Click here to close now.

SYS-CON MEDIA Authors: Liz McMillan, Elizabeth White, Dana Gardner, tru welu, Blue Box Blog

News Feed Item

Bauer Performance Sports Provides Preliminary Fiscal Third Quarter 2014 Results

EXETER, NEW HAMPSHIRE -- (Marketwired) -- 03/19/14 -- Bauer Performance Sports Ltd. (TSX: BAU) ("BPS" or the "Company"), a leading developer and manufacturer of high performance sports equipment and apparel, provided preliminary results for its fiscal third quarter ended February 28, 2014.

BPS is issuing this news release pursuant to its obligations under applicable Canadian securities laws to enable it to disclose this information in meetings in connection with its fully committed debt financing related to the Company's previously announced pending acquisition of Easton Baseball/Softball. BPS does not intend to continue to provide preliminary results for future periods in respect of revenue, Adjusted Gross Profit, Adjusted EBITDA, Adjusted EPS, capital expenditures, cash, outstanding debt balances or other key performance measures.

All figures are in millions of U.S. dollars, except Adjusted EPS.


                                         Estimated for the    For the three
                                        three months ended     months ended
                                              February 28,     February 28,
                                                      2014             2013
                                       -------------------------------------
Income Statement
Revenue                                 $      61.0 - 63.0  $          54.9
Adjusted Gross Profit(i)                $      19.0 - 21.0  $          16.4
Adjusted EBITDA(i)                      $     (3.5) - (2.5) $          (3.8)
Adjusted EPS(i)                         $   (0.12) - (0.10) $         (0.11)

Cash Flow
Capital Expenditures                    $        0.7 - 0.9  $           2.3

                                           Estimated as of            As of
                                              February 28,     February 28,
                                                      2014             2013
                                       -------------------------------------
Balance Sheet
Cash                                    $              7.7  $           8.6

  Revolver                                            36.0             34.0
  Term Loan A                                         97.2            110.6
  Capital Leases                                       0.3              0.1
                                       -------------------------------------
Total Debt                              $            133.5  $         144.6

(i) Note: Adjusted Gross Profit, Adjusted EBITDA, and Adjusted EPS are non-IFRS measures. Please see "Non-IFRS Measures" at the end of this news release.

In the third quarter of fiscal year 2014, BPS's revenues increased due to growth in the sale of ice hockey equipment, lacrosse and apparel, and the addition of revenues from the Combat business.

Adjusted Gross Profit improved as a result of the increase in revenues and higher profit margins in ice hockey equipment.

Adjusted EBITDA increased due to the higher Adjusted Gross Profit and favorable realized gains/losses on derivatives, partially offset by higher research and development and selling, general, and administrative expenses due to the addition of Combat Sports, as well as higher endorsement expenses driven by the impact of the NHL lockout in the prior year period.

Capital expenditures decreased due to lower information systems investment compared to the prior year when the Company was integrating its information systems with those of Cascade Helmets.

BPS's total net debt (debt less cash on hand) as of February 28, 2014 is estimated to be $125.8 million, a decrease of $10.2 million from the prior year period. The decrease is due primarily to term loan repayments of $9.4 million and the impact of favorable foreign exchange of $4.0 million on the Company's term loan balance. The revolving loan balance increased $2.0 million versus the prior year period due to $8.8 million paid for acquisition-related expenses, share offerings and other charges, the acquisition of Combat for $3.3 million, and increased working capital requirements to support the Company's growth of approximately $21.0 million.

All figures reported above with respect to the third quarter of fiscal 2014 are preliminary and are subject to change as BPS's third quarter of fiscal 2014 financial results are finalized. These preliminary results have not been reviewed by BPS's auditors. The preliminary estimates provided in this news release constitute forward-looking statements within the meaning of applicable securities laws, are based on a number of assumptions and are subject to a number of risks and uncertainties. Please see section below entitled "Caution Regarding Forward-Looking Statements."

BPS intends to issue a press release with respect to the finalized financial results of the third quarter of fiscal 2014 during the week of April 7, 2014. This press release will contain further detail on the results from BPS's third quarter of fiscal 2014, including disclosure regarding the booking orders for the 2014 Back-to-Hockey season compared to the 2013 Back-to-Hockey season. At such time, the Company will also file its unaudited condensed consolidated interim financial statements as of February 28, 2014 and for the three and nine months ended February 28, 2014 and 2013, together with the notes thereto and management's discussion and analysis of financial condition and results of operations of the Company for the three and nine month periods ended February 28, 2014 (the "Q3 MD&A").

About Bauer Performance Sports Ltd.

Bauer Performance Sports Ltd. (TSX: BAU) is a leading developer and manufacturer of ice hockey, roller hockey, lacrosse, baseball and softball 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, MISSION, MAVERIK, CASCADE, INARIA and COMBAT 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, please visit www.bauerperformancesports.com.

Non-IFRS Measures

Adjusted Gross Profit, Adjusted EBITDA 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, (iii) reserves established to dispose of obsolete inventory acquired from acquisitions and (iv) other one-time or non-cash items. Adjusted EBITDA is defined as EBITDA (net income adjusted for income tax expense, depreciation and amortization, losses related to amendments to the 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, other one-time or non-cash items, pre-initial public offering sponsor fees, costs related to share offerings, as well as share-based payment expenses. Adjusted EPS is defined as Adjusted Net Income/Loss divided by the weighted average diluted shares outstanding. Adjusted Net Income/Loss is defined as net income adjusted for all unrealized gains/losses related to derivative instruments and unrealized gains/losses related to foreign exchange revaluation, non-cash or incremental charges associated with acquisitions, amortization of acquisition-related intangible assets for acquisitions since the Company's initial public offering, costs related to share offerings, share-based compensation expense and other non-cash or one-time items. Reconciliations of these non-IFRS measures to the relevant reported results, when finalized, can be found in the Company's Q3 MD&A (defined above).

Caution Regarding Forward-Looking Statements

This press release includes forward-looking statements within the meaning of applicable securities laws, including with respect to our preliminary results for the third quarter of fiscal 2014, the Company's pending acquisition of Easton Baseball/Softball and the financing thereof. 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 the Company's 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 and related litigation, inability to successfully integrate acquisitions, decrease in ice hockey, roller hockey, lacrosse and/or baseball/softball participation rates, adverse publicity, reduction in popularity of the NHL, NLL, MLB and other professional leagues in which our products are used, changes in consumer preferences and the difficulty in anticipating or forecasting those changes, 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 lawsuits, product recalls, compliance with standards of testing and athletic governing bodies, departure of senior executives or other key personnel, litigation and related matters, employment or union related matters, fluctuations in the value of certain foreign currencies in relation to the US dollar, inability to manage foreign exchange derivative instruments, general economic and market conditions, natural disasters, as well as the factors identified in the "Risk Factors" section of Bauer's Annual Information Form dated August 27, 2013 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 press 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:
Company Contact: Bauer Performance Sports Ltd.
Amir Rosenthal
Chief Financial Officer
1-603-610-5802
[email protected]

Investor Relations: Liolios Group Inc.
Scott Liolios or Cody Slach
1-949-574-3860
[email protected]

Media Contact: Bauer Performance Sports Ltd.
Tory Mazzola
Global Communications Manager
1-603-430-2111
[email protected]
www.bauerperformancesports.com

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.

Latest Stories
The consumption economy is here and so are cloud applications and solutions that offer more than subscription and flat fee models and at the same time are available on a pure consumption model, which not only reduces IT spend but also lowers infrastructure costs, and offers ease of use and availability. In their session at 15th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed this shifting dynamic with an ...
As enterprises engage with Big Data technologies to develop applications needed to meet operational demands, new computation fabrics are continually being introduced. To leverage these new innovations, organizations are sacrificing market opportunities to gain expertise in learning new systems. In his session at Big Data Expo, Supreet Oberoi, Vice President of Field Engineering at Concurrent, Inc., discussed how to leverage existing infrastructure and investments and future-proof them against e...
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackI...
Once the decision has been made to move part or all of a workload to the cloud, a methodology for selecting that workload needs to be established. How do you move to the cloud? What does the discovery, assessment and planning look like? What workloads make sense? Which cloud model makes sense for each workload? What are the considerations for how to select the right cloud model? And how does that fit in with the overall IT transformation?
The recent trends like cloud computing, social, mobile and Internet of Things are forcing enterprises to modernize in order to compete in the competitive globalized markets. However, enterprises are approaching newer technologies with a more silo-ed way, gaining only sub optimal benefits. The Modern Enterprise model is presented as a newer way to think of enterprise IT, which takes a more holistic approach to embracing modern technologies.
For better or worse, DevOps has gone mainstream. All doubt was removed when IBM and HP threw up their respective DevOps microsites. Where are we on the hype cycle? It's hard to say for sure but there's a feeling we're heading for the "Peak of Inflated Expectations." What does this mean for the enterprise? Should they avoid DevOps? Definitely not. Should they be cautious though? Absolutely. The truth is that DevOps and the enterprise are at best strange bedfellows. The movement has its roots in t...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impac...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. 8th International Big Data Expo, co-located with 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. As advanced data storage, access and analytics technologies aimed at handling high-volume and/or fast moving data all move center stage, aided by the cloud computing bo...
Every day we read jaw-dropping stats on the explosion of data. We allocate significant resources to harness and better understand it. We build businesses around it. But we’ve only just begun. For big payoffs in Big Data, CIOs are turning to cognitive computing. Cognitive computing’s ability to securely extract insights, understand natural language, and get smarter each time it’s used is the next, logical step for Big Data.
There's no doubt that the Internet of Things is driving the next wave of innovation. Google has spent billions over the past few months vacuuming up companies that specialize in smart appliances and machine learning. Already, Philips light bulbs, Audi automobiles, and Samsung washers and dryers can communicate with and be controlled from mobile devices. To take advantage of the opportunities the Internet of Things brings to your business, you'll want to start preparing now.
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Enterprises are fast realizing the importance of integrating SaaS/Cloud applications, API and on-premises data and processes, to unleash hidden value. This webinar explores how managers can use a Microservice-centric approach to aggressively tackle the unexpected new integration challenges posed by proliferation of cloud, mobile, social and big data projects. Industry analyst and SOA expert Jason Bloomberg will strip away the hype from microservices, and clearly identify their advantages and d...
In a world of ever-accelerating business cycles and fast-changing client expectations, the cloud increasingly serves as a growth engine and a path to new business models. Dynamic clouds enable businesses to continuously reinvent themselves, adapting their business processes, their service and software delivery and their operations to achieve speed-to-market and quick response to customer feedback. As the cloud evolves, the industry has multiple competing cloud technologies, offering on-premises ...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the...
Over the years, a variety of methodologies have emerged in order to overcome the challenges related to project constraints. The successful use of each methodology seems highly context-dependent. However, communication seems to be the common denominator of the many challenges that project management methodologies intend to resolve. In this respect, Information and Communication Technologies (ICTs) can be viewed as powerful tools for managing projects. Few research papers have focused on the way...