014," said José Boisjoli, BRP president and CEO. "I am very pleased with this performance and particularly proud of the fact that we were able to deliver strong quarterly results as we approach our 10th anniversary as a standalone company. I would like to take this opportunity to thank our employees, our dealers and distributors for their hard work and JOSÉ BOISJOLI continued loyal support." Revenues increased by $132.1 million, or 18 percent, to $866.0 million for the threemonth period ended Oct. 31, 2013, up from $733.9 million for the corresponding period ended Oct. 31, 2012. The increase in revenues includes a favorable foreign exchange rate variation of $37 million, mainly related to the strengthening of the U.S. dollar and the Euro against the Canadian dollar. Revenues increased by $186.5 million, or 8.9 percent, to $2.3 billion for the ninemonth period ended Oct. 31, 2013, up from $2.1 billion for the corresponding period ended Oct. 31, 2012. The revenues were negatively impacted by the exit of the sport boat business that accounted for $71 million in revenues for the nine-month period ended Oct. 31, 2012. Excluding the exit of the sport boat business, revenues would have increased by 12.7 percent or $257.5 million. The increase in revenue includes a favorable foreign exchange rate variation of $61 million, mainly related to the strengthening of the U.S. dollar and the Euro against the Canadian dollar. mainly shipped in the third quarter. The increase in revenues includes a favorable foreign exchange rate variation of $14 million. North American Seasonal Products retail sales, excluding the sport boat business, registered an increase in the mid-20 percent range as compared to the third quarter of fiscal 2013. Revenues from Seasonal Products increased by $106.3 million, or 38.5 percent, to $382.5 million for the three-month period ended Oct. 31, 2013, compared with $276.2 million for the corresponding period ended Oct. 31, 2012. The increase in revenues results mainly from a higher volume and from a favorable product mix of snowmobiles sold following increased orders for the model year 2014 resulting from dealers and distributors' demand. These incremental orders were YEAR-ROUND PRODUCTS Revenues from Year-Round Products increased by $2.2 million, or 0.9 percent, to $249.6 million for the three-month period ended Oct. 31, 2013, up from $247.4 million for the corresponding period ended Oct. 31, 2012. The increase is primarily due to higher wholesale and a favorable product mix in side-by-side vehicles, for an increase of approximately 38 percent compared with the corresponding period ended Oct. 31, 2012. The increase was mainly offset by a 20 percent reduction in ATV sales compared with the corresponding period ended Oct. 31, 2012. This reduction is mainly due to the introduction during the previous fiscal NORTHWEST 6.4% Parts Department 8.4% Service Department 12.9% Major Units 10.1% -1.8% Overall Parts Department Service Department -0.9% Service Department Major Units 1.4% 6.3% -0.3% Major Units WEST 3.5% Overall 0.7% Overall Parts Department 8.2% 21.4% Major Units SOUTH -5.0% 16.3% Overall Parts Department 4.6% UNITED STATES Service Department 6.2% 9.4% 0.3% Parts Department Major Units Major Units 6.0% 4.5% 7.6% Service Department Overall Overall NOVEMBER 2013 PARTS SALES Same Store Sales for 1,352 metric and V-twin dealers in the U.S. were positive in November, with a 7.6 percent increase over the year-ago month. Major unit sales in the West saw a big rebound from November 2012, up 21.4 percent. The Midwest followed with a 12.9 percent increase, and the South reported a 6.2 percent jump. The Northeast struggled the most during the month, with major unit sales down 0.3 percent. Overall the region, saw a 0.7 percent increase. In parts, 675 dealers were up, and 677 were down. SERVICE SALES 733 dealers were up, and 552 dealers were down in service. MAJOR UNIT SALES FOR MORE ON THE SAME STORE SALES DATA For more information on this report and other industry data, contact: adplightspeed.com/dataservices For major units, 685 dealers were up, while 484 were down. POWERSPORTS BUSINESS WINNERS AND LOSERS STOCK MARKET ACTIVITY 260 2.13% 140 120 100 80 PSB INDEX VALUE DOW JONES INDEXED S&P 500 INDEXED 12/9/13 2.57 11/8/13 123.081 160 10/14/13 S&P 500 Index 180 9/16/13 1.67% 8/20/13 2.29 7/23/13 139.387 200 6/21/13 Dow Jones Index 220 5/28/13 7.41% 5/7/13 17.26 240 4/17/13 % Change 250.332 P06x07-PSB1-Finance.indd 6 PA &C Re or mo $1 en du of N Service Department Powersports Business Index Source: Wells Fargo Securities LLC sal sin of A B C Eu In In Ja M Ph S S Ta Th NORTHEAST 0.9% MIDWEST 0.3% Parts Department MARKET WATCH 12/9/13 ye Am mu inc var DEALER FINANCIAL SNAPSHOT STOCK MARKET WATCH Change from 11/8 ww Company ArvinMeritor Speedway Motorsports, Inc. Polaris Industries, Inc. Assurant, Inc. Arctic Cat, Inc. Spy Inc. Cooper Tire & Rubber Dover Corporation MarineMax, Inc. Orbital Engine Corp. Ltd. ADR Stock Ticker ARM TRK PII AIZ ACAT XSPY CTB DOV HZO OE Price 12/9/13 $7.78 $19.96 $138.80 $65.21 $56.24 $1.35 $23.69 $91.35 $15.61 $2.33 Percent Change 14.6% 11.0% 9.2% 9.0% 8.4% 8.0% -0.5% -1.0% -3.0% -8.7% 12/18/13 11:28 AM