The Maverick XRS DPS as well as other Can Am Maverick and Commander side-by-side models helped power BRP earnings in the last quarter.
BRP Inc., manufacturer of Can-Am side-by-sides and other power sports products announced their FY14 third quarter results for the period ended October 31, 2013 (Figures in Canadian dollars). The management reported record quarterly revenues of $866.0 million, an increase of 18% compared to the corresponding period of FY2013 Net income of $48.2 million, an increase of 52% compared to the third quarter FY2013. Revenues from Year-Round Products increased by $2.2 million, or 0.9%, to $249.6 million for the three-month period ended October 31, 2013, up from $247.4 million for the corresponding period ended October 31, 2012. The increase is primarily due to higher wholesale and a favourable product mix in side-by-side vehicles, for an increase of approximately 38% compared with the corresponding period ended October 31, 2012. The increase was mainly offset by a 20% reduction in ATV sales. Other highlights from the earnings call with a focus on side-by-sides include:
- Year-to-date, BRP registered growth of 13% in year-round products, primarily driven by significant growth in side-by-side, a market BRP only entered in late 2010.
- Year-to-date, side-by-side revenue is up 35% driven by eight new models under the Commander and Maverick product lines.
- Company remains on track for to add 35-40 new dealers in North America by the end of our fiscal year 2014, and continue to focus on the US South and Southwest regions. They are also on track for 200 to 300 new dealers over the next four years.
- International revenues have grown 15% in large part to the increasing popularity of side-by-side products
- The US side-by-side industry is up low-double digit thus far in season 2014, while BRP retail continues to significantly outpace the industry.
- Management reports that they started deliveries of the Maverick Max in June; the Maverick XMR, the mud-ready vehicle, in October; and the XC model, Maverick XC model, also in October. “Then we have a very good momentum worldwide with our side-by-side business, and we are outpacing the industry every quarter, and we’re very happy with that.”
- BRP continues to track on plan for our full-year revenue and normalized EBITDA guidance.