Bauer Performance Sports reported revenues jumped 29 percent in the first quarter ended Aug. 31, to $142.4 million, up from $110.3 million in the same period of the prior year.
Gross profit rose 33 percent to $59.5 million (41.8 percent of revenues) compared to $44.8 million (40.6 percent of revenues) in the first quarter of 2011.
Adjusted EBITDA improved 24 percent to $34.9 million compared to $28.2 million during the first quarter of 2011.
Net income increased 48 percent to $22.6 million, up from $15.3 million in the first quarter of 2011. Removing the unrealized gains on foreign exchange (pre-tax $3.1 million in 2012 and $2.7 million in 2011) and IPO costs ($0.9 million pre-tax in 2011), net income increased 47 percent to $20.6 million compared to $14.0 million in the prior year.
Diluted earnings per share excluding unrealized gains on foreign exchange in both periods and excluding IPO costs in 2011 increased 44 percent to $0.65 from $0.45 in the first quarter of 2011. Including these items, diluted earnings per share increased 47 percent to $0.72 from $0.49 in the first quarter of 2011.
Overall ice hockey equipment revenues increased 29 percent in the first fiscal quarter of 2012, due to continued strong growth across all categories, with notable increases above 30 percent in the categories of sticks, skates and goal protective.
“Through our focused investments in innovation and unique marketing initiatives, we continue to see growing consumer demand for our products as demonstrated by our strong Q1 growth in every product category and every region” said Kevin Davis, president and chief executive officer. “Our strong financial results and the significant growth in our order file for the upcoming Holiday season demonstrate our continued ability to execute our growth strategy.”
In addition to Bauer's strong first quarter results, the company also announced that booking orders for its 2011 “Holiday” season (October 2011 – March 2012) increased 18 percent over the 2010 “Holiday” season. This growth of $9.4 million increased “Holiday” booking orders to $61.5 million. This was in part due to the recent and most successful stick launch in the company's history, the Vapor APX.
Bauer's revenues are generated from booking, repeat and other orders. Although booking orders provide the Company some visibility into 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 the potential impact booking orders have on the amount and timing of future repeat orders, for which the company has limited visibility.
On a trailing twelve-month basis, revenues were $338.2 million, Gross profit reached $133.8 million or 39.6 percent of revenues, Adjusted EBITDA was $50.1 million, and diluted earnings per share excluding unrealized losses/gains on foreign exchange and IPO costs was $0.74. Including these items ($12.0 million pre-tax loss and $9.7 million pre-tax, respectively), diluted earnings per share on a trailing twelve-month basis was $0.24.
