Brp, Inc. · TSX:DOO
Brp — Q1 FY2022 Earnings Presentation
26 slides from Brp's earnings presentation, Jun 3, 2021
Slide 1: Quarterly Review: First Quarter Ended April 30, 2021
QUARTERLY REVIEW FIRST QUARTER ENDED APRIL 30, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Caution concerning forward-looking statements Certain statements included in this presentation, including, but not limited to, relating to our Fiscal Year 2022 financial guidance (including revenues, Normalized EBITDA, Effective Tax Rate, Normalized earnings per share, net
Slide 3: José Boisjoli, President and CEO
JOSÉ BOISJOLI PRESIDENT PRESIDENT AND AND CHIEF CHIEF EXECUTIVE EXECUTIVE OFFICER OFFICER QUARTERLY REVIEW SECOND FIRST QUARTER QUARTER ENDED ENDED APRILJULY 31, 2018 30, 2021 QUARTERLY REVIEW First Quarter Ended April 30, 2021
Slide 4: FY22 Q1 Highlights
FY22 Q1 Highlights Revenues Diluted Earnings per Share Normalized Diluted Earnings per Share[1] CA$ millions CA$ CA$ +47% +$5.37 +$2.27 $2,79 $1 809 $2,53 $1 230 ($2,58) $0,26 FY21 Q1 FY22 Q2 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 Highlights vs. Last Year ◼ Revenues increased 47% primarily driven by a high
Slide 5: FY22 Q1 Powersports Retail Update
FY22 Q1 Powersports Retail Update Powersports Retail Growth by Region[1] North American Powersports Retail Growth by Product Line FY22 Q1 retail sales in units compared to FY21 Q1 FY22 Q1 retail sales in units compared to FY21 Q1 INDUSTRY INDUSTRY NORTH AMERICA MID- SIDE-BY-SIDE HIGH-SINGLE HIGH- TO
Slide 6: Supply chain constraints impacting timing of product deliveries
Supply chain constraints impacting timing of product deliveries, however, on track to deliver our full-year volume target › Our industry is experiencing supply chain pressure for certain components and services ▪ Tight availability and delivery delays for certain raw materials and components, notabl
Slide 7: Retail Growth Limited by Product Availability
Retail Growth Limited by Product Availability Our network inventory has been decreasing over the last 4 quarters resulting from the very strong consumer demand for our products and the two months of production suspension last year North American Powersports Retail and Network Inventory Evolution FY1
Slide 8: Continued Strong Consumer Interest in Powersports
Continued Strong Consumer Interest in Powersports • New entrants represented 37% in FY22 Q1 vs. ~20% historically CONTINUED STRONG INFLUX OF NEW • Only 7% of new entrants said they purchases the vehicle as a Covid-19 distraction ENTRANTS • New entrants are a more diverse group with younger people, m
Slide 9: Year-Round Products
Year-Round Products Highlights Revenues CA$ millions Year-Round Products | Revenues up 44% + ◼ Higher volume of products sold + Lower sales programs +44% + ◼ Favourable product mix of SSV sold Unfavourable Fx variation of $54M $922,5 Can-Am SSV | North American Season-to-date retail up low-twenty %
Slide 10: Seasonal Products
Seasonal Products Highlights Revenues CA$ millions Seasonal Products | Revenues up 44% + ◼ Higher volume of PWC sold + Lower sales programs +44% + ◼ Favourable mix of PWC Unfavourable Fx variation of $21M Sea-Doo PWC | North American Season-to-date retail up mid-ninety % $463,4 ◼ North American PWC
Slide 11: Snowmobile: Solid Setup for Season 2022
Snowmobile: Solid Setup for Season 2022 Record low end of season Record level of Spring Units network inventory Booking for Ski-Doo and Lynx SNOWMOBILE END OF SEASON SNOWMOBILE SPRING NETWORK INVENTORY UNITS BOOKING North America, Units Total BRP, Units +157% -83% Season Season Season Season Season
Slide 12: Powersports PA&A and OEM Engines
Powersports PA&A and OEM Engines Highlights Revenues CA$ millions Revenues up 91% + ◼ Higher volume of PA&A + Higher volume of aircraft engines sold +91% ◼ Unfavourable Fx variation of $13M ◼ Parts: Revenue up over 70% driven by the growth in the number of units in use ◼ Accessories and Apparels: Re
Slide 13: Marine
Marine Highlights Revenues CA$ millions Revenues up 11% + ◼ Higher volume of boat sold Lower volume of outboard engines sold +11% ◼ Unfavorable Fx variation of $4M Gross Profit up $18.6M to $23.2M + ◼ Higher volume of products sold + Lower production costs $109,6 $122,0 + ◼ Wind-down of Evinrude out
Slide 14: Sébastien Martel, Chief Financial Officer
JOSÉ BOISJOLI SÉBASTIEN MARTEL PRESIDENT CHIEF ANDOFFICER FINANCIAL CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND FIRST QUARTER QUARTER ENDED ENDED APRILJULY 31, 2018 30, 2021 QUARTERLY REVIEW First Quarter Ended April 30, 2021
Slide 15: FY22 Q1 Financial Highlights
FY22 Q1 Financial Highlights Q1 Comparison CA$ millions (Unaudited) FY22 FY21 Change Total Revenues $1,808.6 $1,229.8 $578.8 Growth +47.1% Gross Profit $542.0 $235.1 $306.9 As a % of revenues 30.0% 19.1% Operating Income $316.5 ($127.3) $443.8 Normalized EBITDA[1] $379.0 $123.0 $256.0 Growth +208.1%
Slide 16: FY22 Q1 Net Income and Normalized Net Income Bridge
[1] FY22 Q1 Net Income and Normalized Net Income Bridge Net Income Bridge CA$ millions (30) (56) 171 (171) 168 244 388 (226) Delivered solid FY22 Q1 results that came in above our expectations FY21 Q1 Volume, Mix, Production Costs Operating Impairment Charge Net Financing Foreign Exchange FY22 Q1 Ne
Slide 17: BRP Yard and North American Powersports Dealer Inventory
BRP Yard and North American Powersports Dealer Inventory FY22 Q1: Inventory Position Overview Dealer Inventory Year-over-Year Bridge Units, Excluding Boats DEALER INVENTORY YARD INVENTORY North America Powersports, Units Finished Products, $CA millions -73% -34% -73% FY21 Q1 SSV ATV 3WV Snowmobile P
Slide 18: FY22 Full-Year Guidance - as at June 3, 2021
FY22 Full-Year Guidance - as at June 3, 2021 Financial Metric FY21 FY22 Guidance[3] vs FY21 Revenues vs. Previous Guidance Year-Round Products $2,824.2 Up 35% to 40% Seasonal Products 1,825.0 Up 25% to 30% (previously “Up 20% to 25%”) Powersports PA&A and OEM Engines 882.8 Up 17% to 22% (previously
Slide 19: FY22 Rest of the Year Outlook
FY22 Rest of the Year Outlook - as at June 3, 2021 Normalized Diluted Earnings per Share[1] North America Powersports Retail Sales NORTH AMERICA NORMALIZED EPS[1] POWERSPORTS GROWTH RETAIL GROWTH VS LAST YEAR VS LAST YEAR +++ Lapping one month of production suspension last year - Lapping strong reta
Slide 20: Closing Remarks
JOSÉ BOISJOLI CLOSING REMARKS PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND FIRST QUARTER QUARTER ENDED ENDED APRILJULY 31, 2018 30, 2021 QUARTERLY REVIEW First Quarter Ended April 30, 2021
Slide 21: Closing Remarks
Closing Remarks STRONG START OF THE YEAR JUAREZ 3 - NEW SSV FACILITY Continued experiencing very strong consumer demand and delivered record financial results for a first quarter WELL POSITIONED TO DELIVER SOLID RESULTS IN FY22 Focused on delivering our production plan for the year to meet dealer or
Slide 22: Q&A
JOSÉPERIOD Q&A BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND FIRST QUARTER QUARTER ENDED ENDED APRILJULY 31, 2018 30, 2021 QUARTERLY REVIEW First Quarter Ended April 30, 2021
Slide 23: Appendix
JOSÉ BOISJOLI APPENDIX PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND FIRST QUARTER QUARTER ENDED ENDED APRILJULY 31, 2018 30, 2021 QUARTERLY REVIEW First Quarter Ended April 30, 2021
Slide 24: Reconciliation Tables
Reconciliation Tables Three-month periods ended CA$ millions Apr. 30, 2021 Apr. 30, 2020 Net Income $244.4 $(226.1) Normalized Elements: Foreign Exchange (Gain)/Loss on Long-term Debt and Lease Liabilities (78.6) 88.8 Transaction Costs and Other Related Expenses[1] 0.2 0.5 Restructuring and Related
Slide 25: Appendix - Continued
Appendix - Continued Non-IFRS Measures Normalized revenues is defined as revenues before normalized elements. Normalized gross profit is defined as gross profit before normalized elements. Normalized EBITDA is defined as net income before financing costs, financing income, income tax expense (recove
Slide 26: Sh¥-deg LYWX Se0e400. CAI-dIT ROTAX. ALUMADwft +Panite: EVINRUDE
oe Sh¥-deg LYWX Se0e400. CAI-dIT ROTAX. ALUMADwft +Panite: EVINRUDE