BRP reports 2Q results

BRP reported revenue of $856 million in Canadian dollars for its second quarter, a 5 percent increase from the same period last year.
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BRP reported revenue of $856 million in Canadian dollars (about $656 million U.S.) for its second quarter, a 5 percent increase from the same period last year.

The company said it recorded a gross profit for the quarter that ended July 31 of $172 million Canadian (about $132 million U.S.) representing 20 percent of revenue — an increase of $3 million Canadian ($2.3 million U.S.) from the same period last year.

Normalized earnings before income, tax, depreciation and amortization (EBITDA) were $44 million Canadian ($33.7 million U.S.), a 16 percent decrease from the same period last year.

Normalized net income of $1 million Canadian ($766,000 U.S.) resulted in normalized diluted earnings per share of 1 cent, a decrease of 2 cents a share from the previous year.

The company recorded a net loss of $69 million Canadian ($53 million U.S.), a decrease of $500,000, which resulted in a diluted loss per share of 61 cents, a decrease of 3 cents a share from the same period last year.

"I am pleased with the second quarter of fiscal 2017 that has registered strong retail sales worldwide, particularly for Sea-Doo PWC and Can-Am off-road vehicles," BRP president and CEO José Boisjoli said in a statement.

"We have good momentum with the Can-Am Defender models, introduced last September, and with the positive reception of the most recent product launches, such as the Evinrude E-TEC G2 engines or the Can-Am Maverick X3 vehicle."

The company said a successful refinancing of the $792 million (in U.S. dollars) term facility and $350 million revolving credit facility resulted in an amended and restated $700 million term facility and a $425 million revolving credit facility.

As part of a series of patent infringement lawsuits involving BRP and a competitor, a decision was rendered by the trial judge to award additional damages in one of the suits. Consequently, the company recorded an additional $43 million expense during the quarter. BRP filed an appeal on Aug. 23.

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