Financial Data and Key Metrics Changes - The company achieved record financial results for fiscal year 2022, with revenue reaching $7.6 billion, an increase of 28% compared to fiscal year 2021 [9] - Normalized EBITDA rose by 46% to $1.4 billion, representing a margin of 19.1% [10] - Diluted normalized earnings per share grew by 84% to $9.92, exceeding the guidance range [10][32] Business Line Data and Key Metrics Changes - Year-round products revenue increased by 12% to $853 million in Q4, despite supply chain disruptions [18] - Seasonal products revenue surged by 56% in Q4 to $1 billion, with snowmobile retail up low single-digit percent, outpacing the industry [21] - Powersports parts, accessories, and apparel revenue rose by 21% in Q4, surpassing $1 billion for the first time [26] Market Data and Key Metrics Changes - The company gained approximately 3 percentage points in market share in North America, ending the year with about 30% market share [12] - In Q4, the company outpaced the industry in snowmobiles, prioritizing component utilization for that segment [13] - Personal watercraft retail was down low-60% due to inventory shortages, but the company gained over 10 percentage points of market share in Australia and New Zealand [24] Company Strategy and Development Direction - The company is focused on expanding its product portfolio, introducing new market-shaping products like the Sea-Doo Switch [8] - Capacity expansion projects have been completed on time and on budget, increasing production capacity significantly [7][20] - The company plans to enter the electric motorcycle market with a new family of electric two-wheel motorcycles under the Can-Am brand, targeting a significant addressable market [50][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining strong consumer demand for powersports despite supply chain challenges [29] - The company anticipates continued growth in fiscal 2023, with revenue expected to increase by 24% to 29% [35] - Management acknowledged potential challenges in the first half of fiscal 2023 due to ongoing supply chain disruptions and inflationary pressures [42][55] Other Important Information - The company ended the year with a robust balance sheet, including $266 million in cash and a net leverage ratio of 1.2 times [32] - A 23% increase in the dividend per share was announced, along with a $250 million substantial issuer bid [49] - The company expects to continue utilizing a strategy of building substantially completed units and retrofitting them as components are received [42] Q&A Session Summary Question: Margin compression for fiscal 2023 - Management indicated a 200 basis point decline in margin, with volume expected to provide a 100 basis point increase, while inflation and inefficiencies contribute to the headwind [58] Question: Existing customer trends - Management noted that existing customers are increasingly willing to secure their purchases with preorders, with significant growth in preseason deposits for snowmobiles and personal watercraft [60] Question: Inventory restocking - Management estimated that the restocking opportunity is about a quarter's worth of wholesale revenue, expected to occur in fiscal year 2024 [65] Question: Electric motorcycle market size - The addressable market for the new electric motorcycle line is estimated at 600,000 units per year, primarily targeting the North American and European markets [66] Question: Geographic revenue allocation - The company does not expect a significant negative financial impact from exiting the Russian market, as units can be reallocated to other markets [98]

BRP Inc. (NASDAQ:DOOO) Q3 2022 Earnings Conference Call December 1, 2021 9:00 AM ET Company Participants José Boisjoli - President, Chief Executive Officer Sébastien Martel - Chief Financial Officer Philippe Deschênes - Treasury, Investor Relations Conference Call Participants Craig Kennison - Baird Unknown Analyst - Stifel Gerrick Johnson - BMO Capital Markets Cameron Doerksen - National Bank Financial Joe Altobello - Raymond James Brian Morrison - TD Securities Robin Farley - UBS Fred Wightman - Wolfe Res ...

Financial Data and Key Metrics Changes - Revenues increased by 54% to $1.9 billion, with normalized EBITDA rising 94% to $415 million and normalized earnings per share up 1.5 times to $2.89 [8][28][36] - The company is increasing its normalized EPS guidance for the year to a range of $8.25 to $9.75 per share, representing a growth of 53% to 81% compared to last year [7][36] Business Line Data and Key Metrics Changes - North American Powersport retail sales were down 19% for the quarter but up 14% compared to the second quarter of fiscal year '20, indicating strong demand despite lower inventory [9][11] - Seasonal products revenue increased by 78% to $575 million, driven by higher shipments and a richer mix of personal watercraft [23] - Powersports Parts, Accessories & Apparel and OEM engines revenues rose by 19% to $249 million for the quarter [24] Market Data and Key Metrics Changes - North American retail sales decreased in Q2 due to low inventory but were up 9% compared to two years ago [11] - The company gained market share in most product lines despite overall industry challenges, with new entrants representing 43% of buyers in Q2 compared to 41% last year [13] Company Strategy and Development Direction - The company is focusing on attracting new entrants through product innovation and community engagement initiatives [12][39] - The introduction of new products, such as the Sea-Doo Switch and Can-Am upgrades, is expected to drive future growth [14][19] - The company anticipates a significant inventory replenishment cycle over the next 12 to 18 months, supported by increased production capacity [40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain challenges, including semiconductor shortages and labor issues, but expressed confidence in improving conditions by the end of 2021 and into 2022 [33][46] - The company expects Q3 to be challenging due to low inventory levels but anticipates a stronger Q4 as supply chain issues are resolved [36][55] Other Important Information - The company generated $417 million of cash from operations and invested $217 million in working capital, with a focus on managing supply chain constraints [29] - The company successfully completed a substantial issuer bid, repurchasing 3.4 million shares [29] Q&A Session Summary Question: Market share gains by newer entrants - Management noted that while some dealers reported losing customers, the impact was minimal, and new entrants are showing strong intent to remain in the industry [43] Question: Confidence in Q4 logistics improvement - Management highlighted improvements in supplier operations and expected better conditions for semiconductor supply by late 2021 [46] Question: EPS guidance and profitability drivers - Management indicated that better-than-expected results were driven by lower sales programs and a richer product mix, offsetting some commodity cost pressures [49][50] Question: Q3 performance expectations - Management confirmed that Q3 would be weaker due to low inventory and supply chain challenges, but they expect Q4 to improve significantly [55] Question: Inventory replenishment expectations - Management projected that inventory replenishment would begin next year, with a significant backlog of demand expected to drive sales [72][74]

BRP, Inc. (NASDAQ:DOOO) Q4 2021 Earnings Conference Call June 3, 2021 9:00 AM ET Company Participants Philippe Deschenes - Manager, Treasury & IR Jose Boisjoli - President, CEO & Chairman Sebastien Martel - CFO Conference Call Participants Robin Farley - UBS Investment Bank Cameron Doerksen - National Bank Financial Craig Kennison - Robert W. Baird & Co. Benoit Poirier - Desjardins Capital Markets Frederick Wightman - Wolfe Research Martin Landry - Stifel Sean Collins - Citi Group Research Brian Morrison - ...

Financial Data and Key Metrics Changes - Revenue for Q3 FY 2021 reached $1.7 billion, up 2% year-over-year, with a gross profit margin of 29.1%, representing a 220 basis point increase [7][29] - Normalized EBITDA increased by 30% to $349 million, resulting in a normalized EPS of $2.13, up 41% from the previous year [8][30] - Free cash flow generation was strong at $228 million, with cash on the balance sheet totaling $1.3 billion [30] Business Line Data and Key Metrics Changes - Year-Round Products revenue increased by 11%, driven by a richer product mix, while Seasonal Products revenue decreased by 8% due to changes in production schedules [18][22] - Parts, Accessories, and Apparel (PA&A) revenue rose by 15%, attributed to strong retail sales and increased usage [26] - Marine revenue declined by 25%, primarily due to the wind down of the Evinrude outboard engine line, although retail for other brands showed mid-30% growth [27] Market Data and Key Metrics Changes - North American powersports retail was up 16% year-over-year, with a 29% increase when excluding Personal Watercraft [9][12] - Retail growth in Latin America was 16% and 22% in Asia-Pacific, while EMEA experienced a 9% decline due to inventory shortages [9][10] - The North American three-wheeled vehicle market saw retail growth of low 20%, with significant participation from new entrants [20][21] Company Strategy and Development Direction - The company is focused on capitalizing on strong consumer interest in powersports, with plans to increase production capacity and introduce new products [14][15] - A new side-by-side manufacturing facility in Mexico is under construction, expected to enhance production capacity by 50% [19] - The company aims to maintain a balance between new and existing customers, leveraging innovative product introductions to gain market share [42][74] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustained consumer interest and the ability to manage supply chain challenges effectively [13][39] - The company has increased its year-end guidance, expecting revenue to decline by 1% to 5% and normalized EPS to grow by 31% to 37% [8][36] - Management acknowledged potential risks from COVID-19 but remains confident in the company's ability to navigate these challenges [39] Other Important Information - The company has reinstated its quarterly dividend and launched a normal course issuer bid, reflecting confidence in its financial position [40] - The company reported a significant increase in new entrants to the powersport market, with 34% of buyers being new to the industry [12][73] Q&A Session Summary Question: Retail growth trends in recent months - Management noted strong retail growth in August, September, and October, with October showing a slight acceleration despite being a transition month [47] Question: Cost structure and future expenses - Management indicated that while cost-saving measures were beneficial, expenses are expected to rise in Q4 due to strategic investments [52] Question: Inventory management and profitability - Management confirmed that low inventory levels are benefiting dealers and the company, with plans to manage inventory levels carefully moving forward [56] Question: Market share gains in side-by-side vehicles - Management attributed market share gains to pre-COVID momentum and effective production management during the quarter [60] Question: New customer demographics and retention - Management highlighted that new entrants are diverse and include many professionals, with a focus on converting them into loyal customers [90][91]

Financial Data and Key Metrics Changes - Revenue for the quarter was $1.2 billion, down 15% from last year, which was better than expected given the pandemic impact [6][18] - Normalized EBITDA increased by 28% to $214 million, with normalized EPS rising 61% to $1.14 [6][18] - Free cash flow generated so far this year was $248 million, with over $900 million in additional financing secured [19] Business Line Data and Key Metrics Changes - Year-Round Products revenue decreased by 15%, but retail sales for Can-Am side-by-side were up low-40%, solidifying a 2 market share position [10] - ATV retail was up low-20% in North America and over 30% in Asia Pacific [11] - Personal Watercraft revenue was down 25%, but retail sales increased mid-teen percentage due to strong consumer demand [13][14] - Powersports parts, accessories, and apparel revenue increased by 20%, driven by strong retail momentum [15] Market Data and Key Metrics Changes - Retail sales increased by 40% in North America, 41% in EMEA, 34% in Asia Pacific, and 27% in Latin America [7] - North American dealer inventory was down 51%, and finished goods inventory was down 38% [8][23] - New entrants to the Powersports industry increased by 51% compared to the same quarter last year, with 41% being completely new to the industry [9] Company Strategy and Development Direction - The company plans to construct a second plant dedicated to side-by-side vehicles to increase capacity by 50% [10] - Focus on converting new entrants into lifelong customers through marketing initiatives [10][31] - Commitment to investing in product development and maintaining liquidity for future growth [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to emerge stronger from the crisis, despite uncertainties related to COVID-19 [5][19] - Anticipated revenue decline of 5% to 9% for the year, with normalized EPS expected between $3.65 to $3.95 [5][26] - Management remains cautious but optimistic about the demand for products in the second half of the year [28][29] Other Important Information - The company is focused on maintaining health and safety measures in operations while managing supply chain challenges [30][74] - The wind down of Evinrude outboard engines is expected to impact Marine revenues, projected to decline by 25% to 30% [16][75] Q&A Session Summary Question: Current status of operations at plants and utilization levels - All operations are running at full capacity without efficiency loss, despite some supply chain challenges [33][34] Question: Marketing efforts to attract new customers - Active marketing efforts are in place to engage new customers and convert them into lifelong users [36][37] Question: Outlook for Snowmobile season and production capacity - Production is scheduled to run at full capacity until Christmas, with the ability to meet dealer orders [41] Question: Impact of the pandemic on the five-year plan - The essence of the five-year plan remains unchanged, with some minor adjustments in product introduction timelines [46] Question: Capital deployment and working capital movement - Expecting significant CapEx investments in fiscal '22, with a focus on rebuilding inventory [47] Question: Dealer inventory and optimal levels - Dealer inventory is down nearly $1 billion, indicating a significant reduction that needs to be addressed [64] Question: Market share outlook and competitive positioning - Market share may experience short-term losses due to inventory availability, but the company expects to regain momentum as inventory levels normalize [71]

Financial Data and Key Metrics Changes - Revenue decreased by 8% year-over-year, with normalized EBITDA down 16% [32] - Normalized EPS for the quarter was $0.26 [32] - Gross profit margin was impacted by COVID-19, with a 350 basis point decline primarily due to production shutdowns [35] Business Line Data and Key Metrics Changes - Retail performance in North America was strong, with power sport retail up 4%, and 10% excluding snowmobiles [16] - Side-by-side retail grew about 40%, while ATV retail was up in the high single digits [18] - Personal watercraft retail was up low single digits, while snowmobile retail was up mid-single digits [26][28] - Marine business revenues were down 26% due to lower outboard engine sales [30] Market Data and Key Metrics Changes - Approximately 90% of dealers in the U.S. were reopened, while about 80% in Europe were operational [52] - Retail was up about 35% worldwide since the beginning of May [53] - The North American three-wheeled vehicle industry was down low 30%, with the company down low 40% [24] Company Strategy and Development Direction - The company announced the discontinuation of outboard engine production to refocus on higher expected returns and sustainable projects [9][13] - A global supply agreement with Mercury was established to secure access to engines [13] - The company aims to adapt its growth objectives to the new reality post-COVID-19, focusing on e-commerce and consumer behavior changes [49] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the future but expects to navigate through uncertain times while investing for long-term growth [9] - The company anticipates a challenging second quarter with revenues expected to decline by about 40% [43] - There is uncertainty regarding the timing of recovery to fiscal year 2020 levels, but management believes in the strength of their market position [97] Other Important Information - The company implemented cost mitigation measures resulting in overhead savings of up to $450 million for the year [8] - A non-cash impairment of $171 million was taken for the marine business due to challenging industry dynamics [37] Q&A Session Summary Question: Retail trends into May - Management noted that about 90% of U.S. dealers are reopened, with a positive retail trend of about 35% worldwide since early May [52][53] Question: Production ramp-up - Production in Mexico is set to restart on June 1, with expectations of full operational capacity in three factories [55] Question: Operating costs and overhead savings - The company plans to reduce expenses by up to $450 million, with some savings expected to be structural due to the discontinuation of the outboard engine business [57] Question: Annualized revenue and margin profile of the engine business - The engine business was nearly breakeven, with a market share in the mid-single digits [61][63] Question: Demand for outdoor recreational products globally - Management indicated that the timing of COVID-19 impacts varies by region, affecting retail recovery in markets outside North America [68] Question: Future investments in e-commerce - The company is reallocating IT investments to enhance e-commerce capabilities without significant capital expenditure [90] Question: Impact of the outboard engine business on EPS - The discontinuation of the engine business is expected to improve EPS by approximately $0.60 to $0.70 [79][98]

Financial Data and Key Metrics Changes - Revenue increased by 15% to $6.1 billion, primarily driven by strong growth in Year-Round products [8][21] - Normalized EBITDA rose by 22% to $804 million, resulting in a normalized earnings per share of $3.83, a solid growth of 24% over the previous year [8][21] - Gross profit margin for Q4 ended at 23.7%, an increase of 150 basis points from the previous year [20] Business Line Data and Key Metrics Changes - Year-Round product revenues increased by 18%, driven by higher volumes of side-by-side vehicles [12] - Seasonal product revenue decreased by 6%, primarily due to lower volumes of personal watercraft sold [14] - Marine category revenues rose by 19%, driven by the acquisition of Telwater and higher volumes of outboard engines sold [17] Market Data and Key Metrics Changes - North American powersports retail sales increased by 15%, outperforming the industry which grew in mid single digits [9] - Retail in North America was up 12% overall, and 21% when excluding snowmobiles [10] - Latin America saw a retail increase of 19%, driven by strong side-by-side and personal watercraft sales [10] Company Strategy and Development Direction - The company aims to maintain a diversified manufacturing footprint and product portfolio to adapt to market changes [7] - Focus on innovation and technology to create market-shaping products, as evidenced by the introduction of a factory-built two-stroke turbocharged engine [15][16] - The company is following a "buy, build, transform" strategy in the Marine category, indicating a long-term growth approach [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty due to COVID-19 but noted that the direct impact on business has been limited so far [6][26] - The company will not issue full-year guidance for fiscal year '21 due to the fluid situation [26] - Management is proactively implementing measures to protect financial flexibility and is monitoring the situation closely [18][27] Other Important Information - Free cash flow for the fiscal year ended at $225 million, with capital expenditures below guidance at $331 million [21] - The company has drawn the full amount on its $700 million revolver facility to ensure liquidity [66] Q&A Session Summary Question: Dealer inventory trends and flexibility on orders - Management indicated that dealer orders remain firm in North America, with no cancellations observed yet, but acknowledged potential future challenges due to dealer closures [33][34] Question: Production adjustments and stress testing scenarios - Management stated that while all manufacturing sites are operational, some may reduce shifts or temporarily close based on demand [35] Question: Financial relief for dealers - Management noted that dealers are in a better financial position compared to the 2008/2009 crisis, with only 4% considering closure [39] Question: CapEx flexibility - Management indicated that CapEx could be reduced from over $400 million to potentially low $200 million, focusing on essential projects [43] Question: Retail demand impact from competitors - Management reported no slowdown in retail demand despite increased competition, with strong retail performance continuing [70]