VALCOURT, QC, Jan. 26, 2024 /PRNewswire/ - BRP Inc. (TSX: DOO) (NASDAQ: DOOO) ("BRP" or the "Company") announced today the closing of the previously announced bought deal secondary offering (the "Offering") pursuant to which Bain Capital Integral Investors II, L.P. ("Bain" or the "Selling Shareholder") sold 2,000,000 subordinate voting shares of BRP (the "Subordinate Voting Shares") at a price to the public of C$91.00 per Subordinate Voting Shares. The Subordinate Voting Shares were offered by way of a pros ...

BRP Inc. (NASDAQ:DOOO) Q3 2024 Earnings Conference Call November 30, 2023 9:00 AM ET Sébastien Martel - Chief Financial Officer James Hardiman - Citi Benoit Poirier - Desjardin Capital Markets Luke Hannan - Canaccord Genuity Tristan Thomas-Martin - BMO Capital Markets Good morning, ladies and gentlemen and welcome to the BRP Inc.Â's Fiscal Year 2024 Third Quarter Results Conference Call. For participants who use the telephone line, it is recommended to turn off the sound on your device. reference will be ma ...

Company Participants Sébastien Martel - Chief Financial Officer Conference Call Participants Robin Farley - UBS Xian Siew - BNP Paribas Cameron Doerksen - National Bank Financial Martin Landry - Stifel Joe Altobello - Raymond James Brian Morrison - TD Securities Michael Kypreos - Desjardins Operator I would now like to turn the meeting over to Mr. Philippe Deschênes. Please go ahead, Mr. Deschênes. Thank you Julie. Good morning and welcome to BRPÂ's conference call for the second quarter of fiscal year '24. ...

FY24 Guidance Bridge Upgrade Drivers Realignment Drivers FY24 Diluted Normalized EPS[1] Guidance Bridge[2] ◼ Impact of share repurchases completed in the quarter ◼ Lower shipments of PA&A primarily for 3WV and Sea-Doo Pontoon Powersports PA&A and OEM Engines | Revenues up 14% + +14% ◼ Higher volume of PA&A driven by strong unit retail sales, and higher volume of Pinion gearboxes sales ◼ Parts: Double-digit % revenue growth primarily driven by the growing number of units in use *All variations above represen ...

Financial Data and Key Metrics Changes - Revenue reached $2.4 billion, up 34% from the previous year, driven by higher volume and pricing, as well as a more favorable mix [86] - Normalized EBITDA grew 39% to $377 million, with a margin of 15.5%, up 50 basis points from last year [112] - Normalized EPS increased 43% to $2.38 [113] Business Line Data and Key Metrics Changes - Year-Round product revenues were up 43%, reaching $1.3 billion, driven by strong shipments of side-by-side and three-wheeled vehicles [95] - Seasonal product revenue increased by 69% to $692 million, driven by higher volume of Sea-Doo Personal Watercraft and Pontoon [99] - Powersports parts, accessories, and apparel revenue declined 17% to $285 million, primarily due to lower repeat orders and timing issues related to snowmobile deliveries [105] Market Data and Key Metrics Changes - Retail sales in North America were up 3% for the quarter, or up 8% excluding snowmobiles [87] - Retail performance improved significantly in April and May, with retail up 47% in May compared to last year [21] - Retail in EMEA was up 14% and 25% in Latin America, while Asia-Pacific retail was down roughly in line with the industry [92] Company Strategy and Development Direction - The company is focused on growing a profitable business, with plans aligned with the M25 EPS goals, although adjustments may occur in product lines delivering revenue targets [18] - The company aims to deliver 9% to 12% growth in revenues and 9% to 13% growth in normalized EBITDA for the year [137] - The company is optimistic about sustaining momentum over the mid to long-term, with new products in early growth stages and a solid pipeline of product introductions [146] Management's Comments on Operating Environment and Future Outlook - Management noted that the retail environment is improving, with healthy consumer interest despite macroeconomic concerns [88] - The company is experiencing a favorable supply chain environment, allowing better utilization of production capacity [136] - Management expressed confidence in the upcoming snowmobile season, with pre-sold units significantly above target [101] Other Important Information - The company has deployed about $110 million toward share repurchases and expects to continue being active in this area [114] - The company is monitoring dealer inventory closely, ensuring a balance between inventory levels and retail momentum [46] Q&A Session Summary Question: What are the expectations for the industry growth? - Management expects a flat industry this year, with growth driven by new product introductions and sustained market share gains [150] Question: How is the inventory situation? - Management indicated that inventory turns have improved, and there is potential for remaining replenishment opportunities [151]

Financial Data and Key Metrics Changes - The company generated record normalized EBITDA of $528 million for the quarter, representing a margin of 17.2% [3] - Normalized net income reached $309 million, resulting in a normalized earnings per share (EPS) of $3.85 for the quarter, ahead of expectations [3] - The company ended the year with over $200 million in cash and a healthy net leverage ratio of 1.5 times [3] Business Line Data and Key Metrics Changes - Retail sales in Q4 were significantly up, with snowmobile bookings tracking to pre-COVID numbers and website traffic above pre-COVID levels [4][5] - The used market has slowed down, with dealers maintaining high pricing on used units, but retail sales for used units have decreased [6] - The company has doubled its production capacity for side-by-side vehicles, with Juárez 3 Phase 1 and Phase 2 increasing capacity by 60% and 50% respectively [22][23] Market Data and Key Metrics Changes - The North American powersports industry was down low-single digits in 2022, with expectations for stable industry growth in 2023 [36] - The company expects the industry to remain flat year-over-year, which would represent a decline of low-single digits from pre-COVID levels [120] - New entrants in the market are reportedly up 40% compared to pre-COVID levels, with a significant portion of these customers indicating they intend to stay in the industry [38] Company Strategy and Development Direction - The company plans to continue investing in innovation and R&D to gain market share in the marine and powersport industries, particularly in side-by-side vehicles [17] - The focus will shift back to execution and efficiency as the supply chain stabilizes [17] - The company aims to maintain a strong normalized EBITDA margin of at least 17% in the coming years, supported by structural improvements and a richer product mix [113][116] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth despite mixed signals in the industry, citing low unemployment rates and good access to credit [7] - The company anticipates solid quarters throughout the year, with expectations for revenue growth of 9% to 12% and normalized EBITDA growth of 9% to 13% [105][124] - Management noted that while the macroeconomic environment poses challenges, the company is well-positioned due to its diversified product lines and improved cost structure [68] Other Important Information - The company plans to allocate between $750 million to $800 million to capital expenditures, focusing on growth projects with attractive expected returns [127] - A dividend increase of 12.5% has been announced, and the company plans to be active in share buybacks [128] Q&A Session Summary Question: Insights on consumer demand and market dynamics - Management noted that retail sales were up significantly, with strong snowmobile bookings and website traffic above pre-COVID levels [4][5] - The used market has slowed, but high pricing is being maintained by dealers [6] Question: Competitors' sales programs and market share - Sales programs are not as aggressive as pre-COVID but are more than last year, with no significant new programs from newer entrants [18][20] Question: Capacity and production updates - The company has doubled its capacity for side-by-side vehicles and is currently running at 80% capacity due to supply chain constraints [24][22] Question: Market share protection and competition - Management expressed confidence in protecting market share due to strong product offerings and dealer momentum [27][28] Question: Industry growth expectations - The company expects a flat industry in 2023, with confidence in maintaining market share and revenue growth [36][43] Question: Working capital and cash flow - The company anticipates a cash benefit of over $400 million from better management of working capital [71] Question: Margin expectations and promotional activities - Management expects to hold onto at least 100 basis points of sales program savings despite some promotional activities [80] Question: Inventory levels and channel fill opportunities - The company is currently about 20% below pre-COVID inventory levels for ATVs and expects to fill the pipeline by the end of Q1 [86][88]

[Executive Summary and Highlights](index=1&type=section&id=Executive%20Summary%20%2F%20Highlights) [Highlights for FY23 Q4](index=1&type=section&id=Highlights%20for%20FY23%20Q4) BRP achieved record revenue growth and strong profitability in Q4 FY2023, with significant retail sales growth in Powersports products and increased market share in North America Key Financial Metrics for FY23 Q4 | Metric | Amount (Million CAD) | Y-o-Y Growth (%) | | :--- | :--- | :--- | | Revenue | $3,076.3 | 31% | | Powersports Product Retail Sales | - | 21% | | Normalized Diluted EPS | $3.85 | 28% | | Diluted EPS | $4.54 | 82% | | Normalized EBITDA | $528.0 | 27% | - Fourth quarter revenue reached a **new company record** for a single quarter[8](index=8&type=chunk) - North American SSV market share experienced growth[8](index=8&type=chunk) [Highlights for FY23 Full Year](index=1&type=section&id=Highlights%20for%20FY23) In FY2023, BRP's revenue surpassed CAD 10 billion for the first time, Normalized EPS exceeded guidance, and the company achieved significant market share growth in North American Powersports Key Financial Metrics for FY23 Full Year | Metric | Amount (Million CAD) | Y-o-Y Growth (%) | | :--- | :--- | :--- | | Revenue | $10,033.4 | 31% | | Normalized Diluted EPS | $12.05 | 21% | - Revenue exceeded **CAD 10 billion** for the first time, setting a new historical record[8](index=8&type=chunk) - Normalized diluted earnings per share surpassed the **upgraded FY2023 guidance range**[8](index=8&type=chunk) - North American Powersports industry market share increased by **over 5 percentage points**[8](index=8&type=chunk) - Returned **CAD 356 million** to shareholders through share repurchases and dividend payments[8](index=8&type=chunk) - Completed **3 acquisitions**, established the LVHA group, and initiated construction of the Can-Am electric two-wheel motorcycle production facility, demonstrating continuous investment in future market-shaping products[8](index=8&type=chunk) [Overview of FY24 Full-Year Guidance](index=1&type=section&id=Fiscal%202024%20full-year%20guidance) The company projects continued growth in FY2024, with revenue expected to increase by 9% to 12% and Normalized diluted EPS by 2% to 6% - The company anticipates FY2024 revenue to increase by **9% to 12%** compared to FY2023[8](index=8&type=chunk) - Normalized diluted earnings per share are projected to be between **CAD 12.25 and CAD 12.75**, representing a **2% to 6% increase** from FY2023[8](index=8&type=chunk) [Fiscal Year 2024 Guidance](index=2&type=section&id=FISCAL%20YEAR%202024%20GUIDANCE) [Financial Guidance](index=2&type=section&id=Financial%20Metric) BRP provides detailed guidance for FY2024 across product lines and for the overall company, covering revenue, Normalized EBITDA, effective tax rate, and Normalized diluted EPS FY24 Financial Guidance | Financial Metric | FY23 (Million CAD) | FY24 Guidance vs FY23 | | :-------------------------------- | :------------------ | :-------------------- | | **Revenue** | | | | Year-Round Products | $4,827.1 | Growth 16% to 19% | | Seasonal Products | $3,440.3 | Decrease 4% to Flat | | Powersports PA&A and OEM Engines | $1,276.4 | Growth 3% to 7% | | Marine Products | $489.6 | Growth 45% to 50% | | Total Company Revenue | $10,033.4 | Growth 9% to 12% | | Normalized EBITDA | $1,706.3 | Growth 9% to 13% | | Effective Tax Rate | 24.4% | 24.5% to 25.5% | | Normalized Diluted EPS | $12.05 | $12.25 to $12.75 (Growth 2% to 6%) | | Net Income | $865.4 | Approx. $985M to $1,025M | [Other Assumptions](index=2&type=section&id=Other%20assumptions%20for%20FY24%20Guidance) FY2024 guidance is based on several operational and financial assumptions, including projected increases in depreciation expense, financing costs, diluted shares, and capital expenditures Other Key Assumptions for FY24 | Metric | FY23 (Million CAD) | FY24 Guidance (Million CAD) | | :-------------------------------- | :------------------ | :--------------------------- | | Adjusted Depreciation Expense | ~$304 | ~$375 | | Adjusted Net Financing Costs | ~$110 | ~$180 | | Diluted Weighted Average Shares | ~80.9 Million Shares | ~80.5 Million Shares | | Capital Expenditures | ~$659 | ~$750 to $800 | [Detailed Financial Highlights](index=3&type=section&id=Financial%20Highlights) [Overall Financial Performance](index=3&type=section&id=Financial%20Highlights%20Table) BRP achieved significant revenue and profit growth in both Q4 and the full year of FY2023, with improvements in Normalized EBITDA and diluted EPS Key Financial Metrics (FY2021-FY2023) | Metric (Million CAD) | FY23 Q4 | FY22 Q4 | FY23 Full Year | FY22 Full Year | FY21 Full Year | | :----------------------------------- | :--------------- | :--------------- | :----------- | :----------- | :----------- | | Revenue | $3,076.3 | $2,347.5 | $10,033.4 | $7,647.9 | $5,952.9 | | Gross Profit | $787.6 | $609.5 | $2,499.4 | $2,132.2 | $1,472.3 | | Gross Margin (%) | 25.6% | 26.0% | 24.9% | 27.9% | 24.7% | | Normalized EBITDA | $528.0 | $416.4 | $1,706.3 | $1,462.1 | $999.0 | | Net Income (Loss) | $365.1 | $209.6 | $865.4 | $794.6 | $362.9 | | Normalized Net Income | $309.2 | $251.3 | $976.7 | $846.5 | $477.0 | | Diluted EPS | $4.54 | $2.50 | $10.67 | $9.31 | $4.10 | | Normalized Diluted EPS | $3.85 | $3.00 | $12.05 | $9.92 | $5.39 | [Fourth Quarter Results](index=3&type=section&id=FOURTH%20QUARTER%20RESULTS) In Q4 FY2023, BRP delivered strong financial results with substantial growth in revenue and profitability, driven by robust consumer demand, increased production, and new product introductions [Revenue (Overall and by Product Line)](index=3&type=section&id=Revenues%20Q4) Fourth quarter total revenue increased by 31.0% to CAD 3,076.3 million, primarily driven by higher wholesale volumes, the introduction of Sea-Doo pontoons, and favorable foreign exchange movements - Total revenue for the fourth quarter increased by **31.0% to CAD 3,076.3 million**, primarily driven by higher wholesale volumes, the introduction of Sea-Doo pontoons, and **CAD 73 million** in favorable foreign exchange movements[15](index=15&type=chunk) Q4 Revenue by Product Line (FY2023 vs FY2022) | Product Line | FY23 Q4 Revenue (Million CAD) | FY22 Q4 Revenue (Million CAD) | Change (Million CAD) | Growth (%) | FY23 Q4 Revenue Share (%) | Primary Drivers | | :-------------------------- | :----------------------------- | :----------------------------- | :-------------------- | :--------- | :-------------------- | :---------- | | Year-Round Products | $1,254.8 | $853.1 | +$401.7 | +47.1% | 41% | Higher volumes and favorable pricing, strong SSV demand, improved ATV and 3WV product supply, **CAD 35 million** favorable FX movement | | Seasonal Products | $1,319.5 | $1,048.9 | +$270.6 | +25.8% | 43% | Increased PWC sales, favorable pricing, Sea-Doo pontoon introduction, **CAD 17 million** favorable FX movement, partially offset by lower snowmobile sales in Russia | | Powersports PA&A and OEM Engines | $378.3 | $310.7 | +$67.6 | +21.8% | 12% | Increased PA&A sales, favorable pricing, Sea-Doo pontoon introduction, **CAD 15 million** favorable FX movement | | Marine Products | $128.5 | $139.0 | -$10.5 | -7.6% | 4% | Lower boat sales (supply chain disruptions), partially offset by favorable pricing and improved boat mix, **CAD 6 million** favorable FX movement | [North American Retail Sales](index=4&type=section&id=North%20American%20Retail%20Sales%20Q4) North American Powersports retail sales increased by 21% year-over-year, or 19% excluding pontoons, primarily driven by PWC and SSV - North American Powersports product retail sales increased by **21% year-over-year**, or **19% excluding pontoons**, primarily driven by PWC and SSV[17](index=17&type=chunk) - Retail sales growth by product line: Year-Round Products retail sales increased by **over 30%**, Seasonal Products retail sales increased by **over 10%**, and Marine boat retail sales decreased by **57%**[20](index=20&type=chunk) [Gross Profit](index=4&type=section&id=Gross%20profit%20Q4) Gross profit increased by 29.2% to CAD 787.6 million, primarily due to favorable volumes in SSV and PWC, and favorable pricing across all product lines - Gross profit increased by **29.2% to CAD 787.6 million**, primarily driven by favorable volumes in SSV and PWC, and favorable pricing across all product lines[18](index=18&type=chunk) - Gross margin decreased by **40 basis points to 25.6%**, mainly due to increased logistics, commodity, and labor costs from supply chain disruptions and inflation, as well as higher sales programs, partially offset by volumes and favorable pricing[18](index=18&type=chunk) [Operating Expenses](index=5&type=section&id=Operating%20expenses%20Q4) Operating expenses increased by 33.4% to CAD 350.7 million, mainly due to higher G&A, R&D, and sales and marketing investments - Operating expenses increased by **33.4% to CAD 350.7 million**, primarily due to higher G&A expenses (software infrastructure modernization), increased R&D expenses (supporting future growth), and higher sales and marketing investments[21](index=21&type=chunk) [Normalized EBITDA](index=5&type=section&id=Normalized%20EBITDA%20Q4) Normalized EBITDA increased by 26.8% to CAD 528.0 million, driven by higher gross profit, partially offset by increased operating expenses - Normalized EBITDA increased by **26.8% to CAD 528.0 million**, primarily due to higher gross profit, partially offset by increased operating expenses[22](index=22&type=chunk) [Net Income](index=5&type=section&id=Net%20Income%20Q4) Net income increased by 74.2% to CAD 365.1 million, primarily due to higher operating income and favorable foreign exchange movements on USD-denominated long-term debt - Net income increased by **74.2% to CAD 365.1 million**, primarily due to higher operating income and favorable foreign exchange movements on USD-denominated long-term debt, partially offset by increased net financing costs and income tax expense[23](index=23&type=chunk) [Twelve-Month Period Ended January 31, 2023 (Full Year)](index=5&type=section&id=TWELVE-MONTH%20PERIOD%20ENDED%20JANUARY%2031%2C%202023) For the full FY2023, BRP's revenue surpassed CAD 10 billion for the first time, with growth in Normalized EBITDA and net income, primarily driven by increased volumes, new product introductions, and favorable pricing [Revenue](index=5&type=section&id=Revenues%20FY23) Full-year revenue increased by 31.2% to CAD 10,033.4 million, driven by higher volumes across multiple product lines, Sea-Doo pontoon introduction, and favorable pricing - Full-year revenue increased by **31.2% to CAD 10,033.4 million**, primarily due to higher volumes in SSV, snowmobiles, 3WV, and PWC, the introduction of Sea-Doo pontoons, and favorable pricing across all product lines, including **CAD 107 million** in favorable foreign exchange movements[24](index=24&type=chunk) [Normalized EBITDA](index=5&type=section&id=Normalized%20EBITDA%20FY23) Normalized EBITDA increased by 16.7% to CAD 1,706.3 million, primarily due to higher gross profit, partially offset by increased operating expenses like R&D and G&A - Normalized EBITDA increased by **16.7% to CAD 1,706.3 million**, primarily due to higher gross profit, partially offset by increased operating expenses such as R&D and G&A[25](index=25&type=chunk) [Net Income](index=5&type=section&id=Net%20Income%20FY23) Net income increased by 8.9% to CAD 865.4 million, primarily due to higher operating income and lower net financing costs, partially offset by unfavorable foreign exchange impacts - Net income increased by **8.9% to CAD 865.4 million**, primarily due to higher operating income and lower net financing costs, partially offset by unfavorable foreign exchange impacts on USD-denominated long-term debt and increased income tax expense[26](index=26&type=chunk) [Liquidity and Capital Resources](index=6&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) [Cash Flow and Investments](index=6&type=section&id=Cash%20Flow%20and%20Investments) In FY2023, the company experienced a decrease in cash flow from operating activities but still made significant capital expenditures and business acquisitions, returning funds to shareholders - Net cash flow from operating activities was **CAD 649.5 million**, lower than **CAD 770.0 million** in FY2022[28](index=28&type=chunk) - Invested approximately **CAD 660 million** in capital expenditures (for increased production capacity and software infrastructure modernization) and **CAD 208 million** in business combinations[29](index=29&type=chunk) - Returned **CAD 356 million** to shareholders through share repurchases and dividend payments[29](index=29&type=chunk) [Debt and Financing](index=6&type=section&id=Debt%20and%20Financing) The company added a new USD 500 million term loan in December 2022 and fully repaid a USD 100 million term loan B-2 - On December 13, 2022, the company added a **USD 500 million** term loan, maturing on December 13, 2029, which is exempt from financial covenants[30](index=30&type=chunk) - On the same day, the company fully repaid the then-outstanding **USD 100 million** Term Loan B-2, amounting to **CAD 135 million**[30](index=30&type=chunk) [Dividend Distribution](index=6&type=section&id=Dividend) The Board of Directors declared a quarterly dividend of CAD 0.18 per share - On March 22, 2023, the company's Board of Directors declared a quarterly dividend of **CAD 0.18 per share** for holders of multiple voting shares and subordinate voting shares[31](index=31&type=chunk) - The dividend will be paid on April 17, 2023, to shareholders of record at the close of business on April 3, 2023[31](index=31&type=chunk) [Company Information](index=7&type=section&id=Company%20Information) [Conference Call and Webcast Presentation](index=7&type=section&id=CONFERENCE%20CALL%20AND%20WEBCAST%20PRESENTATION) BRP will host a conference call and webcast on March 23, 2023, at 9:00 AM ET to discuss its Q4 FY2023 results - The conference call and webcast will be held on **March 23, 2023, at 9:00 AM ET**, hosted by President and CEO José Boisjoli and CFO Sébastien Martel[32](index=32&type=chunk) - The webcast presentation has been published in the 'Quarterly Reports' section of BRP's website[33](index=33&type=chunk) [About BRP](index=7&type=section&id=About%20BRP) BRP Inc. is a global leader in powersports products, propulsion systems, and boats, with over 80 years of innovation and a portfolio of brands including Ski-Doo, Sea-Doo, and Can-Am - BRP Inc. is a global leader in powersports products, propulsion systems, and boats, with **over 80 years of innovation**[34](index=34&type=chunk) - The company owns industry-leading brands such as Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and pontoons, Can-Am on- and off-road vehicles, Alumacraft and Quintrex boats, Manitou pontoons, and Rotax marine propulsion systems and engines for karts and recreational aircraft[34](index=34&type=chunk) - Headquartered in Quebec, Canada, with **CAD 10 billion in annual sales**, operations in **over 130 countries**, and nearly **23,000 employees worldwide**[34](index=34&type=chunk) - Committed to responsible growth, developing electric models for existing product lines, and exploring new low-voltage and human-assisted product categories[34](index=34&type=chunk) [Forward-Looking Statements and Assumptions](index=8&type=section&id=CAUTION%20CONCERNING%20FORWARD-LOOKING%20STATEMENTS) [Caution Concerning Forward-Looking Statements](index=8&type=section&id=CAUTION%20CONCERNING%20FORWARD-LOOKING%20STATEMENTS) Forward-looking statements in the report involve risks and uncertainties that could cause actual results to differ materially from expectations, despite reflecting the company's future performance, financial guidance, plans, and expectations - Forward-looking statements are intended to help readers understand the company's objectives, strategic priorities, and anticipated operating environment, but should not be unduly relied upon[37](index=37&type=chunk) - Factors that could cause actual results to differ materially from forward-looking statements include adverse economic conditions (such as high interest rates and inflation), foreign exchange fluctuations, supply chain issues, talent loss, IT system failures, reliance on international sales, ineffective execution of growth strategies, adverse weather, business seasonality, reliance on dealer networks, product safety compliance, fixed cost base, competitive pressures, internal control failures, brand reputation, product liability claims, inventory management, intellectual property infringement, manufacturing capacity limitations, increased freight costs, changes in tax laws, and others[38](index=38&type=chunk)[39](index=39&type=chunk) [Key Assumptions](index=9&type=section&id=KEY%20ASSUMPTIONS) The company's forward-looking statements are based on various economic, market, and operational assumptions, including improved supply chains, stable market share, global economic stability, stable exchange rates, gradual inflation decline, and no significant tax or trade policy changes - Key assumptions include continued improvement in supply chain disruptions, industry growth ranging from a slight decrease to a slight increase; market share remaining constant or moderately increasing; stable global and North American economic conditions, with limited impact from the Russia-Ukraine conflict and the COVID-19 pandemic[40](index=40&type=chunk) - Major operating currency exchange rates remaining near current levels; inflation expected to remain high but gradually decline; no significant changes in tax laws or free trade agreements; company margins remaining at current levels; supplier base capable of timely supporting product development and production; no new trade barriers; and no unusually severe weather conditions[40](index=40&type=chunk) [Non-IFRS Measures Reconciliation](index=10&type=section&id=NON-IFRS%20MEASURES) [Non-IFRS Measures Definitions](index=10&type=section&id=Non-IFRS%20measures%20definitions) BRP uses several non-IFRS measures, such as Normalized EBITDA, Normalized Net Income, Normalized Income Tax Expense, Normalized Effective Tax Rate, and Normalized Diluted EPS, to provide a deeper understanding of its operational performance and facilitate period-over-period comparisons - Non-IFRS measures are not recognized under IFRS and have no standardized meaning, but are used as supplementary information to understand the company's operating results from management's perspective[41](index=41&type=chunk) Non-IFRS Measures and Their Definitions | Non-IFRS Measure | Definition | Reason for Use | | :----------------------------------- | :--------- | :------------- | | Normalized EBITDA | Net income adjusted for financing costs, financing income, income tax expense (recovery), depreciation expense, and normalization items | Assists investors in consistently determining the financial performance of the company's operating activities by excluding non-cash items such as depreciation expense, impairment charges, foreign exchange gains or losses on USD-denominated long-term debt and certain lease liabilities, as well as items not reflective of the company's operating performance such as restructuring and liquidation costs, litigation gains or losses, and acquisition-related costs | | Normalized Net Income | Net income adjusted for normalization items and their tax impact | In addition to the financial performance of operating activities, these measures also consider the impact of investing activities, financing activities, and income taxes on the company's financial performance | | Normalized Income Tax Expense | Income tax expense adjusted to reflect the tax impact of normalization items and to normalize specific tax items | | | Normalized Effective Tax Rate | Based on Normalized Net Income before Normalized Income Tax Expense | | | Normalized Diluted EPS | Calculated by dividing Normalized Net Income by the diluted weighted average number of shares | | [Reconciliation Tables](index=11&type=section&id=Reconciliation%20Tables) Detailed reconciliation tables are provided for Net Income to Normalized Net Income and Normalized EBITDA, Depreciation Expense, Income Tax Expense, Financing Costs, Financing Income, and Cash Flow from Operating Activities to Free Cash Flow Reconciliation of Net Income to Normalized Net Income and Normalized EBITDA | (Million CAD) | FY23 Q4 | FY22 Q4 | FY23 Full Year | FY22 Full Year | FY21 Full Year | | :----------------------------------- | :--------------- | :--------------- | :----------- | :----------- | :----------- | | Net Income | $365.1 | $209.6 | $865.4 | $794.6 | $362.9 | | Normalization Items (Adjustments) | (56.6) to 4.3 | 48.4 to (8.7) | 92.4 to 1.0 | (13.3) to 3.8 | (121.8) to 4.1 | | Income Tax Adjustment | (4.3) | 1.2 | (15.2) | (5.8) | (45.7) | | Normalized Net Income | $309.2 | $251.3 | $976.7 | $846.5 | $477.0 | | Normalized Income Tax Expense | $96.3 | $77.9 | $315.7 | $287.9 | $167.1 | | Adjusted Financing Costs | $36.5 | $14.0 | $113.9 | $63.4 | $107.3 | | Adjusted Financing Income | (1.4) | (0.3) | (4.2) | (3.8) | (7.6) | | Adjusted Depreciation Expense | $87.4 | $73.5 | $304.2 | $268.1 | $255.2 | | Normalized EBITDA | $528.0 | $416.4 | $1,706.3 | $1,462.1 | $999.0 | Normalized EPS Calculation and Other Reconciliation Tables | (Million CAD, except per share data) | FY23 Q4 | FY22 Q4 | FY23 Full Year | FY22 Full Year | FY21 Full Year | | :---------------------------------------------------- | :--------------- | :--------------- | :----------- | :----------- | :----------- | | Depreciation Expense | $90.0 | $74.5 | $310.4 | $273.6 | $260.8 | | Adjusted Depreciation Expense | $87.4 | $73.5 | $304.2 | $268.1 | $255.2 | | Income Tax Expense | $92.0 | $79.2 | $300.5 | $282.1 | $121.4 | | Normalized Income Tax Expense | $96.3 | $77.9 | $315.7 | $287.9 | $167.1 | | Financing Costs | $37.5 | $14.0 | $114.8 | $128.9 | $120.0 | | Adjusted Financing Costs | $36.5 | $14.0 | $113.9 | $63.4 | $107.3 | | Financing Income | $(1.4) | $(0.3) | $(6.0) | $(3.8) | $(19.8) | | Adjusted Financing Income | $(1.4) | $(0.3) | $(4.2) | $(3.8) | $(7.6) | | Normalized Diluted EPS | $3.85 | $3.00 | $12.05 | $9.92 | $5.39 | Reconciliation of Cash Flow from Operating Activities to Free Cash Flow | (Million CAD) | FY23 Full Year | FY22 Full Year | | :--------------------------------------- | :----------- | :----------- | | Net Cash Flow from Operating Activities | $649.5 | $770.0 | | Acquisition of Property, Plant and Equipment | 601.0 | 628.9 | | Acquisition of Intangible Assets | 58.4 | 68.8 | | Free Cash Flow | $(9.9) | $72.3 |

BRP Inc. (NASDAQ:DOOO) Q3 2023 Earnings Conference Call November 30, 2022 9:00 AM ET Company Participants Philippe Deschênes - Investor Relations José Boisjoli - President and Chief Executive Officer Sébastien Martel - Chief Financial Officer Conference Call Participants Joe Altobello - Raymond James Robin Farley - UBS Joe Spak - RBC Capital Markets Martin Landry - Stifel Fred Wightman - Wolfe Research Benoit Poirier - Desjardins Xian Siew - BNP Paribas Mark Petrie - CIBC Cameron Doerksen - National Bank Fi ...

BRP Inc. (NASDAQ:DOOO) Q2 2023 Earnings Conference Call September 14, 2022 9:00 AM ET Company Participants José Boisjoli - President, Chief Executive Officer Sébastien Martel - Chief Financial Officer Philippe Deschênes - Investor Relations Conference Call Participants Robin Farley - UBS Xian Siew - BNP Paribas Benoit Poirier - Desjardins Capital Joe Altobello - Raymond James Mark Petrie - CIBC World Markets Gerrick Johnson - BMO Capital Markets Martin Landry - Stifel GMP Craig Kennison - Baird Cameron Doer ...

BRP Inc. (NASDAQ:DOOO) Q1 2023 Earnings Conference Call June 3, 2022 9:00 AM ET Company Participants Philippe Deschênes - Investor Relations José Boisjoli - President and Chief Executive Officer Sébastien Martel - Chief Financial Officer Conference Call Participants Craig Kennison - Baird Robin Farley - UBS Martin Landry - Stifel GMP George Doumet - Scotiabank Xian Siew - BNP Paribas Joe Altobello - Raymond James Benoit Poirier - Desjardins Joseph Spak - RBC Capital Markets Cameron Doerksen - National Bank ...