PowerSports Business

July 10, 2017

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www.PowersportsBusiness.com FINANCIAL Powersports Business • July 10, 2017 • 13 generation ability and confidence in BRP's fun- damental value. We are proud to be in a posi- tion to return capital to all shareholders while maintaining our ability to pursue our growth opportunities." FISCAL Q1 HIGHLIGHTS Revenues increased in FY2018 Q1. The rev- enue increase was primarily attributable to higher wholesale of Seasonal Products and PAC. The increase includes an unfavorable foreign exchange rate variation of $1 million. Gross profit increased by $13.1 million, or 6.7 percent, to $207.2 million for the three- month period ended April 30, 2017, compared with $194.1 million for the corresponding period ended April 30, 2016. The gross profit increase includes a favorable foreign exchange rate variation of $9 million. Gross profit margin percentage increased by 80 basis points to 21.7 percent from 20.9 percent for the three-month period ended April 30, 2016. The increase in gross profit margin percentage was primar- ily due to a favorable product mix in SSV and a favorable foreign exchange rate variation, partially offset by a lower volume of Spyder vehicles and higher production costs. YEAR-ROUND PRODUCTS Revenues from Year-Round Products decreased by $9.8 million, or 2.4 percent, to $390.4 mil- lion for the three-month period ended April 30, 2017, compared with $400.2 million for the corresponding period ended April 30, 2016. The decrease was primarily attributable to a lower wholesale in Spyder vehicles, partially offset by a higher wholesale and a favorable product mix in SSV due to the introduction of the Can-Am Maverick X3. SEASONAL PRODUCTS Revenues from Seasonal Products increased by $19.7 million, or 6.9 percent, to $306.5 million for the three-month period ended April 30, 2017, compared with $286.8 million for the corresponding period ended April 30, 2016. The increase resulted primarily from a higher volume and a favorable mix of PWC sold. PROPULSION SYSTEMS Revenues from Propulsion Systems decreased by $5.5 million, or 5.0 percent, to $105.6 mil- lion for the three-month period ended April 30, 2017, compared with $111.1 million for the corresponding period ended April 30, 2016. The decrease in revenues was primarily attribut- able to a lower volume of aircraft engines sold. PAC (PARTS, ACCESSORIES, CLOTHING AND OTHER SERVICES) Revenues from PAC increased by $21.9 mil- lion, or 16.6 percent, to $153.7 million for BRP CONTINUED FROM PAGE 12 See BRP, Page 14 AL3RTGPS announced its partnership with Western Service Contract, fueled by McGraw Powersports, to sell the AL3RTGPS suite of tracking products to powersports dealerships. AL3RTGPS will offer state-of-the-art GPS tracking services and technology to WSC, allowing WSC to expand its security product portfolio to independent and franchised deal- erships across the nation. Western Service Contract has a long history working with dealerships to provide motorcycle enthusiasts with a wide array of cutting edge products and services. The McGraw Group's national team of seasoned professionals help dealer partners get the most out of their F&I transactions by bringing them the latest in GPS tracking and security products. "With AL3RTGPS, we've found a partner who we trust to provide exceptional products for our dealers and their riders," said Shane Ballard, director of Sales for McGraw Power- sports. "AL3RTGPS units are trusted and used by our riders, and we know our customers will feel the same security we do." TEXTRON NAMES NEW BOARD MEMBER Textron Inc. (NYSE:TXT) announced that Deborah Lee James has been elected to the company's Board of Directors, effective July 1. James recently retired as the 23rd Secre- tary of the United States Air Force, a position she had held since 2013. James has 30 years of homeland and national security experience in the federal government and the private sector. "We are extremely fortunate and honored to welcome the Honorable Deborah James to our board," said Textron chairman and CEO Scott Donnelly. "Deborah's deep expertise in national security, government procurement, strategic planning, cybersecurity, logistics and innovation, garnered from her leadership positions at the U.S. Air Force and private industry, will greatly benefit Textron," Don- nelly added. As Secretary of the Air Force, James oversaw the Air Force's annual budget of more than $139 billion. She led the Air Force in reaching key milestones in the next generation fighter (F-35) program and the refueling aircraft program (KC-46), as well as in launching important moderniza- tion programs, including a new combat res- cue helicopter, long-range strategic bomber and trainer aircraft. She also ordered the development of a comprehensive cyber campaign plan and directed the overhaul of the Air Force's logistics organization and processes. PSB DIGEST AL3RTGPS partners with Western Service Contract DEBORAH JAMES

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