A dive into BRP ($DOO.TO)

A look into BRP's business and fundamentals

Introduction

BRP is a global leader in the design, development, manufacturing, distribution and marketing of powersports and marine products. The Company is a diversified manufacturer of powersports and marine products, providing enthusiasts with a variety of exhilarating, stylish and powerful products for year-round use on a variety of terrains.

Can-Am ATV (Photo by cmophoto.net on Un

For Marine, the portfolio of brands and products includes Alumacraft and Quintrex boats, Manitou pontoons and Rotax engines for jet boats and outboard engine, with stealth technology.

Additionally, the Company supports its line of products with a dedicated PA&A business.

The Company employs close to 20,000 people mainly in manufacturing and distribution sites in Mexico, Canada, Austria, the United States, Finland, Australia and Germany.

The Company sells its products in over 120 countries. The products are sold directly through a network of approximately 2,800 dealers in 21 countries, as well as through approximately 170 distributors serving approximately 460 additional dealers.

The Company has two operating segments consisting of Powersports (Year-Round Products, Seasonal Products and PA&A and OEM engines) and Marine Products.

Powersports

Year-Round Products (51% of revenues)

Year-Round Products consist of BRP vehicles that are sold and used throughout the year in most climates and include ATVs, SSVs and 3WVs product lines. All products within the Year-Round Product category are sold under the Can-Am brand. Can-Am ATVs, SSVs and 3WVs all leverage BRP’s Rotax engines.

Seasonal Products (31% of revenues)

Seasonal products consist of BRP products that are mostly used in specific seasons. These products include snowmobiles, which are mainly used during the winter season with sales to dealers concentrated in the months of September to January. PWC and Sea-Doo pontoons, which are mainly used during the summer season, with sales to dealers concentrated in the months of January to April. All these products leverage BRP’s Rotax engines.

Parts, Accessories & Apparel and OEM engines (13% of revenues)

PA&A and Rotax engines consist of parts, accessories and apparel, engines for karts and recreational aircraft and other services.

Marine (5% of revenues)

Marine consists of boats, pontoons, jet boat and outboard engines and related PA&A and other services. BRP competes in the boat product category with Alumacraft and Quintrex boats, Manitou pontoons and in the marine engine product category with the Rotax engines for jet boats and outboard engine with stealth technology.

History

In 1937, Joseph-Armand Bombardier is granted a patent for the first ever vehicle that can travel on snow, developed in his garage in Valcourt, Quebec, through determination and daring. A second, larger vehicle follows, and he founds his own company in 1942: L’Auto-Neige Bombardier Limité. Over the years, J.-A. Bombardier refines his design, and launches the Ski-Doo in 1959, already powered by a Kohler motor. This innovative product creates a new sport.

In the years to follow, always seeking to innovate, every playground was explored, revolutionizing the powersports industry.

In 2003, BRP became a stand-alone company.

BRP History

Milestones

• 1942 - Start up of Auto-neige Bombardier Ltd

• 1959 - Industry-first Ski-Doo snowmobile

• 1968 - Industry-first Sea-Doo PWC

• 1970 - Acquisition of the Austrian Rotax brand

• 1989 - Acquisition of the Nordtrac Oy and Lynx brand

• 1998 - Bombardier enters the ATV market

• 2001 - Acquisition of the Evinrude and Johnson brands

• 2003 - Bombardier sells its Recreational Products division; BRP is officially launched

• 2007 - Industry-first three-wheel vehicle 

• 2010 - BRP enters the side-by-side vehicle market

• 2013 - BRP’s Initial Public Offering

• 2018 - Acquisition of the Alumacraft and Manitou Brands

• 2018 - BRP enters the Nasdaq

• 2019 - Acquisition of Australian boat manufacturer Telwater

• 2020 - BRP refocuses its marine business; Discontinuation of Evinrude E-TEC and E-TEC G3 outboard engines

Management Team

José Boisjoli, President and Chief Executive Officer

Mr. Boisjoli is Chair of the Board of Directors of BRP since 2019 and President and Chief Executive Officer of BRP since December 2003, when BRP became a standalone company.

In October 1998, he was named President of the Snowmobile and Watercraft division, the largest division of Bombardier Recreational Products Inc. In April 2001, he was given the added responsibility of managing the ATV division. He joined Bombardier Recreational Products Inc. in 1989, after 8 years in the pharmaceutical and road safety equipment industries.

He received a Bachelor of Engineering from the Université de Sherbrooke. In April 2005, he received the prestigious titles of Executive of the Year by Powersports Magazine, the most important powersports magazine in the United States, as Entrepreneur of the Year, Québec, by EY in 2014 and was also named CEO of the year 2017 by the Canadian business newspaper Les Affaires.

Bernard Guy, Executive Vice-President, Global Product Strategy

Bernard Guy has enjoyed more than 30 years of experience with BRP. He has served in several management positions before he was named Senior Vice-President, Global Product Strategy in 2017.

Bernard was born in Sept-Îles, Quebec, and has been a die-hard fan of motorized sports for as long as he can remember. An adrenaline-loving rider to the core, he believes that there’s nothing like being out in the open air.

He joined BRP in 1987 as a Project Engineer for Ski-Doo R&D and has moved up within the company ever since, contributing his knowledge and expertise to engineering, procurement, strategy and product planning. He is driven by product innovation and improvement, and shares BRP’s passion and determination to create the ultimate experience for its customers.

Bernard’s global vision truly came into play with the launch of the Can-Am brand. His focus and commitment to the brand propelled BRP from seventh to third place in the North American market. He also played a major role in developing BRP’s value proposition strategy – and the results for both the company and its dealers speak for themselves.

Sandy Scullion, President, Powersports Group

Sandy Scullion joined BRP in 1994 and has held various leadership positions before becoming Senior Vice-President, Global Retail & Services, Powersports Group in 2016.

Sandy hails from Alma, Quebec, and basically grew up on a Ski-Doo snowmobile. He's an avid rider and loves nothing more than getting out on his machines alongside his family. To Sandy, nothing beats outdoor adventures to escape the everyday and reconnect with nature.

BRP's constant innovation has been a major motivating factor in Sandy's professional growth. He's filled several management roles within the company both in Europe and North America, including sales and network management, marketing, product development, and distribution and operations. Prior to his present role at the company, Sandy was BRP's General Manager for Western Europe, Middle East and Africa.

Sandy's visionary leadership has had a huge impact on customer experience, as he was behind its powersports accessories and lifestyle transformation, which is recognized today as a key brand differentiator.

Snapshot in Pictures