BRP Reports Financial Results For 1st Quarter, Fiscal Year 2005.SAINT BRUNO, Quebec Quebec, city, Canada Quebec, Fr. Québec, city (1991 pop. 167,517), provincial capital, S Que., Canada, at the confluence of the St. Lawrence and St. Charles rivers. -- Bombardier Recreational Products Inc. Highlights: - Revenues increased by 22.3% to $630.9 million for Q1 FY05, from $515.8 million in Q1 FY04 - Substantial increase in consolidated adjusted EBITDA to $32.2 million for Q1 FY05 from ($0.4) million in Q1 FY04 - Launch of new products: - E-TEC(TM) 200, 225 and 250 HP outboard engines - Ski-Doo(R) Mach Z(R) and the Lynx(TM) R-evo - Sea-Doo(R) 3D(TM) - Implementation of cost reduction plan Bombardier Recreational Products Inc., recently branded as "BRP BRP Bombardier Recreational Products, Inc. BRP Blue Ribbon Panel BRP Bioengineering Research Partnership BRP Business Resumption Plan BRP Business Recovery Plan BRP Bathroom Privileges BRP Bronx River Parkway (New York) ", today announced that its revenues reached $630.9 million for the first quarter of FY05 compared to $515.8 million for last year's first quarter, an increase of 22.3%. These results are mainly due to the decision to postpone post·pone tr.v. post·poned, post·pon·ing, post·pones 1. To delay until a future time; put off. See Synonyms at defer1. 2. To place after in importance; subordinate. watercraft production and deliveries from the latter part of fiscal year ended January January: see month. 31, 2004 to first quarter of fiscal year 2005 and the increase in ATV (1) (Advanced TV) An early name for the digital TV standard proposed by the Advisory Committee on Advanced Television Service (ACATS). See ACATS. See also ATV Forum. (2) (Analog TV) Refers to the NTSC, PAL and SECAM analog TV standads. and outboard Not built in. Outboard devices are external to the main unit. Contrast with inboard. See offboard. engine sales which more than offset the unfavourable foreign exchange impact. Consolidated adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become , as reconciled in the attached schedules, has reached $32.2 million compared to ($0.4) million for the same period last year. This improvement results mainly from the impact of additional revenues and lower operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Our cash position for the first quarter is strong and stands at $152.5 million as of April 30. At that date, there were no borrowings under our revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility and availability stood at $250.0 million, less issued letters of credit of $32.2 million. "These results confirm the continued demand for our innovative products, a very encouraging trend for our company", said Jose JOSE Jealous One's Still Envy (song) JOSE Joint Optics Structures Experiment Boisjoli, BRP's Chief Executive Officer. "I am pleased to see that although foreign exchange fluctuations had an expected negative impact on our results, it was largely offset by increased deliveries of our products. I am also satisfied that we were able to improve our consolidated adjusted EBITDA and our cash position as compared to last year", he added. Snowmobile snowmobile, vehicle designed to travel over snow, ice, and similar surfaces that offer limited traction and weight-supporting capability. As the performance of the vehicle depends to a large extent on keeping its weight as low as possible, there is no enclosure for 2004 retail season ended in March with increased deliveries in both the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. (NA) and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. markets, which contributed to consolidate our position as the industry leader. BRP believes it is also well positioned for the next season with the launch of our new Ski-Doo Mach See Mach kernel. Mach - An operating system kernel under development at Carnegie-Mellon University to support distributed and parallel computation. Mach is designed to support computing environments consisting of networks of uniprocessors and multiprocessors. Z for the NA and European markets and the Lynx lynx, name given to several related small, ferocious members of the cat family. All have small heads, tufted ears, and heavy bodies with long legs and short tails. All are primarily terrestrial, although they are able to climb trees. R-evo for Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). .ATV (all-terrain vehicle all-ter·rain vehicle n. Abbr. ATV A small, open motor vehicle having one seat and three or more wheels fitted with large tires. It is designed chiefly for recreational use over roadless, rugged terrain. ) revenues in the first quarter 2004 increased by 47.0%, compared to the same period last year. This is mainly due to our Outlander(TM) series and the MAX(TM) family of products as well as to the increased revenues outside NA, which have become a major driver of this industry. Watercraft revenues increased by 35.0% during the first quarter 2005 compared to the first quarter 2004. This was mainly caused by the production shift to match the watercraft selling season. The Sea-Doo RXP RXP Resonate Exchange Protocol RXP Receive Positive (TM) model continues to generate great interest while the recently introduced Sea-Doo 3D has taken centre stage in specialised Adj. 1. specialised - developed or designed for a special activity or function; "a specialized tool" specialized specific - (sometimes followed by `to') applying to or characterized by or distinguishing something particular or special or unique; "rules with "Gen Y See generation X. " magazines as well as in the general press. Marine engines revenues have increased by 11.0% when compared to the first quarter of last year. The Evinrude(R) E-TEC is making its mark in the outboard engine business. The larger E-TEC engines, 200, 225 and 250 HP, were introduced to the market in February and have been well received by both the media and the dealer network. Combining all the best attributes of 2-stroke and 4-stroke engines, E-TEC is the outboard engine technology-of-the-future. These engines are reliable, quieter and cleaner, in addition to being powerful, fuel efficient, lightweight and requiring no dealer scheduled maintenance for the first three years. Utility vehicles sales remained flat for the period although bookings for next season have increased over last year. Parts and Accessories sales increased by 6.5% over last year, reflecting a better snowmobile season. Gross profit percentage of revenues has decreased to 14.3% from 16.0% when compared to the same quarter in fiscal 2004. Gross profit decrease was caused primarily by the unfavourable impact of a stronger Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents in relation to the U.S. dollar. It was also caused by the unfavourable impacts resulting from the acquisition and mainly related to; (i) inventory sold during the period which had been increased in value to distributor selling prices; (ii) the unfavourable impact resulting from the settlement of foreign exchange contracts; and (iii) the amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. acquired. These two elements more than offset the positive impact of additional volume and a better mix of watercraft and ATV products in our Power Sports Segment. Net loss for the three-month period ended April 30, 2004 was $35.7 million compared to a net loss of $16.5 million for the same period in fiscal 2004. The variation in net loss was primarily related to unrealised foreign exchange loss on long term debt, to non-recurring related items resulting from purchase accounting and to increased interest expense on long term-debt and accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the in carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of redeemable Redeemable Eligible for redemption under the terms of an indenture. preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. . "2004 is the beginning of a new era for BRP. Our cost reduction plan is ongoing and will contribute to increase our profitability going forward. As we work to retain the confidence of our customers with innovative products we are consolidating our leadership position in our traditional markets and growing our presence in the others", concluded Boisjoli. BRP is a world leader in the design, development, manufacturing, distribution and marketing of Sea-Doo(R) watercraft and sport boats, Ski-Doo(R) and Lynx(TM) snowmobiles, Johnson(R) and Evinrude(R) outboard engines, direct injection technologies such as Evinrude E-TEC(TM), Bombardier(a) all-terrain vehicles (ATV), Rotax(TM) engines and karts, as well as BRP industrial vehicles. This release refers to non-GAAP financial measures, such as EBITDA and Consolidated Adjusted EBITDA. "EBITDA" is defined as earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting and may be different from non-GAAP financial measures used by other companies. Our Senior Credit Agreement and the indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. our Senior Subordinated Notes contain covenants tied to similar measures. We believe that EBITDA and Consolidated Adjusted EBITDA, adjusted for certain items and impacts resulting from purchase accounting, are a fair representation of and provide information with respect to our ability to service our debt. However, they should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . This release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. with respect to our financial condition, results of operations and business. All of these forward-looking statements, which can be identified by the use of terminology such as "subject to," "believe," "expects," "may," "will," "should," "can," or "anticipates," or the negative thereof, or variations thereon there·on adv. 1. On or upon this, that, or it. 2. Archaic Following that immediately; thereupon. Adv. 1. thereon - on that; "text and commentary thereon" on it, on that , or comparable terminology, or by discussions of strategy which, although believed to be reasonable, are inherently uncertain. Factors which may materially affect such forward-looking statements include: (i) slow or negative growth in the recreational products industry; (ii) interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. of business or negative impact on sales and earnings due to acts of war Tom Clancy's Op-Center: Acts of War is a technothriller by Jeff Rovin Plot introduction The mobile Regional Operations Center (ROC) in Turkey investigates a dam blown up by Kurdish terrorists. , terrorism, bio-terrorism, civil unrest Unrest is a sociological phenomenon, for instance:
adj. Not available, accessible, or at hand. un  a·vail of
additional debt or equity capital; (viii) changes in general worldwide
economic and political conditions in the markets in which BRP may
compete from time to time; (ix) the inability of BRP to gain and/or hold
market share of its wholesale and/or retail customers anywhere in the
world; (x) the inability of BRP's clients to obtain and/or renew
insurance; (xi) exposure to, and expense of defending and resolving,
product liability claims and other litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.When a person begins a civil lawsuit, the person enters into a process called litigation. ; (xii) the ability of BRP to successfully implement its business strategy; (xiii) the inability of BRP to manage its retail, wholesale, manufacturing and other operations efficiently; (xiv) consumer acceptance of BRP's products; (xv) fluctuations in foreign currencies, including the Canadian Dollar; (xvi) import-export controls on sales to foreign countries; (xvii) introduction of new federal, state, local or foreign legislation or regulation or adverse determinations by regulators anywhere in the world; (xviii) the mix of BRP's products and the profit margins thereon; and (xix) other factors beyond BRP's control. Readers are cautioned not to place undue reliance on forward-looking statements. BRP cannot guarantee future results, trends, events, levels of activity, performance or achievements. BRP does not undertake and specifically declines any obligation to update, republish re·pub·lish tr.v. re·pub·lished, re·pub·lish·ing, re·pub·lish·es 1. To publish again. 2. Law To revive (a libel or a canceled will). or revise forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrences of unanticipated events. (R), (TM) Trademark of Bombardier Recreational Products Inc. or its subsidiaries. (a) Trademark of Bombardier Inc. used under license.
Bombardier Recreational Products Inc.
(millions of Canadian dollars) Unaudited Statements of Operations
(the Company) (Predecessor)(1)
For the three month period ended
April 30,
2004 2003
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Revenues $ 630.9 $ 515.8
Cost of sales 540.8 433.2
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Gross profit 90.1 82.6
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Operating expenses
Selling and marketing 40.5 45.4
Research and development 30.4 29.4
General and administrative 31.3 32.1
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Total operating expenses 102.2 106.9
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Operating loss (12.1) (24.3)
Interest expense and other 12.2 1.0
Accretion in carrying value of
redeemable preferred shares 1.0 -
Unrealized foreign exchange loss
on long-term debt 21.2 -
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Loss before income taxes (46.5) (25.3)
Income tax recovery 10.8 8.8
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Net loss $ (35.7) $ (16.5)
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(1) Predecessor represents the recreational products business of
Bombardier Inc.
(millions of Canadian dollars) Unaudited Schedules of
Consolidated Adjusted
EBITDA
(the Company) (Predecessor)(1)
For the three month period ended
April 30,
2004 2003
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Net loss $ (35.7) $ (16.5)
Interest expense and other 12.2 1.0
Accretion in the carrying value of
redeemable preferred shares 1.0 -
Income tax recovery (10.8) (8.8)
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EBIT (33.3) (24.3)
Depreciation and amortization 30.3 26.5
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EBITDA (3.0) 2.2
Impact of fair value increments of
inventory on cost of sales 6.4 -
Impact of foreign exchange
contracts on revenue 6.1 -
Unrealized foreign exchange loss
on long-term debt 21.2 -
Management fee 0.8 -
Employee stock compensation 0.7 -
Gain on disposal of other assets - (2.6)
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Consolidated Adjusted EBITDA $ 32.2 $ (0.4)
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(1) Predecessor represents the recreational products business of
Bombardier Inc.
Bombardier Recreational Products Inc.
(millions of Canadian dollars) Unaudited Consolidated Balance Sheet
(the Company)
As at April 30, As at January 31,
2004 2004
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ASSETS
Current Assets
Cash $ 152.5 $ 196.2
Receivables 140.0 153.4
Inventories 378.4 351.8
Prepaid expenses 14.1 19.2
Deferred income taxes 76.5 69.7
Other current assets 75.8 93.1
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Total current assets 837.3 883.4
Property, plant and equipment 485.0 497.9
Goodwill 90.8 92.5
Trademarks 151.1 151.1
Other intangible assets 87.5 90.7
Deferred income taxes 22.7 15.5
Other long-term assets 61.7 64.5
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$ 1,736.1 $ 1,795.6
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LIABILITIES AND SHAREHOLDER'S EQUITY
Current Liabilities
Accounts payable and
accrued liabilities $ 587.9 $ 640.3
Income taxes payable 10.6 9.0
Current portion of long-term debt 5.2 5.0
Other short-term liabilities 2.6 3.5
Deferred income tax - 0.3
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Total current liabilities 606.3 658.1
Long-term debt 656.2 635.0
Deferred income taxes 16.0 17.5
Employee future benefits liability 124.7 121.9
Redeemable preferred shares 44.2 43.2
Other long-term liabilities 28.4 30.9
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Total liabilities 1,475.8 1,506.6
Shareholder's equity
Share capital 311.0 304.5
Contributed surplus 0.7 -
Deficit (53.2) (17.5)
Currency translation adjustment 1.8 2,0
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$ 1,736,1 $ 1,795,6
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(millions of Canadian dollars) Unaudited Statement of Cash Flows
(the Company) (Predecessor)(1)
For the three month period ended
April 30,
2004 2003
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Operating Activities
Net Loss $ (35,7) $ (16,5)
Non-Cash Items
Depreciation and Amortization 30,3 26,5
Amortization of deferred financing fees 1,6 -
Employee stock compensation 0,7 -
Deferred income taxes (15,1) 1,5
Gain on disposal of other assets - (2,6)
Accretion in carrying value of
redeemable preferred shares 1,0 -
Unrealized foreign exchange loss
on long-term debt 21,2 -
Net change in non-cash working capital
balances related to operations (33.2) (158,9)
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Cash flows from operating activities (29.2) (150,0)
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Investing Activities
Additions to property plant and equipment (8,7) (17,0)
Proceeds on disposal of other assets - 4,5
Business acquisition (6,4) -
Other - (1,5)
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Cash flows from investing activities (15.1) (14,0)
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Financing Activities
Increase in stated capital 6,5 -
Other liabilities (2,7) (2,8)
Net variation in advances (to)
from related parties - 23,8
Net contribution by Bombardier Inc. - 129,0
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Cash flows from financing activities 3,8 150,0
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Effect of exchange rates on cash
and cash equivalents (3,2) 4.5
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Net increase in cash and
cash equivalents (43,7) (9,5)
Cash beginning of period 196,2 28,7
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Cash end of period $ 152,5 $ 19.2
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(1) Predecessor represents the recreational products business of
Bombardier Inc.
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