Summary

• BRP Inc. is a global leader in powersports products, propulsion systems and boats.
• BRP has annual sales of CA$10 billion from over 130 countries.
• It has a leading portfolio of brands ki-Doo, Lynx, Sea-Doo, Can-Am, Rotax, Manitou, Alumacraft, Quintrex.

BRP Inc. (Nasdaq: DOOO, TSX: DOO) is a global leader in powersports products, propulsion systems and boats. Its portfolio of industry-leading brands 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. 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.

Recent Developments

BRP And Its Principal Shareholder Announce Closing of Previously Announced Secondary Offering¹

January 26, 2024 – BRP Inc. announced the closing of the previously announced bought deal secondary offering pursuant to which Bain Capital Integral Investors II, L.P. sold 2,000,000 subordinate voting shares of BRP at a price to the public of C$91.00 per Subordinate Voting Shares.

Upon closing of the Offering, Bain held 13,796,615 multiple voting shares of BRP, representing approximately 18.3% of the issued and outstanding shares of the Company (the “Shares”) and approximately 29.9% of the voting power attached to all of the Shares.

Financial Highlights

Third Quarter 2024 Results

November 30, 2023 – BRP Inc. reported its financial results for the three- and nine-month periods ended October 31, 2023.²

Revenues decreased by $241.5 million, or 8.9%, to $2,467.8 million for the three-month period ended October 31, 2023, compared to $2,709.3 million for the corresponding period ended October 31, 2022.

North American quarterly retail sales were up for SSV, ATV and Snowmobile, offset by lower retail of PWC, 3WV and Sea-Doo Pontoon resulting in overall flat retail when compared to the same period last year

Gross profit decreased by $27.3 million, or 4.2%, to $627.4 million for the three-month period ended October 31, 2023, compared to $654.7 million for the three-month period ended October 31, 2022. Gross profit margin percentage increased by 120 basis points to 25.4% from 24.2% for the three-month period ended October 31, 2022.

Operating expenses increased by $39.7 million, or 14.7%, to $309.6 million for the three-month period ended October 31, 2023, compared to $269.9 million for the three-month period ended October 31, 2022.

Normalized EBITDA decreased by $43.0 million, or 8.8%, to $444.9 million for the three-month period ended October 31, 2023, compared to $487.9 million for the three-month period ended October 31, 2022.

Net income decreased by $78.5 million to $63.1 million, or 55.4%, for the three-month period ended October 31, 2023, compared to $141.6 million for the three-month period ended October 31, 2022.

Company Overview

BRP Inc. (Bombardier Recreational Products Inc.) is a global leader in the world of powersports products, propulsion systems and boats. It has a 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. The Company completes its lines of products with a dedicated parts, accessories and apparel portfolio to fully optimize the riding experience.³

The Company employs close to 23,000 people mainly in manufacturing and distribution sites in Mexico, Canada, Austria, the United States, Finland, Australia and Germany. The Company sells its products in over 130 countries. The products are sold directly through a network of approximately 2,600 dealers in 21 countries, as well as through approximately 150 distributors serving approximately 350 additional dealers.

Brands

On Snow

• Ski-Doo
• Lynx

On Asphalt & On Dirt

• Can-Am

On Water

• Sea-Doo
• Alumacraft
• Manitou
• Quintrex

Business Segments

BRP and its subsidiaries design, develop, manufacture and sell powersports and marine products.

Powersports

Year-Round Products

Year-Round Products consist of BRP vehicles that are sold and used throughout the year in most climates and include ATVs, SSVs and 3WVs product lines. All products within the Year-Round Product category are sold under the Can-Am brand. Can-Am ATVs, SSVs and 3WVs all leverage BRP’s Rotax engines.

Seasonal Products

Seasonal products consist of BRP products that are mostly used in specific seasons. These products include snowmobiles, which are mainly used during the winter season with sales to dealers concentrated in the months of September to January, as well as PWC and Sea-Doo pontoons, which are mainly used during the summer season, with sales to dealers concentrated in the months of January to April. All these products leverage BRP’s Rotax engines.

Parts, Accessories & Apparel and OEM engines

PA&A and Rotax engines consist of parts, accessories and apparel, engines for karts and recreational aircraft and other services.

Marine

Marine consists of boats, pontoons, jet boat and outboard engines and related PA&A and other services. BRP competes in the boat product category with Alumacraft and Quintrex boats, Manitou pontoons and in the marine engine product category with the Rotax engines for jet boats and outboard engine with stealth technology.

Manufacturing Facilities

• Valcourt, Québec, Canada
• Gunskirchen, Austria
• Mexican Facilities
• Rovaniemi, Lapland, Finland
• Spruce Pine, North Carolina, U.S.A.
• Sturtevant, Wisconsin, U.S.A.
• St. Peter, Minnesota, U.S.A.
• Lansing, Michigan, U.S.A.
• Coomera, Queensland, Australia
• Brp Megatech
• Pinion (acquired in Aug 2022)

Company History

References

1. ^ https://news.brp.com/news-releases/news-release-details/brp-and-its-principal-shareholder-announce-closing-previously-0
2. ^ https://news.brp.com/static-files/24d66847-9cda-4862-aa16-55b9462a8c77
3. ^ https://fintel.io/doc/sec-brp-inc-1748797-ex993-2023-march-23-19439-7801