Third Quarter Revenues Increase 47% and Year-to-Date Revenues
Jump to $237.8 Million
TORONTO, April 13 /CNW/ - Bauer Performance Sports Ltd. (TSX:BAU)
("Bauer" or "the Company") today announced financial results for the
third quarter and nine months ended February 28, 2011 (all figures are
US dollars). This is Bauer's first reporting period since the Company
closed its Initial Public Offering on March 10, 2011. In both fiscal
periods, Bauer has achieved strong financial results including:
Nine-Month Period Ending February 28, 2011
Net revenues increased 21% to $237.8 million, up from $197.2 million in
Gross Profit increased by 38% to $88.1 million (37% of net revenues)
compared to $63.8 million (32% of net revenues) last year.
Adjusted EBITDA grew by 48% to $33.3 million compared to $22.5 million
during the same period in 2010.
Third Quarter Ending February 28, 2011
Net revenues increased 47% to $48.4 million from $33.0 million in the
same period in the prior year.
Gross profit rose 96% to $15.7 million (32% of net revenues) compared to
$8.0 million (24% of net revenues) in the third quarter of 2010.
Adjusted EBITDA improved 36% to a loss of $2.8 million compared to a
loss of $4.4 million during the third quarter of 2010.
"Our expanded product line combined with unique marketing initiatives
has created strong consumer demand and increased retailer confidence in
our entire brand portfolio," said Kevin Davis, President and Chief
Executive Officer. "The strong financial results and growth in our
order file for the upcoming season demonstrate that we continue to grow
market share across all categories, in all regions."
In addition to Bauer's strong third quarter and nine-month results, the
Company also announced that booking orders for its 2011 "Back to
Hockey" season (April-September 2011) increased $43.2 million to $178.4
million, or approximately 32% over the 2010 "Back to Hockey" season.
Bauer's net revenues are comprised of booking, repeat and other orders.
Although booking orders provide the Company some visibility into its
future net revenues for the season, there may not be a direct
relationship between the change in booking orders year over year and
the anticipated total net revenues change for that season, due to
several factors including the potential impact booking orders have on
the amount and timing of future repeat orders, for which the Company
has little visibility. For a more detailed discussion on Bauer's
booking and repeat orders, please see the Outlook section of the
Company's third quarter MD&A, which will be available on SEDAR at www.sedar.com.
Supported by strong performance in all regions, ice hockey equipment net
revenues increased by 17% in the nine months and 38% in the third
quarter ending February 28, 2011. Apparel net revenues increased by 25%
in the nine-month period and 22% in the third quarter following the
introduction of Bauer's new protective apparel line as well as
increased sales of team apparel. Also contributing to net revenue
growth in both periods are net revenues for Maverik lacrosse equipment
and related apparel that were not included in our fiscal 2010 net
Adjusted EBITDA for the nine-month period ending February 28, 2011
increased 48% to $33.3 million. Net Income grew 92% to $2.5 million,
including an unrealized loss on derivatives (forward contracts) of
$13.2 million. Without the unrealized loss on foreign exchange
contracts, net income would have been $11.2 million compared to $1.1
million in the prior period.
Adjusted third-quarter EBITDA was a loss of $2.8 million, an improvement
of $1.6 million, or 36% over the prior year. As the third quarter falls
between the major shipping months of the Company's two seasons,
"Holiday" (October-March) and "Back to Hockey", Bauer has historically
generated lower revenues than other quarters and negative EBITDA during
the third quarter of each year. The net loss for the third quarter
increased to $10.9 million, from $7.3 million last year, including an
unrealized loss on derivatives (forward contracts) of $9.3 million.
Without the unrealized loss on foreign exchange contracts, the net loss
would have been $4.9 million, a 36% improvement over the prior period's
loss of $7.6 million.
Adjusted EBITDA is a non-Canadian GAAP measure. For a definition and
reconciliation of net income to Adjusted EBITDA, please refer to the
Company's third quarter MD&A.
CONFERENCE CALL AND WEBCAST
Management will hold a conference call and live audio webcast on
Thursday, April 14, 2011 at 10:30 a.m. (ET) to discuss the Company's
third quarter and year-to-date results. The call will be hosted by
Kevin Davis, President and CEO and Amir Rosenthal, Chief Financial
Officer. Following management's presentation, there will be a question
and answer session for analysts and investors.
The teleconference can be accessed at 416-644-3417 or 1-800-814-4860. A
taped rebroadcast will be available until midnight on April 20, 2011.
To access the rebroadcast, please dial 416-640-1917 or 1-877-289-8525
and enter the passcode 4433763 followed by the number sign.
To participate in the live audio webcast, please visit the Company's
website at www.bauerperformancesports.com. The webcast will also be archived on the Company's website.
ABOUT BAUER PERFORMANCE SPORTS LTD.
Bauer Performance Sports Ltd. is a leading developer and manufacturer of ice hockey, roller hockey,
and lacrosse equipment as well as related apparel. The company has the
most recognized and strongest brand in the ice hockey equipment
industry, and holds the top market share position in both ice and
roller hockey. Its products are marketed under the Bauer Hockey,
Mission Roller Hockey and Maverik Lacrosse brand names and are
distributed by sales representatives and independent distributors
throughout the world. Bauer Performance Sports is focused on building
its leadership position and growing market share in all product
categories through continued innovation at every level. For more
information, visit www.bauerperformancesports.com.
The Company's Consolidated Interim Financial Statements and Management's
Discussion and Analysis for the period ended February 28, 2011 will be
filed with applicable regulatory authorities and will be available on www.sedar.com and on the Company's website at www.bauerperformancesports.com.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements within the
meaning of applicable securities laws. Forward-looking statements
relate to analyses and other information that are based on forecasts of
future results and estimates of amounts not yet determinable. The words
"may", "will", "would", "should", "could", "expects", "plans",
"intends", "trends", "indications", "anticipates", "believes",
"estimates", "predicts", "likely" or "potential" or the negative or
other variations of these words or other comparable words or phrases,
are intended to identify forward looking statements.
Forward-looking statements, by their nature, are based on assumptions,
including those described herein and are subject to important risks and
uncertainties. Many factors could cause our actual results to differ
materially from those expressed or implied by the forward looking
statements, including, without limitation, the following factors:
inability to introduce new and innovative products, intense competition
in the equipment and apparel industries, inability to introduce
technical innovation, decrease in ice hockey, roller hockey and/or
lacrosse participation rates, adverse publicity, inability to maintain
and enhance brands, reliance on third party suppliers and
manufacturers, disruption of distribution chain or loss of significant
customers or suppliers, cost of raw materials and shipping freight and
other cost pressures, a change in the mix or timing of orders placed by
customers, inability to forecast demand for products, inventory
shrinkage or excess inventory, product liability claims and product
recalls, compliance with standards of testing and athletic governing
bodies, departure of senior executives or other key personnel,
litigation, employment or union related matters, inability to translate
order bookings into realized sales, fluctuations in the value certain
foreign currencies in relation to the U.S. dollar, general economic and
market conditions, changes in consumer preferences and the difficulty
in anticipating or forecasting those changes, natural disasters, as
well as the factors identified in the "Risk Factors" section of Bauer's
Furthermore, unless otherwise stated, the forward looking statements
contained in this press release are made as of the date of this news
release, and we have no intention and undertake no obligation to update
or revise any forward looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
SOURCE Bauer Performance Sports Ltd.
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