Bauer Performance Sports Ltd. announced revenues rose 26.6 percent to $100.3 million. Adjusted net income jumped 76.0 percent to $4.4 million from $2.5 million a year ago.
US$ 000,000's Three months Six months
except per share ended ended
data and % November 30 November 30
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Change vs. Change vs.
2011 2010 prior year 2011 2010 prior year
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Revenue $ 100.3 $ 79.2 27% $ 242.7 $ 189.4 28%
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Gross Profit 33.6 27.7 21% 93.1 72.5 28%
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Adjusted Gross
Profit(i) 34.2 28.7 19% 94.4 74.3 27%
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Adjusted EBITDA(i) 9.3 7.9 18% 44.2 36.1 22%
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Net Income (loss) 8.2 (1.9) n/a 30.9 13.4 130%
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Adjusted Net
Income(i) 4.4 2.5 76% 25.3 16.6 52%
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EPS (diluted) $ 0.26 $ (0.06) $ 0.98 $ 0.43
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Adjusted EPS(i) $ 0.14 $ 0.08 $ 0.80 $ 0.54
The increase in overall revenues in the second quarter and first half of fiscal 2012 was led by ice hockey equipment sales, with strong performance from the newly launched VAPOR family of skates and composite sticks and a full line of innovative goalie products. The continued revenue and earnings performance has been supported by strong “Back-to-Hockey” orders (April 2011 – September 2011) and “Holiday” (October 2011 – March 2012) booking orders. Revenues from the North American market grew by 29% in the second quarter and 28% in the first half of fiscal 2012 compared to the same periods last year, while sales outside North America grew by 20% and 30%, respectively.
BAUER is also seeing solid performance in both its lacrosse and apparel product categories, which have delivered year over year increases of 120% and 27%, respectively, through the first half of fiscal 2012.
Adjusted Net Income grew by 76% in the second quarter and 52% in the first half of fiscal 2012, compared to the same periods last year. In addition to the strong growth in revenue and gross profit, the Company is gaining leverage on its SG&A spending. Despite growing investments in marketing, SG&A as a percentage of revenues is 17.6% year-to-date, down from 19.5% in the comparable period of last year. Through the first half of fiscal 2012, the benefit of lower interest expense and taxes has been largely offset by the year over year change in realized gains/losses on foreign exchange.
“The growth in our top and bottom line, as demonstrated in our second quarter results, has been driven by our ability to profitably expand market share in all product categories across every region,” said Kevin Davis, President and Chief Executive Officer, Bauer Performance Sports. “Bauer has a robust, customer-centric platform that focuses on building brand loyalty through innovation across every aspect of our business and accelerating sales by offering our customers competitively priced, high quality products. Our platform is transferrable to other sports and related products, providing multiple engines for future growth.”
On a trailing twelve-month basis, revenues were $359.3 million, Adjusted Gross Profit reached $142.8 million or 39.7% of revenues, Adjusted EBITDA was $51.5 million, diluted earnings per share (EPS) was $0.56, and Adjusted EPS was $0.81.
As of November 30, 2011, BAUER had cash of $7.2 million and working capital of $128.8 million. The Company continued to manage its balance sheet as its leverage ratio, defined as net indebtedness divided by EBITDA, remained low at 2.73.
