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Q2FY15 adjusted gross profit up 57% at Performance Sports
Jan '15
Adjusted gross profit in the second fiscal quarter ended November 30, 2014 climbed 57 per cent year on year at NYSE listed Performance Sports Group.

As against $39.6 million in the year-ago quarter, adjusted gross profit rose 57 per cent to $62.2 million at Performance Sports Group in the second quarter of fiscal 2015.

As a percentage of revenues, adjusted gross profit increased 230 basis points to 36.1 per cent compared to 33.8 per cent in the same quarter of previous fiscal year.

“The increase in margin was primarily driven by addition of Easton as well as improvement in production costs for uniforms, partially offset by the unfavorable impact from foreign exchange,” the company said.

Revenues in the second quarter of fiscal 2015 too surged 47 per cent to $172.3 million as against $117.1 million in the corresponding quarter of fiscal 2014 and on a constant currency basis, it was up 51 per cent.

According to Performance Sports, the hike came from addition of Easton revenues and also a strong growth in ice hockey equipment, partially offset by an unfavorable impact from foreign exchange.

Excluding the results of Easton, as well as the impact from foreign exchange, revenues grew organically by 10 per cent from a year ago quarter.

SG&A expenses in the second quarter of fiscal 2015 too rose 44 per cent year on year to $39.3 million. Here again it rose from addition of Easton and also due to higher sales and marketing costs.

As a percentage of sales and excluding acquisition-related charges and share-based payment expenses, SG&A expenses dipped 20 basis points to 20.3 per cent from 20.5 per cent in the year-ago quarter.

Adjusted EBITDA also zoomed 74 per cent to $24.2 million compared to $13.9 million in the year-ago period, again due to Easton and growth in hockey, offset by unfavorable impact from foreign exchange.

Without the impact of currency fluctuations, adjusted EBITDA grew 100 per cent to $27.7 million.

Adjusted net income in the second quarter of fiscal 2015 increased 49 per cent to $11.2 million or $0.24 per diluted share, compared to $7.5 million or $0.20 per diluted share in the year-ago quarter.

On November 30, 2014, working capital stood at $362.4 million as against $222.2 million on November 30, 2013, primarily due to the acquisition of Easton and investment in apparel.

Excluding the acquisition, working capital was $280.8 million as of November 30, 2014, an increase of 26 per cent versus the quarter, a year earlier.

Total debt was $422.8 million at November 30, 2014 up from $152.4 million at November 30, 2013 and leverage ratio, as defined in credit agreements, stood at 3.62x as of November 30, 2014 compared to 2.67x one year ago. (AR)

Fibre2fashion News Desk - India

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