News and stories from the world of Powersports business.
Beta Motorcycles 2024 RR Models – Discover Rideability
Manufactured in Florence Italy, Beta is proud to present the new 2024 RR model range, a range of motorcycles that carry over many of the characteristics that made its predecessor so unbeatable last season, but which has been revised with a number of significant new features introduced across the range, plus other upgrades specific to certain engine sizes, to maintain the supremacy of the RR family as a whole.
Beta worked in close collaboration with Enduro champions Brad Freeman and Steve Holcombe to develop a host of small improvements on both the powertrain and the frame/suspension for the 2024 RR 2-Stroke and 4-Stroke models, to consolidate the already highly acclaimed characteristics of the previous generation. As always, the guiding philosophy of the engineers at Beta has been to not only increase the performance of the brand’s bikes but to also make this performance even more accessible. So rather than major changes, this model year has gained a series of upgrades intended to consolidate all the outstanding qualities of each individual model. Completing the picture are new graphics, which lend a zero-compromises racing look to the entire range.
As always, the range is made up of 8 different models, each with its own personality, to cater for the needs of a very diverse spectrum of riders. There’s the perfect RR for every rider, but what every model has in common is an ability to instill confidence in the user and offer a genuinely rewarding riding experience. The standard line of RR models are designed for the casual rider looking for performance without the harshness of the race bike feel while casually trail riding. A feature that Beta feels is sometimes overlooked.
Starting with the 125, this full-featured true Enduro model keeps with the heritage of minimal weight and torquey performance, while still offering a complete lighting package. The only 2 Stroke model in the group to retain premix and a kick starter, this model is for young riders entering the sport of off-road riding or the more experienced rider looking to relive their youth.
The 200 RR is quite special, based on the 125 RR chassis and engine platform, this lightweight model provides much-added torque with the convenience of oil injection and electric start! Like the 125, the 200 also has a complete light package and a plastic skid plate standard. The 200 RR is truly in a class of its own.
Returning for 2024 are the 250 and 300 RR models. These two share many components however they both have different personalities. The 300 RR is an all-around flagship enduro model that provides the rider with an amazing amount of torque and lightweight feel that provides the ultimate traction and ease of riding while the younger brother 250 likes to be revved out a little more while still providing a smooth power delivery in doing so. Both models feature oil injection, an adjustable power valve, a complete light package, and electric start.
The 4-Stroke line-up of RR models features four different-sized engines all based on the same platform yet with different bores and strokes which provide a different riding experience. From the flickable, free-revving 350 all the way up to the torque of 480, Riders of all abilities will find the Rideability of the Beta 4-stroke RR models refreshing.
The 390 RR is one of the best selling off-road 4-strokes in America, this is due to the special balance of the engine and chassis. With a smooth power delivery, the 390 RR makes trail riding pleasurable!
Not to be forgotten, the 430 RR is the wild one of the bunch. Higher revving with a sort of “MX” feel, the 430 is designed to be a trail ripper true to form. Delivering more than 50 HP, the 430 is an all-around bike that can be pay ridden, raced, hill climbed, or just about any other form of off road riding.
Updates for 2024 Include:
» New Radiators: The 250, 300, and all 4-Stroke models receive an updated radiator design that is more durable and lighter. This new shape at the top allows for more fork clearance which provides a greater turning radius.
» 300 RR Engine: the 300 Engine receives an updated crank bearing design similar to the 2023 250 RR model to improve durability.
» Front Fork: New, lighter fork internals reduce friction to improve the overall feedback to the rider on choppy or rocky trials.
» Front Brake Hose: A new front brake hose is now crimped at the top and bottom eliminating the outer sheath to slide down the line.
» Seat: A differently shaped seat along with softer foam to provide the rider with more comfort on long rides.
» Graphics: A more complete-looking graphic package that ties into the red frame and red frame guards to give the bike a more “Italian” look.
» Traction Control: All 4-stroke models have an improved traction control system that provides the rider with better control in loose or muddy conditions. This system works independently with the dual MAP ignition system which also gives riders more tuning options.
» Airbox: 4-Stroke models receive a redesigned rear airbox boot that retains the low-end power the RR models are known for yet improves the power from mid to top end.
Dual MAP and Traction Control on all 4 Stroke Models
Pricing:
125 RR 2 Stroke
$8,599.00
200 RR 2 Stroke
$9,499.00
250 RR 2 Stroke
$9,899.00
300 RR 2 Stroke
$10,099.00
350 RR 4 Stroke
$10,499.00
390 RR 4 Stroke
$10,599.00
430 RR 4 Stroke
$10,699.00
480 RR 4 Stroke
$10,799.00
*Plus a destination fee of $489.00. Not included are professional dealer setup, taxes, license, or other required fees.
Availability: September
Fox Factory Holding Corp. Welcomes New Chief Financial Officer
DULUTH, Ga., May 25, 2023 (GLOBE NEWSWIRE) — Fox Factory Holding Corp. (Nasdaq: FOXF) (“FOX” or the “Company”) announced today that it will appoint Dennis Schemm to the role of Chief Financial Officer (“CFO”) effective June 12, 2023. Mr. Schemm will succeed Interim CFO, Maggie Torres, who will retire upon his arrival.
“I’m excited to add Dennis to my leadership team. His wealth of experience driving strategic organizational transformation will be a critical asset as we continue our exponential growth journey. Dennis’ success working across functions to drive profitable results coupled with his commitment to exemplify the values we uphold as a company will also be a catalyst for sustained stellar performance,” commented Mike Dennison, Chief Executive Officer. “On behalf of the entire team, I would also like to thank Maggie for all of her contributions over her nine years with the Company and recently as Interim CFO, sacrificing the start of her retirement. Her leadership and presence will be greatly missed.”
Mr. Schemm has more than 25 years of experience in finance, with a deep skill set that includes financial risk management, controllership, global financial planning and analysis, treasury, audit, capital allocation strategies, and mergers and acquisitions. Prior to joining the Company, Mr. Schemm served as the Senior Vice President and Chief Financial Officer at Trex for the last three years and was the Senior Vice President, Chief Financial Officer and Commercial Lead, Joint Compound Division at Continental Building Products from 2015-2020.
About Fox Factory Holding Corp. (NASDAQ: FOXF)
Fox Factory Holding Corp. designs and manufactures performance-defining ride dynamics products primarily for bicycles, on-road and off-road vehicles and trucks, side-by-side vehicles, all-terrain vehicles, snowmobiles, specialty vehicles and applications, motorcycles, and commercial trucks. The Company is a direct supplier to leading powered vehicle OEMs. Additionally, the Company supplies top bicycle OEMs and their contract manufacturers, and provides aftermarket products to retailers and distributors.
FOX is a registered trademark of Fox Factory, Inc. NASDAQ Global Select Market is a registered trademark of The NASDAQ OMX Group, Inc. All rights reserved.
Honda Expands Sport Side-by-Side Family with Talon 1000R-4 FOX Live Valve
Building on the success of the Talon platform, American Honda today announced the highly anticipated Talon 1000R-4 FOX Live Valve, growing its collection of sport side-by-sides. The all-new trim level features the four-person cabin of the popular Talon 1000X-4, but in a wider, longer package with increased suspension travel, enabling enthusiasts to bring family and friends while taming high-speed, rough terrain. Also included in the announcement are the three other FOX Live Valve versions—the Talon 1000X-4 FOX Live Valve, Talon 1000X FOX Live Valve and Talon 1000R FOX Live Valve. Each of the four trim levels benefits from advancements that enhance comfort, suspension performance and styling. Honda explained that its non-FOX Live Valve 2023 Talon offerings will be released separately, at a later date.
“As we continue to develop our sport side-by-side offerings, the Talon 1000R-4 FOX Live Valve represents an important expansion in the market,” said Brandon Wilson, American Honda Manager of Sports & Experiential. “The side-by-side experience is all about enjoying the outdoors with good company, and this new version makes that possible for more a broader spectrum of enthusiasts. We’ve listened carefully to dealer and customer feedback and the strategic upgrades that we’ve applied to all of the trim levels in the Talon 1000 FOX Live Valve lineup contribute to an elevated riding experience for drivers and passengers alike.”
As the desire for adrenaline-inducing outdoor recreation continues to grow, so does the lineup of Honda Talon sport side-by-sides. It’s no secret that the adventures of the trail are only amplified when shared with friends and family. The new Talon 1000R-4 FOX Live Valve completes the Talon lineup by combining the wide stance and long-travel suspension of the Talon 1000R FOX Live Valve with a spacious four-seat cabin previously only available in the 1000X configuration. The result is an advanced sport side-by-side capable of taming open, high-speed terrain and delivering unparalleled thrill to both driver and passengers.
With the introduction of this new version comes a host of platform-wide advancements aimed at suspension performance, comfort, styling and more. Developed and produced in the U.S., all FOX Live Valve versions boast a new electric power-steering unit, updated ignition mapping, full-coverage doors, new aluminum wheels, improved accessory integration and new colors. Of course, the hard-hitting features that customers have come to expect—like the tough Dual Clutch Transmission (a Honda exclusive in the powersports world) and i-4WD traction-aiding technology—also return for the 2023 model year. The Honda Talon 1000 FOX Live Valve family has never been more dynamic and capable.
- MSRP
- Talon 1000R-4 FOX Live Valve: $25,799
- Talon 1000X-4 FOX Live Valve: $24,799
- Talon 1000R FOX Live Valve: $23,499
- Talon 1000X FOX Live Valve: $22,499
- Colors: Pearl Red; Matte Navy Blue
- Available
- Talon 1000R-4 FOX Live Valve: June
- Talon 1000X-4 FOX Live Valve: June
- Talon 1000R FOX Live Valve: June
- Talon 1000X FOX Live Valve: August
- Info
American Honda Introduces New SCL500 and Updated Shadow Phantom
American Honda today announced that the new SCL500 “scrambler”-style motorcycle is coming to the U.S. market. The SCL500 is a nod to Honda’s rich history, dating all the way back to the 1960s when the CL72 and CL77 were offered. Based on the Rebel 500 platform, the SCL500 combines modern ride quality and comfort with authentic retro styling, and delivers the result at an attractive price.
At the same time, Honda announced the return of several other models, many of which have received notable improvements. The bobber-style Shadow Phantom cruiser benefits from styling and performance upgrades, while its classic cruiser counterpart, the Shadow Aero, returns with a new color. Known for its versatility, the renamed ADV160 scooter delivers even greater capability, with updates focused on power, efficiency and comfort. The category-defining Grom miniMOTO enters its 10th year of production and continues to lead the way with new colors. Meanwhile, the PCX continues to set the bar for scooters, with comfortable, convenient, reliable around-town transportation.
“More than any manufacturer, Honda has consistently demonstrated an ability to deliver fun, retro motorcycles that scratch a nostalgic itch while offering the performance and reliability for which Honda is so well known,” said Brandon Wilson, American Honda Manager of Sports & Experiential. “That’s the case with the all-new SCL500, and we’re confident it will be a hit with American customers. We’re also pleased to confirm the return of existing cruiser, scooter and miniMOTO models, several of which tout important improvements. Together, this collection of machines serves as a reminder of Honda’s versatility in the powersports market.”
2023 SCL500
Harkening back to the early ’60s, when simple, stripped-down motorcycles like Honda’s CL72 came on the scene, the all-new SCL500 features all the key “scrambler” styling elements—upright riding position, high-routed exhaust, block tires, ample suspension travel and a retro aesthetic—in an approachable package and at an attractive price. Leveraging the 500cc parallel-twin engine that has proven so successful in models like the Rebel 500, the retro-inspired SCL500 is light and nimble, making it a casual, fun entry for a broad swath of customers, from new riders to more seasoned enthusiasts. Because personalization is vital to many fans of this genre, a wide range of Honda Accessories is offered for the SCL500, enabling owners to customize their rides as they see fit.
- MSRP: $6,799
- Colors: Candy Orange; Mattel Laurel Green Metallic
- Available: June
- Info
2024 Shadow Phantom
Few V-twin cruisers can measure up to the clean, understated style and rock-solid reliability of the Shadow Phantom. For the 2024 model year, this cruiser icon takes it to the next level with updates to its quintessential bobber styling, along with improved performance. With a two-tone gas tank, new handlebar, handlebar clamps, headlight cover, air-cleaner cover, display instruments, turn signals and machine-cut cylinder-head fins, this cruiser’s appearance is only more timeless than that of its predecessor. In addition, an updated single seat provides comfort for long, relaxed rides, and a passenger seat and footpegs are offered for those who want to bring a plus-one along for the ride. A new ABS version is available for the new model year, and both trim levels receive a rear disc brake. To top it off, the Shadow Phantom is built with Honda’s unmatched durability, quality and reliability, giving owners the peace of mind to enjoy the sense of freedom that only a V-twin cruiser can provide. (Note: non-ABS version not available in California.)
- MSRP
- Shadow Phantom $8,399
- Shadow Phantom ABS: $8,699
- Colors: Deep Pearl Gray Metallic; Orange Metallic
- Available: June
- Info
2024 Shadow Aero
A true classic, the Shadow Aero combines the signature long, low cruiser look with modern engineering and performance. For the 2024 model year, this popular cruiser is updated with new colors and a new disc rear brake for the standard version, a feature that was previously reserved for the ABS trim level. The low-slung seat and pullback handlebar offer a relaxed riding position, while the large front fender, chrome components, spoke wheels and V-twin engine contribute to its perennial styling. Thanks to sensible features like programmed fuel injection and a shaft final drive, the Shadow Aero lives up to Honda’s reputation for reliability and ease of ownership. (Note: non-ABS version not available in California.)
- MSRP
- Shadow Aero: $7,949
- Shadow Aero ABS: $8,249
- Color: Black
- Available: June
- Info
2024 ADV160
Renamed for the 2024 model year, the ADV160 touts a new, larger-displacement engine that delivers improved performance and reduced emissions. Also incorporated are updates aimed at boosting comfort and convenience, but the capable-but-rugged “City Adventure” concept remains, delivering an enjoyable sense of exploration on even the most mundane urban commutes. The ingredients? A low vehicle weight and practical features like an automatic transmission, two-stage adjustable windscreen and under-seat storage, resulting in a sensible machine that adeptly traverses metropolitan roads and is even up for mini-adventures.
- MSRP: $4,499
- Colors: Red Metallic; Pearl Smoky Gray
- Available: July
- Info
2024 Grom
It’s hard to believe that Honda’s little Grom is already 10 years old. In the model’s first decade, it has spawned a vibrant subculture of fun-seekers—from new riders attracted to its low seat height and unintimidating approachability, to experienced enthusiasts who like its modular styling and peppy performance. In both cases, the Grom often serves as a customization platform for those looking for an amusing project, which has helped to establish the Grom as one of the powersports industry’s most popular motorcycle models—and the undisputed emperor of the miniMOTO world.
- MSRP
- Grom: $3,599
- Grom SP: $3,699
- Grom ABS: $3,799
- Colors
- Grom: Blue Raspberry; Pearl White; Nitric Orange
- Grom SP: Matte Gray Metallic
- Grom ABS: Pearl White
- Available
- Grom: June
- Grom SP: August
- Grom ABS: June
- Info
2023 PCX
List out the most desirable traits for a modern scooter—stylish design, standout fuel efficiency, great handling, a comfortable ride, capable performance and rock-solid reliability—and you end up with an accurate description of Honda’s PCX. The industry benchmark for scooter design and technology, the PCX is the ultimate tool for tackling urban environments in style.
- MSRP: $4,149
- Color: Matte Brown Metallic
- Available: June
- Info
Duane Taylor Returns to the Motorcycle Industry Council
Duane Taylor is returning to the MIC to serve the membership as director of safe and responsible use programs. He previously served as director of federal affairs at the MIC Government Relations Office just outside Washington, D.C.
Taylor’s duties will include engaging OHV enthusiasts, land managers, legislators, federal and state agencies, industry professionals, and others to amplify the powersports industry’s efforts to maintain, expand, and protect off-highway trail networks – and to oppose on-road use of ATVs and ROVs. He will continue supporting ongoing efforts to obtain federal and state funding for off-highway vehicle recreation.
Most recently, Taylor served as the executive director of the National Off-Highway Vehicle Conservation Council, where he led a variety of nationwide initiatives to support land access, trail projects, and responsible recreation.
“We’re excited to have Duane back on our team,” said Erik Pritchard, MIC president and CEO. “He learned a lot at NOHVCC and we will leverage his and our expertise to serve the OHV community at a time when there is a tremendous opportunity to grow and improve access for OHV recreation. Duane will work ably with land managers, clubs, and industry to support responsible recreation on public lands.”
“I am thrilled to return to the Motorcycle Industry Council,” Taylor said. “Particularly as I will have the opportunity to focus on issues about which I am most passionate – safe and responsible use of OHVs.”
Highlights
- Revenues of $2,429 million, up 34% compared to the same period last year, a record for a first quarter in the Company’s history;
- Normalized EBITDA [1] of $377 million, up 39% compared to the same period last year;
- North American Powersports retail sales grew by 3% compared to the same period last year, once again outperforming the industry driven by market share gains in SSV and PWC;
- Normalized earnings per share – diluted [1] of $2.38, an increase of $0.72 per share or 43% and diluted earnings per share of $1.92, an increase of $0.46 per share, or 32%, compared to the same period last year; and
- Reaffirming full year-end guidance of revenues up 9% to 12% compared to Fiscal 2023, and Normalized earnings per share – diluted [1] between $12.25 and $12.75.
VALCOURT, QUEBEC, CANADA – June 1, 2023 -BRP Inc. (TSX: DOO, NASDAQ: DOOO) today reported its financial results for the three-month period ended April 30, 2023. All financial information is in Canadian dollars unless otherwise noted. The complete financial results are available on SEDAR and EDGAR as well as in the section Quarterly Reports of BRP’s website.
“Fiscal 2024 is off to a good start for BRP. We delivered a solid first-quarter performance with record revenue for that period and a 43% increase in Normalized EPS – diluted [1][2]. Once again, we outpaced the North American Powersports industry thanks to sustained consumer demand for our strong and well diversified product portfolio,” said José Boisjoli, President and CEO of BRP.
“We recently celebrated our 10th anniversary as a publicly traded company, and we are proud of our achievements over that period. Our revenues tripled, Normalized EPS – diluted [1] [2] grew eightfold and our Powersports market share almost doubled. Moreover, we created significant value for shareholders with a 368% share price appreciation as of the anniversary date [3], and $2.7 billion in capital distributions through dividends and share repurchases [4].”
“Driven by a regular flow of new product introductions, and with many others in their early stage of growth, the future is very promising for BRP. Over the short term, our focus is on executing and optimizing efficiencies, and we remain on pace to deliver on our financial guidance for this year,” concluded Mr. Boisjoli.
[1] See “Non-IFRS Measures” section of this press release
[2] Earnings per share is defined as “EPS”
[3] Share price increase calculated between Initial Public Offering and May 19, 2023 on the TSX (DOO)
[4] Calculated between Initial Public Offering and April 30, 2023
| Financial Highlights | Three-monthperiods ended | |
| (in millions of Canadian dollars, except per share data and margin) | April 30, 2023 | April 30, 2022 |
| Revenues | $2,429.4 | $1,809.3 |
| Gross Profit | 623.5 | 454.4 |
| Gross Profit (%) | 25.7 % | 25.1 % |
| Normalized EBITDA [1] | 377.1 | 272.1 |
| Net income | 154.5 | 121.0 |
| Normalized net income [1] | 192.0 | 137.1 |
| Earnings per share – diluted [2] | 1.92 | 1.46 |
| Normalized earnings per share – diluted [1] | 2.38 | 1.66 |
| Weighted average number of shares – diluted | 80,411,463 | 82,701,016 |
FISCAL YEAR 2024 UPDATED GUIDANCE & OUTLOOK
The FY24 guidance has been updated as follows:
| Financial Metric | FY23 | FY24 Guidance [6] vs FY23 |
| Revenues | (vs. Previous Guidance) | |
| Year-Round Products | $4,827.1 | Up 16% to 19% |
| Seasonal Products | 3,440.3 | Down 2% to Up 1% (previously ”Down 4% to Flat”) |
| Powersports PA&A and OEM Engines | 1,276.4 | Up 3% to 7% |
| Marine | 489.6 | Up 35% to 40% (previously ”Up 45% to 50%”) |
| Total Company Revenues | 10,033.4 | Up 9% to 12% |
| Normalized EBITDA [1] | 1,706.3 | Up 9% to 13% |
| Effective Tax Rate [1][5] | 24.4 % | 24.5% to 25.5% |
| Normalized Earnings per Share – Diluted [1] [2] | $12.05 | $12.25 to $12.75 (Up 2% to 6%) |
| Net income | 865.4 | ~$940M to $980M |
Other assumptions for FY24 Guidance
| • Depreciation Expenses: | ~$385M (previously ~$375M) |
| • Net Financing Costs Adjusted: | ~$180M |
| • Weighted average number of shares – diluted: | ~79.8M shares (previously ~80.5M) |
| • Capital Expenditures: | ~$750M to $800M |
[1] See “Non-IFRS Measures” section of this press release
[2] Earnings per share is defined as “EPS”
[5] Effective tax rate based on Normalized Earnings before Normalized Income Tax.
[6] Please refer to the “Caution Concerning Forward-Looking Statements” and “Key assumptions” sections of this press release for a summary of important risk factors that could affect the above guidance and of the assumptions underlying this Fiscal Year 2024 guidance.
FIRST QUARTER RESULTS
Strong deliveries, aided by improvements in the supply chain and inflationary environment, allowed the Company to deliver a solid first quarter, outperforming the results of the first quarter of Fiscal 2023. The demand for our products continued to be healthy, as evidenced by the increase of 3% in the Company’s North American retail sales for Powersports Products during the first quarter of Fiscal 2024 compared to the same period last year.
The increase in revenues for the three-month period ended April 30, 2023 compared to the first quarter of Fiscal 2023 is mainly explained by high deliveries of units for the upcoming retail season. During that period, we experienced strong PWC, Sea-Doo pontoon, and SSV retail sales. The supply chain has gradually returned to a more stable level, resulting in production efficiencies and an increase in gross profit margin compared to the same period last year.
Revenues
Revenues increased by $620.1 million, or 34.3%, to $2,429.4 million for the three-month period ended April 30, 2023, compared to $1,809.3 million for the corresponding period ended April 30, 2022. The increase in revenue was primarily due to a higher wholesale volume of SSV, PWC, 3WV as well as a favourable product mix and favourable pricing across all product lines, partially offset by higher sales programs. The increase includes a favourable foreign exchange rate variation of $94.8 million.
- Year-Round Products [7] (55% of Q1-24 revenues): Revenues from Year-Round Products increased by $398.9 million, or 42.7%, to $1,333.3 million for the three-month period ended April 30, 2023, compared to $934.4 million for the corresponding period ended April 30, 2022. The increase was primarily attributable to a higher volume of SSV and 3WV sold due to additional capacity and due to supply chain issues experienced in the prior year that impacted product availability, as well as favourable pricing and product mix across all product lines, which was partially offset by higher sales programs. The increase includes a favourable foreign exchange rate variation of $63 million.
- Seasonal Products [7] (28% of Q1-24 revenues): Revenues from Seasonal Products increased by $283.2 million, or 69.3%, to $691.9 million for the three-month period ended April 30, 2023, compared to $408.7 million for the corresponding period ended April 30, 2022. The increase was primarily attributable to a higher volume of PWC sold, driven by strong market demand and due to supply chain issues experienced in the prior year which impacted product availability, as well as increased deliveries of the Sea-Doo pontoon. The increase was also attributable to favourable pricing across all product lines, partially offset by higher sales programs. The increase includes a favourable foreign exchange rate variation of $16 million.
- Powersports PA&A and OEM Engines [7] (12% of Q1-24 revenues): Revenues from Powersports PA&A and OEM Engines decreased by $58.7 million, or 17.1%, to $284.9 million for the three-month period ended April 30, 2023, compared to $343.6 million for the corresponding period ended April 30, 2022. The decrease in revenues was mainly attributable to a lower volume of sales. The decrease in sales volume was mainly attributable to higher sales of snowmobile PA&A last year driven by late unit deliveries in the season, and lower dealer orders. The decrease includes a favourable foreign exchange rate variation of $11 million.
- Marine [7] (5% of Q1-24 revenues): Revenues from the Marine segment decreased by $9.9 million, or 7.5%, to $122.3 million for the three-month period ended April 30, 2023, compared to $132.2 million for the corresponding period ended April 30, 2022. The decrease in revenues from the Marine segment was mainly due to a lower volume of boats and PA&A sold as a result of supply chain disruptions and a longer production ramp-up related to the introduction of new products. The decrease was partially offset by a favourable product mix of boats sold, as well as higher pricing and a favourable foreign exchange rate variation of $5 million.
[7] The inter-segment transactions are included in the analysis.
North American Retail Sales
The Company’s North American retail sales for Powersports Products increased by 3% for the three-month period ended April 30, 2023 compared to the three-month period ended April 30, 2022. The increase was mainly driven by an increase in the sales of PWC and SSV.
- Year-Round Products: retail sales decreased on a percentage basis in the low-single digits compared to the three-month period ended April 30, 2022. In comparison, the Year-Round Products industry recorded a decrease on a percentage basis in the high-single digits over the same period.
- Seasonal Products: retail sales increased on a percentage basis in the mid-single digits compared to the three-month period ended April 30, 2022, when excluding pontoons. In comparison, the Seasonal Products industry recorded an increase on a percentage basis in the mid-single digits over the same period.
Marine Products retail sales decreased by 39% compared to the three-month period ended April 30, 2022, as a result of lower product availability.
Gross profit
Gross profit increased by $169.1 million, or 37.2%, to $623.5 million for the three-month period ended April 30, 2023, compared to $454.4 million for the corresponding period ended April 30, 2022. Gross profit margin percentage increased by 60 basis points to 25.7% from 25.1% for the three-month period ended April 30, 2022. The increase in gross profit was the result of a favourable volume of SSV, 3WV, and PWC sold along with favourable pricing, a decrease in logistics costs due to more efficiencies in the supply chain, and favourable product mix across product lines. The increase was partially offset by higher materials and labour costs due to inflation, as well as higher sales programs. The increase in gross profit margin percentage was the result of favourable product mix of PWC and 3WV, favourable pricing across all product lines and higher production efficiency coming from an improved supply chain, partially offset by higher sales programs.
Operating expenses
Operating expenses increased by $86.8 million, or 34.1%, to $341.6 million for the three-month period ended April 30, 2023, compared to $254.8 million for the three-month period ended April 30, 2022. The increase in operating expenses was mainly attributable to an increase in R&D expenses to support future growth, higher G&A expenses mainly related to the modernization of the Company’s software infrastructure and higher selling and marketing expenses mainly attributable to continued product investments. The increase in operating expenses includes an unfavourable foreign exchange rate variation of $14 million.
Normalized EBITDA [1]
Normalized EBITDA [1] increased by $105.0 million, or 38.6%, to $377.1 million for the three-month period ended April 30, 2023, compared to $272.1 million for the three-month period ended April 30, 2022. The increase was primarily due to higher gross profit partially offset by higher operating expenses, mostly in R&D, and selling and marketing.
Net Income
Net income increased by $33.5 million, or 27.7%, to $154.5 million for the three-month period ended April 30, 2023, compared to the $121.0 million for the three-month period ended April 30, 2022. The increase was primarily due to a higher operating income and lower income tax expense, partially offset by an increase in financing costs and an unfavourable impact of the foreign exchange rate variation on the U.S. denominated long-term debt.
[1] See “Non-IFRS Measures” section of the press release
LIQUIDITY AND CAPITAL RESOURCES
The Company generated net cash flows from operating activities totaling $258.8 million for the three-month period ended April 30, 2023 compared to a usage of $333.1 million for the three-month period ended April 30, 2022. The increase was mainly due to an improvement in the changes in working capital and lower income taxes paid.
The Company invested $117.8 million of its liquidity in capital expenditures to add production capacity and modernize the Company’s software infrastructure to support future growth and also returned $63.8 million to its shareholders through quarterly dividend payouts and its share repurchase programs.
Dividend
On May 31, 2023, the Company’s Board of Directors declared a quarterly dividend of $0.18 per share for holders of its multiple voting shares and subordinate voting shares. The dividend will be paid on July 14, 2023 to shareholders of record at the close of business on June 30, 2023.
CONFERENCE CALL AND WEBCAST PRESENTATION
Today at 9 a.m. EDT, BRP Inc. will host a conference call and webcast to discuss its FY24 first quarter results. The call will be hosted by José Boisjoli, President and CEO, and Sébastien Martel, CFO. To listen to the conference call by phone (event number 53112848), please dial 1 (888) 396-8049 (toll-free in North America). Click here for International numbers.
The Company’s first quarter FY24 webcast presentation is posted in the Quarterly Reports section of BRP’s website.
About BRP
BRP Inc. is a global leader in the world of powersports products, propulsion systems and boats built on over 80 years of ingenuity and intensive consumer focus. Through its portfolio of industry-leading and distinctive brands featuring 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 as well as Rotax engines for karts and recreational aircraft, BRP unlocks exhilarating adventures and provides access to experiences across different playgrounds. The Company completes its lines of products with a dedicated parts, accessories and apparel portfolio to fully optimize the riding experience. Committed to growing responsibly, BRP is developing electric models for its existing product lines and exploring new low voltage and human assisted product categories. Headquartered in Quebec, Canada, BRP has annual sales of CA$10 billion from over 130 countries and a global workforce of close to 23,000 driven, resourceful people.
Ski-Doo, Lynx, Sea-Doo, Can-Am, Rotax, Alumacraft, Manitou, Quintrex, Stacer, Savage, and the BRP logo are trademarks of Bombardier Recreational Products Inc. or its affiliates. All other trademarks are the property of their respective owners.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
Certain statements in this press release, including, but not limited to, statements relating to the Company’s Fiscal Year 2024, including financial guidance and outlook and where it stands with respect to it, and related assumptions of the Company (including revenues, Normalized EBITDA, Effective Tax Rate, Normalized earnings per share, net income, depreciation expense, net financing costs adjusted, weighted average of the number of shares diluted and capital expenditures), statements relating to , statements relating to the declaration and payment of dividends, statements about the Company’s current and future plans, and other statements about the Company’s prospects, expectations, anticipations, estimates and intentions, results, levels of activity, performance, objectives, targets, goals or achievements, priorities and strategies, financial position, market position, including its ability to gain additional market share, capabilities, competitive strengths, beliefs, the prospects and trends of the industries in which the Company operates, the expected sustained demand for the Company’s products and services and sustainable growth, research and product development activities, including the expectation of regular flow of new product introductions, their projected design, characteristics, capacity or performance, expected scheduled entry to market and the anticipated impact of such product introductions, expected financial requirements and the availability of capital resources and liquidities or any other future events or developments and other statements that are not historical facts constitute forward-looking statements within the meaning of Canadian and United States securities laws. The words “may”, “will”, “would”, “should”, “could”, “expects”, “forecasts”, “plans”, “intends”, “trends”, “indications”, “anticipates”, “believes”, “estimates”, “outlook”, “predicts”, “projects”, “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 are presented for the purpose of assisting readers in understanding certain key elements of the Company’s current objectives, goals, targets, strategic priorities, expectations and plans, and in obtaining a better understanding of the Company’s business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes; readers should not place undue reliance on forward-looking statements contained herein. Forward-looking statements, by their very nature, involve inherent risks and uncertainties and are based on a number of assumptions, both general and specific, as further described below.
Many factors could cause the Company’s actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, which are discussed in greater detail under the heading “Risk Factors” of its Annual Information Form: the impact of adverse economic conditions including in the context of recent significant increases of interest and inflation rates; any decline in social acceptability of the Company and its products, including in connection with the broader adoption of electrical or low-emission products; fluctuations in foreign currency exchange rates; high levels of indebtedness; any unavailability of additional capital; any supply problems, termination or interruption of supply arrangements or increases in the cost of materials, including as a result of the military conflict between Russia and Ukraine; the inability to attract, hire and retain key employees, including members of the Company’s management team or employees who possess specialized market knowledge and technical skills; any failure of information technology systems, security breach or cyber-attack, or difficulties with the implementation of new systems, including the Company’s new ERP; the Company’s reliance on international sales and operations; the Company’s inability to successfully execute its growth strategy; unfavourable weather conditions and climate change more generally; the Company’s seasonal nature of its business and some of its products; the Company’s reliance on a network of independent dealers and distributors; any inability of dealers and distributors to secure adequate access to capital; any inability to comply with product safety, health, environmental and noise pollution laws; the Company’s large fixed cost base; any failure to compete effectively against competitors or any failure to meet consumers’ evolving expectations; any failure to maintain an effective system of internal control over financial reporting and to produce accurate and timely financial statements; any inability to maintain and enhance the Company’s reputation and brands; any significant product liability claim; any significant product repair and/or replacement due to product warranty claims or product recalls; any failure to carry proper insurance coverage; the Company’s inability to successfully manage inventory levels; any intellectual property infringement and litigation; the Company’s inability to successfully execute its manufacturing strategy or to meet customer demand as a result of manufacturing capacity constraints; increased freight and shipping costs or disruptions in transportation and shipping infrastructure; any failure to comply with covenants in financing and other material agreements; any changes in tax laws and unanticipated tax liabilities; any impairment in the carrying value of goodwill and trademarks; any deterioration in relationships with employees; pension plan liabilities; natural disasters; volatility in the market price for the Subordinate Voting Shares; the Company’s conduct of business through subsidiaries; the significant influence of Beaudier Group and Bain Capital; and future sales of Subordinate Voting Shares by Beaudier Group, Bain Capital, directors, officers or senior management of the Company. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. Unless otherwise stated, the forward-looking statements contained in this press release are made as of the date of this press release and the Company has no intention and undertakes no obligation to update or revise any forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities regulations. In the event that the Company does update any forward-looking statements contained in this press release, no inference should be made that the Company will make additional updates with respect to that statement, related matters or any other forward-looking statement. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
KEY ASSUMPTIONS
The Company made a number of economic, market and operational assumptions in preparing and making certain forward-looking statements contained in this press release, including the following: reasonable industry growth ranging from slightly down to slightly up, that is based on the assumption that supply chain disruptions continue to improve; market share will remain constant or moderately increase; stable global and North American economic conditions, a limited impact from the military conflict between Russia and Ukraine and the COVID-19 pandemic; main currencies in which the Company operates will remain at near current levels; inflation is expected to remain elevated from strong demand, supply shortages and high energy prices, and is expected to gradually decline as central banks gradually increase interest rates; there will be no significant changes in tax laws or free trade arrangements or treaties applicable to the Company; the Company’s margins, will remain at current levels; the supply base will remain able to support product development and planned production rates on commercially acceptable terms in a timely manner; no new trade barriers will be imposed amongst jurisdictions in which the Company carries operations; the absence of unusually adverse weather conditions, especially in peak seasons. The Company cautions that its assumptions may not materialize and that global economic and political conditions, combined with one or more of the risks and uncertainties discussed herein, may render such assumptions, although believed reasonable at the time they were made, inaccurate. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the Company or the industry to be materially different from the outlook or any future results or performance implied by such statements.
NON-IFRS MEASURES
This press release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. The Company uses non-IFRS measures including the following:
| Non-IFRS measures | Definition | Reason for use | |
| Normalized EBITDA | Net income before financing costs, financing income, income tax expense (recovery), depreciation expense and normalized elements | Assist investors in determining the financial performance of the Company’s operating activities on a consistent basis by excluding certain non-cash elements such as depreciation expense, impairment charge, foreign exchange gain or loss on the Company’s long-term debt denominated in U.S. dollars and foreign exchange gain or loss on certain of the Company’s lease liabilities. Other elements, such as restructuring and wind-down costs, non-recurring gain or loss and acquisition related costs, may be excluded from net income in the determination of Normalized EBITDA as they are considered not being reflective of the operational performance of the Company. | |
| Normalized net income | Net income before normalized elements adjusted to reflect the tax effect on these elements | In addition to the financial performance of operating activities, these measures consider the impact of investing activities, financing activities and income taxes on the Company’s financial results. | |
| Normalized income tax expense | Income tax expense adjusted to reflect the tax effect on normalized elements and to normalize specific tax elements | ||
| Normalized effective tax rate | Based on Normalized net income before Normalized income tax expense | ||
| Normalized earnings per share – basic & diluted | Calculated respectively by dividing the Normalized net income by the weighted average number of shares – basic and the weighted average number of shares – diluted | ||
The Company believes non-IFRS measures are important supplemental measures of financial performance because they eliminate items that have less bearing on the Company’s financial performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS measures. The Company also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. Management also uses non-IFRS measures in order to facilitate financial performance comparisons from period to period, prepare annual operating budgets, assess the Company’s ability to meet its future debt service, capital expenditure and working capital requirements and also as a component in the determination of the short-term incentive compensation for the Company’s employees. Because other companies may calculate these non-IFRS measures differently than the Company does, these metrics are not comparable to similarly titled measures reported by other companies.
The Company refers the reader to the tables below for the reconciliations of the non-IFRS measures presented by the Company to the most directly comparable IFRS measure.
Reconciliation Tables
The following tables present the reconciliation of non-IFRS measures compared to their respective IFRS measures:
| Three-month periods ended | |||
| (in millions of Canadian dollars) | April 30,2023 | April 30,2022 | |
| Net income | $154.5 | $121.0 | |
| Normalized elements | |||
| Foreign exchange loss on long-term debt and lease liabilities | 43.8 | 16.1 | |
| Gain on NCIB [2] | — | (1.8) | |
| Costs related to business combinations [3] | 4.9 | 1.1 | |
| Other elements | 0.2 | 1.3 | |
| Income tax adjustment [1] [4] | (11.4) | (0.6) | |
| Normalized net income [1] | 192.0 | 137.1 | |
| Normalized income tax expense [1] | 52.6 | 49.3 | |
| Financing costs adjusted [1] | 44.1 | 16.5 | |
| Financing income adjusted [1] | (1.5) | (1.0) | |
| Depreciation expense adjusted [1] | 89.9 | 70.2 | |
| Normalized EBITDA [1] | $377.1 | $272.1 | |
| [1] | See “Non-IFRS Measures” section. |
| [2] | Normal Course Issuer Bid |
| [3] | Transaction costs and depreciation of intangible assets related to business combinations. |
| [4] | Income tax adjustment is related to the income tax on Normalized elements subject to tax and for which income tax has been recognized and to the adjustment related to the impact of foreign currency translation from Mexican operations. |
| (in millions of Canadian dollars, except per share data) | Three-month periods ended | ||
| April 30,2023 | April 30,2022 | ||
| Depreciation expense reconciliation | |||
| Depreciation expense | $92.4 | $71.3 | |
| Depreciation of intangible assets related to business combinations | 2.5 | 1.1 | |
| Depreciation expense adjusted | $89.9 | $70.2 | |
| Income tax expense reconciliation | |||
| Income tax expense | $41.2 | $48.7 | |
| Income tax adjustment [2] | (11.4) | (0.6) | |
| Normalized income tax expense [1] | $52.6 | $49.3 | |
| Financing costs reconciliation | |||
| Financing costs | $44.3 | $16.5 | |
| Transaction costs on long-term debt | 0.2 | — | |
| Financing costs adjusted | $44.1 | $16.5 | |
| Financing income reconciliation | |||
| Financing income | $(1.5) | $(2.8) | |
| Gain on NCIB [3] | — | (1.8) | |
| Financing income adjusted | $(1.5) | $(1.0) | |
| Normalized EPS – basic [1] calculation | |||
| Normalized net income [1] | $192.0 | $137.1 | |
| Non-controlling interests | 0.3 | 0.1 | |
| Weighted average number of shares – basic | 78,856,822 | 81,075,819 | |
| Normalized EPS – basic [1] | $2.43 | $1.69 | |
| Normalized EPS – diluted [1] calculation | |||
| Normalized net income [1] | $192.0 | $137.1 | |
| Non-controlling interests | 0.3 | 0.1 | |
| Weighted average number of shares – diluted | 80,411,463 | 82,701,016 | |
| Normalized EPS – diluted [1] | $2.38 | $1.66 | |
| [1] | See “Non-IFRS Measures” section. |
| [2] | Income tax adjustment is related to the income tax on Normalized elements subject to tax and for which income tax has been recognized. |
| [3] | Normal Course Issuer Bid |
Volcon Gives Key Media, Dealers and International Distributors Inside Look at Flagship Product, the Stag, at Demo Day Event
Volcon Inc. (NASDAQ: VLCN) (“Volcon” or the “Company”), the first all-electric, off-road powersports company invited key media, dealers and international distributors to test drive prototype models of the Company’s flagship product, the Stag, during a VIP Demo Day event held before Memorial Day Weekend.
The Company hosted the event at the Hyatt Regency Lost Pines Resort in Cedar Creek, Texas, where on the first day, Co-Founder and CTO, Christian Okonsky, presented a live Q&A session, detailing how the Company has been able to move quickly to bring the first all-electric, off-road UTV, the Stag, through the development process at an unprecedented pace through strategic collaborations such as those with General Motors, BF Goodrich, Elka Suspension and Hayes Performance Systems. Attendees were also able inspect the Stag and ask the Company’s engineering and product development teams questions about the technology and its specifications.
“The Stag has undergone tremendous development and the power is unmatched. We have tested, broken, fixed, broken again and redeveloped many of the Stag’s components throughout this entire process, leading to us upgrading many of the key suspension and drivetrain components to an automotive grade level. Traditional off-road components simply cannot handle the torque that the Stag has,” said Co-Founder and CTO, Christian Okonsky.
The following day, guests had the opportunity to test drive a prototype of the Stag at Rally Ready, a premier driving school and off-road track in Bastrop, Texas where Volcon had three different routes for drivers to push the Stag through its paces. “The Stag had me grinning from ear to ear just thinking about running through the woods in the White Mountains, stalking elk. It was a blast ripping around the rally cross track we got to test it on– smooth acceleration and it turns where you pointed it,” said Bill Nash, owner of Nash Powersports, after his opportunity for a test drive.
Industry vet, CEO and Creative Director of Mad Media, Matt Martelli, who organizes annual off-road racing events like The Mint 400 and The California 300, said, “The only bummer about the test ride is we didn’t get more time in the Stag! The acceleration off the line was nothing short of remarkable! The Stag is a rocket ship! I was also impressed with the overall balance and set up of the vehicle. It straddles the line between utility and performance leaning more toward performance.”
“Volcon showed our small group of journalists that they set out to build a gnarly, off-road vehicle above all else; which just happens to be fully-electric. Even though the Volcon Stag is undoubtedly an effort to bring powersports into the age of EVs, the Stag doesn’t seem to be shoehorning electric vehicles into a space they don’t belong,” said José Rodriguez, writer for Jalopnik. “In fact, the Stag is concerned with being an incredibly fun and capable UTV first, and an EV second. The team at Volcon did what they set out to do,” Rodriguez continued.
“The Stag Demo Day was a chance for many to see the Stag for the first time, so extending this opportunity to our key media, dealers and international distributors was very important as we want all of our partners and networks to understand the vision we’ve been working on and experience the kind of machine we’re dealing with,” said Melissa Coffey, Vice President of Global Revenue and Business Development at Volcon. “Having alignment before launch will help encourage and educate consumers from all over on the benefits of EV and the capabilities of the Stag,” Coffey stated further.
Exclusive Mexican Distributor, Emilio de la Viña stated after driving the Stag, “When my chance came I accelerated the Stag and I was surprised how fast its acceleration was, I literally had not driven anything that could reach that speed in such a short time. I was also impressed by how stable it is. The closest description I can give is that it felt like driving a boat on a lake, the performance of the Stag is second to none.”
“We know that it’s unprecedented to allow such an inside look into non-production vehicles, a risk most companies would not dream of taking. We have been testing, developing and refining the Stag for months, and we are confident in its ability to change the UTV landscape. It was time to show others what we have been seeing internally for months,” said CEO Jordan Davis. “We are thrilled with the performance of our vehicles and the unparalleled power they showed everyone who test drove them.”
The Company plans to share a Stag Ride Day recap video on their website on June 5. Additional content will be shared with media, reservation holders and general public leading up to its launch later in Q3 of this year.
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