BRP reports record Q1 revenues
BRP Inc. gave its first public quarterly conference call Thursday, reporting record first quarter revenues of $804.3 million Canadian.
Revenues from the first quarter, which concluded April 30, were up 5.5 percent year-over-year, or up 12 percent excluding the sport boat business, which BRP exited in the fall. Seasonal Products, under which sport boats used to be categorized, saw an 18.5 percent decrease to $206.7 million, mostly driven by a reduction of $44 million in revenues due to the sport boat segment departure.
Year-Round Products, which include the company’s Spyder Roadster, ATVs and side-by-sides, drove the overall revenue increase with a 27.4 percent jump in revenues to $404.7 million. Parts, Accessories & Clothing revenues were up 1.7 percent to $100 million, due in part to a high double-digit increase in snowmobile PAC.
Revenues for Propulsion Systems, which include outboard engines and Rotax propulsion systems, were nearly flat, with 92.9 million in Q1 2014, compared to $93.1 million in the year-ago period. BRP president and CEO José Boisjoli doesn’t expect to see an impact on that segment from the Chaparral and Rec Boat Holdings partnerships until at least Q2. Both Chaparral and Rec Boat Holdings are currently refining their boats to fit the BRP technology.
“We have a group of people that assist them to make sure that when we’re out there with the complete product — the boat and the power plant — that we have a quality product,” Boisjoli said.
PWC sales faltered in the first quarter, down in the low single digits, but BRP attributed that mostly to unfavorable weather in North America. The company has moved up its PWC promotions in response to a competitor’s recent promotion release, and it expects that to drive traffic into dealerships.
Combined North American retail sales in both Year-Round and Seasonal products rose 6 percent overall.
Among BRP’s top priorities for the coming years is the expansion of the company’s North American dealer network.
“If you remember our plan is to have 200-300 dealers in the South and the Southwest of the United States within the next four years,” Boisjoli said.
He added, “So far the plan this year is to have 35-45 dealers in the South and the Southwest, and the plan is on-going, and we believe this plan will happen.”
The company’s guidance for the full year include revenues up in the high single-digits and a normalized EPS of $1.45-$1.50.