Bauer Performance Sports, in its first report since going public on March 10, reported net revenues jumped 47 percent in its fiscal third quarter ended Feb. 28, to Cdn$48.4 million from Cdn$33.0 million in the same period in the prior year. Adjusted EBITDA improved 36 percent to a loss of Cdn$2.8 million compared to a loss of Cdn$4.4 million during the third quarter of 2010.
Gross profit rose 96 percent to Cdn$15.7 million (32 percent of net revenues) compared to Cdn$8.0 million (24 percent of net revenues) in the third quarter of 2010.
The company trades on the Toronto stock exchange.
In the nine month period, revenues increased 21 percent to Cdn$237.8 million, up from Cdn$197.2 million in 2010. Gross Profit increased by 38 percent to Cdn$88.1 million (37 percent of net revenues) compared to Cdn$63.8 million (32 percent of net revenues) last year. Adjusted EBITDA grew by 48 percent to Cdn$33.3 million compared to Cdn$22.5 million during the same period in 2010.
“Our expanded product line combined with unique marketing initiatives has created strong consumer demand and increased retailer confidence in our entire brand portfolio,” said Kevin Davis, president and chief executive officer. “The strong financial results and growth in our order file for the upcoming season demonstrate that we continue to grow market share across all categories, in all regions.”
In addition to Bauer's strong third quarter and nine-month results, the company announced that booking orders for its 2011 “Back to Hockey” season (April-September 2011) increased Cdn$43.2 million to Cdn$178.4 million, or approximately 32 percent over the 2010 “Back to Hockey” season.
Bauer's net revenues are comprised of booking, repeat and other orders. Although booking orders provide the company some visibility into its future net revenues for the season, there may not be a direct relationship between the change in booking orders year over year and the anticipated total net 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 little visibility.
Supported by strong performance in all regions, ice hockey equipment net revenues increased by 17 percent in the nine months and 38 percent in the third quarter ending February 28, 2011. Apparel net revenues increased by 25 percent in the nine-month period and 22 percent in the third quarter following the introduction of Bauer's new protective apparel line as well as increased sales of team apparel. Also contributing to net revenue growth in both periods are net revenues for Maverik lacrosse equipment and related apparel that were not included in our fiscal 2010 net revenues.
Adjusted EBITDA for the nine-month period ending February 28, 2011 increased 48 percent to Cdn$33.3 million. Net Income grew 92 percent to Cdn$2.5 million, including an unrealized loss on derivatives (forward contracts) of Cdn$13.2 million. Without the unrealized loss on foreign exchange contracts, net income would have been Cdn$11.2 million compared to Cdn$1.1 million in the prior period.
Adjusted third-quarter EBITDA was a loss of Cdn$2.8 million, an improvement of Cdn$1.6 million, or 36 percent over the prior year. As the third quarter falls between the major shipping months of the Company's two seasons, “Holiday” (October-March) and “Back to Hockey”, Bauer has historically generated lower revenues than other quarters and negative EBITDA during the third quarter of each year. The net loss for the third quarter increased to Cdn$10.9 million, from Cdn$7.3 million last year, including an unrealized loss on derivatives (forward contracts) of Cdn$9.3 million. Without the unrealized loss on foreign exchange contracts, the net loss would have been Cdn$4.9 million, a 36 percent improvement over the prior period's loss of Cdn$7.6 million.
