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BRP 1Q Revenue Down 5%

July 1, 2005
Filed under Uncategorized

Bombardier Recreational Products Inc. (BRP), Valcourt, Quebec, says consolidated revenue for the company’s first quarter ended April 30, 2005, was C $594.0 million (all figures in Canadian Dollars), down 5% or $29.9 million compared to revenue of $623.9 million for the same period in the last fiscal year.
BRP posted a consolidated gross profit of $115.3 million for the three-month period ended April 30, up 28% compared to $90.2 million for the same period last fiscal year. The company says the increase is primarily due to favorable product and pricing and reduced production costs.
Consolidated Adjusted EBITDA reached $43.1 million for the three-month period ended April 30, an increase of 22% compared to $35.3 million for the same period last fiscal year. The improvement in consolidated adjusted EBITDA resulted mainly from the increased gross profit.
Operating expenses – comprised of selling and marketing, research and development and general and administrative expenses – were $100.4 million for the three-month period ended April 30, 2005, a $2.5 million decrease when compared to $102.9 million for the same period last fiscal year.
Foreign exchange losses were $9.8 million for the three-month period ended April 30, down from $35.4 million for the same three-month period in 2004.
As a result of the above, net loss for the three-month period ended April 30, 2005, amounted to $2.8 million, an improvement of $45.4 million compared to the net loss of $48.2 million for the three-month period ended April 30, 2004.
“I am pleased with our results because our cost reduction plan is working and we expect it to continue. Product complexity reduction and changes in our operational structure have greatly improved our cost structure and also our ability to offset the fluctuations of the Canadian dollar against the U.S. dollar and the Euro,” said Jose Boisjoli, BRP’s president and CEO.
BRP’s portfolio of brands and products includes: Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and sport boats, Johnson and Evinrude outboard engines, direct injection technologies such as Evinrude E-TEC, Bombardier ATVs, and Rotax engines and karts.
BRP operates in two segments: the Powersports segment includes snowmobiles, watercraft, all-terrain vehicles, sport boats and Rotax engines; the Marine Engines segment includes outboard engines.
Powersports segment revenue was $471.8 million for the three-month period ended April 30, 2005, down from $484.2 million for the same period last fiscal year.
BRP says the decrease in revenue was caused by an unfavorable impact of the strengthening of the Canadian dollar. The company also said an increased number of personal watercraft sold was offset by a decrease in the number of ATVs sold and also by a reduction in the number of Rotax engines delivered to OEMs.
The Powersports segment operating income was $33.0 million for the three-month period ended April 30, 2005, up from $6.6 million for the same period last fiscal year.
Marine Engines segment revenues were $138.6 million for the three-month period ended April 30, 2005, down from $151.1 million for the same period last fiscal year.
Marine Engines segment operating loss was $4.8 million for the three-month period ended April 30, 2005, down from $11.6 million for the same period last fiscal year.

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