Here are a couple of stories that came across my desk that I think are relevant and interesting to the powersports business community.
1 – May is Motorcycle Safety Awareness Month
The American Motorcyclist Association reminds motorists throughout the nation that May is Motorcycle Safety Awareness Month.
“For almost 40 years, the AMA has promoted motorcycle awareness in May because, as the weather warms in large parts of the country, riders take to the road in increasing numbers to enjoy the thrill of riding,” said AMA President and CEO Rob Dingman.
“Since the beginning of the COVID-19 pandemic we have seen the roads become more dangerous for all users,” Dingman added. “That is why it is incredibly important for drivers to remain attentive and alert to the presence of motorcycles on city, urban and rural streets and highways.”
The AMA urges motorists to be steadfast in their awareness of conditions around them, maintain a safe distance when following motorcycles, check their mirrors and blind spots before changing lanes, and pay particular attention when making left turns across traffic.
“The safety of motorcyclists is the AMA’s top priority and, increasingly, distracted driving and over-reliance on driver-assistance technology are worrisome. That, combined with rising fatality statistics for road users across the board, is creating an unsettling trend that requires extra vigilance while driving,” Dingman said.
Each year, the AMA tracks bills in state legislatures across the country that address the issue of distracted driving. Examples of activities that take the driver’s focus off driving include talking or texting, eating and drinking, and adjusting entertainment or navigation system controls, etc.
Driver-assistance technologies are appearing on many new cars and SUVs, including adaptive cruise control, automated braking and lane-keeping assist. While these technologies promise to reduce crashes, they are still in their infancy and drivers must not rely on these systems.
The AMA is also pleased to see lane-filtering legislation gaining traction in parts of the country as a commonsense safety measure to protect motorcyclists. Lane filtering reduces the chance of motorcyclists being rear-ended by allowing them to filter through congested traffic at safe speeds. Utah recently extended its lane filtering legislation for an additional five years, while Arizona passed legislation to legalize lane filtering that will go into effect this fall.
“Getting lane-filtering legislation passed starts at the grass roots level,” said AMA On-Highway Government Relations Manager Tiffany Cipoletti. “We are seeing more elected officials warming up to lane filtering and we are eager to help more motorcyclists engage their state legislatures on this issue.”
Launched by the AMA in the early 1980s, Motorcycle Safety Awareness Month and its message have been adopted by many AMA-sanctioned clubs, state motorcycle-rights organizations, the motorcycle industry and government entities.
Stay tuned to AmericanMotorcyclist.com and the AMA’s social media channels throughout the month of May for more information and tips surrounding motorcycle safety and awareness.
About the American Motorcyclist Association
Founded in 1924, the AMA is a not-for-profit member-based association whose mission is to promote the motorcycle lifestyle and protect the future of motorcycling. As the world’s largest motorcycling rights and event sanctioning organization, the AMA advocates for riders’ interests at all levels of government and sanctions thousands of competition and recreational events every year. Besides offering members money-saving discounts on products and services, the AMA also publishes American Motorcyclist, a recently revitalized and monthly full-color magazine (and digital version of same) that covers current events and motorcycle history with brilliant photography and compelling writing. American Motorcyclist is also North America’s largest-circulation magazine. Through the AMA Motorcycle Hall of Fame in Pickerington, Ohio, the AMA honors the heroes and heritage of motorcycling. For more information, visit americanmotorcyclist.com.
Not a member? Join the AMA today: americanmotorcyclist.com.
2 – John Deere unveils 2022 ‘Own It’ low monthly payment program
John Deere has announced its 2022 “Own It” Low Monthly Payment program, empowering customers to expand their fleets and become equipment owners. – From Powersports Business
READ THE ENTIRE ARTICLE HERE https://powersportsbusiness.com/top-stories/2022/05/02/john-deere-unveils-2022-own-it-low-monthly-payment-program/
3 – Parts Unlimited continues $250K Racer Rewards Program for 2022 at 125 events – From Parts Unlimited
The gates have dropped for the 2022 racing season and Parts Unlimited announced its support of amateur riders and its dedicated dealer network at over 125 race events nationwide.
Parts Unlimited is continuing its longstanding support at all levels of the industry, announcing its commitment of over $250,000 dedicated to their We Support the Sport Racer Rewards Program for the 2022 racing season.
Now in its third year, the 2022 program is shaping up to be the best-ever for rider participation. Each year, the number of entries has grown and even includes riders’ family members getting in on the racing action and program.
“This Racer Rewards Program has proven to support and strengthen the relationship between the amateur racing community and their local dealers,” said Jeff Derge, VP of Sales for Parts Unlimited’s parent company, LeMans Corporation. “It’s a win-win for everyone in the industry!”
4 – Kawasaki Announces 2023 Motorcycle Models Including the Updated KX™250 and KX™250X Motorcycles – From Kawasaki
2023 KAWASAKI KLX® MODEL RANGE
GET OUT AND PLAY
The Kawasaki KLX® off-road lineup brings fun to novice and experienced riders alike and is widely popular for its easy-to-ride character, incredible capabilities while on trails and low maintenance needs. For 2023, Kawasaki welcomes the return of its KLX®300R, KLX®230R, KLX®230R S, KLX®140R, KLX®140R L, KLX®140R F, KLX®110R, and KLX®110R L models that are built to suit a wide variety of riders.
KAWASAKI KLX®300R
The KLX®300R off-road motorcycle bridges the gap between a weekend play bike and a full race bike. As the flagship of the KLX® lineup, the KLX300R combines the best of both engine and chassis performance to create the ultimate lightweight, fun off-road machine. The powerful 292cc fuel-injected, liquid-cooled four-stroke engine features an electric starter and keyless ignition. It has a user-friendly smooth-shifting six-speed transmission and manual clutch. The KLX300R comes equipped with full-size off-road wheels and tires, using a 21” front and 18” rear, and long-travel suspension for optimal ground clearance.
KAWASAKI KLX®230R & KLX®230R S
The KLX®230R off-road motorcycle is available in two model variations and has been purpose-built for serious fun in the dirt; with priority placed on both its engine and frame design. It was designed and built to be a lightweight and easily maneuverable motorcycle for a broad range of riders. A powerful 233cc fuel-injected, air-cooled four-stroke engine utilizes an electric starter and keyless ignition, and has been paired with a reliable, easy-to-use smooth-shifting six-speed transmission and manual clutch. The KLX230R comes equipped with full-size off-road wheels and tires, using a 21” front and 18” rear, and long travel suspension for optimal ground clearance. The shorter KLX®230R S off-road motorcycle is ideal for riders who prioritize a lower seat height and ample ground clearance while offering a full-size recreational trail bike option. The KLX230R S features modified front and rear suspension that lowers overall seat height by one inch from the KLX230R.
KAWASAKI KLX®140R, KLX®140R L & KLX®140R F
The KLX®140R motorcycle is available in three model variations and is designed to provide an off-road experience with memories to last a lifetime. The powerful 144cc, four-stroke, air-cooled, single-cylinder engine features an electric starter and keyless ignition. Its broad and smooth high-revving 144cc engine utilizes a manual clutch and five-speed transmission to offer an efficient and user-friendly feel. The KLX140R uses a 17” front and 14” rear wheel, while the mid-sized KLX®140R L motorcycle is equipped with 19” front and 16” rear wheels to accommodate taller riders, providing extra ground clearance. The KLX®140R F comes equipped with full-size off-road wheels and tires, using a 21” front and 18” rear.
KAWASAKI KLX®110R & KLX®110R L
The KLX®110R is available in two model variations and is a great motorcycle for new riders looking to experience off-road for the first time. A high-tensile steel frame, 30mm telescopic fork, and single rear shock provide easy handling and maximum longevity. It also incorporates an automatic centrifugal clutch system that allows easy take off and shifting through the gears, helping the rider maintain focus on the terrain and to make the most of the 112cc single-cylinder, four-stroke engine. The larger KLX®110R L motorcycle has a taller seat height (28.7” compared to 26.8” for the KLX110R), longer suspension travel, an extra 1.9” of ground clearance and a four-speed transmission with a manual clutch. No matter your size or skill level, there is a KLX model motorcycle to allow you to get out and play with Kawasaki.
2023 Model Variations
| Kawasaki KLX®300R Color: Lime Green MSRP: $5,899 Availability: Now | Kawasaki KLX®230R Color: Lime Green MSRP: $4,749 Availability: Now |
| Kawasaki KLX®230R S Color: Lime Green MSRP: $4,749 Availability: Now | Kawasaki KLX®140R L Color: Lime Green MSRP: $3,749 Availability: Now |
| Kawasaki KLX®140R F Color: Lime Green MSRP: $4,049 Availability: Now | Kawasaki KLX®140R Color: Lime Green MSRP: $3,449 Availability: Now |
| Kawasaki KLX®110R L Color: Lime Green MSRP: $2,849 Availability: Now | Kawasaki KLX®110R Color: Lime Green MSRP: $2,649 Availability: Now |
2023 KAWASAKI KX™ MOTOCROSS AND OFF-ROAD MOTORCYCLE LINEUP
The Bike That Builds Champions
The Kawasaki KX™ motocross and off-road motorcycle range returns stronger than ever for 2023 with its championship-winning packages.
Leading the way as the flagship model in the Kawasaki KX range is the KX™450 with a powerful 449cc engine, electric start, Showa A-KIT technology suspension, and a coned disc-spring hydraulic clutch that have proven to capture awards, accolades, and race wins.
Joining the KX450 is its KX™450X cross-country counterpart that has been purposely tuned for off-road competition. Developed to dominate off-road racecourses in both the woods and the desert, the cross-country KX lineup offers riders the required components for off-road competition straight from Kawasaki along with the dominant engine and chassis performance found on the KX450.
Kawasaki’s mini motocross lineup consisting of the KX™112, KX™85, and KX™65 returns for 2023 and is ingrained with a long list of successes that have stemmed from building champions from the start. The KX112 supermini racer bridges the gap to full-size motocross bikes and boasts a powerful 112cc displacement engine, the largest in its class. It’s joined by the KX85, which shares much of the same technology found on the KX112. The KX65 returns as the most compact bike in the Kawasaki KX lineup and the starting point for aspiring champions.
The Kawasaki Team Green™ racing team has been the dominant force in amateur racing for nearly four decades, providing contingency and an unmatched level of trackside support to racers across the nation. Under the Team Green racing program, a trackside support system consisting of local, regional, and amateur motocross and off-road events across the country has been put in place. There, Kawasaki technicians and race transporters can be found providing critical parts and technical assistance to all riders. Kawasaki’s efforts, matched with the input from aspiring young stars, have produced winning products across its lineup.
KAWASAKI KX™450
As the flagship model in the Kawasaki KX lineup, the 2023 Kawasaki KX450 is built with race-winning components to help get Kawasaki riders to the top step of the podium. Tuned to best suit race-experienced riders, the 449cc liquid-cooled, four-stroke engine boasts an abundance of power along with a slim aluminum perimeter frame, Showa A-KIT technology suspension, coned disc-spring hydraulic clutch, and electric start to deliver the ultimate championship-winning package.
The 449cc lightweight engine package utilizes input derived directly from the Monster Energy® Kawasaki race team, producing peak power and a torque curve that makes it easy to get on the gas early. The potent KX450 engine features an electric start activated by the push of a button and powered by a compact Li-ion battery. A lightweight finger-follower valve actuation design comes by way of Kawasaki’s top-level road racing technology and World Superbike engineers, enabling larger-diameter valves and more aggressive cam profiles. A close-ratio five-speed transmission is paired with a high-capacity coned disc-spring hydraulic clutch that helps facilitate control and provide a consistent feeling even under heavy use.
A slim aluminum perimeter frame provides precise cornering through excellent front-end feel and agility when riding at high speeds. The frame’s lightweight construction is composed of forged, extruded, and cast parts, while the engine is used as a stressed member and adds to the frame’s rigidity balance. Engineers carefully selected the dimension of the swingarm pivot, output sprocket and rear axle locations to focus on the center of gravity and balanced handling.
High-performance 49mm coil spring front forks with A-KIT technology can be found up front, featuring large diameter inner tubes that are the same size as those found on the machines of Kawasaki’s factory racing team. The forks enable the use of large damping pistons for smooth action and firm damping. In the rear, a new Uni-Trak® linkage system is connected to the Showa Compact Design rear shock that boasts A-KIT technology with large diameter compression adjusters.
An oversized 270mm, petal-shaped front brake rotor from the renowned manufacturer, Braking®, is fitted to perfectly complement the powerful engine of the KX450. The rear is equipped with a 250 mm petal-shaped Braking rotor coinciding with the large front disc.
Kawasaki continues its unmatched commitment towards providing riders with class-leading ERGO-FIT® comfort thanks to its adjustable handlebar mounting system and footpegs to fit a variety of riders and riding styles. The factory-style 1-1/8” Renthal® Fatbar® handlebars feature four-way adjustable mounts with 35mm of adjustability to suit different sized riders. The footpegs feature dual-position mounting points, with a lower position that reduces the standard setting by an additional 5 mm, reducing the knee angle when taller riders are seated.
Complementing the championship-proven technology, the 2023 KX450 maintains its aggressive styling along with in-mold graphics on the radiator shrouds that result in an ultra-smooth surface and racy look needed to finish at the top of its class. The sleek bodywork has been molded to match the V-mounted radiators and narrow chassis design, helping facilitate rider movement and making it easy to slide back and forth.
KAWASAKI KX450
Color: Lime Green
MSRP: $9,599
Availability: Now
KAWASAKI KX™450X
The 2023 KX450X is an off-road cross-country competition model that features the same championship-proven technology found on KX race machines and has been purposely tuned for off-road competition. Kawasaki’s rich history in off-road racing consists of more than 25 championships in WORCS, National Hare & Hound, GNCC, and Endurocross over the past 20 years.
The KX450X shares many winning traits with its KX450 counterpart including the engine, frame, chassis, and styling. That successful base is paired with unique cross-country tuning and settings such as softer suspension settings, shorter gearing, off-road 21”/18” wheel combination, Dunlop Geomax AT81 tires, brake components, skid plate, and kickstand. The softer suspension settings and shorter gear ratio help create the optimal handling package for the race-ready off-road KX lineup.
KAWASAKI KX450X
Color: Lime Green
MSRP: $9,799
Availability: Now
KAWASAKI KX™112
The 2023 KX112 was completely revised in 2022 and offers race-winning potential in a highly competitive class, boasting a strong low-end torque that riders can take advantage of to feel faster everywhere on the track.
The two-stroke, single cylinder KX112 features a bore and stroke of 52.5 x 51.6 mm. The engine paired with the powervalve system delivers strong low-end torque that translates to holeshot performance out of the starting gate and a stronger drive when exiting corners. Intake and exhaust port timing contribute to the KX112’s strong low rpm torque, while its piston profile delivers durability and contact surface for the piston ring helps the initial bedding-in performance. The carburetor settings have been fine-tuned to match the powerful engine and contribute to sharp response across the rev range. Complementing the powerful 112cc engine is a 6-speed transmission that has been designed to withstand the engine output.
A sturdy high-tensile steel perimeter frame was designed to harness the engine’s power, offering advantages of strength and torsional rigidity that allows riders to push hard on the track. The chassis is matched with 36mm inverted front forks that offer excellent damping and bottoming resistance, enabling the KX112 to be ridden hard while maintaining comfort. Riders can fine-tune their settings through 20-way adjustable compression damping. On the rear, Uni-Trak® rear suspension offers preload, 24-way compression and 21-way rebound damping adjustability in order to allow each rider to tailor their settings based on size and skill level.
The KX112’s large 19-inch front and 16-inch rear wheels nicely bridge the gap between minibikes and full-sized race bikes, accommodating larger youth riders and helping to navigate over the bumps and ruts commonly found on motocross tracks. The wheels are fitted with Dunlop MX33 tires that offer excellent grip and control. The bodywork of the KX112 follows along the lines of its bigger KX counterparts by forming a slim ergonomics package that facilitates rider movements and contributes to strong factory looks.
KAWASAKI KX112
Color: Lime Green
MSRP: $5,399
Availability: Now
KAWASAKI KX™85
Built using much of the same race-winning technology as that found on the KX112, the KX85 motorcycle defines a “big bike in a small package” and returns as strong as ever in 2023 with the goal to provide young racers the championship-winning advantage they need to sharpen their skills. The KX85 relies on its instantaneous power, nimble handling, and factory-race-inspired styling to reach the checkered flag first.
The two-stroke, single cylinder 84cc engine is equipped with the highly advanced powervalve system that generates an easy-to-use wide-spread powerband. Just like the KX112, it features a 6-speed transmission, Dunlop MX33 tires, slim ergonomics package, aggressive KX styling and excellent cooling performance. Championship performance requires power, which is exactly why the KX85 stands above the competition.
KAWASAKI KX85
Color: Lime Green
MSRP: $4,699
Availability: Now
KAWASAKI KX™65
The 2023 KX™65 is the most compact motocross bike in the Kawasaki KX lineup, built to serve as the machine of choice for aspiring motocross racers driven to follow in Kawasaki’s championship footsteps. The durability and reliability the KX models are known for creating a dependable platform for young racers. Featuring a six-speed transmission, race-ready engine, strong stopping power, and superb handling, the KX65 builds champions.
Its liquid-cooled, two-stroke 65cc engine and lightweight chassis deliver strong controllable power and exceptional handling that results in the ultimate recipe for winning races. The 33mm front forks and four-way adjustable rebound damping are capable of performing at the highest level in aggressive terrain, while the rear is fitted with Kawasaki’s Uni-Trak® single-shock system with adjustable rebound damping and fully adjustable spring preload.
KAWASAKI KX65
Color: Lime Green
MSRP: $3,999
Availability: Now
KAWASAKI TEAM GREEN™ RACER REWARDS
The Kawasaki Team Green™ Racer Rewards program offers more than 8 million dollars in contingency available for eligible KX riders. Team Green’s Racer Rewards program will be available at more than 501 motocross and off-road events across the nation. Motocross racers will have more than 5.6 million dollars up for grabs.
2023 KAWASAKI KX™250 AND KX™250X MOTORCYCLES
THE BIKE THAT BUILDS CHAMPIONS
Giving Kawasaki more Supercross and Motocross championships than any other manufacturer, the KX™ name is synonymous with winning. The KX™250 motorcycle is the championship-proven machine built so you can ‘Be Next’. Be the next champion. Be the next hero. Be the next legend. Be the next trailblazer for an entire generation of greatness. On the KX250, your time is now.
Thanks to an updated engine, the most powerful KX250 to date was achieved, increasing performance at all rpm. Complementing the improved power is the new racer-friendly gearing, revised suspension settings, and new tires that offer improved handling when cornering. Together, these updates contribute to quicker lap times that make the KX250 an even more potent weapon on the racetrack.
With a championship heritage that boasts 18 AMA professional titles and 194 race wins since 2004, the KX250 is the ideal platform for riders looking to reach the top step of the podium or take their riding to the next level.
In addition to the KX250, the KX™250X cross country model returns for 2023 and shares many of the updates found on its motocross counterpart. The KX250X has been purposely tuned for closed-course off-road to dominate race courses in both the woods and the desert, offering riders the required components for off-road competition.
2023 KX250 HIGHLIGHTS
- NEW Increased engine performance
- NEW Racer-friendly gearing
- NEW Fine-tuned suspension
- NEW Dunlop MX33 tires with a wider 110/90-19 rear tire
- NEW Lighter and wider footpeg design
ENGINE
- NEW Increased engine performance
- NEW Intake valves and valve pitch
- NEW Straighter intake duct
- NEW Repositioned upstream injector
- NEW Longer exhaust header pipe
- NEW Advanced ignition timing
- NEW Racer-friendly gearing
Tuned for race-experienced riders, the 249cc liquid-cooled, four-stroke engine receives several updates for 2023 that are designed to help the KX250 achieve stronger performance across the rev-range and result in quicker lap times and better holeshot performance.
The KX250 continues to utilize the finger-follower valve actuation – a valve train designed by Kawasaki’s World Superbike engineers – to help achieve a high rev limit that allows for the use of more aggressive cam profiles and contributes to high rpm performance. For 2023, the KX250 receives a 1.5mm narrower pitch for the intake valves and increased clearance at the valve seats to deliver increased cylinder-filling efficiency and improved combustion for improved peak performance. The intake valves have been reduced by 1mm for increased cylinder head and valve seat reliability as well as to accommodate the tighter valve pitch. To match the valve size and pitch changes, the crown on the 14.1:1 bridged-box piston has been redesigned. A dry film lubricant coating on the piston skirts reduces friction at low rpm and helps with the piston bedding-in process.
The airbox construction features a short, tapered intake funnel, contributing to increased high rpm performance. The KX250 was the first production motocross bike with dual injectors. An injector downstream of the throttle valve is tasked with delivering a smooth, instant response, and a second, upstream injector located close to the airbox is a significant contributor to engine output at high rpm. For 2023, the downdraft-style intake duct is now straighter and the upstream injector has been repositioned from above to below the duct. These changes further contribute to increased cylinder-filling efficiency, adding to the KX250’s peak performance.
New advanced ignition timing was developed to complement the engine changes made to the KX250. A 100mm longer exhaust header pipe offers increased low-mid torque. In addition to increased performance, Kawasaki engineers focused on a racer-friendly power delivery, which was achieved by increasing the moment of inertia in the magneto rotor. The coned disc-spring hydraulic clutch pushrod has been revised from steel to a steel cap and aluminum shaft, resulting in lighter clutch operation. The hydraulic clutch is designed to provide a more consistent feeling through minimal change in clutch play as the clutch heats up during heavy use.
Based on feedback from Kawasaki’s efforts with the Monster Energy/Pro Circuit/Kawasaki racing team in both supercross and motocross, engineers have lengthened the transmission’s first gear to make it easier to use in a greater number of situations. Second gear was also fine-tuned to offer a smooth transition from first to third gear. For increased strength, the connecting rod big-end bearing crush height was increased and the main holding circuit relay was revised for improved reliability.
The KX250 features an electric start, which can be activated by the push of a button located on the handlebar near the right grip, making starting easy and convenient. A lightweight, compact Li-ion battery helps keep weight down, as does an automatic centrifugal decompression system fitted to the exhaust cam, which lifts one exhaust valve to facilitate starting.
DFI COUPLERS
Contributing to the race-winning engine characteristics, the digital fuel injection system of the KX250 features a coupler package that has set the industry standard ECU tuning. Each KX250 motorcycle comes standard with three different couplers, easily allowing riders to select pre-programmed fuel injection and ignition mapping to suit their riding style or track conditions. The four-pin couplers for the DFI® engine select maps that are designed for standard, hard or soft terrain settings. Changing the engine map is as simple as connecting the coupler cap of choice. For riders looking to fine-tune their ECU settings, the KX™ FI Calibration Kit (Handheld) is offered as a Kawasaki Genuine Accessory and provides access to the fully programmable ECU. Used by the factory race teams, the handheld device eliminates the need for a trackside laptop and gives riders the ability to create custom maps for precise adjustment of fuel and ignition settings. The user-friendly device can store up to seven preset maps and is PC-compatible.
LAUNCH CONTROL
The launch control system of the KX250 motorcycle is a major advantage and favorite for riders who are focused on getting to the first turn ahead of their competition. The push-button activation retards ignition timing in first and second gear, helping maximize traction on surfaces like concrete starting pads and put the bike’s potent power to the ground. Once the rider shifts into third gear, normal ignition mapping immediately resumes and full power is restored.
CHASSIS
The KX250’s slim aluminium perimeter frame is based on that of the KX™450 motorcycle and with lightweight, nimble handling, and slim ergonomics in mind. Its design is a lightweight construction composed of forged, extruded, and cast parts. The frame offers optimized rigidity balance, and while many of the parts are common with the KX450’s frame, the cast parts like the shock tower mount and engine hangers were designed specifically for the needs of the KX250. Adding to the frame’s rigidity balance is the use of the engine as a stressed member.
Like the KX450, the KX250 also utilizes a swingarm to deliver the rigidity necessary to match the frame and help increase traction at the rear wheel. The center of gravity and key dimensions such as swingarm pivot, output sprocket and rear axle locations have all been carefully selected so that the rear tire drives the bike forward.
SUSPENSION
- NEW Fine-tuned suspension
- NEW Lighter bolts
For 2023, the front and rear suspension settings have been revised, contributing to improved cornering. These changes help provide the rider with greater front-end feedback and contribute to a more planted feel upon corner entry. Additionally, ground-holding performance has been improved and makes it easier for the rider to hold their selected line through a corner. The rear suspension updates are designed to improve performance at the exit of the corner, contributing to strong acceleration.
The KX250 is equipped with large diameter 48mm KYB inverted coil-spring front forks that offer optimum action at the initial part of the fork stroke. The forks feature large-diameter inner tubes, enabling the use of 25mm damping pistons and delivering smooth action and firm damping. Fork internals have been fine-tuned to deliver firmer compression damping to achieve increased performance without sacrificing ride comfort. A revised oil height on the front forks contributes to optimized characteristics of the front fork springs. A Kashima Coat on the forks’ outer tubes creates a hard, low-friction surface to help prevent wear abrasion on the inside of the tubes, ensuring the sliding surfaces remain smooth over time while protecting the outside against corrosion. The lubricating material in the coat contributes to smoother suspension action and a better overall ride feel.
In the rear, a KYB shock unit complements the front fork. The rear shock features dual compression adjustability, which allows high-speed and low-speed damping to be tuned separately. New shock valving settings enable firmer compression damping that improves performance while maintaining the comfort the KX250 is known for. A Kashima Coat on the tank cylinder helps prevent wear abrasion and reduces friction for smoother suspension action. A new Uni-Trak® rear suspension system mounts the linkage arm below the swingarm, allowing a longer rear suspension stroke. The linkage ratios are the same as those found on the KX450 motorcycle, contributing to both increased absorption and damping performance. In order to make the KX250 as light as possible, the fork cover bolts were changed from steel to aluminium and the rear linkage collar was changed from steel to aluminium and now uses hollow instead of solid bolts.
BRAKES AND WHEELS
- NEW Dunlop MX33 tires
- NEW Wider, 110/90-19 rear tire sizing
Contributing to the numerous factory-style racing components on the KX250 motorcycle are petal disc brakes. Up front is an oversized 270mm Braking® brand rotor, which delivers strong braking force and superb control. A KX450-style front master cylinder adds to the high level of control and overall feedback found in the front brake.
On the rear, a 240mm Braking brand disc contributes to controllability and offers optimized stopping performance. The petal-style discs contribute to both sporty looks and help deflect debris. A rear caliper guard helps protect the caliper from damage.
For 2023, the KX250 has been fitted with new Dunlop MX33 tires, offering increased traction to match the more powerful engine. The front features 80/100-21 sizing, while the rear can now be found in a wider 110/90-19 sizing for increased traction and a more planted rear-end feel.
ERGONOMICS
- NEW Lighter and wider footpeg design
Kawasaki continues its unmatched commitment towards providing riders with class-leading comfort thanks to its ERGO-FIT® adjustable handlebar mounting system and footpegs to fit a variety of riders and riding styles. New for 2023 is a revised wide-style footpeg design that is now 5mm wider (front-to-rear) and positioned 3mm rearward, offering excellent grip, superb feel, and making it easier to weight the pegs. This new design is also lighter thanks to aluminum footpeg brackets replacing the previous steel brackets. The weight savings of the footpegs, along with the suspension changes, contribute to a weight savings of almost one pound, helping offset the new larger rear tire.
A factory-style 1-1/8” thick aluminum Renthal® Fatbar® handlebar comes standard and features four-way adjustable mounts. The multi-position handlebars offer two mounting holes with 35mm of adjustability, and the 180-degree offset clamps boast four individual settings to suit different size riders. The footpegs feature dual-position mounting points, with a lower position that reduces the standard setting by an additional 5mm. The lower position effectively lowers the center of gravity when standing, and reduces knee angle when taller riders are seated.
BODYWORK AND STYLING
Complementing the increased engine power and improved handling of the 2023 KX250 is sleek bodywork with factory-style graphics that helps ensure it’s the sharpest looking bike in the paddock and further reflect its highly-tuned performance. The bodywork on the KX250 has been designed to facilitate rider movement with long, smooth surfaces that make it easy to slide back and forth. The seams between the shrouds, seat, and side covers are as flush as possible to help the rider move around on the bike. The top of the fuel tank allows a flat progression from the seat to the tank, which gives the rider greater freedom of movement when changing riding position and facilitates sitting farther forward. The single-piece radiator shrouds are slim where they come in contact with the rider’s legs and positioned close to the frame. In-mold graphics result in an ultra-smooth surface and contribute to the KX250’s factory-racer looks.
Engine covers have been designed to be as smooth as possible in order to not impede rider movement. Helping the KX250 retain its factory-style look is a gold finish on the oil cap and the two plugs on the generator cover, while the rims are coated in black alumite.
2023 KX250X HIGHLIGHTS
- NEW Increased engine performance
- NEW Racer-friendly gearing
- NEW Wider footpeg design
- 18-inch rear wheel
- Off-road ready suspension
The KX250X shares many winning traits with its KX250 motocross counterpart including the engine, frame, chassis and styling. Similar to the KX250, it benefits from several updates for 2023 with a new more powerful engine, more racer-friendly gearing thanks to transmission revisions, new magneto rotor with increased moment of inertia, revised clutch pushrod for lighter clutch operation and a new wider footpeg design. In addition to the successful KX250 base, the KX250X returns with several unique cross-country features such as softer suspension settings, shorter gearing, off-road 21”/18” wheel combination, Dunlop Geomax AT81 tires, skid plate, and kickstand. The softer suspension settings and shorter gear ratio were designed to help create the optimal handling package for the race-ready off-road KX lineup.
KAWASAKI TEAM GREEN™ RACER REWARDS
The Kawasaki Team Green™ Racer Rewards program offers contingency rewards available for eligible KX riders. Team Green’s Racer Rewards program will be available at more than 501 motocross and off-road events across the nation.
KAWASAKI KX250
Color: Lime Green
MSRP: $8,499
Availability: Now
KAWASAKI KX250X
Color: Lime Green
MSRP: $8,599
Availability: Now
2023 KAWASAKI NINJA® AND KLX® STREET MOTORCYCLES
KAWASAKI BEGINS EARLY PRODUCTION OF 2023 STREET MOTORCYCLES
Over the course of the past several years, the powersports industry has witnessed a significant increase in popularity with novice and experienced riders alike, turning to motorcycles, ATVs, side-x-sides, and personal watercraft. To continue to meet this growing demand Kawasaki is moving up the production and introduction of its 2023 Ninja® ZX™-6R supersport, KLX®300SM supermoto and KLX®300 dual-sport motorcycles that will arrive in Kawasaki dealerships during the late spring months so that more riders have a chance to “Let the good times roll®.”
SUPERSPORT
Ninja® ZX™-6R
The 2023 Kawasaki Ninja® ZX™-6R supersport motorcycle boasts a potent 636cc engine, advanced electronics and a lightweight chassis. The 636cc engine has been optimized for the street and the track, offering an exhilarating experience in a wide range of riding situations, allowing you to rule the track and run the streets. The Ninja ZX-6R features a 636cc in-line four-cylinder DOHC engine, Kawasaki Quick Shifter (KQS), sophisticated instrumentation, styling with twin LED headlights and taillight, Kawasaki Intelligent anti-lock Brake System (KIBS), selectable power modes combined with Kawasaki Traction Control (KTRC), class-leading SHOWA suspension, SHOWA SFF-BP fork, Assist & Slipper Clutch, comfortable ergonomics with adjustable clutch lever, multi-function LCD screen, and a pressed-aluminum perimeter frame.
For 2023, the non-ABS Ninja ZX-6R is available in a Metallic Matte Twilight Blue / Metallic Diablo Black colorway with an MSRP of $10,699 and Metallic Matte Graphenesteel Gray / Metallic Diablo Black with an MSRP of $10,999.
SUPERMOTO
KLX®300SM
The 2023 KLX®300SM takes the fun to the streets in full supermoto style. Developed alongside the KLX®300 dual-sport, the KLX300SM shares a similar engine and chassis with its dual-sport counterpart. Where the models differ is over styling and use, as the KLX300SM receives a host of supermoto inspired components. This includes 17” front and rear wheels paired with street tires, supermoto tuned suspension and aggressive styling. These differences establish the KLX300SM as the ultimate lightweight supermoto. The KLX300SM will be offered in Neon Green and Ebony colorways with an MSRP of $6,299.
DUAL-SPORT
KLX®300
The KLX300 is capable of being both a daily commuter and weekend play bike. The powerful 292cc fuel-injected, liquid-cooled four-stroke engine features an easy-to-use powerband, electric starter and cam profiles sourced from the KLX®300R off-road model. It comes equipped with a six-speed manual transmission, 21” wheel up front and 18” wheel in the back, and dual-sport tuned long-travel suspension for optimal ground clearance. The 2023 KLX300 can be found in both a Lime Green and Fragment Camo Gray colorway. The Lime Green has an MSRP of $5,899 and the Fragment Camo Gray an MSRP of $6,099.
5 – Letter from Bob “BK” Kee NPDA’S Vice Chairman
NPDA Chatter
I received a note last week from a good friend of mine expressing concern that many dealers were feeling that the NPDA was going too “Orange and Black”, with a heavy current membership of HD dealers.
The good news is that the data shows our initial membership is growing nicely and is not nearly as imbalanced as people seem to think. As of this writing, we are sitting at about 180 paid dealer members, with roughly half that number being franchised Harley folks. While this is obviously a higher ratio of HD presence than the powersports industry at large, even as a non-HD dealer I think it is well within reason for our first 10 months of existence. When the NPDA was formed we tried to have it represent the retail mix of the industry as best we could. As such, our founding Board is made up of roughly 50% HD dealers. We in turn reached out to our friends and peers to get them to join the NPDA as well and have successfully recruited a wide variety of dealers in similar businesses.
I believe people’s perceptions tend to start somewhere, and I think there are a couple of key reasons why people may perceive NPDA as having more HD dealers than the numbers show. First, HD dealers seem to talk amongst themselves with a much higher frequency than Yamaha, Kawasaki, Honda or other non-HD dealers. More HD dealers seem to be long-standing members of 20 groups, and have thus developed a more deeply rooted comradery that encourages these conversations. This is not a criticism by any measure, just a means for more chatter to occur.
Second, HD dealers currently have a very high level of angst related to recent decisions from the Motor Company that directly impact the profitability and daily operations of their dealerships. As such, they are very vocal right now and many have been wanting to join an organization that seeks to represent dealers with a unified collective voice versus that of a single dealer.
The NPDA was created to give all dealers a voice and advocate for them, regardless of the brands they represent. Fortunately, the founding Board anticipated that from time to time there would be issues that affected a certain segment of our membership, be it off-road trail access, laws infringing rider freedoms, or, as is the case today, concerns with a specific OEM. We set up within our bylaws the concept of “Councils” that could be formed as needed to address these unique concerns without having to involve the entire membership. The Councils can operate as a subset of the broader NPDA, raising funds, having their own elected leaders, and reporting to the larger Board. This allows a Council to focus on those issues important to their members, who are also NPDA members that share in our larger vision for all dealers.
Due to the recent concerns of HD dealers, the Board approved the formation of our first council this past week for HD dealers to work together on their unique issues under the NPDA’s council structure. If people have only heard about the new council, this could be another reason they may have mis-perceived NPDA as being HD-heavy. I anticipate that as things roll along, the NPDA will have the need and desire to establish additional Councils to direct focus as needed for other groups of dealers within our membership.
As we grow, our ranks will be joined by powersports and “metric” dealers and HD dealers alike and our membership balance will align with national norms. I am confident that every powersports dealer in the country will someday see the benefits of joining the NPDA.
Having used the phrase “metric”, a designation that Wall St analysts invented to refer to the non-HD dealer universe, I am reminded of a recent trip to the hardware store. I needed an extra 10-inch adjustable wrench for the toolbox of one of my tractors. I picked up an inexpensive example, and as I was looking at the wrench while waiting to checkout, I saw that one side of the wrench was marked in metric measurements, millimeters. Flipping the wrench over, 1/16-inch graduations were present. How can a wrench be both?
At the end of the day, we, as dealers, are much like that ingenious adjustable wrench. We are designed for the task of helping customers select and purchase the machine of their dreams, hopefully developing a long-term relationship supported by service and support after the sale.
We do this regardless of the brand signage on the front door of our stores.
We’re all in this together and NPDA is here to support the entire powersports industry.
Please join us as we move forward.
Thank you for reading, and thank you for your support.
Bob Kee
Destination Cycle
Vice-Chair, NPDA
| Interested in Partnering or Joining NPDA |
| Dealers, manufacturers and supporting service businesses are welcomed to join the new NPDA.org to support retail excellence in the powersports industry. More information for dealer members and supporting partners is available at www.npda.org. Interested in becoming a partner for NPDA? More information is available at:https://www.npda.org/partners ABOUT NPDAThe National PowerSports Dealer Association (NPDA), was founded in 2021 to help the franchised and independent powersports Dealer through special services, products, programs, education, and advocacy of Dealer views and concerns to create a professional, successful, and profitable industry. Our Vision is for the NPDA to advance our industry by elevating Dealers to be well prepared, sustainably profitable and exceed the expectations of a growing Powersports customer base. Our Mission Statement is for the NPDA to empower franchised and independent Powersports Dealers through special services, products, programs, education, and advocacy of Dealer views and concerns to create a professional, successful, and profitable industry. |
6 – HISUN PROMOTES THOMAS BAKER TO DISTRICT SALES MANAGER
HISUN has announced the promotion of Thomas Baker to district sales manager. Baker, a certified master technician, has served on the company’s mobile tech-support team since 2021. His contributions to the team’s development have fast-tracked his career path within the organization, landing him behind the wheel of an exciting new role.
Preceding HISUN, Thomas spent several years with Crockett Powersports of Chattanooga, TN as operations manager. His credentials are quite impressive, ranging from his time served in the Marine Corps, to graduating at the top of his class from MMI. Baker also secured a master’s degree in management and leadership, further validating his accomplishments.
Thomas’ ability to provide a more service-centric approach to dealers will aid in the company’s efforts to improve their after-sale support.
“I strongly believe that this role is all about serving the end user by supporting our dealers with quick, logical solutions and clear communication,” Baker says.
He will be tasked with developing the HISUN dealer network and educating their staff on all the features and benefits of HISUN branded products. Additionally, Thomas will assist the company with its continuous improvement projects, leveraging his extensive mechanical background.
With multiple new initiatives and a product roadmap that aligns with the evolving landscape of the powersports industry, HISUN continues to grow, improve and learn how to better serve customers.
“Thomas’ experience makes him a unique asset to the sales team,” says Taz Sobotka, regional sales manager for the Eastern US. “He will bring a different perspective that is fresh and intimate. More importantly, his service experience will enhance his ability to connect with dealers, making him particularly valuable to our initiatives. It will be a joy to work with him.”
7 – Taiga Named Fast Company’s 2022 Best World Changing Idea Overall in North America
Taiga Motors Corporation (TSX: TAIG) (“Taiga” or the “Company”), a leading electric off-road vehicle manufacturer, today was named overall North American Winner in Fast Company’s 2022 World Changing Ideas Awards. Taiga’s electric off-road performance powertrain is featured alongside a list of esteemed global companies focused on clean technology, innovative corporate initiatives, brave new designs for cities and buildings, and other creative works that are supporting the growth of positive social innovation.
“We are honored to receive this prestigious recognition from Fast Company,” said Taiga CEO Sam Bruneau. “We founded Taiga just over six years ago with a mission to revolutionize the powersports industry with electric vehicles that transform the way people access the outdoors. This award further validates our mission and serves as evidence of the progress we have made toward changing how people connect with the natural world through our industry-leading electric powertrains, connectivity, and design.”
Taiga was born to electrify the off-road segment, the most challenging and demanding vehicle category. As a trailblazing off-road EV brand, the product line includes mountain, trail, and utility snowmobiles, as well as personal watercraft models. With a clean-sheet manufacturing approach and rigorous performance standards, the purpose-built electric powertrains allow outdoor enthusiasts to consciously explore without compromising performance, noise, reliability, and efficiency. No powertrain maintenance, customizable drive parameters and hyper-precise throttle controls contribute to ease of use and approachability. Bringing peak performance in all conditions and standard automotive charging, Taiga is setting the standard for durability and reliability in electric powersports.
Now in its sixth year, the World Changing Ideas Awards showcase 39 winners, 350 finalists, and more than 600 honorable mentions—with climate, social justice, and AI and data among the most popular categories. A panel of eminent Fast Company editors and reporters selected winners and finalists from a pool of more than 2,997 entries across transportation, education, food, politics, technology, health, social justice, and more. In addition, several new categories have been added this year including climate, nature, water, and workplace. The 2022 awards feature entries from across the globe, from Switzerland to Hong Kong to Australia.
“We are consistently inspired by the novelty and creativity that people are applying to solve some of our society’s most pressing problems, from shelter to the climate crisis. Fast Company relishes its role in amplifying important, innovative work to address big challenges,” says David Lidsky, interim editor-in-chief of Fast Company. “Our journalists have identified some of the most ingenious initiatives to launch since the start of 2021, which we hope will both have a meaningful impact and lead others to join in being part of the solution.”
About the World Changing Ideas Awards
World Changing Ideas is one of Fast Company‘s major annual awards programs and is focused on social good, seeking to elevate finished products and brave concepts that make the world better. A panel of judges from across sectors choose winners, finalists, and honorable mentions based on feasibility and the potential for impact. With the goals of awarding ingenuity and fostering innovation, Fast Company draws attention to ideas with great potential and helps them expand their reach to inspire more people to start working on solving the problems that affect us all. Fast Company‘s Summer 2022 issue (on newsstands May 10, 2022) will showcase some of the world’s most inventive entrepreneurs and companies tackling global challenges.
About Taiga
Taiga (TSX: TAIG) is a Canadian company reinventing the powersports landscape with breakthrough electric off-road vehicles. Through a clean-sheet engineering approach, Taiga has pushed the frontiers of electric technology to achieve extreme power-to-weight ratios and thermal specifications required to outperform comparable high-performance combustion powersports vehicles. The first models released include a lineup of electric snowmobiles and personal watercraft to deliver on a rapidly growing demand from recreational and commercial customers who are seeking better ways to explore the great outdoors without compromise. For more information, visit https://www.taigamotors.com.
8 – Top dealerships for Instagram followers are from California, North Carolina – From Powersports Business
The powersports dealership landscape is full of engaged Instagram accounts, but there’s only room at the top for one No. 1.
That’s where Chapparal Motorsports (@chaparralmoto) in California sits to lead all dealerships with 35,600 followers. Performance East (North Carolina) is in second at 25,600, with Bert’s Mega Mall (California) in third at 22,500, Indian Motorcycle of Orange County (California) in fourth at 17,800 and Great Western Motorcycles (North Carolina) fifth at 15,400.
READ THE ENTIRE ARTICLE – https://powersportsbusiness.com/top-stories/2022/05/05/top-dealerships-for-instagram-followers-are-from-california-north-carolina/
9 – National Powersport Auctions steps up strategic partnership of National Powersports Dealer Association – From Powersports Business
“NPA believes that dealers are critical to the future of powersports,” says National Powersport Auctions CEO Jim Woodruff. “They are at the front lines of the consumer experience that fuels our industry and we are committed to helping them be the best they can be.” Already a strong supporter and trusted advisor to the National Powersports Dealer Association, NPA has expanded its efforts to engage with dealers in meaningful dialog and mutually beneficial actions.
READ THE ENTIRE ARTICLE HERE – https://powersportsbusiness.com/top-stories/2022/05/06/national-powersport-auctions-steps-up-strategic-partnership-of-national-powersports-dealer-association/
10 – Fox Factory Holding Corp. Announces First Quarter Fiscal 2022 Financial Results – From Fox Factory Holding Corp
Fox Factory Holding Corp. (NASDAQ: FOXF) (“FOX” or the “Company”) today reported financial results for the first quarter ended April 1, 2022.
First Quarter Fiscal 2022 Highlights
- Sales increased 34.4% to $378.0 million, compared to $281.1 million in the same period last fiscal year
- Gross profit increased 22.8% to $120.3 million, compared to $97.9 million in the same period last fiscal year. Gross margin percentage decreased 300 basis points to 31.8%, compared to 34.8% in the same period last fiscal year; non-GAAP adjusted gross margin percentage decreased 270 basis points to 32.3% compared to 35.0% in the same period last fiscal year
- Net income was $48.1 million, or 12.7% of sales and $1.13 of earnings per diluted share, compared to $38.0 million, or 13.5% of sales and $0.90 of earnings per diluted share in the same period last fiscal year
- Non-GAAP adjusted net income was $55.8 million, or $1.32 of non-GAAP adjusted earnings per diluted share, compared to $44.5 million, or $1.05 of non-GAAP adjusted earnings per diluted share in the same period last fiscal year
- Adjusted EBITDA was $71.8 million, or 19.0% of sales, compared to $60.4 million, or 21.5% of sales in the same period last fiscal year
“We are pleased to report record revenue and profitability in the first quarter of 2022. This accomplishment reflects the focus and continued execution of our people and FOX’s strategic initiatives while responding to various ongoing macro challenges,” commented Mike Dennison, FOX’s Chief Executive Officer. “Our immediate goal is the optimization of our Gainesville facility and while we saw improvements in productivity late in the quarter, we have significant work remaining to deliver our expected results. In addition, while inflation and supply chain challenges continue to pose obstacles, I am confident in our world-class team to continue to constructively drive the business toward our 2025 objectives.”
Sales for the first quarter of fiscal 2022 were $378.0 million, an increase of 34.4% as compared to sales of $281.1 million in the first quarter of fiscal 2021. This increase reflects a 43.5% increase in Specialty Sports Group sales and a 27.9% increase in Powered Vehicles Group sales. The increase in Specialty Sports Group sales is driven by continued strong demand in both the original equipment manufacturer (“OEM”) and aftermarket channels. The increase in Powered Vehicles Group sales is primarily due to strong performance in our upfitting product lines.
Gross margin was 31.8% for the first quarter of fiscal 2022, a 300 basis point decrease from gross margin of 34.8% in the first quarter of fiscal 2021. Non-GAAP adjusted gross margin decreased 270 basis points to 32.3% from the same prior fiscal year period, excluding the effects of strategic transformation costs. The decrease in gross margin was primarily driven by continued increases in supply chain related costs, including increased prices for raw materials and freight. Additionally, the completion of the planned shutdown of our Watsonville, California facility and transition of those production lines resulted in inefficiencies as we ramp up our Gainesville, Georgia facility. A reconciliation of gross profit to non-GAAP adjusted gross profit and the resulting non-GAAP adjusted gross margin is provided at the end of this press release.
Total operating expenses were $66.1 million for the first quarter of fiscal 2022, compared to $52.1 million in the first quarter of fiscal 2021. Operating expenses increased by $14.0 million primarily due to higher employee related costs, higher commission costs, and higher insurance and facility related expenses. As a percentage of sales, operating expenses were 17.5% for the first quarter of fiscal 2022, a decrease of 100 basis points, compared to 18.5% in the first quarter of fiscal 2021. Non-GAAP operating expenses were $59.6 million, or 15.8% of sales in the first quarter of fiscal 2022, compared to $45.4 million, or 16.1% of sales, in the first quarter of the prior fiscal year. Reconciliations of operating expense to non-GAAP operating expense are provided at the end of this press release.
The Company’s effective tax rate was 4.8% in the first quarter of fiscal 2022, compared to 9.5% in the first quarter of fiscal 2021. The decrease in the Company’s effective tax rate was primarily due to the impact of recently finalized U.S. tax regulations, which resulted in the full release of our valuation allowance against foreign tax credit carryforwards. This impact was partially offset by decreased benefits from the effects of stock-based compensation and discrete items.
Net income in the first quarter of fiscal 2022 was $48.1 million, compared to $38.0 million in the first quarter of the prior fiscal year. Earnings per diluted share for the first quarter of fiscal 2022 were $1.13, compared to earnings per diluted share of $0.90 for the first quarter of fiscal 2021.
Non-GAAP adjusted net income in the first quarter of fiscal 2022 was $55.8 million, or $1.32 of adjusted earnings per diluted share, compared to adjusted net income of $44.5 million, or $1.05 of adjusted earnings per diluted share, in the same period of the prior fiscal year. Reconciliations of net income as compared to non-GAAP adjusted net income and the calculation of non-GAAP adjusted earnings per diluted share are provided at the end of this press release.
Adjusted EBITDA in the first quarter of fiscal 2022 was $71.8 million, compared to $60.4 million in the first quarter of fiscal 2021. Adjusted EBITDA margin in the first quarter of fiscal 2022 was 19.0%, compared to 21.5% in the first quarter of fiscal 2021. Reconciliations of net income to adjusted EBITDA and the calculation of adjusted EBITDA margin are provided at the end of this press release.
Balance Sheet Highlights
As of April 1, 2022, the Company had cash and cash equivalents of $68.8 million compared to $179.7 million as of December 31, 2021. Inventory was $315.0 million as of April 1, 2022, compared to $279.8 million as of December 31, 2021. As of April 1, 2022, accounts receivable and accounts payable were $177.9 million and $157.0 million, respectively, compared to $142.0 million and $100.0 million, respectively, as of December 31, 2021. Prepaids and other current assets were $293.9 million as of April 1, 2022, compared to $123.1 million as of December 31, 2021. The decrease in cash and cash equivalents and increase in prepaids and other assets are primarily due to increased chassis deposits as we work to secure supply for the remainder of the year for our upfitting business. The increase in inventory is primarily due to additional raw materials purchases to mitigate risks associated with supply chain uncertainty. The increases in accounts receivable and accounts payable reflect business growth as well as the timing of vendor payments. Accrued expenses were $103.8 million as of April 1, 2022, compared to $112.4 million as of December 31, 2021, primarily due to decreases in income taxes payable and accrued bonuses, which were partially offset by increases in various other expenses.
Fiscal 2022 Guidance
For the second quarter of fiscal 2022, the Company expects sales in the range of $385 million to $405 million and non-GAAP adjusted earnings per diluted share in the range of $1.10 to $1.25.
For the fiscal year 2022, the Company expects sales in the range of $1,500 million to $1,530 million and non-GAAP adjusted earnings per diluted share in the range of $5.00 to $5.30. For purposes of our fiscal 2022 guidance, we expect our full year effective tax rate to be within the range of 11% to 15%.
Non-GAAP adjusted earnings per diluted share exclude the following items net of applicable tax: amortization of purchased intangibles, patent litigation-related expenses, acquisition and integration-related expenses, and strategic transformation costs. A quantitative reconciliation of non-GAAP adjusted earnings per diluted share for the second quarter and full fiscal year 2022 is not available without unreasonable efforts because management cannot predict, with sufficient certainty, all of the elements necessary to provide such a reconciliation.
Conference Call & Webcast
The Company will hold an investor conference call today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call dial-in number for North America listeners is (866) 518-6930, and international listeners may dial (203) 518-9797; the conference ID is FOXFQ122 or 36937122. Live audio of the conference call will be simultaneously webcast in the Investor Relations section of the Company’s website at http://www.ridefox.com. The webcast of the teleconference will be archived and available on the Company’s website.
About Fox Factory Holding Corp. (NASDAQ: FOXF)
Fox Factory Holding Corp. designs and manufactures performance-defining ride dynamics products primarily for bicycles, on-road and off-road vehicles and trucks, side-by-side vehicles, all-terrain vehicles, snowmobiles, specialty vehicles and applications, motorcycles, and commercial trucks. The Company is a direct supplier to leading powered vehicle OEMs. Additionally, the Company supplies top bicycle OEMs and their contract manufacturers, and provides aftermarket products to retailers and distributors.
FOX is a registered trademark of Fox Factory, Inc. NASDAQ Global Select Market is a registered trademark of The NASDAQ OMX Group, Inc. All rights reserved.
Non-GAAP Financial Measures
In addition to reporting financial measures in accordance with generally accepted accounting principles (“GAAP”), FOX is including in this press release “non-GAAP adjusted gross profit,” “non-GAAP adjusted gross margin,” “non-GAAP operating expense,” “non-GAAP adjusted net income,” “non-GAAP adjusted earnings per diluted share,” “adjusted EBITDA,” and “adjusted EBITDA margin,” all of which are non-GAAP financial measures. FOX defines non-GAAP adjusted gross profit as gross profit margin adjusted for certain strategic transformation costs. FOX defines non-GAAP operating expense as operating expense adjusted for amortization of purchased intangibles, patent litigation-related expenses, acquisition and integration-related expenses, and strategic transformation costs. FOX defines non-GAAP adjusted net income as net income adjusted for amortization of purchased intangibles, patent litigation-related expenses, acquisition and integration-related expenses, and strategic transformation costs, all net of applicable tax. These adjustments are more fully described in the tables included at the end of this press release. Non-GAAP adjusted earnings per diluted share is defined as non-GAAP adjusted net income divided by the weighted average number of diluted shares of common stock outstanding during the period. FOX defines adjusted EBITDA as net income adjusted for interest expense, net other expense, income taxes, amortization of purchased intangibles, depreciation, stock-based compensation, patent litigation-related expenses, acquisition and integration-related expenses, and strategic transformation costs that are more fully described in the tables included at the end of this press release. Adjusted EBITDA margin is defined as adjusted EBITDA divided by sales.
FOX includes these non-GAAP financial measures because it believes they allow investors to understand and evaluate the Company’s core operating performance and trends. In particular, the exclusion of certain items in calculating non-GAAP adjusted gross profit, non-GAAP operating expense, non-GAAP adjusted net income and adjusted EBITDA (and accordingly, non-GAAP adjusted earnings per diluted share and adjusted EBITDA margin) can provide a useful measure for period-to-period comparisons of the Company’s core business. These non-GAAP financial measures have limitations as analytical tools, including the fact that such non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies because other companies may calculate non-GAAP adjusted gross profit, non-GAAP operating expense, non-GAAP adjusted net income, non-GAAP adjusted earnings per diluted share, adjusted EBITDA and adjusted EBITDA margin differently than FOX does. For more information regarding these non-GAAP financial measures, see the tables included at the end of this press release.
FOX FACTORY HOLDING CORP.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
| As of | As of | ||||||
| April 1, | December 31 | ||||||
| 2022 | 2021 | ||||||
| (unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 68,773 | $ | 179,686 | |||
| Accounts receivable (net of allowances of $512 and $410 at April 1, 2022 and December 31, 2021, respectively) | 177,858 | 142,040 | |||||
| Inventory | 314,971 | 279,837 | |||||
| Prepaids and other current assets | 293,927 | 123,107 | |||||
| Total current assets | 855,529 | 724,670 | |||||
| Property, plant and equipment, net | 193,609 | 192,003 | |||||
| Lease right-of-use assets | 44,122 | 38,752 | |||||
| Deferred tax assets | 43,351 | 34,998 | |||||
| Goodwill | 323,283 | 323,299 | |||||
| Intangibles, net | 191,716 | 197,021 | |||||
| Other assets | 12,405 | 4,986 | |||||
| Total assets | $ | 1,664,015 | $ | 1,515,729 | |||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 157,015 | $ | 99,984 | |||
| Accrued expenses | 103,792 | 112,378 | |||||
| Current portion of long-term debt | 20,000 | 17,500 | |||||
| Total current liabilities | 280,807 | 229,862 | |||||
| Line of credit | 42,852 | — | |||||
| Long-term debt, less current portion | 356,288 | 360,953 | |||||
| Other liabilities | 34,984 | 30,832 | |||||
| Total liabilities | 714,931 | 621,647 | |||||
| Stockholders’ equity | |||||||
| Preferred stock, $0.001 par value — 10,000 authorized and no shares issued or outstanding as of April 1, 2022 and December 31, 2021 | — | — | |||||
| Common stock, $0.001 par value — 90,000 authorized; 43,039 shares issued and 42,149 outstanding as of April 1, 2022; 43,010 shares issued and 42,120 outstanding as of December 31, 2021 | 42 | 42 | |||||
| Additional paid-in capital | 346,328 | 344,119 | |||||
| Treasury stock, at cost; 890 common shares as of April 1, 2022 and December 31, 2021 | (13,754 | ) | (13,754 | ) | |||
| Accumulated other comprehensive income | 9,619 | 4,876 | |||||
| Retained earnings | 606,849 | 558,799 | |||||
| Total stockholders’ equity | 949,084 | 894,082 | |||||
| Total liabilities and stockholders’ equity | $ | 1,664,015 | $ | 1,515,729 | |||
FOX FACTORY HOLDING CORP.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
| For the three months ended | |||||||
| April 1, | April 2, | ||||||
| 2022 | 2021 | ||||||
| Sales | $ | 377,977 | $ | 281,136 | |||
| Cost of sales | 257,717 | 183,212 | |||||
| Gross profit | 120,260 | 97,924 | |||||
| Operating expenses: | |||||||
| Sales and marketing | 22,589 | 16,858 | |||||
| Research and development | 12,642 | 9,876 | |||||
| General and administrative | 25,567 | 20,369 | |||||
| Amortization of purchased intangibles | 5,307 | 4,965 | |||||
| Total operating expenses | 66,105 | 52,068 | |||||
| Income from operations | 54,155 | 45,856 | |||||
| Interest and other expense, net: | |||||||
| Interest expense | 1,977 | 2,904 | |||||
| Other expense, net | 1,692 | 959 | |||||
| Interest and other expense, net | 3,669 | 3,863 | |||||
| Income before income taxes | 50,486 | 41,993 | |||||
| Provision for income taxes | 2,436 | 4,007 | |||||
| Net income | $ | 48,050 | $ | 37,986 | |||
| Earnings per share: | |||||||
| Basic | $ | 1.14 | $ | 0.91 | |||
| Diluted | $ | 1.13 | $ | 0.90 | |||
| Weighted-average shares used to compute earnings per share: | |||||||
| Basic | 42,144 | 41,851 | |||||
| Diluted | 42,381 | 42,343 | |||||
FOX FACTORY HOLDING CORP.
NET INCOME TO NON-GAAP ADJUSTED NET INCOME RECONCILIATION
AND CALCULATION OF NON-GAAP ADJUSTED EARNINGS PER SHARE
(In thousands, except per share data)
(Unaudited)
The following table provides a reconciliation of net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to non-GAAP adjusted net income (a non-GAAP measure), and the calculation of non-GAAP adjusted earnings per share (a non-GAAP measure) for the three months ended April 1, 2022 and April 2, 2021. These non-GAAP financial measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results.
| For the three months ended | |||||||
| April 1, | April 2, | ||||||
| 2022 | 2021 | ||||||
| Net income | $ | 48,050 | $ | 37,986 | |||
| Amortization of purchased intangibles | 5,307 | 4,965 | |||||
| Patent litigation-related expenses | 69 | 310 | |||||
| Other acquisition and integration-related expenses (1) | 1,088 | 1,415 | |||||
| Strategic transformation costs (2) | 1,676 | 508 | |||||
| Tax impacts of reconciling items above (3) | (393 | ) | (687 | ) | |||
| Non-GAAP adjusted net income | $ | 55,797 | $ | 44,497 | |||
| Non-GAAP adjusted EPS | |||||||
| Basic | $ | 1.32 | $ | 1.06 | |||
| Diluted | $ | 1.32 | $ | 1.05 | |||
| Weighted average shares used to compute non-GAAP adjusted EPS | |||||||
| Basic | 42,144 | 41,851 | |||||
| Diluted | 42,381 | 42,343 | |||||
(1) Represents various acquisition-related costs and expenses incurred to integrate acquired entities into the Company’s operations.
(2) Represents costs associated with various strategic initiatives including the expansion of the Powered Vehicles Group’s manufacturing operations.
(3) Tax impact calculated based on the respective year to date effective tax rate.
FOX FACTORY HOLDING CORP.
NET INCOME TO ADJUSTED EBITDA RECONCILIATION AND
CALCULATION OF NET INCOME MARGIN AND ADJUSTED EBITDA MARGIN
(In thousands)
(Unaudited)
The following tables provide a reconciliation of net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to adjusted EBITDA (a non-GAAP measure), and the calculations of net income margin and adjusted EBITDA margin (a non-GAAP measure) for the three months ended April 1, 2022 and April 2, 2021. These non-GAAP financial measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results.
| For the three months ended | |||||||
| April 1, | April 2, | ||||||
| 2022 | 2021 | ||||||
| Net income | $ | 48,050 | $ | 37,986 | |||
| Provision for income taxes | 2,436 | 4,007 | |||||
| Depreciation and amortization | 11,847 | 9,969 | |||||
| Non-cash stock-based compensation | 3,029 | 2,494 | |||||
| Patent litigation-related expenses | 69 | 310 | |||||
| Other acquisition and integration-related expenses (1) | 974 | 1,255 | |||||
| Strategic transformation costs (2) | 1,676 | 508 | |||||
| Interest and other expense, net | 3,669 | 3,863 | |||||
| Adjusted EBITDA | $ | 71,750 | $ | 60,392 | |||
| Net Income Margin | 12.7 | % | 13.5 | % | |||
| Adjusted EBITDA Margin | 19.0 | % | 21.5 | % | |||
(1) Represents various acquisition-related costs and expenses incurred to integrate acquired entities into the Company’s operations, excluding $114 and $160 in stock-based compensation for the three month periods ended April 1, 2022 and April 2, 2021, respectively.
(2) Represents costs associated with various strategic initiatives including the expansion of the Powered Vehicles Group’s manufacturing operations.
FOX FACTORY HOLDING CORP.
GROSS PROFIT TO NON-GAAP ADJUSTED GROSS PROFIT RECONCILIATION AND
CALCULATION OF GROSS MARGIN AND NON-GAAP ADJUSTED GROSS MARGIN
(In thousands)
(Unaudited)
The following table provides a reconciliation of gross profit to non-GAAP adjusted gross profit (a non-GAAP measure) for the three months ended April 1, 2022 and April 2, 2021, and the calculation of gross margin and non-GAAP adjusted gross margin (a non-GAAP measure). These non-GAAP financial measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results.
| For the three months ended | |||||||
| April 1, | April 2, | ||||||
| 2022 | 2021 | ||||||
| Sales | $ | 377,977 | $ | 281,136 | |||
| Gross Profit | $ | 120,260 | $ | 97,924 | |||
| Strategic transformation costs (1) | 1,676 | 508 | |||||
| Non-GAAP Adjusted Gross Profit | $ | 121,936 | $ | 98,432 | |||
| Gross Margin | 31.8 | % | 34.8 | % | |||
| Non-GAAP Adjusted Gross Margin | 32.3 | % | 35.0 | % | |||
(1) Represents costs associated with various strategic initiatives including the expansion of the Powered Vehicles Group’s manufacturing operations.
FOX FACTORY HOLDING CORP.
OPERATING EXPENSE TO NON-GAAP OPERATING EXPENSE RECONCILIATION AND
CALCULATION OF OPERATING EXPENSE AND NON-GAAP OPERATING EXPENSE AS A PERCENTAGE OF SALES
(In thousands)
(Unaudited)
The following tables provide a reconciliation of operating expense to non-GAAP operating expense (a non-GAAP measure) and the calculations of operating expense as a percentage of sales and non-GAAP operating expense as a percentage of sales (a non-GAAP measure), for the three months ended April 1, 2022 and April 2, 2021. These non-GAAP financial measures are provided in addition to, and not as an alternative for, the Company’s reported GAAP results.
| For the three months ended | |||||||
| April 1, | April 2, | ||||||
| 2022 | 2021 | ||||||
| Sales | $ | 377,977 | $ | 281,136 | |||
| Operating Expense | $ | 66,105 | $ | 52,068 | |||
| Amortization of purchased intangibles | (5,307 | ) | (4,965 | ) | |||
| Patent litigation-related expenses | (69 | ) | (310 | ) | |||
| Other acquisition and integration-related expenses (1) | (1,088 | ) | (1,415 | ) | |||
| Non-GAAP operating expense | $ | 59,641 | $ | 45,378 | |||
| Operating expense as a percentage of sales | 17.5 | % | 18.5 | % | |||
| Non-GAAP operating expense as a percentage of sales | 15.8 | % | 16.1 | % | |||
(1) Represents various acquisition-related costs and expenses incurred to integrate acquired entities into the Company’s operations.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release including earnings guidance may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends that all such statements be subject to the “safe-harbor” provisions contained in those sections. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “might,” “will,” “would,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “likely,” “potential” or “continue” or other similar terms or expressions and such forward-looking statements include, but are not limited to, statements about the impact of the global outbreak of COVID-19 on the Company’s business and operations; the Company’s continued growing demand for its products; the Company’s execution on its strategy to improve operating efficiencies; the Company’s optimism about its operating results and future growth prospects; the Company’s expected future sales and future non-GAAP adjusted earnings per diluted share; and any other statements in this press release that are not of a historical nature. Many important factors may cause the Company’s actual results, events or circumstances to differ materially from those discussed in any such forward-looking statements, including but not limited to: the Company’s ability to complete any acquisition and/or incorporate any acquired assets into its business; the Company’s ability to maintain its suppliers for materials, product parts and vehicle chassis without significant supply chain disruptions; the Company’s ability to improve operating and supply chain efficiencies; the Company’s ability to enforce its intellectual property rights; the Company’s future financial performance, including its sales, cost of sales, gross profit or gross margin, operating expenses, ability to generate positive cash flow and ability to maintain profitability; the Company’s ability to adapt its business model to mitigate the impact of certain changes in tax laws; changes in the relative proportion of profit earned in the numerous jurisdictions in which the Company does business and in tax legislation, case law and other authoritative guidance in those jurisdictions; factors which impact the calculation of the weighted average number of diluted shares of common stock outstanding, including the market price of the Company’s common stock, grants of equity-based awards and the vesting schedules of equity-based awards; the Company’s ability to develop new and innovative products in its current end-markets and to leverage its technologies and brand to expand into new categories and end-markets; the Company’s ability to increase its aftermarket penetration; the Company’s exposure to exchange rate fluctuations; the loss of key customers; strategic transformation costs; the outcome of pending litigation; the possibility that the Company may not be able to accelerate its international growth; the Company’s ability to maintain its premium brand image and high-performance products; the Company’s ability to maintain relationships with the professional athletes and race teams that it sponsors; the possibility that the Company may not be able to selectively add additional dealers and distributors in certain geographic markets; the overall growth of the markets in which the Company competes; the Company’s expectations regarding consumer preferences and its ability to respond to changes in consumer preferences; changes in demand for high-end suspension and ride dynamics products; the Company’s loss of key personnel, management and skilled engineers; the Company’s ability to successfully identify, evaluate and manage potential acquisitions and to benefit from such acquisitions; product recalls and product liability claims; the impact of the Russian invasion of Ukraine on the global economy, energy supplies and raw materials; future economic or market conditions; and the other risks and uncertainties described in “Risk Factors” contained in its Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and filed with the Securities and Exchange Commission on February 24, 2022, or Quarterly Reports on Form 10-Q or otherwise described in the Company’s other filings with the Securities and Exchange Commission. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
CONTACT:
Fox Factory Holding Corp.
Vivek Bhakuni
Sr. Director of Investor Relations and Business Development
706-471-5241
[email protected]
11 – KENDA Celebrates 60 Years of Innovation – From Kenda Tires
Kenda, one of the world’s leading tire manufacturers, recently commemorated its 60th Anniversary with a celebration at its Kenda American Technology Center (KATC) in Canton, Ohio hosted by Chairman and President of Kenda, Jimmy Yang.
Across nearly every terrain in nearly every part of the world, Kenda has helped customers get where they need to go through the hard work and dedication of their 13,000+ team members around the globe and innovative products.
Kenda was founded in the countryside of Yuanlin, Taiwan, by Mr. Chi-Pao Yang under his guiding principles of honesty, quality, service, and innovation. Core values that still today serve as guideposts. In the past six decades, the company has grown to encompass 4 Global Technology Centers and 23 Manufacturing and Assembly facilities with product offerings across all major tire segments including automobiles, bicycles, wheelchairs, powersports, trailers, golf cars, and lawn and garden equipment in addition to steel wheels and roofing products.
“It takes an unwavering adherence to strong values and quality products as well as dedicated, passionate, and knowledgeable team members to earn the privilege to celebrate 60 years as one of the world’s leading tire manufacturers,” said Jimmy Yang. “In conjunction, we are thrilled to debut several innovative new product lines engineered and designed in our American Technology Center, as well as the Kenda eUniversity platform, all of which further demonstrate our commitment to better serving our loyal customers, the industry, and the communities in which we operate for the next 60 years.”
During the event, Kenda debuted its new training and education eUniversity platform, plus unveiled a line of new products including the speed and grip specialized Rush and Karma 2 bike tires as well as its premium performing Klever M/T2 (KR629) off-roading light truck tire – just a few of the many innovations to position Kenda for success as it drives full throttle into the future.
Kenda was also recently awarded the “Best Practice Award” for manufacturing quality during the 26th National Quality Awards in Taiwan. The award recognizes businesses that demonstrate high-quality management and is the only award for business quality issued by the Executive Council in Taiwan.
For more information, visit https://www.kendatire.com/
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