For the week of February 6, 2022.
Here are a couple of stories that came across my desk that I think are relevant and interesting to the powersports business community.
1 – Simon Cudby Announces OffRoadUnderground.com – From Simon’s LinkedIn feed.
Hey Everyone, I wanted to send out a quick note to all my friends and clients and let you know of some changes in my work.
Last fall, and after five years of working and growing Upshift Online into one of the top resources for ADV riders, I decided to move on. I am very proud of what we accomplished with Upshift, taking it from a cocktail napkin idea to a legit start up, and then building it into one of if not the top resources for adventure riders.
As for my new projects, I am pleased to officially announce offroadunderground.com. This site, along with the various social media accounts will serve as a repository for my creative work, including original photography and video work, and covering virtually every angle of offroad riding. You might see us one weekend at a supercross or motocross event, followed by a Baja race and then perhaps we might be riding dirt bikes in Iceland – or at a Hard Enduro in Poland – but if it is offroad, we might well be featuring or shooting it.
For me, the goal of offroadunderground.com is to get back to my creative and artistic roots of shooting the absolute highest level of photography for all of our clients and not just limiting myself to one segment of the industry.
I will also continue to closely work with Racer X, and also Align Media, the group that was founded along with my good friends Rich Shepherd and Mike Emery. Align will continue to service and shoot the highest level of photography for our clients, many of whom are also lifelong friends including Racer X Online, KTM Group, Honda, and many other top motocross brands.
Please do not hesitate to reach out and say hello, or enquire about becoming a client if you are interested in our work.
Thanks
Simon Cudby
2 – Chix on 66 Joins Forces with All-Female Motorcycle Support Crew – From Thunder Press online
Marjorie Kleiman, longtime editor and contributor at Thunder Press known affectionately as “Shadow,” is helping promote the Chix on 66 cross-country ride. It begins at the Harley-Davidson Museum on June 10 and will travel through Chicago and on to the legendary Route 66. The 40 women motorcyclists will ride classic vintage machines, ending up in Santa Monica, California on June 26. Shadow tells us that riders will now enjoy mechanical support from an all-female crew. Read the press release below for more information.
February 8, 2022—Riveter Chapter of the AMCA proudly announces that Athena “Vagabond Chickie” Ransom and Vivian “Gypsy” Charros have agreed to join the Chix on 66 ride as our all-female motorcycle support crew.
READ THE ENTIRE NEWS RELEASE – HERE – https://thunderpress.net/american-motorcycle-news/chix-on-66-joins-forces-with-all-female-motorcycle-support-crew/2022/02/08.htm
3 – KORE SOFTWARE EXPANDS SPONSORSHIP AND ENGAGEMENT MARKETING SOLUTIONS WITH KEY ACQUISITIONS OF HOOKIT AND SSB’S PRO SPORTS VERTICAL – From Kore Software
NEW YORK, Feb. 8, 2022 / Today, KORE Software is proud to announce two major acquisitions in the sponsorship & engagement marketing space. With the increasing importance of social and digital media, KORE has acquired Hookit, the leading AI-powered sponsorship analytics platform. This extends KORE’s capabilities into the social space, strengthening the first true end-to-end solution in sponsorship management and evaluation. KORE is also bolstering its position in the rights holder’s market by reaching an agreement to acquire SSB’s professional sports business. With these new acquisitions, KORE will serve nearly 1,000 sports properties, 20,000 athletes, and over 100 of the top global brands.
Hookit is a pioneer of sponsorship technology and has partnered with the world’s most valuable brands whose logos are seen at sports and live entertainment events around the world. With athletes, teams, and leagues now engaging over 50B followers across social media, social and digital strategies have become a critical component for the modern partnership. By adding Hookit’s unparalleled expertise in sponsorship performance tracking across social and digital media, KORE will dramatically enhance the capabilities of its already market-leading sponsorship management platform.
KORE Expands Sponsorship & Engagement Marketing Solutions with Acquisitions of Hookit & SSB’s Pro Sports VerticalTweet this
“We’ve been working on the same market problem to improve sponsorship effectiveness from two sides,” said Hookit CEO Scott Tilton. “We’ve built the leading sponsorship analytics platform in collaboration with some of the world’s largest brands. There are so many synergies with KORE, and together we’ll be able to tell a complete ROI picture for our respective clients. The aim here is to accelerate the usage of data and enhance strategic partnerships.
KORE CEO Jason Fletcher agrees, stating, “This is a monumental step forward for our market. We are stronger together and are excited to start this journey with a partner like Hookit.”
KORE’s agreement to acquire SSB’s pro sports business comes as SSB dedicates its focus to collegiate athletics and the higher education institutional advancement market. KORE currently partners with 70% of the largest professional sports and entertainment properties in the world. KORE will be adding over 50 new customers to its portfolio whose needs deeply align with KORE’s software offerings. This investment reflects KORE’s ongoing commitment to sports & event properties and their specialized needs across ticketing, fan engagement, and sponsorship management.
With these acquisitions KORE Software will not only grow its customer base but become the most expansive solutions provider in the engagement marketing space. In order to support this growth, KORE will greatly expand its team and looks forward to leading the industry with even more resources, connection points, data intelligence, and game-changing partnership analytics.
KORE SOFTWARE
KORE Software is the global leader in engagement marketing solutions. KORE’s intelligence platform is trusted by over 850+ of the largest organizations in the sports and entertainment industry to provide data-driven intelligence quickly and securely. Through one connected ecosystem of solutions, data, and insights KORE helps accelerate and enhance organization’s ability to make the right decisions for their business. KORE’s platform drives excellence across sponsorship activation, fan engagement, ticket sales, partnership analysis, data analytics, and innovative marketing journeys, so organizations can build stronger connections with their fans, maximize returns, and spend time where it matters. For more information, please visit www.KOREsoftware.com.
HOOKIT
Hookit is the leading AI-powered sponsorship technology platform empowering brands to evaluate & optimize their athlete & sports partnerships. The best CMOs & sports marketing executives realize that social media is now central to maximizing the value of sponsorship marketing spend. As a pioneer in the Spontech space and strategic partner of the world’s largest brands, Hookit empowers marketers to impact the bottom line by measuring sponsorship spend and partnerships against a standardized set of KPIs. We combine real-time dashboards with insights and recommendations that can be leveraged across your organization to positively impact your sponsorship strategy and results. To learn more, visit www.hookit.com.
4 – ANDREW HINES TAKES NEW ROLE IN RESTRUCTURED VANCE & HINES/MISSION FOODS/SUZUKI NHRA PSM TEAM – From Vance & Hines
Sampey and Krawiec to Ride Four-Valve Suzuki Motorcycles
Vance & Hines today announced details of its 2022 campaign to earn the NHRA Pro Stock Motorcycle championship, with a trio of former NHRA champions leading the charge. Andrew Hines will step up to the role of full-time Crew Chief for the team and Angelle Sampey and Eddie Krawiec will each campaign Suzuki Hayabusa motorcycles with Vance & Hines four-valve Suzuki motors.
The company recently announced a strategic partnership with Suzuki which will task Vance & Hines with operating the Suzuki Racing Team for NHRA Pro Stock Motorcycle racing. Suzuki and Vance & Hines have a long history of NHRA success, with seven NHRA PSM championships under their belts.
Andrew is a six-time NHRA PSM champion with a class leading 56 national event victories and is son of Vance & Hines co-founder Byron Hines. He has raced and worked full time for Vance & Hines since 2000, but spent his childhood at racetracks and in race shops as well.
“Being Crew Chief will be a clear advantage for the team and me,” said Hines. “My experience on the seat for two decades, along with great feedback from our riders, will factor in to how I make tuning decisions for the team. I’m excited to be 100% focused on the bikes, Angelle and Eddie. Winning the championship is our goal and this new approach makes us a stronger team.”
Angelle Sampey is the winningest female in NHRA racing and all of motorsports with 45 wins to her credit. She was NHRA Pro Stock Motorcycle champion three times (2000, 2001 and 2002). Sampey joined Vance & Hines in 2019, and in 2021 Angelle competed on a Vance & Hines Suzuki notching two wins. She also reset Suzuki’s all-time best speed of 202.03mph in Charlotte and finished second-place in the NHRA Countdown to the Championship.
Eddie Krawiec, a four-time champion (2008, 2011, 2012, 2017), has accumulated 49 NHRA PSM wins. He’s been on the Vance & Hines team since 2007 and was the first member of the team to enter the Denso 200 MPH Club. His current top speed is 203.49mph. For 2022, Krawiec swaps his twin-cylinder Buell for a Vance & Hines-powered Suzuki.
“Andrew’s move to Crew Chief is special for Byron and for me,” said Vance & Hines co-founder Terry Vance. “We’ve watched Drew grow up in the sport, become a champion and now take the lead role on the team. He’s got the right combination of skills to excel at this position for us.”
The team will race this season with the existing NHRA-approved, second generation Suzuki Hayabusa bodywork and will work with NHRA to get approval for the all-new, third generation Hayabusa. Once approved by NHRA the new bodywork will be available for all Suzuki-mounted riders to utilize in 2023.
The 2022 NHRA Pro Stock Motorcycle season begins at the GatorNationals in Gainesville, FL March 10-13, 2022. The PSM schedule includes 15 stops in 2022 with the finale at the Auto Club Finals in Pomona, California.
5 – MPN – INTERVIEWS FROM AIMEXPO: KEVIN DUNWORTH, AIMEXPO
MPN’s Jacqui Van Ham sits down 1-on-1 with AIMExpo’s Spokesperson Kevin Dunworth to riff on what’s new and exciting at the 2022 AIME show. At the top of the list is having the industry back together under one roof. Listen to the interview to know what else went on in Vegas.
6 – HARLEY-DAVIDSON DELIVERS STRONG FOURTH QUARTER FINANCIAL RESULTS AND SUCCESSFULLY COMPLETES THE FIRST YEAR OF THE HARDWIRE FIVE-YEAR STRATEGIC PLAN – From Harley Davidson
MILWAUKEE, Feb. 8, 2022 /PRNewswire/ — Harley-Davidson, Inc. (“Harley-Davidson”) (NYSE:HOG) today reported fourth quarter and full year 2021 results.
“Harley-Davidson delivered a strong finish to the year, in which we have seen proof points on all elements of our Hardwire Strategy,” said Jochen Zeitz, Chairman, President and CEO, Harley-Davidson. “Looking ahead, we are fully committed to achieving our long-term Hardwire Strategy, as the most desirable motorcycle brand and company in the world.”
2021 Highlights and Results
- Successfully completed the first year of The Hardwire Five-year Strategic Plan
- Delivered full year GAAP diluted EPS of $4.19, up $4.18 vs. 2020
- Grew Harley-Davidson’s total revenue by 32% behind increased shipments and favorable motorcycle unit mix resulting from our Hardwire actions
- Achieved 9.0% GAAP operating margin for the Motorcycles and Related Products segment (“HDMC”), which was well ahead of prior year and +2.7 percentage points ahead of 2019
- Record Financial Services segment (“HDFS”) operating income of $415 million, up 112%, driven by lower provision for credit losses and lower interest expense
- Announced merger transaction for LiveWire with AEA-Bridges Impact Corporation; deal expected to close in the first half of 2022
Fourth Quarter 2021 Highlights and Results
- Delivered GAAP diluted EPS of $0.14 versus a loss of $0.63 in Q4 2020
- Grew Harley-Davidson’s total revenue by 40% on higher units, profitable unit mix and pricing
- HDMC achieved improved GAAP operating margin as Hardwire actions take effect
- HDFS operating income growth of $18 million and 24% versus PY driven by lower interest expense
2022 Financial Outlook
For the full year 2022, the company expects:
- HDMC revenue growth of 5 to 10%
- HDMC operating income margin of 11 to 12%
- HDFS operating income to decline by 20 to 25%
- Capital investments of $190 million to $220 million
The outlook assumes that supply chain challenges improve in the second half of the year.
The company’s cash allocation priorities are to fund growth through The Hardwire initiatives, pay dividends, and execute discretionary share repurchases.
Fourth Quarter and Full Year 2021 Results
| Harley-Davidson, Inc. Consolidated Financial Results | nm – not meaningful | |||||
| $ in millions (except EPS) | 4th quarter | Full Year | ||||
| 2021 | 2020 | Change | 2021 | 2020 | Change | |
| Revenue | $1,016 | $725 | 40% | $5,336 | $4,054 | 32% |
| Net Income (Loss) | $22 | ($96) | nm | $650 | $1 | nm |
| GAAP Diluted EPS | $0.14 | ($0.63) | nm | $4.19 | $0.01 | nm |
| Adjusted Diluted EPS | $0.15 | ($0.46) | nm | $4.21 | $0.63 | nm |
Consolidated revenue was up 40 percent in the fourth quarter and up 32 percent for the full year over 2020, driven by growth in HDMC revenue resulting from stronger unit sales and mix. Consolidated net income in the fourth quarter reflects HDFS operating income offsetting HDMC operating losses in the seasonally slow quarter. Consolidated net income for the full year was driven by significant operating income improvement with strong results at both HDMC and HDFS.
| HDMC Results | nm – not meaningful | |||||
| $ in millions | 4th quarter | Full Year | ||||
| 2021 | 2020 | Change | 2021 | 2020 | Change | |
| Motorcycle Shipments (thousands) | 29.1 | 20.9 | 39% | 188.5 | 145.2 | 30% |
| Revenue | $816 | $531 | 54% | $4,540 | $3,264 | 39% |
| Motorcycles | $546 | $320 | 71% | $3,477 | $2,350 | 48% |
| Parts & Accessories | $165 | $146 | 13% | $742 | $660 | 13% |
| General Merchandise | $73 | $50 | 46% | $228 | $186 | 23% |
| Licensing | $15 | $8 | 88% | $38 | $30 | 27% |
| Other | $18 | $7 | 159% | $55 | $38 | 44% |
| Gross Margin | 19.5% | 21.6% | (2.1) pts. | 28.6% | 25.4% | 3.2 pts. |
| Operating (Loss) Income | ($102) | ($196) | nm | $409 | ($186) | nm |
| Operating Margin | (12.5%) | (37.0%) | nm | 9.0% | (5.7%) | nm |
Revenue from HDMC was up significantly during the fourth quarter of 2021 primarily driven by a 39 percent increase in wholesale shipments, favorable motorcycle unit mix resulting from our Hardwire actions and pricing in the U.S. market. Parts & Accessories fourth quarter revenue was up 13 percent while General Merchandise was up 46 percent over Q4 2020, as both businesses were favorably impacted by increased wholesale shipments and refreshed product offerings.
Fourth quarter gross margin was down 2 percentage points to Q4 prior year as stronger units and pricing were offset by negative cost headwinds across the supply chain and higher additional EU tariffs (1.3 percentage point impact). Q4 operating margin was improved versus prior year due to lower operating expenses and heavier restructuring charges in the prior Q4.
| Harley-Davidson Retail Motorcycle Sales | ||||||
| Motorcycles (thousands) | 4th quarter | Full Year | ||||
| 2021 | 2020 | Change | 2021 | 2020 | Change | |
| North America | 19.6 | 18.1 | 8% | 134.4 | 110.1 | 22% |
| EMEA | 6.5 | 7.0 | (7%) | 31.1 | 36.9 | (16%) |
| Asia Pacific | 6.8 | 6.9 | (2%) | 25.1 | 27.2 | (8%) |
| Latin America | 1.0 | 1.2 | (16%) | 3.7 | 6.0 | (39%) |
| Worldwide Total | 34.0 | 33.3 | 2% | 194.3 | 180.2 | 8% |
Global retail motorcycle sales in the fourth quarter were up 2 percent versus prior year, driven by a robust performance in North America offset by declines across international markets. International results were the result of strategic decisions made as part of the Rewire and Hardwire Strategic Plan, including the exit of unprofitable product segments and markets, as well as macro supply chain challenges, including slower shipping times to the international markets.
| HDFS Results | ||||||
| $ in millions | 4th quarter | Full Year | ||||
| 2021 | 2020 | Change | 2021 | 2020 | Change | |
| Revenue | $200 | $194 | 3% | $796 | $790 | 1% |
| Operating Income | $95 | $77 | 24% | $415 | $196 | 112% |
HDFS operating income growth of $18 million over Q4 2020 was driven by lower interest expense and lower restructuring costs, partially offset by higher provision for credit losses.
Other Results
- Harley-Davidson generated $976 million of cash from operating activities in 2021. Cash and cash equivalents were $1.9 billion at the end of 2021, down $1.4 billion from the end of 2020 as the company has normalized cash balances.
- Tax Rate – The company’s 2021 effective tax rate was 21 percent, which was favorably impacted by several discrete income tax benefits recorded in the year.
- Dividends – The company paid cash dividends of $0.60 per share on a full year basis in 2021.
Update on LiveWire Transaction
On December 13, 2021, Harley-Davidson and AEA-Bridges Impact Corp. (“ABIC”) (NYSE: IMPX), a special purpose acquisition company with a dedicated sustainability focus, sponsored by executives of AEA Investors and Bridges Fund Management, announced a definitive business combination agreement under which ABIC will combine with LiveWire, Harley-Davidson’s electric motorcycle division, to create a new publicly traded company. Its common stock is expected to be listed on the New York Stock Exchange under the symbol “LVW”.
The transaction is expected to close in the first half of 2022 and is subject to the approval of ABIC shareholders and other customary closing conditions.
Company Background
Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. Our vision: Building our legend and leading our industry through innovation, evolution and emotion. Our mission: More than building machines, we stand for the timeless pursuit of adventure. Freedom for the soul. Our ambition is to maintain our place as the most desirable motorcycle brand in the world. Since 1903, Harley-Davidson has defined motorcycle culture by delivering a motorcycle lifestyle with distinctive and customizable motorcycles, experiences, motorcycle accessories, riding gear and apparel. Harley-Davidson Financial Services provides financing, insurance and other programs to help get riders on the road. www.harley-davidson.com.
Webcast
Harley-Davidson will discuss its financial results and outlook on an audio webcast at 8:00 a.m. CT today. The webcast login and supporting slides can be accessed at http://investor.harley-davidson.com/news-and-events/events-and-presentations. The audio replay will be available by approximately 10:00 a.m. CT.
Non-GAAP Disclosure
This press release includes financial measures that have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP) and are therefore referred to as non-GAAP financial measures. The non-GAAP measures described below are intended to be considered by users as supplemental information to the equivalent GAAP measures, to aid investors in better understanding the company’s financial results. The company believes that these non-GAAP measures provide useful perspective on underlying business results and trends, and a means to assess period-over-period results. These non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP measures may not be the same as similarly titled measures used by other companies due to possible differences in method and in items or events being adjusted.
The non-GAAP measures included in this press release are adjusted net income and adjusted diluted EPS. These non-GAAP measures exclude restructuring plan costs. The company’s management reviews its results with and without the impact of restructuring plan costs and does not consider past restructuring plan costs to be indicative of ongoing operating activities. Restructuring plan costs include restructuring expenses as presented in the consolidated statements of operations. These non-GAAP measures, as well as a reconciliation of the comparable GAAP measure to these non-GAAP measures, are included later in this press release.
Cautionary Note Regarding Forward-Looking Statements
The company intends that certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the company “believes,” “anticipates,” “expects,” “plans,” “may,” “will,” “estimates,” “targets,” “intend,” “is on-track,” “forecasting,” or words of similar meaning. Similarly, statements that describe or refer to future expectations, future plans, strategies, objectives, outlooks, targets, guidance, commitments or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, unfavorably or favorably, from those anticipated as of the date of this press release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this press release are only made as of the date of this press release, and the company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the following: (i) the COVID-19 pandemic, including the length and severity of the pandemic across the globe and the pace of recovery following the pandemic; and (ii) the company’s ability to: (A) execute its business plans and strategies, including The Hardwire and the evolution of LiveWire as a standalone brand, including the proposed separation of LiveWire from the company through the combination of LiveWire with ABIC, which includes the risks noted below; (B) manage supply chain and logistic issues, including quality issues, availability of semiconductor chip components and the ability to find alternative sources of those components in a timely manner, unexpected interruptions or price increases caused by supplier volatility, raw material shortages or natural disasters, and longer shipping times and increased logistics costs, including by successfully implementing pricing surcharges; (C) realize the expected business benefits from the combination of LiveWire with ABIC, which may be affected by, among other things: (i) the ability of LiveWire to: (1) achieve profitability, which is dependent on the successful development and commercial introduction and acceptance of its electric vehicles, and its services, which may not occur; (2) adequately control the costs of its operations as a new entrant into a new space; (3) develop, maintain, and strengthen its brand; (4) execute its plans to develop, produce, market, and sell its electric vehicles; (5) effectively establish and maintain cooperation from its retail partners, largely drawn from the company’s traditional motorcycle dealer network, to be able to effectively establish or maintain relationships with customers for electric vehicles; (6) maintain relationships with customers and suppliers and retain its management and key employees; and (7) successfully collaborate with Kwang Yang Motor Co., Ltd., as outlined in its Long Term Collaboration Agreement, to accelerate development of two-wheel and other electric vehicles and to explore further business opportunities in electric vehicles markets; (ii) competition; and (iii) other risks and uncertainties indicated from time to time in the final prospectus of ABIC, including those under “Risk Factors” therein, and other documents filed or to be filed with the SEC by the company, LW EV Holdings, Inc. (HoldCo) or ABIC; (D) accurately analyze, predict and react to changing market conditions and successfully adjust to shifting global consumer needs and interests; (E) successfully access the capital and/or credit markets on terms that are acceptable to the company and within its expectations; (F) successfully carry out its global manufacturing and assembly operations; (G) develop and introduce products, services and experiences on a timely basis that the market accepts, that enable the company to generate desired sales levels and that provide the desired financial returns, including successfully implementing and executing plans to strengthen and grow its leadership position in Grand American Touring, large Cruiser and Trike, and growing its complementary businesses; (H) perform in a manner that enables the company to benefit from market opportunities while competing against existing and new competitors; (I) successfully appeal: (i) the revocation of the Binding Origin Information (BOI) decisions that allowed the company to supply its European Union market with certain of its motorcycles produced at its Thailand operations at a reduced tariff rate and (ii) the denial of the company’s application for temporary relief from the effect of the revocation of the BOI decisions; (J) manage and predict the impact that new, reinstated or adjusted tariffs may have on the company’s ability to sell products internationally, and the cost of raw materials and components, including the temporary lifting of the Section 232 steel and aluminum tariffs and incremental tariffs on motorcycles imported into the EU from the U.S., between the U.S. and EU, which expires on December 31, 2023; (K) prevent, detect, and remediate any issues with its motorcycles or any issues associated with the manufacturing processes to avoid delays in new model launches, recall campaigns, regulatory agency investigations, increased warranty costs or litigation and adverse effects on its reputation and brand strength, and carry out any product programs or recalls within expected costs and timing; (L) manage the impact that prices for and supply of used motorcycles may have on its business, including on retail sales of new motorcycles; (M) successfully manage and reduce costs throughout the business; (N) manage through changes in general economic and business conditions, including changing capital, credit and retail markets, and the changing political environment; (O) continue to develop the capabilities of its distributors and dealers, effectively implement changes relating to its dealers and distribution methods and manage the risks that its independent dealers may have difficulty obtaining capital and managing through changing economic conditions and consumer demand; (P) continue to develop and maintain a productive relationship with Zhejiang Qianjiang Motorcycle Co., Ltd. and launch related products in a timely manner; (Q) maintain a productive relationship with Hero MotoCorp as a distributor and licensee of the Harley-Davidson brand name in India; (R) successfully maintain a manner in which to sell motorcycles in China and the company’s Association of Southeast Asian Nations (ASEAN) countries that does not subject its motorcycles to incremental tariffs; (S) manage its Thailand corporate and manufacturing operation in a manner that allows the company to avail itself of preferential free trade agreements and duty rates, and sufficiently lower prices of its motorcycles in certain markets; (T) accurately estimate and adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices; (U) retain and attract talented employees, and eliminate personnel duplication, inefficiencies and complexity throughout the organization; (V) prevent a cybersecurity breach involving consumer, employee, dealer, supplier, or company data and respond to evolving regulatory requirements regarding data security; (W) manage the credit quality, the loan servicing and collection activities, and the recovery rates of HDFS’ loan portfolio; (X) adjust to tax reform, healthcare inflation and reform and pension reform, and successfully estimate the impact of any such reform on the company’s business; (Y) manage through the effects inconsistent and unpredictable weather patterns may have on retail sales of motorcycles; (Z) implement and manage enterprise-wide information technology systems, including systems at its manufacturing facilities; (AA) manage changes and prepare for requirements in legislative and regulatory environments for its products, services and operations; (BB) manage its exposure to product liability claims and commercial or contractual disputes; (CC) continue to manage the relationships and agreements that the company has with its labor unions to help drive long-term competitiveness; (DD) achieve anticipated results with respect to the company’s pre-owned motorcycle program, Harley-Davidson Certified, and the company’s H-D1 Marketplace; (EE) accurately predict the margins of its Motorcycles and Related Products segment in light of, among other things, tariffs, the cost associated with product development initiatives and the company’s complex global supply chain; and (FF) optimize capital allocation in light of the company’s capital allocation priorities.
The company’s operations, demand for its products, and its liquidity could be adversely impacted by work stoppages, facility closures, strikes, natural causes, widespread infectious disease, terrorism, or other factors. Other factors are described in risk factors that the company has disclosed in documents previously filed with the U.S. Securities and Exchange Commission. Many of these risk factors are impacted by the current changing capital, credit and retail markets and the company’s ability to manage through inconsistent economic conditions.
The company’s ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the company’s independent dealers to sell its motorcycles and related products and services to retail customers. The company depends on the capability and financial capacity of its independent dealers to develop and implement effective retail sales plans to create demand for the motorcycles and related products and services they purchase from the company. In addition, the company’s independent dealers and distributors may experience difficulties in operating their businesses and selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions, the impact of the COVID-19 pandemic, or other factors.
In recent years, HDFS has experienced historically low levels of retail credit losses, but there is no assurance that this will continue. The company believes that HDFS’ retail credit losses will increase over time due among other things to factors that have contributed recently to low levels of losses, including the favorable impact of recent federal stimulus payments that will not recur.
Additional Information and Where to Find It
In connection with the proposed business combination between LiveWire EV, LLC (“LiveWire”) and AEA-Bridges Impact Corp. (“ABIC”) (the “Business Combination”), LW EV Holdings, Inc. (“HoldCo”) and ABIC intend to file a registration statement on Form S-4 (as may be amended from time to time, the “Registration Statement”) as co-registrants that includes a preliminary proxy statement/prospectus of ABIC and a preliminary prospectus of HoldCo, and after the Registration Statement is declared effective, ABIC will mail a definitive proxy statement/prospectus relating to the Business Combination to ABIC’s shareholders. The Registration Statement, including the proxy statement/prospectus contained therein, when declared effective by the Securities and Exchange Commission (“SEC”), will contain important information about the Business Combination and the other matters to be voted upon at a meeting of ABIC’s shareholders to be held to approve the Business Combination (and related matters). This press release does not contain all the information that should be considered concerning the Business Combination and other matters and is not intended to provide the basis for any investment decision or any other decision in respect of such matters. Harley-Davidson, Inc. (“H-D”), HoldCo and ABIC may also file other documents with the SEC regarding the Business Combination. ABIC shareholders and other interested persons are advised to read, when available, the preliminary proxy statement/prospectus and the amendments thereto and the definitive proxy statement/prospectus and other documents filed in connection with the Business Combination, as these materials will contain important information about H-D, LiveWire, HoldCo, ABIC and the Business Combination.
When available, the definitive proxy statement/prospectus and other relevant materials for the Business Combination will be mailed to ABIC shareholders as of a record date to be established for voting on the Business Combination. Shareholders will also be able to obtain copies of the preliminary proxy statement/prospectus, the definitive proxy statement/prospectus and other documents filed or that will be filed with the SEC by ABIC through the website maintained by the SEC at www.sec.gov, or by directing a request to AEA-Bridges Impact Corp., PO Box 1093, Boundary Hall, Cricket Square, Grand Cayman KY1-1102 Cayman Islands.
Participants in Solicitation
H-D, LiveWire, ABIC and their respective directors and officers may be deemed participants in the solicitation of proxies of ABIC shareholders in connection with the Business Combination. ABIC shareholders and other interested persons may obtain, without charge, more detailed information regarding the directors and officers of ABIC and a description of their interests in ABIC is contained in ABIC’s final prospectus related to its initial public offering, dated October 1, 2021 and in ABIC’s subsequent filings with the SEC. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies to ABIC shareholders in connection with the Business Combination and other matters to be voted upon at the ABIC shareholder meeting will be set forth in the Registration Statement for the Business Combination when available. Additional information regarding the interests of participants in the solicitation of proxies in connection with the Business Combination will be included in the Registration Statement that ABIC intends to file with the SEC. You may obtain free copies of these documents as described in the preceding paragraph.
7 – Hewitt promoted to president/CEO of Yamaha Motor Finance Corp – From Powersports Business
Yamaha Motor Co., Ltd. (YMC) has announced that Craig Hewitt, chief operating officer of YMFUS, has been promoted to president and CEO effective Feb. 1. Hewitt joined Yamaha in 2020 to support the company’s continued growth in the Powersports and Marine segments. Prior to joining Yamaha, he served as CEO of Carfinance.com, a direct-to-consumer auto finance platform dedicated to a seamless digital transaction. His experience in consumer finance spans 25 years and includes leadership roles with GM Financial, HSBC Auto Finance and Capital One Auto Finance.
While his predecessor Jeff Young’s role was building YMFUS from the ground up, Hewitt’s vision is to strengthen the captive finance company. He plans to lead the way with technology making it easier for both consumers and dealers to engage YMFUS, expanding opportunities for new customers, and investing in the core competencies — Loan Origination, Loan Servicing, and Risk Management — to deliver an industry-leading customer experience.
“I am truly honored to be named President and CEO of Yamaha Financial Services,” Hewitt said. “Our business has changed and evolved dramatically during the past two years and I couldn’t be more excited to lead our Team at YMFUS during this time of truly great opportunity and expanding engagement with our customers.”
YMC has also announced that former YMFUS president and CEO Jeff Young, will transition to chairman, YMFUS, and concurrently has been named executive officer at YMC. In his new role as executive officer, Young will be responsible for creating and leading a global finance company responsible for all YMC group finance companies in North and South America, Europe, Asia, and Australia.
Young joined YMFUS in 2014 as EVP, chief operating officer (COO), and helped start up a company that launched five businesses in its first five years. Promoted to president in 2018, he led the company’s growth to over $2.5 billion in assets and has built a strong, passionate team of nearly 200 employees. In 2020, Young was appointed deputy executive officer of YMC and vice chairman, Financial Services Global Execution Transformation (GET).
8 – INTERVIEWS FROM AIMEXPO: CHERA GIBB, ARROWHEAD ENGINEERED PRODUCTS – From MPN Magazine
You might have heard the big news that Arrowhead Engineered Products recently acquired Western Power Sports, so we made sure to get some info straight from the source. Motorcycle & Powersports News’ Jacqui Van Ham caught up with Arrowhead Vice President of Marketing Chera Gibb to discuss the new acquisition as well as what’s new with All Balls Racing Group. She said the intent is to leverage the great things Western Power Sports and its brands do and mix it with the great things Arrowhead does to explode even more within the market.
9 – YAMAHA MOTOR: Consolidated Business Results Summary — Full Fiscal Year Ended December 31, 2021
IWATA, Japan — Yamaha Motor Co., Ltd. (TOKYO:7272) announces its consolidated business results for the full 2021 fiscal year.
Net sales were 1,812.5 billion yen (an increase of 341.2 billion yen or 23.2% compared with the previous fiscal year) and operating income was 182.3 billion yen (an increase of 100.7 billion yen or 123.3%). Ordinary income was 189.4 billion yen (an increase of 101.7 billion yen or 116.0%) and net income attributable to owners of parent was 155.6 billion yen (an increase of 102.5 billion yen or 193.1%). These represent the Company’s highest figures ever for net sales and income. For the fiscal year, the U.S. dollar traded at 110 yen (a depreciation of 3 yen from the previous fiscal year) and the euro at 130 yen (a depreciation of 8 yen).
Thanks to higher unit sales as well as the increase in unit purchase prices, net sales increased despite the impacts of lower production, labor shortages, and more brought on by the supply shortage of semiconductors and other parts. Operating income rose significantly in part due to the increase in sales but also due to the curbing of fixed costs through the implementation of remote work and other digital methods, foreign exchange impacts, and other factors working to absorb the effects of soaring logistics costs and raw material prices.
Forecast of Consolidated Business Results for the Fiscal Year Ending December 31, 2022
| Net Sales | 2,000 billion yen (an increase of 187.5 billion yen or 10.3% from FY2021) |
| Operating Income | 190.0 billion yen (an increase of 7.7 billion yen or 4.2% from FY2021) |
| Ordinary Income | 190.0 billion yen (an increase of 0.6 billion yen or 0.3% from FY2021) |
| Net Income Attributable to Owners of Parent | 130.0 billion yen (a decrease of 25.6 billion yen or down 16.4% compared with FY2021) |
These forecast figures are based on the U.S. dollar trading at 113 yen during the fiscal year (a depreciation of 3 yen from FY2021) and the euro at 128 yen (an appreciation of 2 yen).
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