Brp, Inc. · TSX:DOO
Brp — Q1 FY2020 Earnings Presentation
22 slides from Brp's earnings presentation, May 30, 2019
Slide 1: Quarterly Review: First Quarter Ended April 30, 2019
QUARTERLY REVIEW FIRST QUARTER ENDED APRIL 30, 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements Caution concerning forward-looking statements Certain information included in this presentation, including, but not limited to, statements relating to our Fiscal Year 2020 financial outlook (including revenues, Normalized EBITDA, Effective Tax Rate, Normalized earnings per
Slide 3: Quarterly Review - 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, 2019 QUARTERLY REVIEW First Quarter Ended April 30, 2019
Slide 4: FY20 Q1 Revenues, EPS - Diluted and Normalized EPS - Diluted
FY20 Q1 Revenues, EPS - Diluted and Normalized EPS - Diluted[1] Revenues Diluted Earnings per Share Normalized Diluted Earnings per Share[1] CA$ millions CA$ CA$ +17% +92% +4% $1,334 $1,137 $0.25 $0.52 $0.54 $0.13 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 Highlights vs. Last Year ◼ Increase of
Slide 5: Strong Retail Growth in North America, EMEA and Asia-Pacific
Strong Retail Growth in North America, EMEA and Asia-Pacific BRP INDUSTRY[2] NORTH AMERICA 14% HIGH-SINGLE DIGIT % NORTH AMERICA EXCL. SNOWMOBILES 17% MID-SINGLE DIGIT % LATIN AMERICA 13% NOT AVAILABLE EMEA[1] 18% MID- TEEN % ASIA-PACIFIC[1] 5% MID-SINGLE DIGIT % [1]Three-month period from January t
Slide 6: FY20 Q1: Retail Impacted by a Cold and Wet Spring Season in Northern US and Canada
FY20 Q1: Retail Impacted by a Cold and Wet Spring Season in Northern US and Canada BRP North American Powersports[1] Retail Growth BRP North American Powersports[1] Retail Growth Snowbelt Sunbelt Units, excluding snowmobile FEBRUARY MARCH APRIL Q1 Total BRP Powersports[1] Retail 17% 21% 15% [1]Exclu
Slide 7: FY20 Q1: Solid Growth with all Product Lines in North America
FY20 Q1: Solid Growth with all Product Lines in North America North American Powersports Retail Growth by Product Line FY20 Q1 compared to FY19 Q1 BRP VS. GROWTH DECLINE BRP INDUSTRY INDUSTRY HIGH-SINGLE TOTAL POWERSPORTS 14% DIGIT % MID-SINGLE POWERSPORTS EXCL. SNOWMOBILES 17% DIGIT % HIGH-SINGLE M
Slide 8: Well Positioned to Continue on our Growth Trajectory in SSV
Well Positioned to Continue on our Growth Trajectory in SSV Can-Am SSV Season-to-Date Retail Growth North American Can-Am SSV Retail Sales › Strong retail growth season-to-date Units, Year-over-Year Growth HIGH- ▪ Largest market share taker in the industry, gaining shares in both the Utility and MID
Slide 9: Year-Round Products
Year-Round Products Highlights Revenues CA$ millions Year-Round Products revenues up 19% ◼ Mainly driven by the introduction of the Can-Am Ryker, a higher volume of ATV sold +19% and a favourable foreign exchange rate variation Side-by-Side Vehicles (SSV) ◼ Ten months into the 2019 season, the North
Slide 10: Seasonal Products
Seasonal Products Highlights Revenues CA$ millions Seasonal Products revenues up 7% ◼ Mainly driven by a favourable product mix and price increases in PWC and a +7% favourable foreign exchange rate variation Snowmobile ◼ The North American snowmobile industry completed its 2019 season with retail up
Slide 11: Powersports PAC and OEM Engines
Powersports PAC and OEM Engines Highlights Revenues CA$ millions Powersports PAC and OEM Engines revenues up 19% ◼ Mainly driven by a higher volume of 3WV, SSV and PWC accessories and a higher +19% volume of snowmobile and PWC parts ◼ Strong end of season for snowmobile parts sales driven by the ext
Slide 12: Marine
Marine Highlights Revenues CA$ millions Marine revenues up 33% ◼ Mainly due to the acquisition of Alumacraft and Manitou, partially offset by a lower +41% volume of outboard engines sold Outboard Engines ◼ Ten months into the 2019 season, the North American outboard engines industry is up low-single
Slide 13: 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, 2019 QUARTERLY REVIEW First Quarter Ended April 30, 2019
Slide 14: FY20 Q1 - Financial Highlights
FY20 Q1 - Financial Highlights Q1 Comparison CA$ millions FY20 FY19 Change Total Revenues $1,333.7 $1,136.7 $197.0 Growth +17.3% Gross Profit $300.6 $281.6 $19.0 As a % of revenues 22.5% 24.8% Operating Income $89.0 $86.2 $2.8 Normalized EBITDA[1] $146.7 $126.6 $20.1 Growth +15.9% Net Income $23.8 $
Slide 15: FY20 Q1 - Net Income and Normalized Net Income Bridge
FY20 Q1 - Net Income and Normalized Net Income[1] Bridge Net Income Bridge Normalized Net Income[1] Bridge CA$ millions CA$ millions (24) 52 (25) (24) (6) 2 52 (25) 54 53 14 (8) 2 24 13 FY19 Q1 Volume, Mix, Production Costs Operating Net Financing Foreign Foreign FY20 Q1 FY19 Q1 Volume, Mix, Product
Slide 16: BRP North American Powersports Dealer Inventory
BRP North American Powersports Dealer Inventory Dealer Inventory Level Dealer Inventory Bridge Units, Excluding Outboard Engines and Boats Units, Excluding Outboard Engines and Boats +10% New Can-Am Maverick Sport Q1 Q2 Q3 Q4 FY19 Q1 SSV Can-Am Ryker Snowmobile Rest of the FY20 Q1 FY18 FY19 FY20 Lin
Slide 17: FY20 Full-Year Guidance - as at May 30, 2019
FY20 Full-Year Guidance - as at May 30, 2019 The table below sets forth BRP’s financial guidance for Fiscal Year 2020 which reflects the adoption of new IFRS 16 - Leases standard effective as of February 1, 2019. Under IFRS 16 - Leases, operating lease expenses are recorded as depreciation and inter
Slide 18: Closing Remarks
JOSÉ BOISJOLI CLOSING REMARKS PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND FIRST QUARTER QUARTER ENDED ENDED APRILJULY 31, 2018 30, 2019 QUARTERLY REVIEW First Quarter Ended April 30, 2019
Slide 19: Q&A Period
JOSÉPERIOD Q&A BOISJOLI PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND FIRST QUARTER QUARTER ENDED ENDED APRILJULY 31, 2018 30, 2019 QUARTERLY REVIEW First Quarter Ended April 30, 2019
Slide 20: Appendix
JOSÉ BOISJOLI APPENDIX PRESIDENT AND CHIEF EXECUTIVE OFFICER QUARTERLY REVIEW SECOND FIRST QUARTER QUARTER ENDED ENDED APRILJULY 31, 2018 30, 2019 QUARTERLY REVIEW First Quarter Ended April 30, 2019
Slide 21: Reconciliation Tables
Reconciliation Tables Three-month periods ended CA$ millions Apr. 30, 2019 Apr. 30, 2018 Net Income $23.8 $13.4 Normalized Elements: Foreign Exchange Loss on Long-Term Debt and Lease Liabilities 27.6 41.5 Transaction Costs and Other Related Expenses[1] 0.3 - Restructuring and Related Costs[2] - 0.2
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