BRP executive warns against overreaction to Trump tariff plan BRP Inc. executives said the Ski-Doo maker needs to stay calm in the face of tariffs proposed by U.S. president-elect Donald Trump — tariffs that could hurt a manufacturer that depends on Mexican production. Christopher Reynolds, The Canadian Press Dec 6, 2024 1:48 PM Share by Email Share on Facebook Share on X Share on LinkedIn Print Share via Text Message A BRP logo is shown at the research and innovation plant in Valcourt, Que., Friday, Nov. 9, 2012. THE CANADIAN PRESS/Graham Hughes. BRP Inc. executives said the Ski-Doo maker needs to stay calm in the face of tariffs proposed by U.S. president-elect Donald Trump — tariffs that could hurt a manufacturer that depends on Mexican production. "I don't think we should overreact right now," chief financial officer Sébastien Martel told analysts on a conference call Friday. "We should not speculate too much, because there are hundreds of different possibilities." Last month, the incoming president threw markets into turmoil when he threatened to slap a 25 per cent tariff on all products entering the U.S. from Canada and Mexico. Trump also proposed a 10 per cent tariff on Chinese imports. Some 70 per cent of BRP's production stems from Mexico, Martel said. The company also churns out Ski-Doo snowmobiles and some of its Can-Am three-wheeled motorcycles at a factory in Valcourt, Que. He stressed the advantage of Mexico's lower labour costs as well as its skilled workforce and the benefits of a North American free trade agreement. "We believe we would not be the same company had we not had that footprint in Mexico," Martel said. Roughly 10 per cent of BRP's goods are sourced from China, Martel noted, adding that those parts are "less technically complex." "There are parts that we could easily transfer to another supplier," he said. "Obviously, it would require work." Many observers have framed Trump's tariff threat as a gambit to gain negotiating leverage, rather than an announcement set in stone. "We are used to dealing with evolving trade agreements and have always succeeded in finding solutions to new tariffs," said CEO José Boisjoli. National Bank analyst Cameron Doerksen said the "uncertainty on this issue" remains a problem. "With the return of the Trump administration, the risk of tariffs on powersports imports into the U.S. market has risen materially, with BRP potentially vulnerable," he said in a note to investors. The uncertainty over tariffs could hardly come at a worse time for the company. BRP saw earnings plunge across all product lines amid dropping demand last quarter, capping off a tough year for the recreational vehicle manufacturer. Net income at the Sea-Doo maker fell 70 per cent year-over-year to $27.3 million in the quarter ended Oct. 31. Third-quarter revenue decreased 17 per cent to $1.96 billion. "Our retail performance was as anticipated, reflecting a challenging market dynamic due to soft industry trends," Boisjoli said, stating that discounts from competitors added to the company's woes. A slow start to the snowmobile season has not helped either. "The snow is a bit late, but now it’s catching up. And we expect good retail this season," Boisjoli said, adding that Ski-Doo sales over the next three months remain a "big question." After an urge for outdoor activity sparked a sales boom during the COVID-19 pandemic, buyers responded to inflation and interest rate hikes by pulling back from pricey recreational purchases. BRP's revenues have fallen year-over-year for eight straight quarters. Last month, the company laid off more than 120 employees in its home province of Quebec. The cuts followed some 1,150 layoffs across North America earlier this year, leaving it with roughly 20,000 workers globally. In October, BRP put its marine businesses up for sale as it looks to focus on powersports products and cut the cable to its money-losing boat brands. Nonetheless, its diluted earnings of $1.16 per share beat analysts' expectations of 69 cents, according to financial markets firm LSEG Data & Analytics. The performance boosted BRP's stock price seven per cent; it closed at $72.75 on the Toronto Stock Exchange on Friday. The company forecast that sales of seasonal products such as Ski-Doos and Sea-Doos will fall by more than 30 per cent this year. The category accounted for a third of BRP revenues last quarter. It predicted sales of all-terrain vehicles and other year-round products — comprising more than half of revenue in the quarter — will drop by more than 20 per cent. This report by The Canadian Press was first published Dec. 6, 2024. Companies in this story: (TSX:DOO) Christopher Reynolds, The Canadian Press See a typo/mistake? Have a story/tip? This has been shared 0 times 0 Shares Share by Email Share on Facebook Share on X Share on LinkedIn Print Share via Text Message More Automotive Stellantis recalling more than 300,000 Ram trucks for braking system defect Dec 6, 2024 8:39 AM What to know about the killing of UnitedHealthcare's CEO Dec 6, 2024 8:25 AM Gunman who shot 2 kindergartners at a California school wrote about attack targeting children Dec 5, 2024 6:21 PM Featured FlyerA rape allegation against rapper Jay-Z, whose company Roc Nation has produced some of the NFL’s entertainment presentations including the Super Bowl halftime show, will not affect the league’s relationship with the music mogul. “We’re aware of the civil allegations and Jay-Z’s really strong response to that,” NFL (National Football League) commissioner Roger Goodell said on Wednesday after the conclusion of the league’s winter meetings. “We know the litigation is happening now. From our standpoint, our relationship is not changing with them, including our preparations for the next Super Bowl.” A woman who previously sued musician Sean “Diddy” Combs, alleging she was raped at an awards show after-party in 2000 when she was 13 years old, amended the lawsuit on Sunday to include a new allegation that Jay-Z was also at the party and participated in the sexual assault. Jay-Z, real name Shawn Carter, said the rape allegation made against him is part of an extortion attempt. The 24-time Grammy Award winner called the allegations “idiotic” and “heinous in nature” in a statement released by Roc Nation. The NFL teamed up with Jay-Z’s Roc Nation in 2019 for events and social activism. The league and the entertainment company extended their partnership a few months ago. Kendrick Lamar will perform the Super Bowl halftime show at The Caesars Superdome in New Orleans on February 9. Roc Nation and Emmy-winning producer Jesse Collins will serve as co-executive producers of the halftime show. Beyonce, who is married to Jay-Z, will perform at halftime of the Baltimore Ravens-Houston Texans game at Christmas. “I think they’re getting incredibly comfortable not just with the Super Bowl but other events they’ve advised us on and helped us with,” Mr Goodell said. “They’ve been a big help in the social justice area to us on many occasions. They’ve been great partners.”Jimmy Carter, the 39th US president, has died at 100
It’s the most wonderful time of the year at Gracie Mansion. Eric Adams’ kid hosted a holiday bash at the mayor’s residence over the weekend — promoting the release of his new tunes after a 9/11 recording session . Hizzoner’s 29-year-old son, Jordan Coleman, performed for dozens of guests on the Upper East Side on Sunday, according to a slew of social media posts from the cocktail-attire-required soiree. It wasn’t immediately clear which tracks Coleman performed under his moniker, Jayoo. Nearly all of his guests had their phones out recording the performance. Those in attendance said the party was meant to ring in the holiday season with Coleman’s newest tunes. The mayor did make a brief appearance, noted political reporter Katie Honan, who first posted about the party . The aspiring rapper and filmmaker last made headlines in September when he hosted his 9/11 sessions at Gracie before attending a Jeezy concert with the radio host “Ogee Money,” according to social media posts. The first son’s first album dropped last December , dubbed simply “JORDAN.” One Democratic source was shocked the mayor’s son hosted the holiday gathering — considering the ongoing scandals at the police department , the indictment of Adams’ longtime aide Ingrid Lewis-Martin and the historic indictment Adams himself is facing. “I can’t believe he’d throw a party at a time like this,” the source said. City Hall, though, brushed off any concern, telling The Post that Gracie Mansion is the mayor’s house and his son was simply hosting a party there — as kids do in their parents’ home. The spokesperson added that Coleman was covering the cost of all food and alcohol served at the party as well as any staff who worked the event.
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Massachusetts lawmakers share statements on Jimmy Carter's legacy: "A true public servant"NoneNeighbourhood row after family's £10,000 Christmas lights blasted as 'light pollution'VANCOUVER, British Columbia, Nov. 21, 2024 (GLOBE NEWSWIRE) -- PTF Pender Growth Fund Inc. (the "Company") today announced its financial and operational results for the three months and nine months ended September 30, 2024. Financial Highlights (Unaudited) Net income was $5,815,990 for the three months ended September 30, 2024 (September 30, 2023 – Net loss $97,003) due to positive investment performance in the quarter. Net income per Class C common share ("Share") was $0.80 for the three months ended September 30, 2024 (September 30, 2023 – Net loss per Share $0.01). The Company's total shareholders' equity increased by $39,630,185, from $69,886,178 at December 31, 2023 to $109,516,363 as at September 30, 2024, due to net income from positive investment performance of $40,612,249 during the 9 months, offset by shares repurchase of $982,064 under the Company's Normal Course Issuer Bid ("NCIB"). Shareholders' equity was $15.10 per Share as at September 30, 2024 (December 31, 2023 – $9.48). 7,250,429 shares were outstanding as at September 30, 2024 (December 31, 2023 – 7,368,229), a decrease of 117,800 shares as a result of shares repurchase under the NCIB, which was renewed on February 15, 2024. At September 30, 2024, 75.1% of the investment portfolio was made up of public companies and 24.9% of private companies and Net Assets were 38% publicly listed companies, 12.5% private unlisted companies, and 49.5% cash and other assets net of liabilities. Management Expense Ratio ("MER") before performance fees was 2.39% for the quarter ended September 30, 2024, down 0.06% compared to 2.45% in the third quarter of 2023. PERFORMANCE (Based on Shareholders' Equity) 3 Month 1 Year 3 Year 5 Year Since Inception Class C 5.7% 70.7% 18.2% 30.9% 20.7% Portfolio Highlights The completion of the sale of Copperleaf in the third quarter of 2024 and the resulting injection of $70 million cash, substantially changed the Company's portfolio. At June 30, 2024, the Company's Net Assets were 95.7% publicly listed companies, 13.3% private unlisted companies and (-9.0%) cash and other assets net of liabilities. At September 30, 2024, Pender's Net Assets were 38% publicly listed companies, 12.5% private unlisted companies, and 49.5% cash and other assets net of liabilities. Since the Copperleaf closing, Pender has been deploying cash into opportunities that it believes show promise and by September 30, 2024, the portfolio included $58 million of cash. By October 31, 2024, the cash balance was $35 million and by November 15, 2024, a further $8 million had been deployed into investments, and the Company's Net Assets were 49% publicly listed companies, 28% private unlisted companies and 23% cash and other assets net of liabilities. In October, subsequent to the quarter end, the Company closed the purchase of four private technology companies from Pluribus Technologies. The acquisition was made by Pender Software Holdings (or "PSH") a new entity owned 86% by Pender, with the balance owned by Acorn Partners Inc. ("Acorn") and its principals. Acorn ( www.acorncappartners.com ) is a Vancouver based company that invests in tech companies and provides advisory services to clients. The four software companies acquired are each cash flow positive and stable. PSH is leaving existing management in place to facilitate a focus on operational excellence with strategic support and access to capital managed by Pender and Acorn. Ampere Chan, the founder and CEO of Acorn is the CEO of PSH. Pender intends to use PSH as a vehicle for investing in additional software companies. We believe this new enterprise has great potential. We believe that the Company continues to be well-positioned today to pursue its investment objectives and we continue to find attractive investments opportunities as valuations in micro and small cap stocks in North America remain attractive despite the recent rally this year. Investment results may be affected by future developments and new information that may emerge about broad economic conditions, inflation, central bank measures, geopolitical risks, market risk, unexpected judicial or regulatory proceedings, geopolitical and other global events, factors that are beyond the Company's control. While macro events have driven investor sentiment, we have remained focused on our bottom-up fundamental research to identify companies that can thrive in a wide range of economic scenarios. We believe that this environment provides compelling opportunities for long-term focused investors and that the Company is well-positioned to continue to pursue its investment objectives. As always, this quarter we worked closely with our private portfolio companies and certain of our public portfolio companies. Other Highlights We continued to acquire shares of the Company in the market under our NCIB because we believe the shares are trading at a discount to their intrinsic value. On February 15, 2024, the Company launched a new NCIB, under which the Company may purchase a maximum of 630,188 shares, or 10% of the Company's public float on launch date, during the one-year period ending February 14, 2025. We encourage you to refer to the Company's MD&A and quarterly unaudited financial statements for September 30, 2024, the annual audited financial statements for the year-ended December 31, 2023, and other disclosures available under the Company's profile at www.sedarplus.ca for additional information. About the Company Pender Growth Fund Inc is an investment firm. Its investment objective is to achieve long-term capital growth. The Company utilizes its small capital base and long-term horizon to invest in unique situations, primarily small cap, special situations, and illiquid public and private companies. The firm invests in public and private companies principally in the technology sector. It trades on the TSX Venture Exchange under the symbol "PTF" and posts its NAV on its website, generally within five business days of each month end. Please visit www.pendergrowthfund.com . For further information, please contact: Tony Rautava Corporate Secretary Pender Growth Fund Inc. (604) 653-9625 Toll Free: (866) 377-4743 Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward-Looking Information This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the Company and the environment in which it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the Company's decreased portfolio risk and future investment opportunities. The forward-looking statements in this news release are based on certain assumptions; they are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in the Company's annual information form available at www.sedarplus.ca . There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.