Click here to close now.




















Welcome!

Microsoft Cloud Authors: Elizabeth White, Adine Deford, the Editor, Michael Krems, Xenia von Wedel

News Feed Item

Bauer Performance Sports Announces Record Second Quarter and Six Month Results

Revenues increase by 9% in the quarter and Q2 Adjusted EPS up 43%

TORONTO, ONTARIO -- (Marketwire) -- 01/09/13 -- Bauer Performance Sports Ltd. (TSX:BAU) ("BAUER" or the "Company") today announced financial results for the second quarter and six months of Fiscal 2013 ended November 30, 2012. All figures are expressed in U.S. dollars.


----------------------------------------------------------------------------
                                Three months            Six months          
US$ 000,000's except per share     ended                  ended             
 data and %                     November 30            November 30          
----------------------------------------------------------------------------
                                             Change                 Change  
                                                vs.                    vs.  
                                              prior                  prior  
                                 2012   2011   year     2012   2011   year  
----------------------------------------------------------------------------
Revenue                        $109.6 $100.3      9%  $257.9 $242.7      6% 
----------------------------------------------------------------------------
Gross Profit                     38.4   33.6     14%    98.7   93.1      6% 
----------------------------------------------------------------------------
Adjusted Gross Profit(i)         39.7   34.2     16%   100.7   94.4      7% 
----------------------------------------------------------------------------
Adjusted EBITDA(i)               14.2    9.3     53%    52.1   44.2     18% 
----------------------------------------------------------------------------
Net Income (loss)                 6.1    8.2    (26)%   22.1   30.9    (29)%
----------------------------------------------------------------------------
Adjusted Net Income(i)            7.3    4.4     64%    30.2   25.3     19% 
----------------------------------------------------------------------------
Earnings per share (diluted)   $ 0.16 $ 0.26    (38)% $ 0.61 $ 0.98    (38)%
----------------------------------------------------------------------------
Adjusted EPS(i)                $ 0.20 $ 0.14     43%  $ 0.84 $ 0.80      5% 
----------------------------------------------------------------------------
                                                                            
(i)Note: Adjusted Gross Profit, Adjusted EBITDA, Adjusted Net Income and    
Adjusted EPS are non-IFRS measures. For the relevant definitions and        
reconciliations to reported results, please see "Non-IFRS Measures" at the  
end of this news release and in the Company's MD&A for the second quarter.  

Revenues grew by 6% (9% excluding the impact of foreign exchange) to $257.9 million in the first half of Fiscal 2013 led by strong performance in several ice hockey equipment categories driven by recent new product launches. The new BAUER RE-AKT helmet helped drive 16% growth in helmets, while the success of the new BAUER NEXUS product line helped drive 11% growth in under-protective category revenues. Partially offsetting these gains was a 7% decline in goalie revenues due to the earlier launch of the new goalie product line in the 2012 Back-to-Hockey season as compared to the prior year. Lacrosse revenues increased significantly driven by the addition of sales from the recently acquired Cascade Helmets Holdings, Inc. ("Cascade") and apparel revenues grew by 27% driven by BAUER's new line of performance apparel and bags. Overall revenues from the North American market grew by 6% in the six month period ended November 30, 2012 compared to the same period last year, while sales outside North America grew by 8% in the same period. Second quarter revenues grew by 9% (10% excluding the impact of foreign exchange) due to the addition of Cascade and Inaria International, Inc. ("Inaria") revenues and continued growth in ice hockey equipment and related apparel categories, partially offset by lower sales to NHL teams as a result of the NHL lockout. Notably, apparel revenues were up 50% in the quarter (43% excluding the impact of Inaria). Revenues from the North American market were up 11% while sales outside of North America were up 5% in the second quarter.

Adjusted Gross Profit in the six month period ended November 30, 2012 increased by $6.3 million, or 7%, to $100.7 million. Adjusted Gross Profit as a percentage of revenues increased slightly to 39.0% for the six month period ended November 30, 2012 compared to 38.9% in the six month period ended November 30, 2011. During the second quarter of Fiscal 2013, Adjusted Gross Profit increased by $5.5 million, or 16%, to $39.7 million and Adjusted Gross Profit as a percentage of revenues increased to 36.2% from 34.1%. The increase in Adjusted Gross Profit as a percentage of revenues for the quarter and first half of Fiscal 2013 was driven by higher margins on ice hockey equipment, the impact of the Cascade acquisition and favourable other cost of goods sold, partially offset by the impact of higher product costs and unfavourable foreign exchange.

Year-to-date Adjusted Net Income increased by $4.9 million, or 19%, to $30.2 million and second quarter Adjusted Net Income increased by $2.9 million, or 64%, to $7.3 million. The increase in Adjusted Net Income was driven by the increase in Adjusted Gross Profit, continued benefits of operating leverage in selling, general and administrative expenses, and a favourable impact from the Company's hedging activities.

Adjusted EPS increased 5%, or $0.04, to $0.84 for the six months ended November 30, 2012 compared to the same period last year and second quarter Adjusted EPS increased 43%, or $0.06, to $0.20. Fiscal 2013 Adjusted EPS includes an unfavourable impact from the higher number of common shares outstanding as a result of the share offering in June to fund the Cascade Acquisition making our Q1 and YTD Fiscal 2013 Adjusted EPS figures not directly comparable to the prior year. Excluding the impact of the Cascade Acquisition, YTD Adjusted EPS would have been approximately $0.88 or a 10% increase over the prior year. For the full fiscal year the Company currently expects the Cascade acquisition to be accretive to Adjusted EPS, however due to the seasonality of Cascade's business - a significant amount of Cascade's income is generated during the second and third fiscal quarters of the BAUER's fiscal year - the income from Cascade in the first fiscal half does not yet offset the dilutive impact of the higher number of common shares outstanding.

"BAUER continues to deliver strong results in hockey, lacrosse and our related apparel businesses," said Kevin Davis, President and Chief Executive Officer, Bauer Performance Sports. "Our newly launched hockey equipment products and our further investment into both apparel and lacrosse are key ingredients to our current and future success. We expect that these investments, combined with our comprehensive marketing strategy and recently launched brand building initiatives, will continue to fuel our exceptional performance. Like the millions of hockey fans around the world, we are excited that the National Hockey League is returning to action. Bauer Hockey maintains an important and valuable relationship with both the NHL and its players, and the recent agreement is welcome news for everyone involved."

The Company continued to deleverage as its leverage ratio, defined as net indebtedness divided by EBITDA, was 2.69 as of November 30, 2012 compared to 2.73 as of November 30, 2011. As of November 30, 2012, BAUER had working capital of $215.1 million compared to working capital of $179.6 million as of November 30, 2011, an increase of 20%. This increase was driven by the acquisitions of Cascade and Inaria, and sales growth of 18%, 4%, and 9% in the three most recent quarters (which include the entire "Back to Hockey" 2012 booking season).

Other Recent Highlights


--  During the week of October 1, 2012 the Company held its annual BAUER
    World event, where leading retailers from around the world were able to
    see and experience the newest BAUER gear, including BAUER's latest VAPOR
    line of skates, new team apparel and a new line of goalie equipment. In
    addition to unveiling new products, the Company also launched several
    key corporate initiatives including: 
    
    --  An objective to grow hockey participation by 1 million new players
        by 2022 through a unique multi-year program. Partnering with Hockey
        Canada, USA Hockey, and led by a cross-functional team, including
        Mark Messier, who joined forces with BAUER as a result of the
        Company's recent acquisition of Cascade, the initiative will take a
        leadership role in both growing participation and increasing player
        safety. 
        
    --  The unveiling of the "OWN THE MOMENT" brand campaign, a fully
        integrated global initiative that focuses on the numerous moments in
        hockey that make the sport truly unique and special. The campaign is
        the first BAUER brand campaign in more than 15 years. 
        
--  On October 16, 2012 BAUER closed the acquisition of substantially all of
    the assets of Inaria, a global provider of team sports and active
    apparel for Cdn$7 million in cash. The acquisition marks the Company's
    entrance into the growing jersey market and provides BAUER with full
    team apparel capabilities, including the design, development and
    manufacturing of uniforms for ice hockey, roller hockey, lacrosse,
    soccer and other team sports, enabling the Company to become a "one-
    stop-shop" for its global retail partners' equipment and team apparel
    needs, for both ice hockey and lacrosse. 
    
--  On October 17, 2012 funds managed by Kohlberg Management VI, LLC (the
    "Kohlberg Funds"), BAUER's largest shareholder, completed the sale of an
    aggregate of 4,140,000 common shares of the Company (the "Offering") at
    a price of Cdn$9.90 per share. A syndicate of underwriters completed the
    Offering on a bought deal basis. BAUER did not receive any proceeds from
    the Offering. Immediately following closing, the Kohlberg Funds owned
    the equivalent of 41.0% of the issued and outstanding common shares on a
    non-diluted basis (approximately 33.8% on a fully diluted basis). 

Adjusted Gross Profit, EBITDA, Adjusted EBITDA, Adjusted Net Income/Loss and Adjusted EPS are non-IFRS measures. For the relevant definitions and reconciliations to reported results, please see "Non-IFRS Measures" noted below and in the Company's MD&A for the most recent period. Working capital as used above includes trade and other receivables, inventories, and trade and other payables.

The Company's unaudited condensed consolidated interim financial statements and MD&A for the period ended November 30, 2012 have been filed with applicable regulatory authorities and are available on SEDAR at www.sedar.com and on the Company's website.

CONFERENCE CALL AND WEBCAST

BAUER will hold its conference call to discuss its financial and operating results on January 10, 2013 at 10:00 am ET. Kevin Davis, President and CEO and Amir Rosenthal, Chief Financial Officer will host the call. Following management's presentation, there will be a question and answer session for analysts.

To access the call, please dial 1-888-437-9445 or 1-719-325-2429. The conference call will also be accessible via webcast at www.bauerperformancesports.com.

A replay of the conference call will be available from 1:00 p.m. ET on January 10, 2013, until midnight ET, January 24, 2013. To access the replay, dial 1-877-870-5176 or 1-858-384-5517, followed by passcode 6094323.

To participate in the live audio webcast, please visit the Company's website at www.bauerperformancesports.com. The webcast will also be archived on the Company's website.

ABOUT BAUER PERFORMANCE SPORTS LTD.

Bauer Performance Sports Ltd. (TSX:BAU) is a leading developer and manufacturer of ice hockey, roller hockey, and lacrosse 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 Hockey, Mission Roller Hockey, Maverik Lacrosse, Cascade, and Inaria 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, visit www.bauerperformancesports.com.

NON-IFRS MEASURES

Adjusted Gross Profit, EBITDA, Adjusted EBITDA, Adjusted Net Income, and Adjusted EPS 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, and (iii) reserves established to dispose of obsolete inventory acquired from acquisitions. Adjusted EBITDA is defined as EBITDA (net income adjusted for income tax expense, depreciation and amortization, losses related to amendments to the Company's 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, pre-IPO sponsor fees, costs related to share offerings, as well as share-based payment expense. Adjusted Net Income is defined as net income adjusted for unrealized gains/losses related to derivative instruments and unrealized gains/losses related to foreign exchange revaluation, one-time or non-cash charges associated with acquisitions, amortization of acquisition related intangible assets for acquisitions since Fiscal 2012, costs related to share offerings, share-based compensation expense, and other non-cash or one-time items. Adjusted EPS is defined as Adjusted Net Income/Loss divided by the weighted average diluted shares outstanding.

Reconciliations of these non-IFRS measures to the relevant reported results can be found in the Company's MD&A for the second quarter of Fiscal 2013.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements within the meaning of applicable securities laws. 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 our actual results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors: 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, inability to successfully integrate recent acquisitions, decrease in ice hockey, roller hockey and/or lacrosse participation rates, adverse publicity, reduction in popularity of the NHL and other professional leagues of sports in which our products are used, 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 product recalls, compliance with standards of testing and athletic governing bodies, departure of senior executives or other key personnel, litigation, employment or union related matters, inability to translate order bookings into realized sales, fluctuations in the value of certain foreign currencies in relation to the U.S. dollar, inability to manage foreign exchange derivative instruments, general economic and market conditions, changes in consumer preferences and the difficulty in anticipating or forecasting those changes, natural disasters, as well as the factors identified in the "Risk Factors" section of BAUER's Annual Information Form dated August 29, 2012 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 news 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.

Contacts:
INVESTOR INQUIRIES
Bauer Performance Sports Ltd.
Chief Financial Officer
603-610-5802
[email protected]

Spinnaker Capital Markets Inc.
Kevin O'Connor / Ali Mahdavi
416-962-3300
[email protected]

MEDIA INQUIRIES
Tory Mazzola
Global Communications Manager
603-610-5908
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
SYS-CON Events announced today that the "Second Containers & Microservices Expo" will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so they don't have to be replaced and are instantly converted to become smart, connected devices.
The Internet of Things is in the early stages of mainstream deployment but it promises to unlock value and rapidly transform how organizations manage, operationalize, and monetize their assets. IoT is a complex structure of hardware, sensors, applications, analytics and devices that need to be able to communicate geographically and across all functions. Once the data is collected from numerous endpoints, the challenge then becomes converting it into actionable insight.
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
Contrary to mainstream media attention, the multiple possibilities of how consumer IoT will transform our everyday lives aren’t the only angle of this headline-gaining trend. There’s a huge opportunity for “industrial IoT” and “Smart Cities” to impact the world in the same capacity – especially during critical situations. For example, a community water dam that needs to release water can leverage embedded critical communications logic to alert the appropriate individuals, on the right device, as soon as they are needed to take action.
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on demos and comprehensive walkthroughs.
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts, GM of Platform at FinancialForce.com, will discuss the value of business applications on wearable ...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...