BRP to start paying dividend, buy back stock on improved outlook for 2018

BRP to start paying dividend, buy back stock on improved outlook for 2018

VALCOURT, Que. — BRP Inc. (TSX:DOO) said Thursday it will pay the first quarterly dividend in its history and plans to buy back up to $350 million worth of shares this summer as it forecast stronger results for the coming year.

The maker of Ski-Doo snowmobiles, Sea-Doo watercraft and other recreational equipment raised its growth estimates for 2018 revenue and adjusted profit.

It will pay a first-ever quarterly dividend of eight cents per share on July 13 and plans to buy back up to $350 million worth of stock before the end of July, with the price per share to be determined through a Dutch auction process.

BRP said that its controlling shareholders — affiliates of Bain Capital and the Beaudoin-Bombardier family — intend to sell some of their stock to maintain their proportionate holdings.

The company, based in Valcourt, Que., was spun of as a separate company from plane and train manufacturer Bombardier Inc. (TSX:BBD.B) in late 2003 and did its initial public offering in 2013.

BRP also announced Thursday that it had a net loss or 17 cents per share, mostly due to the impact of an unfavourable swing in currency rates, compared with a profit of 96 cents a year earlier.

On an adjusted basis, BRP said it had normalized income of 25 cents per share.

Revenue rose to $956.2 million from $929.9 million.

Analysts had estimated $975 million of revenue and nine cents per share of adjusted earnings, according to Thomson Reuters.

BRP is now expecting revenue from all business units will be four to six per cent above fiscal 2017, which ended Jan. 31 — four percentage points higher than previous guidance.

Similarly, BRP raised its estimates for normalized net income growth to a range of between 10 per cent and 16 per cent, from the previous range of seven per cent to 13 per cent.

The capital spending estimate rises to between $240 million and $255 million from $215 million to $230 million.

The Canadian Press
…………………………………………………………………

Subscription_Banner_820x300px

Categories: Business

About Author

Write a Comment

Only registered users can comment.