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Press release from Marketwire

Bauer Performance Sports Announces Record Second Quarter and Six Month Results

Consumer Demand Across All Product Categories Drives 27% Revenue Growth and Stronger Net Income Growth

Wednesday, January 11, 2012

Bauer Performance Sports Announces Record Second Quarter and Six Month Results19:21 EST Wednesday, January 11, 2012TORONTO, ONTARIO--(Marketwire - Jan. 11, 2012) - Bauer Performance Sports Ltd. (TSX:BAU) ("BAUER" or the "Company") today announced its unaudited financial results for the second quarter and six months ended November 30, 2011 (all figures are in U.S. dollars).Financial HighlightsUS$ 000,000's except per share data and %Three months ended November 30Six months ended November 3020112010Change vs. prior year20112010Change vs. prior yearRevenue$100.3$79.227%$242.7$189.428%Gross Profit33.627.721%93.172.528%Adjusted Gross Profit*34.228.719%94.474.327%Adjusted EBITDA*9.37.918%44.236.122%Net Income (loss)8.2(1.9)n/a30.913.4130%Adjusted Net Income*4.42.576%25.316.652%EPS (diluted)$0.26$(0.06)$0.98$0.43Adjusted EPS*$0.14$0.08$0.80$0.54 *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 Management's Discussion and Analysis ("MD&A") for the second quarter.The increase in overall revenues in the second quarter and first half of fiscal 2012 was led by ice hockey equipment sales, with strong performance from the newly launched VAPOR family of skates and composite sticks and a full line of innovative goalie products. The continued revenue and earnings performance has been supported by strong "Back-to-Hockey" orders (April 2011 - September 2011) and "Holiday" (October 2011 - March 2012) booking orders. Revenues from the North American market grew by 29% in the second quarter and 28% in the first half of fiscal 2012 compared to the same periods last year, while sales outside North America grew by 20% and 30%, respectively.BAUER is also seeing solid performance in both its lacrosse and apparel product categories, which have delivered year over year increases of 120% and 27%, respectively, through the first half of fiscal 2012.Adjusted Net Income grew by 76% in the second quarter and 52% in the first half of fiscal 2012, compared to the same periods last year. In addition to the strong growth in revenue and gross profit, the Company is gaining leverage on its SG&A spending. Despite growing investments in marketing, SG&A as a percentage of revenues is 17.6% year-to-date, down from 19.5% in the comparable period of last year. Through the first half of fiscal 2012, the benefit of lower interest expense and taxes has been largely offset by the year over year change in realized gains/losses on foreign exchange."The growth in our top and bottom line, as demonstrated in our second quarter results, has been driven by our ability to profitably expand market share in all product categories across every region," said Kevin Davis, President and Chief Executive Officer, Bauer Performance Sports. "Bauer has a robust, customer-centric platform that focuses on building brand loyalty through innovation across every aspect of our business and accelerating sales by offering our customers competitively priced, high quality products. Our platform is transferrable to other sports and related products, providing multiple engines for future growth."On a trailing twelve-month basis, revenues were $359.3 million, Adjusted Gross Profit reached $142.8 million or 39.7% of revenues, Adjusted EBITDA was $51.5 million, diluted earnings per share (EPS) was $0.56, and Adjusted EPS was $0.81.As of November 30, 2011, BAUER had cash of $7.2 million and working capital of $128.8 million. The Company continued to manage its balance sheet as its leverage ratio, defined as net indebtedness divided by EBITDA, remained low at 2.73.Adjusted Gross Profit, EBITDA, 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" noted below and in the Company's MD&A for the second quarter.INTERNATIONAL FINANCIAL REPORTING STANDARDS ("IFRS")Bauer Performance Sports is reporting under IFRS as a corporate entity. Through May 31, 2011 the Company reported under Canadian generally accepted accounting principles. A full explanation of related accounting changes can be found in the Company's Notes to the unaudited Condensed Consolidated Financial Statements for the first quarter of fiscal 2012 which are available on SEDAR at and on the Company's website.The Company's unaudited Condensed Consolidated Financial Statements and MD&A for the period ended November 30, 2011 have been filed with applicable regulatory authorities and are available on SEDAR at and on the Company's website.CONFERENCE CALL AND WEBCASTManagement will hold a conference call and live audio webcast on Thursday, January 12, 2012 at 10:00 a.m. (ET) to discuss the Company's second quarter 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.To access the call, please dial 1-888-318-7451 or 1-719-325-2468. The conference call will also be accessible via webcast at A replay of the conference call will be available from 1:00 p.m. ET on January 12, 2012, until midnight ET, January 26, 2012. To access the replay, dial 1-877-870-5176 or 1-858-384-5517, followed by passcode 4579753.To participate in the live audio webcast, please visit the Company's website at 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 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 MEASURESAdjusted 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 for 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 through acquisitions. Adjusted EBITDA is defined as EBITDA (net income adjusted for income tax expense, depreciation and amortization, gain or loss on disposal of fixed assets, net interest expense, unrealized gains/losses related to derivative instruments, the loss on early extinguishment of debt, deferred financing costs, and realized and unrealized gains/losses related to foreign exchange revaluation) before restructuring and charges associated with acquisitions, sponsor fees and costs related to share offerings, normalization adjustments relating to the purchase of the BAUER business in 2008 as well as normalized share-based payment expenses. 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, 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 divided by the weighted average fully 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.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, inability to protect worldwide intellectual property rights, 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 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 25, 2011 available on SEDAR at, 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 PLEASE CONTACT: Amir RosenthalINVESTOR INQUIRIES: Bauer Performance Sports Ltd.Chief Financial Officer603-610-5802investors@bauerperformancesports.comORInvestor RelationsKevin O'Connor416-962-3300ko@spinnakercmi.comORInvestor RelationsAli Mahdavi416-962-3300ORSteve JonesMEDIA INQUIRIES: Bauer Performance Sports Ltd.Director, Global