For the week of February 20, 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 – Texas Motorcycle Dealers Association annual meeting draws a crowdfrom Powersports Business

There was all sorts of goodness happening over the weekend at the Texas Motorcycle Dealers Association annual meeting in Austin. President Kip Niles and the rest of the board once again made the meeting a valuable experience for those in attendance.

READ THE ENTIRE ARTICLE HERE https://powersportsbusiness.com/top-stories/2022/02/22/texas-motorcycle-dealers-association-annual-meeting-draws-a-crowd/


2 – RumbleOn Announces Fourth Quarter and Full Year 2021 Earnings Release and Conference Call Schedule

IRVING, Texas – RumbleOn, Inc. (NASDAQ: RMBL) (the “Company” or “RumbleOn”), the nation’s first technology-based omnichannel powersports platform, today announced that it will release its fourth quarter and full year 2021 operational and financial results before the market opens on Wednesday, March 16, 2022.

The Company has scheduled a conference call and webcast on the same day at 7:30 a.m. Central Time (8:30 a.m. Eastern Time) to discuss the Company’s operational and financial results. The Company will also provide a detailed outlook of its business for the full year 2022 during the call.

  • What: RumbleOn Fourth Quarter and Full Year 2021 Earnings Conference Call
  • When: Wednesday, March 16, 2022, at 7:30 a.m. Central Time (8:30 a.m. Eastern Time)
  • Conference Call Dial In: To access the live call please dial (877) 407-9716, or (201) 493-6779 for callers outside the United States (Conference ID: 13727311)
  • Webcast: A live and archived webcast of the conference call will be accessible from the Investor Relations section of the company’s website at https://investors.rumbleon.com

About RumbleOn

RumbleOn, Inc. is the nation’s first technology-based omnichannel powersports platform. Headquartered in the Dallas Metroplex, RumbleOn is revolutionizing the customer experience for outdoor enthusiasts across the country and making powersport vehicles accessible to more people, in more places than ever before. To learn more please visit us online at https://www.rumbleon.com/.


3 – RumbleOn Completes Acquisition of Freedom Powersports

Adds 13 strategic retail locations across Georgia, Alabama, and Texas, strengthening omnichannel offering focused on unparalleled powersports choice and customer experience

Affirms revenue and adjusted EBITDA outlook for full year 2021

IRVING, Texas – RumbleOn, Inc. (NASDAQ: RMBL) (the “Company” or “RumbleOn”), the nation’s first technology-based omnichannel powersports platform, today announced the completion of its previously announced acquisition of Freedom Powersports (“Freedom”). Freedom represents 15 leading manufacturers through 13 retail locations operated in Texas, Georgia, and Alabama, and its addition expands RumbleOn’s national presence to over 55 locations. The addition of Freedom supports the Company’s growth strategy by expanding and strengthening its omnichannel offering, driving efficiencies in the marketplace, and improving the customer experience.

RumbleOn also affirmed its prior revised proforma combined company revenue outlook of $1.55 billion to $1.60 billion, and adjusted EBITDA outlook of $115.0 million to $120.0 million for full year 2021.

“We are transforming the powersports industry and remain singularly focused on offering unparalleled choice and unmatched experience to our customers both online and in our retail locations. The opportunity set and our business fundamentals remain strong. Adding Freedom to our portfolio further strengthens our consumer offering, expands our national footprint, and deepens our leadership position in powersports. We are more excited than ever about our future and are thrilled to officially welcome the Freedom team to the RumbleOn family,” said Marshall Chesrown, RumbleOn’s Founder and CEO.

Freedom Powersports CEO, Kevin Lackey, commented, “RumbleOn is reimagining and rebuilding the customer experience within the powersports industry. The Company has already demonstrated the use of innovative technology to drive scale efficiencies across the entire value chain. On behalf of the entire Freedom team, we are thrilled to join RumbleOn on its mission to transform the powersports industry.”

Transaction Details

The acquisition of Freedom Powersports, which included all business and real estate assets, subject to customary net working capital and indebtedness adjustments, closed on Friday, February 18, 2022, for an aggregate consideration of approximately $130.0 million. The aggregate consideration consisted of approximately $83.4 million for the Freedom business and approximately $46.6 million for acquired real estate properties, including the payoff of outstanding mortgage debt on the real estate assets in the aggregate amount of approximately $27.0 million. The aggregate consideration was paid using cash on hand, $84.5 million drawn from the Company’s delayed draw term loan facility, and the issuance of 1,048,718 restricted shares of RumbleOn Class B common stock at a volume weighted average price of $29.45 per share. The restricted shares are subject to a six-month lock-up.

Mr. Lackey will join the RumbleOn management team in the Company’s Irving, Texas headquarters as the President of Retail for all Freedom locations, reporting to Mr. Chesrown. Daniel Arriaga, an operational executive at Freedom, has been appointed Regional Director of all Freedom retail locations, reporting to Mr. Lackey. In his new role, Mr. Arriaga will continue to lead daily operations for Freedom and round out the Company’s recently announced regional management structure.

Freedom has a history of unit growth, revenue expansion and EBITDA profitability. Freedom recorded over $220.0 million of revenue and over $25.0 million of adjusted EBITDA for 2021 (unaudited).

Outlook

RumbleOn affirmed its proforma combined company revenue outlook of $1.55 billion to $1.60 billion, and adjusted EBITDA outlook of $115.0 million to $120.0 million for full year 2021. The Company expects to provide a detailed outlook of its business for the full year 2022 during the upcoming earnings conference call discussing its fourth quarter and full year 2021 operational and financial results. As announced earlier, the Company has scheduled its fourth quarter and full year 2021 earnings release and conference call for March 16, 2022.

About RumbleOn

RumbleOn, Inc. is the nation’s first technology-based omnichannel powersports platform. Headquartered in the Dallas Metroplex, RumbleOn is revolutionizing the customer experience for outdoor enthusiasts across the country and making powersport vehicles accessible to more people, in more places than ever before. To learn more please visit us online at https://www.rumbleon.com/.

Cautionary Note on Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the acquisitions, including the benefits of the acquisition. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release and are advised to consider the factors listed above together with the additional factors under the heading “Forward-Looking and Cautionary Statements” and “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as may be supplemented or amended by the Company’s Quarterly Reports on Form 10-Q and other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.


4 – IMOTORSPORTS ADDS SEA-DOO PWC AND CAN-AM ATVS AND SXSES TO PRODUCT LINEUP from Motorcycle & Powersports News

iMotorsports, one of the largest motorcycle retailers in the Midwest, has announced the addition of Sea-Doo Personal Watercraft and Can-Am ATVs and Side-by-Sides to its product line-up. This product line expansion makes iMotorsports Chicago’s newest and largest dealer handling Sea-Doo service and sales for all of the Midwest. It also makes the company Can-Am’s newest Premier Off-Road dealer and one of the largest ATV/UTV dealers in Illinois.


5 – Message from URAL HQ (URAL Motorcycles)

Dear Friends,

We wish we wouldn’t have to update you under the circumstances we find ourselves in.

Questions and concerns inevitably come up about possible sanctions, availability of bikes and parts, support and so on. The short answer is that we are as ready as we can possibly be to address whatever challenges may come our way. Over the years we’ve learned to navigate ups and downs, to make plans B, C and D both strategically and on the fly. We’ve weathered storms that were very real and dealt with obstacles that were not so publicly known. The history of our brand shows that Ural always finds a way to move forward.

Our highest priorities have always been our employees, our partners and our customers. We still hope for people to remain human, value life and stand for living instead of fighting.

We pray for peace.

The Team at Ural


6 – Polaris Highlights Strategy for Long-Term Growth and Profitability at 2022 Analyst and Investor Day – From Polaris

Six strategic objectives focused on delivering a sustained competitive advantage as the global leader in powersports

MINNEAPOLIS–(BUSINESS WIRE)– Today Polaris Inc. (NYSE: PII), the global leader in powersports, hosted its 2022 Analyst and Investor Day outlining its long-term strategy for achieving accelerated growth, driving profitability, and expanding its customer base.

“We see a clear opportunity to profitably grow Polaris, demonstrating to new customers how powersports fit into their lives and connecting with current riders who already love our products, while executing on our plans to innovate with new category-defining products, expand margins, and return capital to shareholders,” said Mike Speetzen, Polaris Inc. CEO. “We have the best team in powersports and are well-positioned to execute on our strategy, continuing to set the bar for our industry while delivering long-term value for our customers and shareholders.”

The Company’s new strategy emphasizes six strategic objectives:

Best Customer Experience: Provide our current and future customers with the best possible overall experience, fueling and creating new ways to help people experience the outdoors to the fullest. This includes dealer interactions for service and delivery as well as trusted products and services. We are also expanding our new business models like Adventures and Adventures Select that encourage more diverse groups of people to experience the outdoors.

Inspirational Brands: We will bring to life brands our owners are proud to be associated with, and excited to showcase and share with friends and family. Brands that continue to be viewed as authentic, unique, engaging, and just fun to experience and that support our Think Outside mindset.

Rider-Driven Innovation: We listen and learn directly from our customers to deliver high-quality products, experiences, and services that matter most to them. While innovation has been part of our DNA from the beginning, our electrification and connected vehicle initiatives represent an incredible opportunity to exceed customers’ expectations in powersports and the recent launch of the Ranger XP Kinetic is the first example of how we plan to lead in these areas.

Agile and Efficient Operations: As the global leader in powersports, we take advantage of our global scale as well as lean operations and talented people to deliver the most responsive, customer-centric service levels in powersports.

Best Team, Best Culture: Our team and culture are what makes achieving our goals possible. We focus on hiring, developing, and retaining the best people, constantly challenging them with new opportunities and high expectations. Our team and culture combine to create a competitive advantage that enables us to deliver industry-leading innovation, support our customers and dealers, and drive long-term growth.

Geared for Good: A core belief that as the global leader in powersports, we have a responsibility to be good stewards for our industry, employees, riders, communities, and the outdoors. Along with our unwavering commitment to Safety and Ethics Always, we remain more committed than ever to making a positive impact by being Geared for Good.

Under the theme of “Leading from the Front”, the Company reinforced its position as the global powersports leader. Highlights from today’s Analyst and Investor Day presentation included these long-term strategic targets:

  • Expanding Polaris powersports customers by 50 percent in the next ten years, building off an already large base of existing owners.
  • Deepening its customer knowledge through increased investment in insights as well as how customers interact with the Polaris brand.
  • Increasing access to powersports through new business models and entryway experiences with Polaris Adventures and Polaris Adventures Select.
  • Continued investment in research and development to drive innovation for its riders, both within already established capabilities of ICE powertrains and drivelines, fit and finish, ride and handling, and an extensive accessories portfolio, along with emerging capabilities including making Ride Command+ connected technology available across most of its powersports models by 2026 and furthering electric vehicle options with a strategic and targeted approach that centers on the customer. Polaris is testing electric prototypes broadly across its product platforms but will commercialize purposefully where electrification improves the customer experience.
  • In addition to supporting organic investment in growth opportunities, Polaris is committed to a capital allocation strategy that prioritizes organic investment, dividend growth, share repurchases and acquisitions.

Five-Year Financial Targets
With a strong focus on financial performance, the Company highlighted its five-year financial targets of mid-single digit compound annual growth rate in sales, mid- to high-teens percentage EBITDA margin, return on invested capital in the mid-twenties percent, and double-digit percent compound annual growth rate in earnings per share.

2022 Financial Expectations
Polaris reaffirmed its full-year guidance of total company sales of $9.2 to $9.5 billion, up 12 to 15 percent compared to 2021, and adjusted earnings per share between $10.10 and $10.40, up 11 to 14 percent compared to last year.

Presentation Materials
Materials shared at the event, along with a recording of the presentation webcast, can be found on Polaris’ Investor Relations website: www.ir.polaris.com.

About Polaris

As the global leader in Powersports, Polaris Inc. (NYSE: PII) pioneers product breakthroughs and enriching experiences and services that have invited people to discover the joy of being outdoors since our founding in 1954. With annual 2021 sales of $8.2 billion, Polaris’ high-quality product line-up includes the Polaris RANGER®, RZR®and Polaris GENERAL™ side-by-side off-road vehicles; Sportsman® all-terrain off-road vehicles; Indian Motorcycle® mid-size and heavyweight motorcycles; Slingshot® moto-roadsters; snowmobiles; and deck, cruiser and pontoon boats, including industry-leading Bennington pontoons. Polaris enhances the riding experience with parts, garments, and accessories, along with a growing aftermarket portfolio, including Transamerican Auto Parts. Polaris’ presence in adjacent markets includes military and commercial off-road vehicles, quadricycles, and electric vehicles. Proudly headquartered in Minnesota, Polaris serves more than 100 countries across the globe. www.polaris.com

Forward-Looking Statements

Except for historical information contained herein, the matters set forth in this presentation and discussed in the corresponding investor presentation are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Potential risks and uncertainties include such factors as: the severity and duration of the COVID-19 pandemic and the resulting impact on the Company’s business, supply chain, and the global economy; the Company’s ability to successfully implement its manufacturing operations expansion and supply chain initiatives; the Company’s ability to successfully source necessary parts and materials and the ability of the Company to manufacture and deliver products to dealers to meet increasing demand and to bring dealer inventory levels back to optimal levels; the continuation of the increasing consumer demand for the Company’s products; product offerings, promotional activities and pricing strategies by competitors; ability to innovate and commercialize new products (including the ability to commercialize electric vehicles currently in testing); economic conditions that impact consumer spending; disruptions in manufacturing facilities; acquisition integration costs; product recalls and/or warranty expenses; product rework costs; impact of changes in Polaris stock price on incentive compensation plan costs; foreign currency exchange rate fluctuations; environmental and product safety regulatory activity; effects of weather; commodity costs; freight and tariff costs (tariff relief or ability to mitigate tariffs); changes to international trade policies and agreements; uninsured product liability claims; uncertainty in the retail and wholesale credit markets; performance of affiliate partners; changes in tax policy; the relationships with dealers and suppliers; and the general overall economic, social and political environment. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. The Company does not undertake any duty to any person to provide updates to its forward-looking statements. ​


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