BRP(US:DOOO)2023-06-01 16:37Financial 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]