|By Marketwired .||
|January 9, 2013 05:30 PM EST||
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.
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.
The Open Connectivity Foundation (OCF), sponsor of the IoTivity open source project, and AllSeen Alliance, which provides the AllJoyn® open source IoT framework, today announced that the two organizations’ boards have approved a merger under the OCF name and bylaws. This merger will advance interoperability between connected devices from both groups, enabling the full operating potential of IoT and representing a significant step towards a connected ecosystem.
Oct. 27, 2016 06:15 PM EDT Reads: 1,314
November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Penta Security is a leading vendor for data security solutions, including its encryption solution, D’Amo. By using FPE technology, D’Amo allows for the implementation of encryption technology to sensitive data fields without modification to schema in the database environment. With businesses having their data become increasingly more complicated in their mission-critical applications (such as ERP, CRM, HRM), continued ...
Oct. 27, 2016 05:45 PM EDT Reads: 1,174
SYS-CON Events announced today that Embotics, the cloud automation company, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Embotics is the cloud automation company for IT organizations and service providers that need to improve provisioning or enable self-service capabilities. With a relentless focus on delivering a premier user experience and unmatched customer support, Embotics is the fas...
Oct. 27, 2016 05:00 PM EDT Reads: 1,056
Intelligent machines are here. Robots, self-driving cars, drones, bots and many IoT devices are becoming smarter with Machine Learning. In her session at @ThingsExpo, Sudha Jamthe, CEO of IoTDisruptions.com, will discuss the next wave of business disruption at the junction of IoT and AI, impacting many industries and set to change our lives, work and world as we know it.
Oct. 27, 2016 04:30 PM EDT Reads: 444
SYS-CON Events announced today that Cloudbric, a leading website security provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Cloudbric is an elite full service website protection solution specifically designed for IT novices, entrepreneurs, and small and medium businesses. First launched in 2015, Cloudbric is based on the enterprise level Web Application Firewall by Penta Security Sys...
Oct. 27, 2016 04:30 PM EDT Reads: 1,334
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Oct. 27, 2016 04:15 PM EDT Reads: 3,271
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Oct. 27, 2016 02:17 PM EDT Reads: 241
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Oct. 27, 2016 01:45 PM EDT Reads: 3,995
SYS-CON Events announced today that MathFreeOn will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MathFreeOn is Software as a Service (SaaS) used in Engineering and Math education. Write scripts and solve math problems online. MathFreeOn provides online courses for beginners or amateurs who have difficulties in writing scripts. In accordance with various mathematical topics, there are more tha...
Oct. 27, 2016 01:45 PM EDT Reads: 1,159
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, will draw together recent research and lessons learned from emerging and established ...
Oct. 27, 2016 01:45 PM EDT Reads: 1,608
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, will discuss how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team a...
Oct. 27, 2016 01:15 PM EDT Reads: 856
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service.
Oct. 27, 2016 01:15 PM EDT Reads: 1,209
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Oct. 27, 2016 01:15 PM EDT Reads: 5,089
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
Oct. 27, 2016 01:00 PM EDT Reads: 8,620
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Oct. 27, 2016 11:45 AM EDT Reads: 1,272
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Oct. 27, 2016 11:30 AM EDT Reads: 1,916
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, discussed the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filterin...
Oct. 27, 2016 11:00 AM EDT Reads: 3,067
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
Oct. 27, 2016 11:00 AM EDT Reads: 1,173
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
Oct. 27, 2016 10:15 AM EDT Reads: 3,258
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Oct. 27, 2016 10:15 AM EDT Reads: 1,447