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Press release from CNW Group

Bauer Performance Sports Announces Continued Strong Financial Results and Growth in "Back to Hockey" Booking Orders

Wednesday, April 13, 2011

Bauer Performance Sports Announces Continued Strong Financial Results and Growth in "Back to Hockey" Booking Orders18:42 EDT Wednesday, April 13, 2011Third Quarter Revenues Increase 47% and Year-to-Date RevenuesJump to $237.8 MillionTORONTO, April 13 /CNW/ - Bauer Performance Sports Ltd. (TSX:BAU) ("Bauer" or "the Company") today announced financial results for the third quarter and nine months ended February 28, 2011 (all figures are US dollars). This is Bauer's first reporting period since the Company closed its Initial Public Offering on March 10, 2011. In both fiscal periods, Bauer has achieved strong financial results including:Nine-Month Period Ending February 28, 2011 Net revenues increased 21% to $237.8 million, up from $197.2 million in 2010.Gross Profit increased by 38% to $88.1 million (37% of net revenues) compared to $63.8 million (32% of net revenues) last year.Adjusted EBITDA grew by 48% to $33.3 million compared to $22.5 million during the same period in 2010.Third Quarter Ending February 28, 2011 Net revenues increased 47% to $48.4 million from $33.0 million in the same period in the prior year.Gross profit rose 96% to $15.7 million (32% of net revenues) compared to $8.0 million (24% of net revenues) in the third quarter of 2010.Adjusted EBITDA improved 36% to a loss of $2.8 million compared to a loss of $4.4 million during the third quarter of 2010."Our expanded product line combined with unique marketing initiatives has created strong consumer demand and increased retailer confidence in our entire brand portfolio," said Kevin Davis, President and Chief Executive Officer. "The strong financial results and growth in our order file for the upcoming season demonstrate that we continue to grow market share across all categories, in all regions."In addition to Bauer's strong third quarter and nine-month results, the Company also announced that booking orders for its 2011 "Back to Hockey" season (April-September 2011) increased $43.2 million to $178.4 million, or approximately 32% over the 2010 "Back to Hockey" season.Bauer's net revenues are comprised of booking, repeat and other orders. Although booking orders provide the Company some visibility into its future net revenues for the season, there may not be a direct relationship between the change in booking orders year over year and the anticipated total net revenues change for that season, due to several factors including the potential impact booking orders have on the amount and timing of future repeat orders, for which the Company has little visibility. For a more detailed discussion on Bauer's booking and repeat orders, please see the Outlook section of the Company's third quarter MD&A, which will be available on SEDAR at www.sedar.com.Supported by strong performance in all regions, ice hockey equipment net revenues increased by 17% in the nine months and 38% in the third quarter ending February 28, 2011. Apparel net revenues increased by 25% in the nine-month period and 22% in the third quarter following the introduction of Bauer's new protective apparel line as well as increased sales of team apparel. Also contributing to net revenue growth in both periods are net revenues for Maverik lacrosse equipment and related apparel that were not included in our fiscal 2010 net revenues.Adjusted EBITDA for the nine-month period ending February 28, 2011 increased 48% to $33.3 million. Net Income grew 92% to $2.5 million, including an unrealized loss on derivatives (forward contracts) of $13.2 million. Without the unrealized loss on foreign exchange contracts, net income would have been $11.2 million compared to $1.1 million in the prior period.Adjusted third-quarter EBITDA was a loss of $2.8 million, an improvement of $1.6 million, or 36% over the prior year. As the third quarter falls between the major shipping months of the Company's two seasons, "Holiday" (October-March) and "Back to Hockey", Bauer has historically generated lower revenues than other quarters and negative EBITDA during the third quarter of each year. The net loss for the third quarter increased to $10.9 million, from $7.3 million last year, including an unrealized loss on derivatives (forward contracts) of $9.3 million. Without the unrealized loss on foreign exchange contracts, the net loss would have been $4.9 million, a 36% improvement over the prior period's loss of $7.6 million.Adjusted EBITDA is a non-Canadian GAAP measure. For a definition and reconciliation of net income to Adjusted EBITDA, please refer to the Company's third quarter MD&A.CONFERENCE CALL AND WEBCASTManagement will hold a conference call and live audio webcast on Thursday, April 14, 2011 at 10:30 a.m. (ET) to discuss the Company's third quarter and year-to-date results. The call will be hosted by Kevin Davis, President and CEO and Amir Rosenthal, Chief Financial Officer. Following management's presentation, there will be a question and answer session for analysts and investors.The teleconference can be accessed at 416-644-3417 or 1-800-814-4860. A taped rebroadcast will be available until midnight on April 20, 2011. To access the rebroadcast, please dial 416-640-1917 or 1-877-289-8525 and enter the passcode 4433763 followed by the number sign.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. 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 and Maverik Lacrosse 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.The Company's Consolidated Interim Financial Statements and Management's Discussion and Analysis for the period ended February 28, 2011 will be filed with applicable regulatory authorities and will be available on www.sedar.com and on the Company's website at www.bauerperformancesports.com.CAUTION REGARDING FORWARD-LOOKING STATEMENTSThis 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, decrease in ice hockey, roller hockey and/or lacrosse participation rates, adverse publicity, 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 certain foreign currencies in relation to the U.S. dollar, 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 final prospectus.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.For further information: INVESTOR INQUIRIES  Amir Rosenthal Chief Financial Officer Phone: 603-610-5802 investors@bauerperformancesports.com MEDIA INQUIRIES  Steve Jones Director, Global Marketing Phone: 603-430-2111 media@bauerperformancesports.com