Bauer Performance Sports Reports Record Fiscal Third Quarter 2014
Results
EXETER, NH--(Marketwired - Apr 9, 2014) - Bauer Performance
Sports Ltd. (TSX: BAU) ("BPS" or the "Company"), a leading
developer and manufacturer of high performance sports equipment and
apparel, reported financial results for its fiscal third quarter
and nine months ended February 28, 2014. All figures are in U.S.
dollars.
The third quarter 2014 financial results are in line with the
estimates previously provided in the Company's news release on
March 19, 2014, which disclosed preliminary third quarter results
in connection with the financing of the Easton Baseball/Softball
acquisition.
Fiscal Q3 2014 Financial Highlights vs. Year-Ago Quarter
- Revenues up 13% to a record $62.2 million (up 16% in constant
currency)
- Ice hockey equipment revenues up 13% (in constant currency,
excluding Canadian tariff reduction)
- Lacrosse revenues up 11%
- Apparel revenues up 35% (in constant currency) with growth in
all categories
- Adjusted Gross Profit up 21% to $19.8 million, or as a
percentage of revenues, up 190 basis points to 31.8%
Back-to-Hockey bookings vs. Year-Ago
- "Back-to-Hockey" bookings up 18% to $200.2 million (in constant
currency) or up 12% to $190.1 million at current FX rates
Management Commentary
"Global demand for all of our BPS brands continued to
accelerate, as demonstrated by the strong double digit revenue
growth in our third quarter," said Kevin Davis, president and CEO
of Bauer Performance Sports. "Driving this record quarter, which is
traditionally our weakest seasonally, was strong growth in hockey
and lacrosse, as well as the contribution from COMBAT. We attribute
these results to the strength of our product development platform,
which is supported by authentic brands, deep consumer insight,
world-class R&D and strong intellectual property."
"In our hockey business," continued Davis, "sell-through of our
products remained strong as the retail marketplace continued to
improve. Given this strengthening environment, together with the
launch of several innovative new products, we recorded a
significant increase in booking orders for our upcoming
Back-to-Hockey selling season. We expect these bookings to help
drive a strong Back-to-Hockey season despite the significant
currency headwinds we face with the approximately 8% weaker
Canadian dollar.
"We are excited about our recently announced definitive
agreement to acquire the Easton Baseball/Softball business from
Easton-Bell Sports. The transaction will immediately add the No. 1
market share brand in baseball/softball to our leading performance
sports platform. Like BPS, Easton has a passion for improving the
performance and safety of athletes. With this acquisition, we
expect to raise the bar of innovation in every category as we've
done for hockey and all of our high performance sports in the
platform."
Fiscal Q3 2014 Financial Results
Revenues in the fiscal third quarter of 2014 increased 13% to
$62.2 million compared to $54.9 million in the same year-ago
quarter. On a constant currency basis, revenues were up 16%. The
increase was due to strong sales in ice hockey equipment, the
addition of COMBAT, growth across all apparel categories and
continued growth in sales of lacrosse. Apparel revenues grew 31% in
the quarter (35% in constant currency) due to the addition of
hockey, lacrosse and soccer uniform sales, as well as a 60%
increase in hockey bags, a 36% increase in off-ice team apparel and
an 11% increase in lifestyle apparel.
Adjusted Gross Profit (a non-IFRS measure) in the third quarter
increased 21% to $19.8 million compared to $16.4 million in the
year-ago quarter. As a percentage of revenues, Adjusted Gross
Profit increased 190 basis points to 31.8% compared to 29.9% in the
same year-ago period. The increase in adjusted gross margin was
primarily driven by higher profit margins in ice hockey equipment
(see "Non-IFRS Measures" below for further discussion).
Selling, general and administrative ("SG&A") expenses in the
third quarter increased 27% to $24.5 million compared to $19.4
million in the year-ago quarter, primarily due to higher
acquisition-related costs, the addition of COMBAT and higher
marketing costs as a result of the NHL lockout in Fiscal 2013. As a
percentage of revenues and excluding acquisition-related charges,
costs related to share offerings and share-based payment expense,
SG&A expenses were 32.8% compared to 31.3% of revenues in the
year-ago quarter.
R&D expenses in the third quarter increased 20% to $4.7
million compared to $4.0 million in the year-ago quarter, primarily
due to product development efforts and the addition of COMBAT. As a
percentage of revenues, R&D expenses were 7.7% compared to 7.2%
of revenues in the year-ago quarter.
Adjusted EBITDA (a non-IFRS measure) improved to a loss of $3.0
million compared to a loss of $3.8 million in the year-ago quarter
due to the higher Adjusted Gross Profit and favorable realized
gains on derivatives.
Adjusted Net Loss (a non-IFRS measure) in the third quarter was
virtually unchanged compared to the prior year at $4.2 million or
($0.11) per adjusted diluted share.
On February 28, 2014, working capital was $179.9 million
compared to $160.1 million one year ago, primarily due to the
addition of COMBAT as well as higher inventory and accounts
receivable due to the growth of the business. Total debt was $130.8
million compared to $140.3 million at February 28, 2013. The
Company's leverage ratio, defined as average net indebtedness
divided by trailing twelve months EBITDA (a non-IFRS measure),
continued to decline and stood at 2.51x as of February 28, 2014
compared to 2.76x one year ago.
Booking orders for the Company's 2014 Back-to-Hockey season
(April - September) increased 12% over 2013 to $190.1 million. On a
constant currency basis, booking orders were up 18% to $200.2
million. For further detail on the Company's bookings, please refer
to the "Booking Orders" section below.
Fiscal Q3 2014 Operational Highlights
- BPS entered into an agreement with Easton-Bell Sports to
acquire the Easton Baseball/Softball business for $330 million in
cash, subject to a working capital adjustment and acquisition
costs, which, upon closing, would make BPS the No. 1 market leader
in both hockey and diamond sports. The acquisition is expected to
close within two weeks from the date of this news release.
- Bauer Hockey unveiled BAUER OD1N, the most revolutionary line
of equipment ever introduced to the sport of hockey. Taking two
years to develop, the line includes the lightest hockey skate ever
created, a fully personalized protective body suit and an
ultra-lightweight goal pad constructed with advanced materials
never before used in hockey.
- COMBAT entered into an exclusive three-year agreement with
Texas Tech University Softball to be its official supplier of elite
softball bats and accessory products.
Nine Month Fiscal 2014 Financial Results
Revenues in the first nine months of fiscal 2014 increased 7% to
$333.3 million compared to $312.9 million in the same year-ago
period. On a constant currency basis, revenues were up 8%.
Adjusted Gross Profit in the first nine months increased 3% to
$120.9 million compared to $117.1 million in the prior year period.
As a percentage of revenues, Adjusted Gross Profit was 36.3%
compared to 37.4% in the year-ago period.
SG&A expenses increased 16% to $77.8 million compared to
$67.1 million in the same period a year ago. As a percentage of
revenues, and excluding acquisition-related charges and share-based
payment expense, SG&A was 20.3% compared to 19.2% of revenues
in the year-ago period.
R&D expenses increased 15% to $13.1 million compared to
$11.5 million in the same period a year ago. As a percentage of
revenues, R&D was 3.9% compared to 3.7% of revenues in the
year-ago period.
Adjusted EBITDA in the first nine months of fiscal 2014 was
$47.7 million compared to $48.3 million in the same year-ago
period.
Adjusted Net Income in the first nine months was $26.5 million,
or $0.71 per diluted share, compared to $26.0 million, or $0.72 per
diluted share, in the first nine months of fiscal 2013.
Conference Call
BPS will hold a conference call tomorrow, April 10, 2014 at
10:00 a.m. Eastern time, to discuss its fiscal third quarter 2014
results.
The Company's President and CEO Kevin Davis and CFO Amir
Rosenthal will host the conference call, followed by a question and
answer period.
Date: Thursday, April 10, 2014 Time: 10:00 a.m. Eastern time
(7:00 a.m. Pacific time) Dial-in number: 1-877-941-1427
International dial-in number: 1-480-629-9664 Conference ID:
4675108
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact Liolios Group at
1-949-574-3860.
The conference call will be broadcast live and available for
replay at http://public.viavid.com/index.php?id=108359 and via the
investors section of the Company's website at
www.bauerperformancesports.com.
A replay of the conference call will be available after 1:00
p.m. Eastern time on the same day through April 24, 2014.
Toll-free replay number: 1-877-870-5176 International replay
number: 1-858-384-5517 Replay ID: 4675108
About Bauer Performance Sports Ltd.
Bauer Performance Sports Ltd. (TSX: BAU) is a leading developer
and manufacturer of ice hockey, roller hockey, lacrosse, baseball
and softball 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, MISSION,
MAVERIK, CASCADE, INARIA and COMBAT 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, please visit www.bauerperformancesports.com.
Booking Orders
The Company's revenues are comprised of booking, repeat and
other orders. Although ice hockey booking orders provide the
Company some visibility into its future revenues for the season,
there may not be a direct relationship between the change in
booking orders year-over-year and the anticipated total revenues
change for that season, due to several factors including, among
others, the potential impact booking orders have on the amount and
timing of future repeat orders for which the Company has little
visibility and the increased diversification of the Company's
product offerings. For a more detailed discussion and definition of
the Company's booking and repeat orders, please see the Outlook
section of the Company's third quarter MD&A, which is available
on SEDAR at www.sedar.com.
Non-IFRS Measures
Adjusted Gross Profit, Adjusted EBITDA, Adjusted EPS and
Adjusted Net Income/Loss are non-IFRS measures. Adjusted Gross
Profit is defined as gross profit plus the following expenses which
are part of cost of goods sold: (i) amortization and depreciation
of intangible assets, (ii) non-cash charges to cost of goods sold
resulting from fair market value adjustments to inventory as a
result of business acquisitions, (iii) reserves established to
dispose of obsolete inventory acquired from acquisitions and (iv)
other one-time or non-cash items. Adjusted EBITDA is defined as
EBITDA (net income adjusted for income tax expense, depreciation
and amortization, losses related to amendments to the credit
facility, gain or loss on disposal of fixed assets, net interest
expense, deferred financing fees, unrealized gains/losses on
derivative instruments, and realized and unrealized gains/losses
related to foreign exchange revaluation) before restructuring and
other one-time or non-cash charges associated with acquisitions,
other one-time or non-cash items, pre-initial public offering
sponsor fees, costs related to share offerings, as well as
share-based payment expenses. Adjusted EPS is defined as Adjusted
Net Income/Loss divided by the weighted average diluted shares
outstanding. Adjusted Net Income/Loss is defined as net income
adjusted for all unrealized gains/losses related to derivative
instruments and unrealized gains/losses related to foreign exchange
revaluation, non-cash or incremental charges associated with
acquisitions, amortization of acquisition-related intangible assets
for acquisitions since the Company's initial public offering, costs
related to share offerings, share-based compensation expense and
other non-cash or one-time items.
Reconciliations of these non-IFRS measures to the relevant
reported results can be found in the tables at the end of this
press release and in the Company's MD&A for the third
quarter.
All references to "constant currency" reflect the impact of
translating the current period results at the monthly foreign
exchange rates from the prior year period. This translation impact
does not include the impact of foreign exchange on the Company's
direct material costs or gains/losses on derivatives. For more
information, see Factors Affecting our Performance - Impact of
Foreign Exchange in the Company's MD&A.
Caution Regarding Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of applicable securities laws, including with
respect to booking orders driving strong fourth quarter results for
the Company's hockey business, further innovation in baseball and
softball following the completion of the acquisition of the Easton
baseball/softball business, the Company's pending acquisition of
the Easton baseball/softball business and the financing thereof.
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 the
Company's actual results to differ materially from those expressed
or implied by the forward-looking statements, including, without
limitation, the following factors: failure by the Company to
complete the acquisition of the Easton baseball/softball business
(including financing thereof) or to realize the anticipated
strategic benefits or operational or cost synergies, expectations
regarding a counter seasonal revenue stream to the Company's
existing revenue stream and the successful expansion of the market
share of the Easton baseball/softball business, inability to
introduce new and innovative products, intense competition in the
equipment and apparel industries, inability to introduce technical
innovation, inability to protect worldwide intellectual property
rights and related litigation, inability to successfully integrate
acquisitions, decrease in ice hockey, roller hockey, lacrosse
and/or baseball/softball participation rates, adverse publicity,
reduction in popularity of the NHL, NLL, MLB and other professional
leagues in which our products are used, changes in consumer
preferences and the difficulty in anticipating or forecasting those
changes, 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 lawsuits, product recalls,
compliance with standards of testing and athletic governing bodies,
departure of senior executives or other key personnel, litigation
and related matters, employment or union related matters,
fluctuations in the value of certain foreign currencies in relation
to the US dollar, inability to manage foreign exchange derivative
instruments, general economic and market conditions, natural
disasters, as well as the factors identified in the "Risk Factors"
section of the Company's MD&A for the third quarter and the
Annual Information Form dated August 27, 2013, both of which are
available on SEDAR at www.sedar.com.
Furthermore, unless otherwise stated, the forward-looking
statements contained in this press release are made as of the
date of this press 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.
| |
|
| |
|
| BAUER PERFORMANCE SPORTS LTD. |
|
| CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL
POSITION (UNAUDITED) |
|
| (Expressed in thousands of U.S. dollars) |
|
| |
|
|
|
|
|
|
| |
|
As of |
|
|
As of |
|
| |
|
February 28, |
|
|
May 31, |
|
| |
|
2014 |
|
|
2013 |
|
| ASSETS |
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
| |
Cash |
|
$ |
7,700 |
|
|
$ |
4,467 |
|
| |
Trade
and other receivables |
|
|
109,896 |
|
|
|
113,682 |
|
| |
Inventories |
|
|
95,650 |
|
|
|
109,747 |
|
| |
Income taxes recoverable |
|
|
2,345 |
|
|
|
1,966 |
|
| |
Foreign currency forward contracts |
|
|
6,439 |
|
|
|
4,513 |
|
| |
Prepaid expenses and other assets |
|
|
4,483 |
|
|
|
3,084 |
|
| Total current assets |
|
|
226,513 |
|
|
|
237,459 |
|
| |
|
|
|
|
|
|
|
|
| Property, plant and equipment |
|
|
9,310 |
|
|
|
10,509 |
|
| Goodwill and intangible assets |
|
|
146,891 |
|
|
|
152,644 |
|
| Foreign currency forward contracts |
|
|
143 |
|
|
|
1,119 |
|
| Other non-current assets |
|
|
3,048 |
|
|
|
721 |
|
| Deferred income taxes |
|
|
5,902 |
|
|
|
4,985 |
|
| TOTAL ASSETS |
|
$ |
391,807 |
|
|
$ |
407,437 |
|
| |
|
|
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
| |
Debt |
|
$ |
7,866 |
|
|
$ |
10,774 |
|
| |
Trade
and other payables |
|
|
25,658 |
|
|
|
22,548 |
|
| |
Accrued liabilities |
|
|
27,095 |
|
|
|
25,672 |
|
| |
Provisions |
|
|
2,944 |
|
|
|
2,041 |
|
| |
Income taxes payable |
|
|
3,593 |
|
|
|
989 |
|
| |
Retirement benefit obligations |
|
|
336 |
|
|
|
358 |
|
| Total current liabilities |
|
|
67,492 |
|
|
|
62,382 |
|
| |
|
|
|
|
|
|
|
|
| Debt |
|
|
122,931 |
|
|
|
160,913 |
|
| Provisions |
|
|
- |
|
|
|
383 |
|
| Retirement benefit obligations |
|
|
5,107 |
|
|
|
5,522 |
|
| Other non-current liabilities |
|
|
301 |
|
|
|
879 |
|
| Deferred income taxes |
|
|
850 |
|
|
|
918 |
|
| TOTAL LIABILITIES |
|
|
196,681 |
|
|
|
230,997 |
|
| |
|
|
|
|
|
|
|
|
| EQUITY |
|
|
|
|
|
|
|
|
| |
Share
capital |
|
|
145,821 |
|
|
|
141,397 |
|
| |
Contributed surplus |
|
|
11,990 |
|
|
|
9,562 |
|
| |
Retained earnings |
|
|
46,854 |
|
|
|
27,037 |
|
| |
Accumulated other comprehensive loss |
|
|
(9,539 |
) |
|
|
(1,556 |
) |
| TOTAL EQUITY |
|
|
195,126 |
|
|
|
176,440 |
|
| |
|
|
|
|
|
|
|
|
| TOTAL LIABILITIES & EQUITY |
|
$ |
391,807 |
|
|
$ |
407,437 |
|
| |
|
| |
|
| |
|
| BAUER PERFORMANCE SPORTS LTD. |
|
| CONDENSED CONSOLIDATED INTERIM STATEMENTS OF
COMPREHENSIVE INCOME (LOSS) (UNAUDITED) |
|
| (Expressed in thousands of U.S. dollars, except per
share amounts) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three months ended |
|
|
For the nine months ended |
|
| |
|
February 28, |
|
|
February 28, |
|
| |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenues |
|
$ |
62,197 |
|
|
$ |
54,946 |
|
|
$ |
333,277 |
|
|
$ |
312,854 |
|
| Cost of goods sold |
|
|
43,349 |
|
|
|
40,258 |
|
|
|
216,732 |
|
|
|
199,476 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross profit |
|
|
18,848 |
|
|
|
14,688 |
|
|
|
116,545 |
|
|
|
113,378 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selling, general and administrative expenses |
|
|
24,501 |
|
|
|
19,361 |
|
|
|
77,810 |
|
|
|
67,060 |
|
| Research and development expenses |
|
|
4,763 |
|
|
|
3,964 |
|
|
|
13,141 |
|
|
|
11,494 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before finance costs, finance income,
other expenses and income tax expense (benefit) |
|
|
(10,416 |
) |
|
|
(8,637 |
) |
|
|
25,594 |
|
|
|
34,824 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Finance costs |
|
|
1,591 |
|
|
|
1,859 |
|
|
|
5,384 |
|
|
|
6,916 |
|
| Finance income |
|
|
(5,044 |
) |
|
|
(5,612 |
) |
|
|
(8,148 |
) |
|
|
(919 |
) |
| Other expenses |
|
|
121 |
|
|
|
62 |
|
|
|
148 |
|
|
|
132 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before income tax expense (benefit) |
|
|
(7,084 |
) |
|
|
(4,946 |
) |
|
|
28,210 |
|
|
|
28,695 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense (benefit) |
|
|
(2,199 |
) |
|
|
(2,079 |
) |
|
|
8,393 |
|
|
|
9,506 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ |
(4,885 |
) |
|
$ |
(2,867 |
) |
|
$ |
19,817 |
|
|
$ |
19,189 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other comprehensive income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Items that may be reclassified to net income
(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Foreign currency translation differences |
|
|
(5,477 |
) |
|
|
(2,536 |
) |
|
|
(8,023 |
) |
|
|
518 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Items that will not be subsequently reclassified to net
income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Actuarial gains (losses) on defined benefit plans, net |
|
|
28 |
|
|
|
12 |
|
|
|
40 |
|
|
|
(26 |
) |
| Other comprehensive income (loss), net of taxes |
|
|
(5,449 |
) |
|
|
(2,524 |
) |
|
|
(7,983 |
) |
|
|
492 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total comprehensive income (loss) |
|
$ |
(10,334 |
) |
|
$ |
(5,391 |
) |
|
$ |
11,834 |
|
|
$ |
19,681 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings (loss) per common share |
|
$ |
(0.14 |
) |
|
$ |
(0.08 |
) |
|
$ |
0.56 |
|
|
$ |
0.56 |
|
| Diluted earnings (loss) per common share |
|
$ |
(0.14 |
) |
|
$ |
(0.08 |
) |
|
$ |
0.53 |
|
|
$ |
0.53 |
|
| |
| |
| |
| BAUER PERFORMANCE SPORTS LTD. |
| RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS
PROFIT |
| (Expressed in millions of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
February 28, |
|
February 28, |
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross
profit |
|
$ |
18.8 |
|
$ |
14.7 |
|
$ |
116.5 |
|
$ |
113.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization & depreciation of intangible assets |
|
|
0.9 |
|
|
1.0 |
|
|
2.7 |
|
|
2.7 |
|
Inventory step-up / step-down & reserves |
|
|
- |
|
|
0.7 |
|
|
0.9 |
|
|
1.0 |
|
Other |
|
|
0.1 |
|
|
- |
|
|
0.8 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Gross Profit |
|
$ |
19.8 |
|
$ |
16.4 |
|
$ |
120.9 |
|
$ |
117.1 |
| |
|
| |
|
| |
|
| BAUER PERFORMANCE SPORTS LTD. |
|
| RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND TO
ADJUSTED EBITDA |
|
| (Expressed in millions of U.S. dollars) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Nine Months Ended |
|
| |
|
February 28, |
|
|
February 28, |
|
| |
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
| |
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ |
(4.9 |
) |
|
$ |
(2.9 |
) |
|
$ |
19.8 |
|
|
$ |
19.2 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense (benefit) |
|
|
(2.2 |
) |
|
|
(2.1 |
) |
|
|
8.4 |
|
|
|
9.5 |
|
| Depreciation & amortization |
|
|
2.2 |
|
|
|
2.0 |
|
|
|
6.7 |
|
|
|
5.8 |
|
| Loss on amendment of revolving loan |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.3 |
|
| Interest expense, net |
|
|
1.1 |
|
|
|
1.5 |
|
|
|
4.1 |
|
|
|
5.3 |
|
| Deferred financing fees |
|
|
0.3 |
|
|
|
0.4 |
|
|
|
1.1 |
|
|
|
1.1 |
|
| Unrealized (gain)/loss on derivative instruments,
net |
|
|
(2.1 |
) |
|
|
(4.9 |
) |
|
|
(1.5 |
) |
|
|
(0.2 |
) |
| Foreign exchange (gain)/loss |
|
|
(1.7 |
) |
|
|
(0.6 |
) |
|
|
(2.8 |
) |
|
|
(0.6 |
) |
| |
EBITDA |
|
$ |
(7.3 |
) |
|
$ |
(6.6 |
) |
|
$ |
35.8 |
|
|
$ |
40.4 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Acquisition Related Charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Inventory step-up / step-down & reserves |
|
|
- |
|
|
|
0.7 |
|
|
|
0.9 |
|
|
|
1.0 |
|
| Rebranding / integration costs (adjustments) |
|
|
(0.2 |
) |
|
|
0.7 |
|
|
|
1.8 |
|
|
|
2.1 |
|
| Acquisition costs |
|
|
3.1 |
|
|
|
0.1 |
|
|
|
4.9 |
|
|
|
2.1 |
|
| |
Subtotal |
|
$ |
2.9 |
|
|
$ |
1.5 |
|
|
$ |
7.6 |
|
|
$ |
5.2 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Costs related to share offerings |
|
|
0.1 |
|
|
|
0.4 |
|
|
|
0.5 |
|
|
|
0.8 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Share-based payment expense |
|
|
1.1 |
|
|
|
0.9 |
|
|
|
2.9 |
|
|
|
1.9 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other |
|
|
0.2 |
|
|
|
- |
|
|
|
0.9 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted EBITDA |
|
$ |
(3.0 |
) |
|
$ |
(3.8 |
) |
|
$ |
47.7 |
|
|
$ |
48.3 |
|
| |
|
| |
|
| |
|
| BAUER PERFORMANCE SPORTS LTD. |
|
| RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET
INCOME (LOSS) AND TO ADJUSTED EPS |
|
| (Expressed in millions of U.S. dollars, except share
and per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
|
February 28, |
|
|
February 28, |
|
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net
income (loss) |
|
$ |
(4.9 |
) |
|
$ |
(2.9 |
) |
|
$ |
19.8 |
|
|
$ |
19.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized foreign exchange loss / (gain) |
|
|
(3.6 |
) |
|
|
(5.3 |
) |
|
|
(3.3 |
) |
|
|
(0.6 |
) |
| Costs
related to share offerings |
|
|
0.1 |
|
|
|
0.4 |
|
|
|
0.5 |
|
|
|
0.8 |
|
|
Acquisition-related charges |
|
|
3.5 |
|
|
|
2.1 |
|
|
|
9.4 |
|
|
|
6.7 |
|
|
Share-based payment expense |
|
|
1.1 |
|
|
|
0.9 |
|
|
|
2.9 |
|
|
|
1.9 |
|
|
Other |
|
|
0.2 |
|
|
|
- |
|
|
|
0.9 |
|
|
|
0.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tax
impact on above items |
|
|
(0.6 |
) |
|
|
0.6 |
|
|
|
(3.7 |
) |
|
|
(2.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income (Loss) |
|
$ |
(4.2 |
) |
|
$ |
(4.2 |
) |
|
$ |
26.5 |
|
|
$ |
26.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average diluted shares outstanding |
|
|
37,694,392 |
|
|
|
36,712,575 |
|
|
|
37,155,632 |
|
|
|
36,335,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EPS |
|
$ |
(0.11 |
) |
|
$ |
(0.11 |
) |
|
$ |
0.71 |
|
|
$ |
0.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company Contact: Amir Rosenthal Chief Financial Officer Tel
1-603-610-5802 Email Contact Investor Relations: Liolios Group Inc.
Scott Liolios or Cody Slach Tel 1-949-574-3860 Email Contact Media
Contact: Tory Mazzola Global Communications Manager Tel
1-603-430-2111 Email Contact
Blue Star Gold (TSXV:BAU)
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