Highlights Continued outpacing the SSV and ATV industries with retail sales increasing in the low-teens range and high-single digits range, respectively; Revenues of $2,031.7 million, a decrease of 16.4% compared to last year; Net loss of $7.4 million, a decrease of $161.9 million compared to last year; As expected, Normalized EBITDA [1] of $247.2 million, a decrease of 34.4% compared to last year; Normalized diluted earnings per share [1] of $0.95, a decrease of $1.43 per share, and diluted loss per share of $0.10, a decrease of $2.02 per share, compared to the same period last year; Adjusting full year-end guidance for revenues, now ranging between $8.6 and $8.9 billion, and for Normalized earnings per share – diluted [1], now ranging between $6.00 and $7.00. VALCOURT, QC, May 31, 2024 /CNW/ - BRP Inc. (TSX:DOO) (NASDAQ:DOOO) today reported its financial results for the three-month period ended April 30, 2024. 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. "Our first quarter results were in line with expectations and reflect our focus on managing network inventory to protect our dealer value proposition. Our strong product portfolio performed well at retail, especially in the Year-Round Products category, where we gained market share across all product lines. We are particularly pleased with our Can-Am SSV business, which had its strongest first quarter ever at retail," said José Boisjoli, President and CEO of BRP. "As the year unfolds, our dealers' profitability is under more pressure than anticipated given the current macroeconomic context, a more competitive landscape and high interest rates. For these reasons, we have decided to adjust our production to further reduce network inventory while continuing to maximize retail sales. Looking ahead, given our strong business fundamentals, we are confident in our long-term strategy, and committed to investing in the development of market-shaping products to remain the leading OEM [2] in the industry," concluded Mr. Boisjoli. [1] See "Non-IFRS Measures" section of this press release. [2] Original Equipment Manufacturer  Financial Highlights Three-month periods ended (in millions of Canadian dollars, except per share data and margin) April 30, 2024 April 30, 2023 Revenues $2,031.7 $2,429.4 Gross Profit 480.0 623.5 Gross Profit (%) 23.6 % 25.7 % Normalized EBITDA [1] 247.2 377.1 Net income (loss) (7.4) 154.5 Normalized net income [1] 72.5 192.0 Earnings (loss) per share - diluted (0.10) 1.92 Normalized earnings per share – diluted [1] 0.95 2.38 Weighted average number of shares – basic 74,897,906 78,856,822 Weighted average number of shares – diluted 76,036,145 80,411,463 FISCAL YEAR 2025 UPDATED GUIDANCE & OUTLOOK The FY25 guidance has been updated as follows: Financial Metric FY24 FY25 Guidance [4] vs FY24 Revenues Year-Round Products $5,339.4 Down 7% to 10% Seasonal Products 3,410.7 Down 26% to 28% Powersports PA&A and OEM Engines 1,184.6 Down 2% to 5% Marine 432.3 Down 40% to 50% Total company revenues 10,367.0 $8.6B to $8.9B Normalized EBITDA [1] 1,699.6 $1,225M to $1,325M Normalized earnings per share – diluted [1] 11.11 $6.00 to $7.00 Net income 744.5 $370M to $450M Other assumptions for FY25 Guidance •  Depreciation Expenses Adjusted: ~$435M (Compared to $382M in FY24) •  Net Financing Costs Adjusted: ~$185M (Compared to $175M in FY24) •  Effective tax rate [1] [3] ~25.0% to 25.5% (Compared to 23.6% in FY24) •  Weighted average number of shares – diluted: ~75.6M shares (Compared to 78.5M in FY24) •  Capital Expenditures: ~$475M (Compared to $586M in FY24) FY25 Quarterly Outlook [4] Given its focus on managing network inventory levels, the Company expects Q2 Fiscal 2025 Normalized EBITDA [1] to be down approximatively mid 20% versus Q1 Fiscal 2025. [1] See "Non-IFRS Measures" section of this press release. [3] Effective tax rate based on Normalized Earnings before Normalized Income Tax. [4] 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 2025 guidance. FIRST QUARTER RESULTS As expected, the Company's three-month period ended April 30, 2024 was marked by a decrease in the volume of shipments compared to the same period last year as the Company is focused on reducing network inventory levels throughout Fiscal 2025. The decrease in volume of shipments and higher sales incentives due to increased promotional intensity have led to a reduction in the profit margin compared to the same period last year. The Company's North American quarterly retail sales for Powersport Products were down 5% due to Seasonal Products given lower industry volumes. This decrease was partly offset by an increase in Year-Round Products driven by continued market share gains in SSV and ATV. Revenues Revenues decreased by $397.7 million, or 16.4%, to $2,031.7 million for the three-month period ended April 30, 2024, compared to $2,429.4 million for the corresponding period ended April 30, 2023. The decrease was primarily due to a lower volume across most product lines, driven by the Company's focus on reducing network inventory levels, and higher sales programs. The decrease was partially offset by favourable product mix across most product lines and favourable pricing across all product lines. The decrease includes a favourable foreign exchange rate variation of $17 million. Year-Round Products [5] (57% of Q1-FY25 revenues): Revenues from Year-Round Products decreased by $175.5 million, or 13.2%, to $1,157.8 million for the three-month period ended April 30, 2024, compared to $1,333.3 million for the corresponding period ended April 30, 2023. The decrease was primarily attributable to a lower volume sold across all product lines, driven by the Company's focus on reducing network inventory levels and higher sales programs. The decrease was partially offset by favourable product mix of SSV and 3WV, and favourable pricing across all product lines. The decrease includes a favourable foreign exchange rate variation of $9 million. Seasonal Products [5] (26% of Q1-FY25 revenues): Revenues from Seasonal Products decreased by $156.8 million, or 22.7%, to $535.1 million for the three-month period ended April 30, 2024, compared to $691.9 million for the corresponding period ended April 30, 2023. The decrease was primarily attributable to a lower volume sold across all product lines, driven by the Company's focus on reducing network inventory levels and higher sales programs. The decrease was partially offset by favourable product mix and pricing across all product lines. The decrease includes a favourable foreign exchange rate variation of $5 million. Powersports PA&A and OEM Engines [5] (14% of Q1-FY25 revenues): Revenues from Powersports PA&A and OEM Engines increased by $4.2 million, or 1.5%, to $289.1 million for the three-month period ended April 30, 2024, compared to $284.9 million for the corresponding period ended April 30, 2023. The increase was mainly attributable to a higher volume of sales, favourable pricing and product mix. The increase was partially offset by higher sales programs. The increase includes a favourable foreign exchange rate variation of $3 million. [1] See "Non-IFRS Measures" section of this press release. [5] The inter-segment transactions are included in the analysis. Marine [5] (3% of Q1-FY25 revenues): Revenues from the Marine segment decreased by $69.2 million, or 56.6%, to $53.1 million for the three-month period ended April 30, 2024, compared to $122.3 million for the corresponding period ended April 30, 2023. The decrease was mainly attributable to a lower volume due to high dealer inventory, softer consumer demand and higher sales programs. North American Retail Sales The Company's North American retail sales for Powersports Products decreased by 5% for the three-month period ended April 30, 2024 compared to the three-month period ended April 30, 2023. The decrease was due to Seasonal Products driven by lower industry volumes, partly offset by an increase in Year-Round Products retail sales driven by continued market share ...