Powersports vehicles maker BRP Inc. (DOO.TO) Thursday reported a sharp decline in the first-quarter profit, as margins declined. Revenues increased mainly on 27 percent growth in its Year-Round Products.
BRP said this is their first result published as a public company. Bombardier Recreational Products or BRP is a Canadian company, once part of Canadian Aerospace and transportation firm Bombardier, Inc. (BBD_A.TO, BBD_B.TO).
On May 29, BRP had announced closing of its initial public offering of 12.2 million subordinate voting shares of the firm at a price of $21.50 per share, resulting in gross proceeds of about C$262.3 million.
The maker of Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft, and all-terrain vehicles said its quarterly net income declined to C$25.7 million from C$54.6 million in the previous year.
However, on a normalized basis, net income increased to C$53.4 million or C$0.52 per share, from C$49.6 million or C$0.49 per share in the prior year.
The company has restated its prior-year results to reflect application of amendments of IAS 19 'Employee Benefits' standard.
Revenues for the quarter grew 5.5 percent to C$804.3 million. Revenues were up 12 percent excluding impact of the exit of sport boat business.
According to the company, revenue growth includes a favorable foreign exchange rate variation of C$13 million mainly related to the strengthening of the U.S. dollar against the Canadian dollar.
Revenues from Seasonal Products decreased 18.5 percent, while, revenues from Year-Round Products climbed 27.4 percent from last year.
José Boisjoli, president and CEO of the company stated, "Our revenues from our Year-Round Products increased by 27% during the quarter led by the sales of our Can-Am Spyder ST and Maverick side-by-side vehicle which add to our solid track record of successfully introducing new products and generating strong consumer acceptance."
Looking ahead to fiscal 2014, the company expects normalized earnings per share to be in the range of C$1.45 to C$1.50. Revenues are projected to rise at a high single-digit percentage for the year.
On the Toronto Stock Exchange, DOO.TO closed Wednesday;s regular trading at C$24.50.
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