TORONTO, ONTARIO--(Marketwire - Oct. 9, 2012) - Bauer Performance Sports Ltd. (TSX:BAU) ("BAUER" or the "Company") today announced its financial results for the first quarter of Fiscal 2013 ended August 31, 2012 reported under IFRS. All figures are in U.S. dollars.

Revenues grew by 4% (8% excluding the impact of foreign exchange) to $148.3 million in the first quarter of Fiscal 2013 including strong performance in several ice hockey equipment categories and apparel driven by recent new product launches. Composite sticks grew by 9%, driven partially by the launch of the NEXUS family of products, and the new RE-AKT helmet helped drive 16% growth in helmets. Partially offsetting these gains was a 9% decline in goalie revenues due to the launch of the new product line earlier in the Back-to-Hockey 2012 season than in Back-to-Hockey 2011. Apparel revenues grew by 11% and BAUER's lacrosse revenues increased significantly driven by the positive contribution of two months of sales from the recently acquired Cascade Helmets Holdings, Inc. ("Cascade") which added 2% to total revenue growth in the quarter. Overall revenues from the North American market grew by 2% in the three month period ended August 31, 2012 compared to the same period last year, while sales outside North America grew by 10% in the same period.

Adjusted Gross Profit in the three month period ended August 31, 2012 increased by $0.8 million, or 1%, to $61.0 million. Adjusted Gross Profit as a percentage of revenues was 41.1% for the three month period ended August 31, 2012 versus 42.3% in the three month period ended August 31, 2011. The decline in Adjusted Gross Profit as a percentage of revenues was driven primarily by higher product costs and unfavourable foreign exchange, partially offset by favourable other cost of goods sold.

Adjusted Net Income in the three month period ended August 31, 2012 increased by $2.0 million, or 10%, to $22.9 million. The increase in Adjusted Net Income is driven by increased 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 decreased 2%, or $0.01, to $0.65, compared to the same period last year due to the higher number of common shares outstanding as a result of the share offerings in June to fund the Cascade Acquisition. Excluding the impact of the Cascade acquisition and related share offerings, Adjusted EPS would have been approximately $0.70. 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, the income from Cascade in the first fiscal quarter did not offset the dilutive impact of the higher number of common shares outstanding.

In addition to BAUER's strong first quarter results, the Company also announced that booking orders for its 2012 "Holiday" season (October 2012 - March 2013) increased 12% over the 2011 "Holiday" season. This growth of $8.0 million increased "Holiday" booking orders to $75.1 million, reflecting our retail customers' continuing enthusiasm for BAUER's innovative products.

"We followed up our record fourth quarter with a very strong start to fiscal 2013, outperforming the industry and growing our top line at over 8% on a currency-neutral basis and our bottom line at 10% in the first quarter" said Kevin Davis, President and Chief Executive Officer, BAUER. "The 12% growth in our Holiday booking orders is further evidence that our high performing products and brands continue to be in strong demand by our customers and consumers".

As of August 31, 2012, BAUER had working capital of $250.4 million compared to working capital of $202.2 million as of August 31, 2011, an increase of 24%. This increase was driven by sales growth of 18% and 4% in the two most recent quarters, the acquisition of Cascade, and a higher mix of advance booking orders by the Company's customers which carry longer payment terms. The Company continued to manage its balance sheet as its leverage ratio, defined as net indebtedness divided by EBITDA, was 2.78 compared to 2.80 as of August 31, 2011.

Other Recent Highlights

• On June 29, 2012, BAUER completed the acquisition of Cascade, a leading manufacturer and distributor of men's and youth lacrosse helmets in North America for $65.0 million (excluding cash acquired). The purchase price and related transaction expenses were funded through the issuance of approximately C$30 million of new equity and the balance in new borrowings.

• On September 21, 2012, BAUER was added to the S&P/TSX SmallCap Index.

• On September 26, 2012, certain Kohlberg Funds managed by Kohlberg Management VI LLC, BAUER's largest shareholder, entered into an agreement with a syndicate of underwriters to sell 3.6 million common shares of the Company. As of October 2, 2012 the Kohlberg Funds, collectively, own approximately 53.0% of the outstanding common shares on a non-diluted basis (43.8% on a fully-diluted basis). Upon completion of this secondary offering, but before giving effect to the over-allotment option granted to the underwriters, of up to 540,000 common shares, the Kohlberg Funds will own approximately 42.6% of the outstanding common shares on a non-diluted basis (35.1% on a fully-diluted basis), and approximately 41.0% of the outstanding common shares on a non-diluted basis (33.8% on a fully-diluted basis) if the over-allotment option is exercised in full. BAUER will not receive any proceeds from the sale.

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 consolidated financial statements and MD&A for the period ended August 31, 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

Due to certain restrictions associated with the recently announced secondary offering by the Kohlberg Funds (see press release dated September 26, 2012), the Company will hold its conference call to discuss first quarter results on October 17, 2012 at 8:30 am ET, prior to its annual general meeting of shareholders, which will be held on the same day at 10:00 am ET at the Hockey Hall of Fame in Toronto, Ontario. 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 1-888-364-3109 or 1-719-325-2361. 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 October 17, 2012, until midnight ET, October 31, 2012. To access the replay, dial 1-877-870-5176 or 1-858-384-5517 followed by passcode 2241937.

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 and Cascade 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 first 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, 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.