Bauer Performance Sports Announces Record Second Quarter and Six Month Results

Bauer Performance Sports Ltd. (TSX:BAU) ("BAUER" or the "Company") today
announced financial results for the second quarter and six months of Fiscal 2013
ended November 30, 2012. All figures are expressed in U.S. dollars.




----------------------------------------------------------------------------
                                Three months            Six months          
US$ 000,000's except per share     ended                  ended             
 data and %                     November 30            November 30          
----------------------------------------------------------------------------
                                             Change                 Change  
                                                vs.                    vs.  
                                              prior                  prior  
                                 2012   2011   year     2012   2011   year  
----------------------------------------------------------------------------
Revenue                        $109.6 $100.3      9%  $257.9 $242.7      6% 
----------------------------------------------------------------------------
Gross Profit                     38.4   33.6     14%    98.7   93.1      6% 
----------------------------------------------------------------------------
Adjusted Gross Profit(i)         39.7   34.2     16%   100.7   94.4      7% 
----------------------------------------------------------------------------
Adjusted EBITDA(i)               14.2    9.3     53%    52.1   44.2     18% 
----------------------------------------------------------------------------
Net Income (loss)                 6.1    8.2    (26)%   22.1   30.9    (29)%
----------------------------------------------------------------------------
Adjusted Net Income(i)            7.3    4.4     64%    30.2   25.3     19% 
----------------------------------------------------------------------------
Earnings per share (diluted)   $ 0.16 $ 0.26    (38)% $ 0.61 $ 0.98    (38)%
----------------------------------------------------------------------------
Adjusted EPS(i)                $ 0.20 $ 0.14     43%  $ 0.84 $ 0.80      5% 
----------------------------------------------------------------------------
                                                                            
(i)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 MD&A for the second quarter.  



Revenues grew by 6% (9% excluding the impact of foreign exchange) to $257.9
million in the first half of Fiscal 2013 led by strong performance in several
ice hockey equipment categories driven by recent new product launches. The new
BAUER RE-AKT helmet helped drive 16% growth in helmets, while the success of the
new BAUER NEXUS product line helped drive 11% growth in under-protective
category revenues. Partially offsetting these gains was a 7% decline in goalie
revenues due to the earlier launch of the new goalie product line in the 2012
Back-to-Hockey season as compared to the prior year. Lacrosse revenues increased
significantly driven by the addition of sales from the recently acquired Cascade
Helmets Holdings, Inc. ("Cascade") and apparel revenues grew by 27% driven by
BAUER's new line of performance apparel and bags. Overall revenues from the
North American market grew by 6% in the six month period ended November 30, 2012
compared to the same period last year, while sales outside North America grew by
8% in the same period. Second quarter revenues grew by 9% (10% excluding the
impact of foreign exchange) due to the addition of Cascade and Inaria
International, Inc. ("Inaria") revenues and continued growth in ice hockey
equipment and related apparel categories, partially offset by lower sales to NHL
teams as a result of the NHL lockout. Notably, apparel revenues were up 50% in
the quarter (43% excluding the impact of Inaria). Revenues from the North
American market were up 11% while sales outside of North America were up 5% in
the second quarter.


Adjusted Gross Profit in the six month period ended November 30, 2012 increased
by $6.3 million, or 7%, to $100.7 million. Adjusted Gross Profit as a percentage
of revenues increased slightly to 39.0% for the six month period ended November
30, 2012 compared to 38.9% in the six month period ended November 30, 2011.
During the second quarter of Fiscal 2013, Adjusted Gross Profit increased by
$5.5 million, or 16%, to $39.7 million and Adjusted Gross Profit as a percentage
of revenues increased to 36.2% from 34.1%. The increase in Adjusted Gross Profit
as a percentage of revenues for the quarter and first half of Fiscal 2013 was
driven by higher margins on ice hockey equipment, the impact of the Cascade
acquisition and favourable other cost of goods sold, partially offset by the
impact of higher product costs and unfavourable foreign exchange.


Year-to-date Adjusted Net Income increased by $4.9 million, or 19%, to $30.2
million and second quarter Adjusted Net Income increased by $2.9 million, or
64%, to $7.3 million. The increase in Adjusted Net Income was driven by the
increase in Adjusted Gross Profit, continued benefits of operating leverage in
selling, general and administrative expenses, and a favourable impact from the
Company's hedging activities.


Adjusted EPS increased 5%, or $0.04, to $0.84 for the six months ended November
30, 2012 compared to the same period last year and second quarter Adjusted EPS
increased 43%, or $0.06, to $0.20. Fiscal 2013 Adjusted EPS includes an
unfavourable impact from the higher number of common shares outstanding as a
result of the share offering in June to fund the Cascade Acquisition making our
Q1 and YTD Fiscal 2013 Adjusted EPS figures not directly comparable to the prior
year. Excluding the impact of the Cascade Acquisition, YTD Adjusted EPS would
have been approximately $0.88 or a 10% increase over the prior year. For the
full fiscal year the Company currently expects the Cascade acquisition to be
accretive to Adjusted EPS, however due to the seasonality of Cascade's business
- a significant amount of Cascade's income is generated during the second and
third fiscal quarters of the BAUER's fiscal year - the income from Cascade in
the first fiscal half does not yet offset the dilutive impact of the higher
number of common shares outstanding.


"BAUER continues to deliver strong results in hockey, lacrosse and our related
apparel businesses," said Kevin Davis, President and Chief Executive Officer,
Bauer Performance Sports. "Our newly launched hockey equipment products and our
further investment into both apparel and lacrosse are key ingredients to our
current and future success. We expect that these investments, combined with our
comprehensive marketing strategy and recently launched brand building
initiatives, will continue to fuel our exceptional performance. Like the
millions of hockey fans around the world, we are excited that the National
Hockey League is returning to action. Bauer Hockey maintains an important and
valuable relationship with both the NHL and its players, and the recent
agreement is welcome news for everyone involved."


The Company continued to deleverage as its leverage ratio, defined as net
indebtedness divided by EBITDA, was 2.69 as of November 30, 2012 compared to
2.73 as of November 30, 2011. As of November 30, 2012, BAUER had working capital
of $215.1 million compared to working capital of $179.6 million as of November
30, 2011, an increase of 20%. This increase was driven by the acquisitions of
Cascade and Inaria, and sales growth of 18%, 4%, and 9% in the three most recent
quarters (which include the entire "Back to Hockey" 2012 booking season).


Other Recent Highlights



--  During the week of October 1, 2012 the Company held its annual BAUER
    World event, where leading retailers from around the world were able to
    see and experience the newest BAUER gear, including BAUER's latest VAPOR
    line of skates, new team apparel and a new line of goalie equipment. In
    addition to unveiling new products, the Company also launched several
    key corporate initiatives including: 
    
    --  An objective to grow hockey participation by 1 million new players
        by 2022 through a unique multi-year program. Partnering with Hockey
        Canada, USA Hockey, and led by a cross-functional team, including
        Mark Messier, who joined forces with BAUER as a result of the
        Company's recent acquisition of Cascade, the initiative will take a
        leadership role in both growing participation and increasing player
        safety. 
        
    --  The unveiling of the "OWN THE MOMENT" brand campaign, a fully
        integrated global initiative that focuses on the numerous moments in
        hockey that make the sport truly unique and special. The campaign is
        the first BAUER brand campaign in more than 15 years. 
        
--  On October 16, 2012 BAUER closed the acquisition of substantially all of
    the assets of Inaria, a global provider of team sports and active
    apparel for Cdn$7 million in cash. The acquisition marks the Company's
    entrance into the growing jersey market and provides BAUER with full
    team apparel capabilities, including the design, development and
    manufacturing of uniforms for ice hockey, roller hockey, lacrosse,
    soccer and other team sports, enabling the Company to become a "one-
    stop-shop" for its global retail partners' equipment and team apparel
    needs, for both ice hockey and lacrosse. 
    
--  On October 17, 2012 funds managed by Kohlberg Management VI, LLC (the
    "Kohlberg Funds"), BAUER's largest shareholder, completed the sale of an
    aggregate of 4,140,000 common shares of the Company (the "Offering") at
    a price of Cdn$9.90 per share. A syndicate of underwriters completed the
    Offering on a bought deal basis. BAUER did not receive any proceeds from
    the Offering. Immediately following closing, the Kohlberg Funds owned
    the equivalent of 41.0% of the issued and outstanding common shares on a
    non-diluted basis (approximately 33.8% on a fully diluted basis). 



Adjusted Gross Profit, EBITDA, Adjusted EBITDA, Adjusted Net Income/Loss 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 most recent period. Working capital as used
above includes trade and other receivables, inventories, and trade and other
payables. 


The Company's unaudited condensed consolidated interim financial statements and
MD&A for the period ended November 30, 2012 have been filed with applicable
regulatory authorities and are available on SEDAR at www.sedar.com and on the
Company's website. 


CONFERENCE CALL AND WEBCAST 

BAUER will hold its conference call to discuss its financial and operating
results on January 10, 2013 at 10:00 am ET. Kevin Davis, President and CEO and
Amir Rosenthal, Chief Financial Officer will host the call. Following
management's presentation, there will be a question and answer session for
analysts.


To access the call, please dial 1-888-437-9445 or 1-719-325-2429. The conference
call will also be accessible via webcast at www.bauerperformancesports.com. 


A replay of the conference call will be available from 1:00 p.m. ET on January
10, 2013, until midnight ET, January 24, 2013. To access the replay, dial
1-877-870-5176 or 1-858-384-5517, followed by passcode 6094323. 


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. (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, Maverik Lacrosse, Cascade, and Inaria 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. 


NON-IFRS MEASURES 

Adjusted 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 of 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 from acquisitions. Adjusted EBITDA is defined as
EBITDA (net income adjusted for income tax expense, depreciation and
amortization, losses related to amendments to the Company's credit facility,
gain or loss on disposal of fixed assets, net interest expense, deferred
financing fees, unrealized gains/losses on derivative instruments, and realized
and unrealized gains/losses related to foreign exchange revaluation) before
restructuring and other one-time or non-cash charges associated with
acquisitions, pre-IPO sponsor fees, costs related to share offerings, as well as
share-based payment expense. 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, amortization of acquisition
related intangible assets for acquisitions since Fiscal 2012, 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/Loss divided by
the weighted average 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 of Fiscal 2013.


CAUTION REGARDING FORWARD-LOOKING STATEMENTS 

This 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, inability to successfully integrate recent acquisitions,
decrease in ice hockey, roller hockey and/or lacrosse participation rates,
adverse publicity, reduction in popularity of the NHL and other professional
leagues of sports in which our products are used, 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 29, 2012 available on SEDAR at www.sedar.com. 


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 PLEASE CONTACT: 
INVESTOR INQUIRIES
Bauer Performance Sports Ltd.
Chief Financial Officer
603-610-5802
[e-mail]


Spinnaker Capital Markets Inc.
Kevin O'Connor / Ali Mahdavi
416-962-3300
[e-mail]


MEDIA INQUIRIES
Tory Mazzola
Global Communications Manager
603-610-5908
[e-mail]