Here are a couple of stories that came across my desk that I think are relevant and interesting to the powersports business community.
1 – Honda Celebrates 50 Years of Motocross With 2023 CRF450R – From American Honda
May 28, 2022 — TEMECULA, Calif.
- 50th Anniversary Edition version honors 1980s CR models
- CRF450R, RWE and RX receive significant engine and chassis updates
Celebrating five decades of elite motocross heritage, Honda today unveiled the latest edition of its flagship motocross bike, the 2023 CRF450R, during a media event. Held on the eve of the opening 2023 AMA Pro Motocross round at Fox Raceway, the function featured the entire Team Honda HRC lineup – Ken Roczen, Chase Sexton, Hunter Lawrence and Jett Lawrence – as well as Honda legends from the past, including champions Gary Jones, Johnny O’Mara, Rick Johnson and Trey Canard, as well as former Team Manager Dave Arnold.
Introduced 50 years after the debut of the 1973 CR250M Elsinore – Honda’s original motocross machine – the 2023 CRF450R receives key engine updates and chassis revisions targeted at enhancing corner-exit acceleration and improving handling. In addition, a 50th Anniversary Edition is offered, honoring Honda’s motocross heritage with a special livery evoking the iconic CR models that dominated 1980s AMA Supercross and Motocross.
Honda’s success in motocross started with the aforementioned 1973 CR250M Elsinore, which Jones piloted to Honda’s first AMA Motocross Championship. In the half-century since, additional titles have been delivered by a long list of champions including Marty Smith, Chuck Sun, Johnny O’Mara, Ron Lechien, David Bailey, Darrell Schultz, Micky Dymond, Rick Johnson, Jeff Stanton, Jean-Michel Bayle, Mike Kiedrowski, Doug Henry, Steve Lamson, Jeremy McGrath and Ricky Carmichael, culminating in current Team HRC rider Jett Lawrence delivering the 2021 AMA Pro Motocross 250 crown, as well as the 2022 AMA Supercross 250SX West Region title. These renowned riders have played an integral role in the development and innovation of CR and CRF motocross bikes, while cementing Honda’s legendary status in the sport. Originally introduced in 2002, the CRF450R continues Honda’s tradition of race-driven innovation by incorporating feedback from Team Honda HRC riders.
“Honda is synonymous with motocross, and that’s a direct result of our dedication to the sport for the past five decades, as well as the invaluable contributions of top riders – from Gary Jones in 1973 to Jett Lawrence in 2022,” said Brandon Wilson, American Honda Manager of Sports & Experiential. “The 2023 CRF450R is worthy of that heritage, and the 50th Anniversary Edition pays tribute in a way that we’re sure will be appreciated by motocross enthusiasts. We look forward to current and future Honda champions continuing to grow our motocross legacy.”
For 2023, The CRF450R’s engine and chassis updates also carry over to the premium CRF450RWE and the closed-course off-road-focused CRF450RX, raced by the SLR Honda and JCR Honda teams in the NGPC and WORCS competition.
While Honda celebrates 50 years of motocross heritage with the 2023 CRF450R, the rest of Honda’s popular CRF Performance lineup, including the CRF450R-S, CRF450X, CRF450RL, CRF250R, CRF250RX and CRF150R, continues to deliver industry-leading performance and reliability.
CRF450R
The CRF450R’s technical updates include a narrower intake-port shape and longer intake funnel, revised cam profile and smaller throttle body diameter, resulting in smooth power delivery and increased torque, improving acceleration out of corners. The frame’s rigidity has been optimized by increasing material thickness in strategic locations and the use of steel engine mounts (replacing aluminum) helps improve front-end traction. A higher-rate shock spring and revised fork settings complement the rigidity-optimized frame without introducing harshness. To enhance strength and reduce noise, the muffler body is constructed from heat-treated aluminum, and a new inner-pipe design is used.
For 2023, Honda also offers a 50th Anniversary Edition of the model, featuring a livery reminiscent of the legendary ’80s CRs that ruled AMA Motocross and Supercross. Easily recognizable to fans of that era, this version features a blue seat cover, white number plates, gold rims, gold handlebar, gray-metallic triple clamp and special graphics.
- MSRP
- CRF450R: $9,599
- CRF450R 50th Anniversary Edition: $9,899
- Availability
- CRF450R: July
- CRF450R 50th Anniversary Edition: September
- Info
CRF450RWE
Building upon the legendary CRF450R platform, the CRF450RWE (“Works Edition”) is for the rider searching for the ultimate advantage. Purpose-built for lowering lap times and providing an unparalleled riding experience, it features an extensive list of premium upgrades inspired by the factory Team Honda HRC machines of Roczen and Sexton, including a stainless-steel Yoshimura exhaust, hand-polished cylinder ports, Hinson clutch basket and cover, Throttle Jockey seat cover and graphics, D.I.D DirtStar LT-X rims and DM2 gold chain, coated fork tubes, fork legs and shock 18 mm shock shaft, gray metallic triple clamps, Renthal Kevlar grips and dedicated ignition mapping. In addition, the CRF450RWE benefits from the same engine and chassis updates as its CRF450R sibling to improve corner-exit acceleration and handling.
- MSRP: $12,399
- Availability: September
- Info
CRF450RX
From high-speed NGPC and WORCS tracks to the technical woods riding of GNCC, the CRF450RX is a versatile, yet refined machine that is perfectly equipped for the variety of terrain found in closed-course off-road racing. To improve corner-exit acceleration and handling, this model receives the same chassis and engine updates as its motocross-focused relative, the CRF450R. Built with off-road specific features like dedicated ECU and suspension settings, an 18-inch rear wheel, an aluminum side stand, a large 2.1-gallon fuel tank and hand guards, the championship-proven CRF450RX is ready for the track or trail, which is why it’s the motorcycle of choice for a variety of off-road racers, including the SLR Honda and JCR Honda teams.
- MSRP: $9,899
- Availability: October
- Info
CRF450R-S
Honda’s flagship motocross machine – the CRF450R – continues to push the technological envelope in an effort to stay at the front of the pack, but some customers prioritize value. Honda addresses the needs of both groups, as the CRF450R-S (based on the 2022 CRF450R raced by factory Team Honda HRC riders Chase Sexton and Ken Roczen) is available at a very attractive price point without making a big sacrifice in terms of performance.
- MSRP: $8,799
- Availability: December
- Info
CRF450X
The undisputed King of the Baja 1000, Honda’s bulletproof CRF450X has a record 15 wins in the legendary off-road event, the most recent coming in the 2021 edition at the hands of SLR Honda riders Justin Morgan, Mark Samuels, Kendall Norman and Brandon Prieto. Also campaigned in the AMA NHHA series by JCR Honda rider Preston Campbell, the CRF450X is an excellent trail machine too, thanks in part to its 50-state year-round off-road-legal status, plus off-road-appropriate features like a side stand, 18-inch rear wheel, headlight, sealed chain and six-speed transmission.
- MSRP: $9,799
- Availability: August
- Info
CRF450RL
A quintessential dual-sport machine, the CRF450RL is based on the legendary CRF450 Performance off-road platform, yet it’s surprisingly smooth and comfortable on pavement. That combination of characteristics means there’s nothing better at using asphalt to link together great sections of trail. Features like a quiet muffler, a vibration-damping urethane-injected swingarm and a wide-ratio six-speed transmission ensure the machine performs well on roads, while the 449 cc Unicam® engine, twin-spar aluminum frame and premium, long-travel suspension that make it a stellar performer in the dirt. Throw in Honda’s legendary durability, and it’s clear why the CRF450RL has made a name for itself in the dual-sport world.
- MSRP: $9,999
- Availability: September
- Info
CRF250R
Long the standard by which quarter-liter motocrossers are measured, the CRF250R has accumulated an enviable list of championships over the years, and it’s consistently among the top sellers in its class. Noted for its exceptional handling (thanks in part to a narrow layout and low weight), excellent acceleration (achieved through notable torque and low- to midrange power) and endurance over race distance, the current platform was used by Team Honda HRC’s Jett Lawrence to capture the 2022 AMA Supercross 250SX East Championship. Its performance and durability also make it a popular choice among privateers, as evidenced by the high ratio of Red Riders on start lists in 250SX Regional racing.
- MSRP: $8,199
- Availability: June
- Info
CRF250RX
Now in its second generation, the CRF250RX is an excellent choice for professional closed-course off-road racers, with SLR Honda’s Tallon LaFountaine having raced it to the 2021 AMA NGPC Pro II National Championship and the WORCS Pro 250 title. Also campaigned in GNCC and U.S. Sprint Enduro competition by Phoenix Racing Honda riders Cody Barnes and Ruy Barbosa, the model is based on the motocross-focused CRF250R, but tailored for woods racing, off-road grand prix competition, desert racing and trail riding in legal off-road areas, thanks to application-specific features that provide appropriate suspension performance, power delivery, fuel range, hand protection and convenience.
- MSRP: $8,599
- Availability: June
- Info
CRF150R
The top-selling mini motocrosser in its class, Honda’s CRF150R is offered in both standard and Big Wheel versions, the latter a great choice for taller riders thanks to its larger wheels, higher seat and additional rear-suspension travel. While the model is Honda’s smallest motocross machine, it boasts big-bike features like Showa® suspension (a 37 mm inverted fork and a single shock mated to a Pro-Link® rear system), plus a Unicam four-stroke engine that is unique in the mini MX world, delivering a strong but smooth spread of power across the rev range.
- MSRP
- CRF150R: $5,299
- CRF150R Big Wheel: $5,499
- Availability: September
- Info
# # #
Editors: Additional information and assets can be found at HondaNews.com
About American Honda
American Honda Motor Co., Inc., is the sole distributor of Honda motorcycles, scooters, ATVs and Side-by-Sides in the United States. American Honda’s Powersports Division conducts the sales, marketing and operational activities for these products through independent authorized Honda retail dealers. For more information on Honda products, go to powersports.honda.com.
2 – Motorcycle Parts Seller BikeBandit Has Stolen $646,000 of Customers’ Money and Disappeared, Says Bankruptcy Trustee – From Jalopnik
Motorcyclists around the country are confused and frustrated by BikeBandit, a well-known online seller of motorcycle parts and gear. Starting in late 2021, customers have been complaining that orders are never delivered, and refund requests are never answered. BikeBandit’s online customer service chat is broken. Its phone number is dead.
If you know where to search online, you’ll learn that BikeBandit quietly filed for bankruptcy in February 2022. But there’s no indication of that on the retailer’s website, where up until the middle of April 2022, you could fill a shopping cart, enter your payment info, and send your money to a defunct company that had no way to fulfill your order. Recently, one thing has changed: If you try to place an order today, you’ll be told the item is “on backorder.” But aside from that, the site is still running, even though the company is not.
READ MORE HERE – https://jalopnik.com/motorcycle-parts-seller-bikebandit-has-stolen-646-000-1848823954
3 – Eight-location dealership group sold to private holding company – From Powersports Business
The buy/sell transaction space has taken on a new look to end the month as Powersports Business has learned that the largest deal of 2022 has been finalized by Calculated Risk Motorcycle Group.
Adam Smith has sold his six Calculated Risk Harley-Davidson locations – including the largest Harley-Davidson dealership in Texas and two Lucky Penny Cycles locations – to Michigan-based Navigant Oak, LLC, a private holding company.
4 – Motovan Partners With Cardo Communication Systems
Plano, TX (June 1, 2022) Cardo Systems, the global market leader in wireless communication systems for
powersports riders, today announced a strategic partnership with Motovan – advancing its growth across the Americas and supporting its overall global expansion strategy. As a leading Canadian powersports distributor, Motovan will distribute Cardo’s diverse lineup of wireless helmet communication systems and accessories throughout the Canadian market. Driven by passion and innovation, Motovan has been a trusted Canadian distributor for the powersports industry for more than 40 years. With the partnership, Motovan will provide additional retail distribution coverage throughout Canada – with an emphasis on expanding Cardo’s reach across Eastern Canada. Motovan joins Cardo’s Canadian distributors – each playing a significant role in supporting Cardo as the industry leader in powersports communication.
“Over the last several years, we’ve made a number of strategic business moves that have all laddered up to our global growth strategy, including hiring industry professionals and executives who have spearheaded our expansion efforts across the Americas,” said Guy Weinberg, General Manager of Cardo Americas. “Motovan is a great addition to our existing Canadian partners, allowing us to expand our footprint in the Canadian powersports market.”
“Motovan is extremely excited to represent Cardo in the Canadian powersports market.” Mike Paladino, VP Motovan. “Cardo is very much in line with our strategy of offering our dealers premium products that are constantly evolving; our sales team and staff are looking forward to servicing our valued dealers with Cardo communication systems”
Cardo Systems specializes in the design, development, manufacturing and sale of state-of-the-art
communication and entertainment systems for powersports helmets. Since pioneering the world’s first
Bluetooth helmet communicator in 2004, Cardo has continued to drive innovation and blaze new trails for powersports communication. In fact, the vast majority of innovations for Bluetooth motorcycle
communication systems were first introduced by Cardo, including the world’s first built-in radio, first rider-torider intercom, first mesh intercom, and several more.
For more information, visit CardoSystems.com, or follow along and join the conversation
on Facebook, Instagram, Twitter and YouTube.
About Cardo Systems:
Cardo specializes in the design, development, manufacturing and sale of state-of-the-art wireless communication and entertainment systems for motorcycle riders. Since inception in 2004, Cardo has pioneered the vast majority of innovations for Bluetooth motorcycle communication systems and in 2015, it has also introduced the world’s first mesh powered communication protocol into the motorcycle market. The company’s products, now available in over 100 countries, are the world’s leading communication devices for the motorcycle industry.
5 – Led by Flagship Hayabusa, 2023 Suzuki Motorcycles Break Cover, Kicking Off New Model Year
Suzuki Launches 2023 Editions of Sport, DualSport, SuperMoto, and Off-Road Motorcycles for 2023
Brea, CA (June 1, 2022) – Extending the momentum gained from introducing a number of electrifying models over the last year, Suzuki Motor USA, LLC. launches fresh 2023 motorcycles. Led by the 2023 Hayabusa, Suzuki’s landmark ultimate sportbike, this group of new motorcycles brings together a collection of proven Suzuki products including the flagship sport model, Hayabusa; the tried and true, go anywhere and do anything DualSports and SuperMoto of the DR line; and the championship-bred RM-Zs with an RM Army Edition that will have everyone looking.
Sportbike
Hayabusa
The 2023 Suzuki Hayabusa reaffirms its status as motorcycling’s Ultimate Sportbike. This new generation of Suzuki’s flagship continues to be propelled by a muscular, refined inline four-cylinder engine housed in a proven and thoroughly updated chassis with incomparable manners, managed by an unequaled suite of electronic rider aids all housed within stunning aerodynamic bodywork that is distinctly Hayabusa.
Riders who have owned or longed for a Hayabusa will recognize the iconic, aerodynamic silhouette that has been refined through wind tunnel development, so the body features new vent shapes, air diffusers, and reimagined logos while a sophisticated LED lighting system achieves a new zenith of style and function.
Engine performance has been broadened so the Hayabusa accelerates quicker and smoother than ever before while complying with worldwide emissions standards. Rider control is expanded through Hayabusa’s Suzuki Intelligent Ride System (S.I.R.S.). The engine’s adjustable power delivery, traction control*, cruise control, launch control, Bi-directional quick shifter, and Motion Track ABS** and Combined Brake systems offer the Hayabusa rider unmatched options on how the ride will unfold.
The Hayabusa will come in three striking color combinations Pearl Vigor Blue/Pearl Brilliant White, Metallic Mat Black/Glass Sparkle Black, and a Metallic Thunder Gray/Candy Daring Red.
2023 Hayabusa
MSRP $18,799
Model shown with optional accessories.
DualSport
DR650S
The 2023 Suzuki DR650S remains the best all-around, dual-purpose motorcycle available today. Always an outstanding performance value, every DR650S is quality-built by Suzuki and features a dependable, 644cc, oil-cooled, four-stroke, single engine carried in a strong steel, semi-double cradle frame.
A variety of riders will enjoy this motorcycle, thanks to a seat height that may be significantly reduced (using the optional Short Side Stand Kit from Suzuki Genuine Accessories). Strong aluminum, spoke-style rims carrying tires that help riders tackle pavement or trails with ease.
With new Solid Black and Solid Gray bodywork with contrasting black and orange graphics, or the new bright Solid Special White bodywork that features distinctive blue and black graphics, the DR650S looks great when ridden on any road or trail. Whatever riding adventure you plan to undertake, the 2023 Suzuki DR650S is your willing partner.
2023 DR650S
MSRP $6,999
DR400S
The 2023 DR-Z400S is the latest version of the motorcycle that is arguably the foundation of the modern DualSport movement. Suzuki makes fun, dependable, and capable motorcycles for anyone ready to take a ride down their favorite off-road trail or ribbon of asphalt.
Riders will be impressed with the amount of torque coming from the 398cc, liquid-cooled powerplant, as well as the crisp handling from the adjustable suspension. This ultra-reliable bike is completely street legal, with an electric start and easy-to-read instrument cluster. Black, aluminum EXCEL rims laced with bright stainless-steel spokes are set up to accept rim locks if you want to move to serious DualSport rubber.
True to its Suzuki off-road heritage, the 2023 DR-Z400S is available with Champion Yellow bodywork that is augmented with blue and black graphics. Also new is Solid Black bodywork with contrasting black, silver, and yellow graphics that make the 2023 DR-Z400S stand out on the road, on the trail, or even when parked at your favorite local hang out.
2023 DRZ400S
MSRP $7,099
SuperMoto
DR-Z400SM
Suzuki’s 2023 DR-Z400SM SuperMoto is based on the proven DR-Z400S. So, it combines Supermotard style and features in a narrow, lightweight, street-legal package. This bike brings off-road soul and fun to paved roads. It’s not uncommon to take the SuperMoto down a twisty forest road, around tight canyon corners, or through commuter traffic.
Its 398cc, liquid-cooled, four-stroke engine provides strong low-rpm torque and crisp throttle response for any of these occasions. Key differences between the DR-Z400SM and the DR-Z400S are the inverted front fork, wide spoke-style wheels, and 300mm diameter floating front brake rotor. The inverted fork helps reduce unsprung weight and improved overall handling, while the larger front brake rotor and wider rims featuring high-grip tires offer an exhilarating sport riding experience.
The new Grand Blue and Solid Black or the returning Solid Special White No. 2 bodywork with angular graphics complement the motorcycle’s styling.
2023 DR-Z400SM
MSRP $7,749
Off-Road
DR-Z125L
Here comes the DR-Z125L to make sure young riders and riders smaller in stature can tackle the dirt. Larger 19-inch front and 16-inch rear tires, as well as a front disc brake, deliver big bike performance to a size-appropriate motorcycle. The DR-Z125L is the perfect platform to build essential riding skills upon, thanks to a true manual clutch and a smooth-shifting five-speed transmission that lets riders develop these skills as they advance within the sport of motorcycling. Styled to mirror Suzuki’s championship-winning RM-Z and RMX models, this DR-Z arrives with a race-oriented look, while the sharp handling and strong low-end and mid-range power provide the get-up-and-go that defines Suzuki off-road bikes. The bike’s race-ready looks prove you shouldn’t judge a book by its cover, because the DR-Z125L is an unassuming, easy-to-ride package packed with loads of fun. Bright Champion Yellow bodywork includes complimentary blue, black, and red race-inspired graphics.
2023 DR-Z125L
MSRP $3,499
Motocross
RM-Z450
The 2023 RM-Z450 remains the champion’s choice, as its sleek, race-ready appearance, strong engine, and nimble chassis continue the Suzuki tradition of extraordinarily precise handling and engaging performance.
The RM-Z450 epitomizes Suzuki’s Winning Balance philosophy of optimizing “RUN, TURN, and STOP” with strong brakes for controlled stopping power, a widespread engine muscle with high peak power, and a strong, light, and more nimble chassis that remains the class standard for cornering performance.
Tuning the electronic fuel injection and ignition systems for maximum performance is easy thanks to Suzuki’s smartphone-based MX-Tuner or proven fuel-coupler system that is included with each 2023 RM-Z450.
The Champion Yellow bodywork is enhanced with a graphics package that features distinctive striping and Suzuki logos.
2023 RM-Z450
MSRP $8,999
RM-Z250
The choice of wise professionals and privateers everywhere, the 2023 RM-Z250 is ready for battle. The agile RM-Z250 combines the sleek, race-ready appearance of the RM-Z450 with a versatile engine and responsive chassis to deliver superior performance. Using Suzuki’s “RUN, TURN, and STOP” philosophy, factory engineers have made the RM-Z250 a formidable competitor.
The RM-Z250 has always set the standard as the best handling 250 on the track. Fed by a dual injector EFI system, a center-port cylinder head, and an AMA-compliant exhaust, the RM-Z250’s engine delivers strong, usable power through the entire rev-range.
The twin-spar aluminum frame and hydro-formed swingarm carry a KYB-supplied suspension that includes a coil spring fork and a shock with four-way damping force adjustment. Strong brakes and ergonomically shaped bodywork help keep the rider in control as the RM-Z250 carves up the racetrack.
Tuning the fuel injection and ignition for maximum performance is easy thanks to Suzuki’s smartphone-based MX-Tuner and proven fuel-coupler system. Suzuki’s Winning Balance is on display with the 2023 RM-Z250 as it maintains its high standard for cornering performance.
The Suzuki Champion Yellow bodywork is enhanced with distinctive striping and logo graphics.
2023 RM-Z250
MSRP $7,899
RM Army Edition Promotion
When you purchase a new 2023 RM-Z you will receive free RM Army Edition items that will make your new RM-Z even more battle-ready, with a race-spec Yoshimura full exhaust system and an exclusive RM Army graphics kit from Throttle Syndicate included at no charge! The RM Army Edition items will turn your new RM-Z into a full attack vehicle in the RM Army, absolutely free*, and includes the following:
Yoshimura RS-12 Stainless Full Exhaust w/ Aluminum Muffler (ARV: $779.00).
Throttle Syndicate RM Army Edition Graphics Kit (ARV: $149.99) and QR code for you to order discounted matching number plate graphics to complete your RM Army edition with your race number.
*Installation not included.
This promotion will run from July 1, 2022, to September 30, 2022. The RM Army Edition parts and decals will be shipped to the dealership where the rider purchased the bike after registration is complete.
RM85
The 2023 RM85 continues to carry on the powerful tradition of racing excellence in the Suzuki motocross family. The reliable two-stroke engine produces smooth power at any speed with an emphasis on low- to mid-range performance. Just like its larger RM-Z cousins, the RM85 delivers class-leading handling for both experienced and rookie racers alike. With its smooth power delivery and lightweight handling, the RM85 is the perfect motocross bike for anyone learning to race—and striving to win!
Champion Yellow bodywork with black fork protectors and guards provide a professional race look to the 2023 Suzuki RM85.
2023 RM85
MSRP $4,499
RM ARMY Amateur Racer Support
RM-Z and RM models are also perfect amateur racers, once inducted into the RM Army. Suzuki is serious about racing, and specifically “grassroots” and local and regional dealer-supported racing. Performance and durability have been the DNA of Suzuki and an integral part of our race-winning RM and RM-Z models since the very start!
See your local Suzuki Dealer involved with the RM Army Racer Support program for detailed information on how grass-roots racers can earn contingency when they race as part of the RM Army.
*The Traction Control System is not a substitute for the rider’s throttle control. It cannot prevent loss of traction due to excessive speed when the rider enters a turn and/or applies the brakes. Neither can it prevent the front wheel from losing grip.
**Depending on road surface conditions, such as wet, loose, or uneven roads, braking distance for an ABS-equipped vehicle may be longer than for a vehicle not equipped with ABS. ABS cannot prevent wheel skidding caused by braking while cornering. Please ride carefully and do not overly rely on ABS.
6 – AIMExpo returning to Las Vegas, bigger and better in 2023 – From the Motorcycle Industry Council
After the undeniable success of AIMExpo 2022, the Motorcycle Industry Council’s American International Motorcycle Expo is returning to the world famous Las Vegas Convention Center February 15-17, 2023, and it’s anticipated to be double the size of last year. Tucker Powersports will expand their co-located annual dealer show, helping to continue AIMExpo’s legacy as the most important powersports show in the country.
“Powersports is in the midst of incredible innovation and growth, and AIMExpo 2023 will be at the forefront providing a place for our industry to gather, learn, and strategize about the future,” said Erik Pritchard, president and CEO of the Motorcycle Industry Council. “The brands showcased on the show floor, including Tucker, are a demonstration of their commitment to work with us to advance our industry.”
Disruptive Thinking, the main-stage education platform launched last year, on the show floor returns with MIC Symposium-inspired content and will headline thought leaders, industry experts, and influencers. Renowned presenters including Tony Gonzalez and Sam Dantzler of Garage Composites will share content designed to make dealers think outside the box and beyond the doors of their dealerships.
Continuing the focus on “the business of your business,” AIMExpo Dealer Education will also offer classroom-style education off the show floor. These educational sessions will provide core business solutions related to sales and marketing, and topics that drive the day-to-day business of retailers, such as F&I, staff retention, and consumer engagement.
In addition to the expanded educational offerings, the AIMExpo show floor will be more than twice the size it was last year. Attendees will see a stronger focus on new products from the industry’s top manufacturers, including an emphasis on the four-wheel market segment.
“AIMExpo isn’t just motorcycles, it’s all powersports. And with the growth our industry has seen in the SxS, UTV, and ATV segments, we want to showcase the best products our industry has to offer in those categories,” said Andre Albert, MIC director of marketing and events. “Distributors and service providers will also showcase their latest products and services, along with show specials designed to kick-off the powersports industry’s order-writing season.”
In 2023, AIMExpo welcomes back Tucker Powersports with an expanded display presence, dealer VIP activations, and one of the biggest highlights of the show, the AIMExpo Industry Party powered by Tucker. “Together with AIMExpo, we made the 2022 show a huge success and we are working to deliver an even more powerful event at a time full of potential for our industry,” said Tucker Powersports President and CEO Marc McAllister.
AIMExpo wouldn’t be complete without the Dealer Recharge Zone, located on the show floor and the MIC Business Center. MIC members have access to the Business Center, which offers complimentary meeting rooms, basic business services, a lounge area, and daily beverages, light bites, and lunch.
Celebrity keynote speakers and additional MIC Symposium presenters will be announced in the coming months. Registration and host hotel reservations will open mid-June.
For more information on the show, visit www.AIMExpoUSA.com.
For more information on MIC membership, visit www.MIC.org.
ABOUT THE MOTORCYCLE INDUSTRY COUNCIL
The Motorcycle Industry Council, under its marquee market expansion brand, Ride With Us, is working to introduce everyone to the incomparable thrill of riding a motorcycle. The MIC is a not-for-profit trade association representing motorcycle manufacturers, distributors, aftermarket companies, dealers, retailers, and a variety of related organizations providing vital support to the powersports industry. The MIC advocates for fair policy and regulatory environments, works to deliver valuable data to the industry, and strives to bring the joy of riding to everyone, everywhere.
Established in 1914, the MIC is headquartered in Irvine, Calif., with a government relations office in metropolitan Washington, D.C. Keep up with the industry association on Twitter @followMIC, online at MIC.org, and through the weekly MIC RideReport.
ABOUT TUCKER POWERSPORTS
Featuring the most powerful portfolio of parts, accessories, apparel, and e-power brands in the powersports industry, Tucker is the go-to supplier for retailers across the nation. Tucker has been earning the trust of the best dealers in the powersports industry for over 50 years.
7 – BRP CHOOSES TO RIDE OUT INTIMIDATION – From BRP Inc.
Today, BRP Inc. (TSX: DOO, NASDAQ: DOOO) furthered its commitment to be the industry leader in corporate citizenship with the announcement of a community engagement program entitled “Ride Out Intimidation”. The Company is teaming up with experts and credible organizations to raise awareness and implement meaningful initiatives on a global scale.
BRP seeks to rally its extensive network around this universal cause that affects countless children and adults alike. The Company will focus its efforts and deploy projects targeting youth in schools, adults in the workplace, and marginalized communities.
“We choose to take a stand against intimidation, a prevalent social challenge that unfortunately still touches too many, everywhere and in different ways,” declared José Boisjoli, President and CEO at BRP. “We want to do our part to ensure children can grow up in an environment that encourages development and learning, and that workplaces and communities are exempt from intimidation. We invite all our employees, dealers, suppliers and passionate riders, as well as their friends and family, to join our movement.”
As a starting point, BRP is joining forces with three reputable organizations that are experts in fighting intimidation: Born this Way Foundation, Ditch the Label, and the Jasmin Roy Sophie Desmarais Foundation.
Born This Way Foundation focuses on building a kinder, braver world by making kindness cool, validating the emotions of young people, and eliminating the stigma surrounding mental health. Their global kindness campaign, #BeKind21, has engaged over 7 million people. Through BRP’s support, the organization will extend its impact, and inspire even more people to demonstrate kindness 365 days per year.
“We are proud to work with and for young people to build spaces that are welcoming, affirming, respectful, and kind,” said Maya Enista Smith, Executive Director of Born This Way Foundation. “We are grateful to BRP and their Ride Out Intimidation initiative for supporting our work and contributing to a kinder and braver world.”
Ditch the Label concentrates on supporting youth and young adults. Over the last 2 years, the organization successfully reached over 3.4 million people between the ages of 12 and 25 through digital support tools. Currently, Ditch the Label reaches youth in the US, Canada, Australia and Europe. With BRP’s contribution, programs and presence will be extended to new regions.
“We are delighted to be partnering with BRP on their global initiatives to combat intimidation and bullying,” said Liam Hackett, Founder & CEO of Ditch the Label. “As a non-profit, we recognize the power in partnering with brand partners who are as equally as passionate about social impact as we are. With BRP’s support, we will be able to reach even more people and provide meaningful impact in new communities.”
Initially created in Canada in 2010, the Jasmin Roy Sophie Desmarais Foundation is recognized as a pioneer in anti-intimidation awareness and a subject-matter expert for initiatives, workshops and content specific to Intimidation.
“In recent years, we have seen an unprecedented mobilization to prevent and address bullying and violence, including fostering more positive and caring environments. While our efforts are bearing fruit, we must continue to instill respect, good citizenship and acceptance of difference. BRP’s support will allow the Foundation to continue to fight bullying and to spread the word about its programs around the world,” said Jasmin Roy, President of the Jasmin Roy Sophie Desmarais Foundation.
Recognizing the major role employers can play in affecting workplace culture, BRP will lead by example by implementing a Zero-intimidation approach and addressing Intimidation in its Code of Ethics to be published this fall. BRP will benefit from the expertise of the Jasmin Roy Sophie Desmarais Foundation to create its first training program to raise awareness and educate its workforce on seeing the signs and addressing behaviors that could feel intimidating.
As part of its overarching Corporate Social Responsibility (CSR25) program, BRP committed to invest 1% of pre-tax profits in local and global causes by 2025. Charitable organizations are encouraged to submit their projects related to Ride Out Intimidation via the BRP website.CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
Certain information included in this release, including, but not limited to, statements relating to the Ride Out Intimidation program, the timing and size of payments and contributions to certain organizations pursuant to the program and the Corporate Social Responsibility (CSR25) plan, and other statements that are not historical facts, are “forward-looking statements” within the meaning of Canadian and United States securities laws. Forward-looking statements are typically identified by the use of terminology such as “may”, “will”, “would”, “should”, “could”, “expects”, “forecasts”, “plans”, “intends”, “trends”, “indications”, “anticipates”, “believes”, “estimates”, “outlook”, “predicts”, “projects”, “likely” or “potential” or the negative or other variations of these words or other comparable words or phrases. Forward looking statements, by their very nature, involve inherent risks and uncertainties and are based on several assumptions, both general and specific. BRP cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of BRP to be materially different from the outlook or any future results or performance implied by such statements.
About BRP
We are a global leader in the world of powersports products, propulsion systems and boats built on 80 years of ingenuity and intensive consumer focus. Our portfolio of industry-leading and distinctive products includes Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and pontoons, Can-Am on and off-road vehicles, Alumacraft and Quintrex boats, Manitou pontoons and Rotax marine propulsion systems as well as Rotax engines for karts and recreational aircraft. We complete our lines of products with a dedicated parts, accessories and apparel portfolio to fully enhance the riding experience. With annual sales of CA$7.6 billion from over 120 countries, our global workforce includes close to 20,000 driven, resourceful people.
Ski-Doo, Lynx, Sea-Doo, Can-Am, Rotax, Alumacraft, Manitou, Quintrex and the BRP logo are trademarks of Bombardier Recreational Products Inc. or its affiliates. All other trademarks are the property of their respective owners.
8 – BRP makes executive appointments; Scullion promoted – From Powersports Business
BRP has announced executive appointments to support future growth plans, build an even more resilient company and deliver lasting value, the company said. This evolution of the leadership structure will allow BRP to continue focusing on its long-term goals and achieve its ambitious targets. All these internal promotions are effective immediately.
“In the past five years alone, our revenues increased by 80%, and our employee base more than doubled. Our business also grew in complexity, including from a technology and product standpoint. I am excited to announce these changes and promotions that will play a critical role in achieving our strategic priorities and positioning our business for long-term growth,” said José Boisjoli, president and CEO.
READ THE ENTIRE POST – https://powersportsbusiness.com/top-stories/2022/06/02/brp-makes-executive-appointments-scullion-promoted/
9 – Yamaha Honors 14 Years and $5 Million in Outdoor Access Initiative Grants – From Yamaha Motor Corp
Yamaha Motor Corp., USA, marked the 14th anniversary of the Yamaha Outdoor Access Initiative (OAI) with an employee volunteer event in the Chattahoochee-Oconee National Forest, helping The Great Outdoors Fund fulfill its OAI grant project on the Oakey Mountain OHV trail system. In a fitting celebration of the OAI program awarding more than $5 million in grant funding to date, a contingent of employees and volunteers joined the effort north of Yamaha’s motorsports headquarters and factory in Georgia to clean up and restore an area decommissioned to public motorized access.
“It’s immensely gratifying to help communities and improve rider access across the nation through Yamaha’s Outdoor Access Initiative, especially when seeing a consistently positive outcome after the program’s fourteen years of dedication and determination,” said Mike Martinez, president of Motorsports at Yamaha, who led the company’s attendance at the event on April 30, 2022. “When grant recipients are local and our employees can provide hands-on assistance, like on the Oakey Mountain trail in the Chattahoochee-Oconee National Forest, it only further reinforces the vital need to keep our nation’s public lands open for all to enjoy through the Yamaha Outdoor Access Initiative.”
The 2022 Yamaha OAI program is underway and riding clubs, land stewardship associations, and public land managers are encouraged to work together with Yamaha dealers to identify projects and apply for support.
“With the demand for these spaces being at an all-time high, the resources and energy required to protect, maintain, and improve access to public land has never been greater,” said Steve Nessl, Yamaha’s Motorsports marketing manager. “Therefore, we strive to make it an easy process to receive the necessary assets through the Yamaha OAI program to fulfill projects and keep trails open; from our perspective, the sooner we get the funds working on the ground, the quicker the impact on what matters most.”
To help those thinking about applying for a grant, the Yamaha OAI has answered the most popular questions about the program at YamahaOAI.com and offers recaps of some typical projects as inspiration.
The first quarter grants for 2022 have been awarded to five applicants including:
- FireFrost ATV Club, Halstad, Minnesota
- Friends of the Flathead Avalanche Center, Whitefish, Montana
- San Juan Mountains Association, Durango, Colorado
- Turin Ridge Riders, Constable, New York
The Southern California Mountain Foundation also received a grant in the first quarter of 2022, extending a decade-long partnership that historically includes frequent Yamaha employee volunteer events on the San Bernardino National Forest, providing hands-on support for trail clearing, erosion control, and facilities improvements in one of the country’s most popular areas for outdoor and motorized recreation.
The application deadline for consideration in the second quarter of the 2022 funding cycle is June 30, 2022. Submission guidelines and an application for a Yamaha OAI grant are available at YamahaOAI.com. Connect with Yamaha on social media via @YamahaOutdoors or search any of the following hashtags on all platforms: #Yamaha #YamahaOAI #REALizeYourAdventure #ProvenOffRoad #AssembledInUSA
About the Yamaha Outdoor Access Initiative
Since 2008, the Yamaha Outdoor Access Initiative has led the Powersports industry in supporting responsible access to our nation’s public lands for outdoor enthusiasts. With more than $5 million contributed to 400 projects across the country, Yamaha has, directly and indirectly, supported thousands of miles of motorized recreation trails, maintained and rehabilitated riding and hunting areas, improved staging areas, and supplied agricultural organizations with essential OHV safety education, built bridges over fish-bearing streams and partnered with local outdoor enthusiast communities across the country to improve access to public lands. Each quarter, Yamaha accepts applications from nonprofit or tax-exempt organizations including OHV riding clubs and associations, national, state, and local public land-use agencies, outdoor enthusiast associations, and land conservation groups with an interest in protecting, improving, expanding, and/or maintaining access for safe, responsible, and sustainable public use.
Updated guidelines, application form, information, and news about the Outdoor Access Initiative are available at YamahaOAI.com. For specific questions about the Yamaha Outdoor Access Initiative, call the dedicated hotline at 1-877-OHV-TRAIL (877-648-8724), email [email protected], or write to:
Yamaha Outdoor Access Initiative
Yamaha Motor Corp., USA
3065 Chastain Meadows Parkway, Bldg. 100
Marietta, GA 30066
About Yamaha Motor Corporation, USA
Yamaha Motor Corporation, USA (YMUS), is a recognized leader in the outdoor recreation industry. The company’s ever-expanding product offerings include Motorcycles and Scooters, ATV and Side-by-Side vehicles, Snowmobiles, WaveRunner Personal Watercraft, Boats, Outboard Motors, Outdoor Power Equipment, Power Assist Bicycles, Golf Cars, Power Assist Wheelchair Systems, Surface Mount Technology (SMT) and Robotic Machines, Unmanned Helicopters, Accessories, Apparel, Yamalube products, and much more. YMUS products are sold through a nationwide network of distributors and dealers in the United States.
YMUS has a corporate office in California, two corporate offices in Georgia, facilities in Wisconsin and Alabama, and factory operations in Tennessee and Georgia. Additional U.S.-based subsidiaries include Yamaha Marine Systems Company (YMSC) with divisions Bennett Marine (Florida), Kracor Systems (Wisconsin) and Siren Marine, Inc. (Rhode Island), Skeeter Boats (Texas), with division G3 Boats (Missouri), and Yamaha Precision Propeller (Indiana).
ATVs over 90cc are recommended for use only by riders 16 years and older.
SxS Vehicles are recommended for use only by licensed drivers 16 years and older.
10 – SuperATV, LLC Acquires Keller Performance Products – From SuperATV LLC
SuperATV, the industry leader in aftermarket powersports parts and accessories, has acquired the premier ball joint manufacturer, Keller Performance Products, LLC, founded and led by Todd Keller. The acquisition closed on May 25, 2022.
“We design and build the best ball joint in the market, and I was looking for the best way for me to plan the future for my business and me personally. It only made sense for me to join the leading parts supplier in the industry,” said owner Todd Keller. “After meeting with Lindsay and the team, it was obvious that we do business the same way … design the best products, build the best products, and have the best service for the dealer partners and customers who have supported us since we started.”
The acquisition of Keller Performance Products is another step in SuperATV’s strategy to expand its already large breadth of high-quality product offerings, all available with fast, free shipping and world-class customer service to customers around the world. Keller’s passion for quality, innovation, and the customer experience aligns perfectly with SuperATV’s mission. Todd shares SuperATV’s passion for both its customers and products. Keller Performance fits in our family of brands as we work to WOW our dealers and consumers with the best products and best service in our industry,” says SuperATV CEO Lindsay Hunt.
SuperATV Headquarters
2753 Michigan Road
Madison, IN 47250
(855) 743-3427
https://www.superatv.com/
11 – Dealership owner retires after 17 years; GM now part owner after 29 years – From Powersports Business
Powersports Listings Mergers & Acquisitions has revealed the latest buy/sell transaction at the dealership level, with the former owner stepping aside after 17 years at the helm.
Mark Magarian, along with the existing Wild West Harley-Davidson general manager Michael Keeton, have acquired the assets of Wild West Harley-Davidson of Lubbock, Texas.
READ THE ENTIRE POST HERE – https://powersportsbusiness.com/top-stories/2022/06/03/dealership-owner-retires-after-17-years-gm-now-part-owner-after-29-years/
12 – BRP Reports Fiscal Year 2023 First Quarter Results – From BRP Inc
Highlights
- Revenues at $1,809.3 million which are similar to those of last year’s first quarter;
- Revenues from Year-Round products up $11.9 million at $934.4 million compared to last year’s first quarter, a record high for a first quarter;
- Market share gains in SSV and ATV in North American Powersports despite limited product availability;
- Normalized diluted EPS [1][2] of $1.66, a decrease of $0.87 per share, while diluted EPS of $1.46, a decrease of $1.33 per share compared to the same period last year;
- Normalized EBITDA [1] of $272.1 million, a decrease of $106.9 million or 28.2% compared to the same period last year;
- Reaffirming full year-end guidance for revenues and Normalized EBITDA [1] and adjusting Normalized EPS – diluted [1] upward by $0.25, now ranging from $11.00 to $11.35.
Recent events:
- On March 25, 2022, the Company announced its return to the motorcycle industry with the launch of a family of electric 2-wheel motorcycles. The first models of the complete lineup are expected to be available in mid-2024;
- On April 11, 2022, the Company announced its commitment to take corporate social responsibility (CSR) even further with the launch of its new CSR25 program. It includes more ambitious environmental targets than ever before, aiming to become the industry leader in corporate citizenship;
- On May 11, 2022, the Company announced that it has repurchased for cancellation 2,427,184 subordinate voting shares following the completion of its Substantial Issuer Bid for a total consideration of $250.0 million.
VALCOURT, QUEBEC, CANADA – June 3, 2022 – BRP Inc. (TSX: DOO, NASDAQ: DOOO) today reported its financial results for the three-month period ended April 30, 2022. All financial information is in Canadian dollars unless otherwise noted. The complete financial results are available on SEDAR and EDGAR as well as in the section Quarterly Reports of BRP’s website.
“Our first-quarter results once again demonstrate BRP’s ability to operate efficiently in a challenging environment. Demand for our products remains robust and our focus on operational execution has allowed us to extend our market leadership further,” said José Boisjoli, President and CEO.
“Given our team’s capacity to progress on our strategic priorities and our agility in managing through a tighter supply chain environment, we remain confident in delivering another strong year in FY23 with expected revenue growth of 24% to 29% and Normalized EPS growth of 11% to 14%”, concluded Mr. Boisjoli.
| [1] See “Non-IFRS Measures” section of this press release [2] Earnings per share is defined as “EPS” |
| Financial Highlights | |||
| (in millions of Canadian dollars, except per share data and margin) | Three-month periods ended | ||
| April 30,2022 | April 30,2021 | ||
| Revenues | $1,809.3 | $1,808.6 | |
| Gross Profit | 454.4 | 542.0 | |
| Gross Profit margin (%) | 25.1% | 30.0% | |
| Operating income | 199.6 | 316.5 | |
| Normalized EBITDA [3] | 272.1 | 379.0 | |
| Net income | 121.0 | 244.4 | |
| Normalized net income [3] | 137.1 | 222.0 | |
| Earnings per share – diluted | 1.46 | 2.79 | |
| Normalized earnings per share – diluted [3] | 1.66 | 2.53 | |
| Weighted average number of shares – basic | 81,075,819 | 84,967,050 | |
| Weighted average number of shares – diluted | 82,701,016 | 87,606,457 |
FISCAL YEAR 2023 UPDATED GUIDANCE & OUTLOOK
The FY23 guidance has been updated as follows:
| Financial Metric | FY22 | FY23 Guidance[5] vs FY22 |
| Revenues | (vs. Previous Guidance) | |
| Year-Round Products | $3,467.5 | Up 30% to 35% |
| Seasonal Products | 2,524.1 | Up 22% to 27% |
| Powersports PA&A and OEM Engines | 1,143.5 | Up 17% to 22% |
| Marine | 512.8 | Up 12% to 17% |
| Total Company Revenues | 7,647.9 | Up 24% to 29% |
| Normalized EBITDA[3] | 1,462.1 | Up 12% to 15% |
| Effective Tax Rate[3][4] | 25.4% | 26.0% to 26.5% |
| Normalized Earnings per Share – Diluted[3] | $9.92 | Up 11% to 14% ($11.00 to $11.35)(previously $10.75 to $11.10) |
| Net income | 794.6 | ~$885M to $910M |
| Other assumptions for FY23 Guidance | |
| • Depreciation Expenses: | ~$335M (previously ~$350M) |
| • Net Financing Costs Adjusted: | ~$87M (previously ~$72M) |
| • Weighted average number of shares – diluted: | ~81.5M shares (previously ~$83.5M) |
| • Capital Expenditures: | ~$675M to $700M |
FY23 Quarterly Outlook [5]
The Company reaffirms its initial guidance and continues to expect another solid year with a Normalized EBITDA [3] increase ranging from 12% to 15% compared to the previous year. However, the Company anticipates that its Normalized EBITDA [3] for the second quarter could be flat to down on a percentage basis in the low single digit compared to the second quarter of Fiscal 2022 due to supply chain constraints which are expected to continue throughout the year. Still, the Company intends to take advantage of an increase in planned production capacity beginning in the second quarter to increase the pace of product deliveries.
| [3] See “Non-IFRS Measures” section of this press release [4] Effective tax rate based on Normalized Earnings before Normalized Income Tax. [5] Please refer to the “Caution Concerning Forward-Looking Statements” and “Key assumptions” sections of this press release for a summary of important risk factors that could affect the above guidance and of the assumptions underlying this Fiscal Year 2023 guidance. |
FIRST QUARTER RESULTS
The Company experienced a continuing level of supply chain related disruptions and inefficiencies in an increasingly inflationary environment when compared to the first quarter of Fiscal 2022 and the fourth quarter of Fiscal 2022. As a result, this limited the Company’s ability to satisfy consumer demand and replenish dealer inventories and in turn further limited product availability in the network compared to optimal seasonal levels. Such supply chain related disruptions, which are expected to last throughout Fiscal 2023, also resulted in an increased level of substantially completed units awaiting missing components.
Despite these challenges, the Company optimized the shipment of missing components to its dealer network which resulted in a high conversion rate of substantially completed units available for retail and revised its production schedule based on seasonality and availability of components. The Company implemented strategic pricing initiatives aimed at reducing inflationary pressures, which mitigated the impact on the Company’s profitability. The slightly higher revenues achieved for the first quarter of Fiscal 2023 compared to the first quarter of Fiscal 2022 were further supported by strong SSV retail, demonstrating sustained consumer interest.
Revenues
Revenues remained flat at $1,809.3 million for the three-month period ended April 30, 2022, compared to the $1,808.6 million for the corresponding period ended April 30, 2021. These results were primarily due to favourable pricing across all product lines, mostly offset by unfavourable mix in Year-Round Products and lower volume in Seasonal Products due to supply chain disruptions. The increase was partially offset by an unfavourable foreign exchange rate variation of $27 million.
- Year-Round Products [6] (52% of Q1-23 revenues): Revenues from Year-Round Products increased by $11.9 million, or 1.3%, to $934.4 million for the three-month period ended April 30, 2022, compared to the $922.5 million for the corresponding period ended April 30, 2021. The increase was primarily attributable to a higher volume of SSV sold and by favourable pricing across all product lines. The increase was partially offset by lower volume of 3WV sold due to supply chain disruptions, as well as an unfavourable foreign exchange rate variation of $10 million.
- Seasonal Products [6] (22% of Q1-23 revenues): Revenues from Seasonal Products decreased by $54.7 million, or 11.8%, to $408.7 million for the three-month period ended April 30, 2022, compared to $463.4 million for the corresponding period ended April 30, 2021. The decrease resulted primarily from a lower volume of PWC sold due to supply chain disruptions. The decrease includes an unfavourable foreign exchange rate variation of $9 million. The decrease was partially offset by a higher volume of snowmobiles sold due to late shipments of model year 2022 units in the first quarter of Fiscal 2023 caused by supply chain disruptions, favorable pricing and lower sales programs in light of the strong retail environment.
- Powersports PA&A and OEM Engines [6] (19% of Q1-23 revenues): Revenues from Powersports PA&A and OEM Engines increased by $42.8 million, or 14.2%, to $343.6 million for the three-month period ended April 30, 2022, compared to the $300.8 million for the corresponding period ended April 30, 2021. The increase was mainly attributable to a higher volume of recreational aircraft engines and PA&A sold, favourable pricing and lower sales programs due to the strong retail environment and increased usage of vehicles. The increase was partially offset by an unfavourable foreign exchange rate variation of $7 million.
- Marine [6] (7% of Q1-23 revenues): Revenues from the Marine segment increased by $4.8 million, or 3.8%, to $132.2 million for the three-month period ended April 30, 2022, compared to $127.4 million for the corresponding period ended April 30, 2021. The increase was mainly due to a favourable product mix of units sold, as well as favourable pricing. The increase was partially offset by a lower volume of units and PA&A sold caused by supply chain disruptions.
| [6] The inter-segment transactions are included in the analysis. |
North American Retail Sales
The Company’s North American retail sales for powersports products decreased by 9% for the three-month period ended April 30, 2022 compared to the three-month period ended April 30, 2021. The decrease was mainly driven by limited product availability caused by supply chain disruptions.
- Year-Round Products: retail sales decreased on a percentage basis in the low-teens range compared to the three-month period ended April 30, 2021. In comparison, the Year-Round Products industry recorded a decrease on a percentage basis in the mid-twenties range over the same period.
- Seasonal Products: retail sales decreased on a percentage basis in the mid single-digits compared to the three-month period ended April 30, 2021. In comparison, the Seasonal Products industry recorded a decrease on a percentage basis in the low single-digits over the same period.
- Marine: boat retail sales decreased by 47% compared to the three-month period ended April 30, 2021 also as a result of lower product availability caused by supply chain disruptions.
Gross profit
Gross profit decreased by $87.6 million, or 16.2%, to $454.4 million for the three-month period ended April 30, 2022, compared to $542.0 million for the corresponding period ended April 30, 2021. Gross profit margin percentage decreased by 490 basis points to 25.1% from 30.0% for the three-month period ended April 30, 2021. The decreases were the result of higher logistics, commodities and labour costs due to inefficiencies relating to supply chain disruptions, as well as an increase in warranty costs. The decreases were partially offset by favourable pricing combined with lower sales programs driven by the strong retail environment and limited product availability, and a favourable outcome on an inventory related insurance claim. The decreases include an unfavourable foreign exchange rate variation of $9 million.
Operating expenses
Operating expenses increased by $29.3 million, or 13.0%, to $254.8 million for the three-month period ended April 30, 2022, compared to $225.5 million for the three-month period ended April 30, 2021. This increase was mainly attributable to an increase in research & development (“R&D”) expense to support future growth. The increase is partially offset by a favourable foreign exchange rate variation of $2 million.
Normalized EBITDA [7]
Normalized EBITDA [7] decreased by $106.9 million, or 28.2%, to $272.1 million for the three-month period ended April 30, 2022, compared to $379.0 million for the three-month period ended April 30, 2021. The decrease was primarily due to lower gross profit due to supply chain disruptions and higher operating expenses, mostly in R&D.
Net Income
Net income decreased by $123.4 million to $121.0 million for the three-month period ended April 30, 2022, compared to the $244.4 million for the three-month period ended April 30, 2021. The decrease was primarily due to lower operating income, partially offset by a lower income tax expense, lower net financing costs and the unfavourable foreign exchange rate variation impact on the U.S. denominated long-term debt.
| [7] See “Non-IFRS Measures” section of the press release. |
LIQUIDITY AND CAPITAL RESOURCES
The Company used net cash flows from operating activities totalling $333.1 million for the three-month period ended April 30, 2022 compared to net cash flows generated of $164.9 million for the three-month period ended April 30, 2021. Concurrently, there was an increase in revolving facilities totaling $327.8 million.
The Company invested $108 million of its liquidity in capital expenditures in order to add production capacity and to modernize the Company’s software infrastructure to support future growth. The Company also returned $68.5 million to its shareholders through quarterly dividend payout and its Normal Course Issuer Bid announced in Fiscal 2022.
On February 16, 2022, the Company amended its Revolving Credit Facilities to increase total availability to $1,100.0 million and replace LIBOR references by SOFR references. The pricing grid and other conditions remained unchanged.
Dividend
On June 2, 2022, the Company’s Board of Directors declared a quarterly dividend of $0.16 per share for holders of its multiple voting shares and subordinate voting shares. The dividend will be paid on July 14, 2022 to shareholders of record at the close of business on June 30, 2022.CONFERENCE CALL AND WEBCAST PRESENTATION
Today at 9 a.m. EDT, BRP Inc. will host a conference call and webcast to discuss its FY23 first quarter. The call will be hosted by José Boisjoli, President and CEO, and Sébastien Martel, CFO. To listen to the conference call by phone (event number 2279047), please dial 1 (888) 440-2167 (toll-free in North America). Click here for International numbers.
The Company’s first quarter FY23 webcast presentation is posted in the Quarterly Reports section of BRP’s website.
About BRP
We are a global leader in the world of powersports products, propulsion systems and boats built on 80 years of ingenuity and intensive consumer focus. Our portfolio of industry-leading and distinctive products includes Ski-Doo and Lynx snowmobiles, Sea-Doo watercraft and pontoons, Can-Am on and off-road vehicles, Alumacraft and Quintrex boats, Manitou pontoons and Rotax marine propulsion systems as well as Rotax engines for karts and recreational aircraft. We complete our lines of products with a dedicated parts, accessories and apparel portfolio to fully enhance the riding experience. With annual sales of CA$7.6 billion from over 120 countries, our global workforce includes close to 20,000 driven, resourceful people.
Ski-Doo, Lynx, Sea-Doo, Can-Am, Rotax, Alumacraft, Manitou, Quintrex, and the BRP logo are trademarks of Bombardier Recreational Products Inc. or its affiliates. All other trademarks are the property of their respective owners.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
Certain statements in this press release, including, but not limited to, statements relating to our Fiscal Year 2023, including financial guidance and outlook and related assumptions of the Company (including revenues, Normalized EBITDA, Effective Tax Rate, Normalized earnings per share, net income, depreciation expense, net financing costs adjusted, weighted average of the number of shares diluted and capital expenditures), the Company’s ability to convert new entrants into life-long customers, statements relating to the anticipated additional production capacity, statements relating to the declaration and payment of dividends, statements about the Company’s current and future plans, and other statements about the Company’s prospects, expectations, anticipations, estimates and intentions, results, levels of activity, performance, objectives, targets, goals or achievements, priorities and strategies, financial position, market position, capabilities, competitive strengths, beliefs, the prospects and trends of the industries in which the Company operates, the expected growth in demand for products and services in the markets in which the Company competes, research and product development activities, including projected design, characteristics, capacity or performance of future products and their expected scheduled entry to market expected financial requirements and the availability of capital resources and liquidities or any other future events or developments and other statements that are not historical facts constitute forward-looking statements within the meaning of Canadian and United States securities laws. The words “may”, “will”, “would”, “should”, “could”, “expects”, “forecasts”, “plans”, “intends”, “trends”, “indications”, “anticipates”, “believes”, “estimates”, “outlook”, “predicts”, “projects”, “likely” or “potential” or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements.
Forward-looking statements are presented for the purpose of assisting readers in understanding certain key elements of the Company’s current objectives, goals, targets, strategic priorities, expectations and plans, and in obtaining a better understanding of the Company’s business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes; readers should not place undue reliance on forward-looking statements contained herein. Forward-looking statements, by their very nature, involve inherent risks and uncertainties and are based on a number of assumptions, both general and specific, as further described below.
Many factors could cause the Company’s actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, which are discussed in greater detail under the heading “Risk Factors” of its Annual Information Form dated March 24, 2022: the impact of adverse economic conditions such as those resulting from the ongoing coronavirus (known as COVID-19) health crisis (including on consumer spending, the Company’s operations and supply and distribution chains, the availability of credit and the Company’s workforce); any decline in social acceptability of the Company’s products; fluctuations in foreign currency exchange rates; high levels of indebtedness; any unavailability of additional capital; any supply problems, termination or interruption of supply arrangements or increases in the cost of materials; any loss of members of the Company’s management team or employees who possess specialized market knowledge and technical skills; unfavourable weather conditions and climate change more generally; any failure of information technology systems or security breach; the Company’s international sales and operations; seasonal sales fluctuations; any inability to comply with product safety, health, environmental and noise pollution laws; the Company’s large fixed cost base; any inability of dealers and distributors to secure adequate access to capital; the Company’s competition in product lines; the Company’s inability to successfully execute its growth strategy; any failure to maintain an effective system of internal control over financial reporting and to produce accurate and timely financial statements; any inability to maintain and enhance the Company’s reputation and brands; any significant product liability claim; any significant product repair and/or replacement due to product warranty claims or product recalls; the Company’s reliance on a network of independent dealers and distributors; the Company’s inability to successfully manage inventory levels; any intellectual property infringement and litigation; the Company’s inability to successfully execute its manufacturing strategy or to meet customer demand as a result of manufacturing capacity constraints; increased freight and shipping costs or disruptions in transportation and shipping infrastructure; any failure to comply with covenants in financing and other material agreements; any changes in tax laws and unanticipated tax liabilities; any impairment in the carrying value of goodwill and trademarks; any deterioration in relationships with employees; pension plan liabilities; natural disasters; any failure to carry proper insurance coverage; volatility in the market price for the Subordinate Voting Shares; the Company’s conduct of business through subsidiaries; the significant influence of Beaudier Inc., 4338618 Canada Inc. and Bain Capital Integral Investors II, L.P.; and future sales of Subordinate Voting Shares by Beaudier Group, Bain Capital, directors, officers or senior management of the Company. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. Unless otherwise stated, the forward-looking statements contained in this press release are made as of the date of this press release and the Company has no intention and undertakes no obligation to update or revise any forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities regulations. In the event that the Company does update any forward-looking statements contained in this press release, no inference should be made that the Company will make additional updates with respect to that statement, related matters or any other forward-looking statement. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
KEY ASSUMPTIONS
The Company made a number of economic, market and operational assumptions in preparing and making certain forward-looking statements contained in this press release, including the following: reasonable long-term industry growth ranging from slightly down to up high-single digits, that is based on the assumption that the supply chain disruptions do not worsen; market share that will remain constant or moderately increase; stable global and North American economic conditions and a limited impact from the military hostilities in Ukraine and the ongoing global health crisis; main currencies in which the Company operates will remain at near current levels; inflation is expected to remain elevated from strong demand, supply shortages and high energy prices, and is expected to gradually decline as central banks gradually increase interest rates; there will be no significant changes in tax laws or free trade arrangements or treaties applicable to the Company; the Company’s current margins will remain around current levels; the supply base will remain able to support product development and planned production rates on commercially acceptable terms in a timely manner; no new trade barriers will be imposed amongst jurisdictions in which the Company carries operations; the absence of unusually adverse weather conditions, especially in peak seasons. BRP cautions that its assumptions may not materialize and that current economic conditions may render such assumptions, although believed reasonable at the time they were made, subject to greater uncertainty.
NON-IFRS MEASURES
This press release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS. The Company uses non-IFRS measures including the following:
| Non-IFRS measures | Definition | Reason for use | |
| Normalized EBITDA | Net income before financing costs, financing income, income tax expense (recovery), depreciation expense and normalized elements | Assist management and investors in determining the financial performance of the Company’s operating activities on a consistent basis by excluding certain non-cash elements such as depreciation expense, impairment charge, foreign exchange gain or loss on the Company’s long- term debt denominated in U.S. dollars and foreign exchange gain or loss on certain of the Company’s lease liabilities.Other elements, such as restructuring and wind- down costs, gain or loss on litigation and acquisition-related costs, may also be excluded from net income in the determination of Normalized EBITDA as they are considered not being reflective of the operational performance of the Company | |
| Normalized net income | Net income adjusted of normalized elements and related tax effect | In addition to the financial performance of operating activities, these measures consider the impact of investing activities, financing activities and income taxes on the Company’s financial results | |
| Normalized income tax expense | Income tax expense adjusted to reflect the tax effect on normalized elements and to normalize specific tax elements | ||
| Normalized effective tax rate | Based on Normalized net income before Normalized income tax expense | ||
| Normalized earnings per share – basic & diluted | Calculated respectively by dividing the Normalized net income by the weighted average number of shares – basic and the weighted average number of shares – diluted | ||
The Company believes non-IFRS measures are important supplemental measures of financial performance because they eliminate items that have less bearing on the Company’s financial performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS measures. The Company also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. Management also uses the aforementioned non-IFRS measures in order to facilitate financial performance comparisons from period to period, prepare annual operating budgets, assess the Company’s ability to meet its future debt service, capital expenditure and working capital requirements and also as a component in the determination of the short-term incentive compensation for the Company’s employees. Because other companies may calculate these non-IFRS measures differently than the Company does, these metrics are not comparable to similarly titled measures reported by other companies.
The Company refers the reader to the table below for the reconciliations of the non-IFRS measures presented by the Company to the most directly comparable IFRS measure.
Reconciliation Tables
The following tables present the reconciliation of Non-IFRS measures compared to respective IFRS measures:
| Three-month periods ended | |||
| (in millions of Canadian dollars) | April 30,2022 | April 30,2021 | |
| Net income | $121.0 | $244.4 | |
| Normalized elements | |||
| Foreign exchange (gain) loss on long-term debt and lease liabilities | 16.1 | (78.6) | |
| (Gain) loss on NCIB | (1.8) | 21.3 | |
| Depreciation of intangible assets related to business combinations | 1.1 | 1.1 | |
| Transaction costs on long-term debt [2] | — | 44.3 | |
| Transaction costs and other related expenses [3] | — | 0.2 | |
| Evinrude outboard engine wind-down [4] | — | 0.7 | |
| Restructuring and related costs [5] | — | (0.1) | |
| Other | 1.3 | — | |
| Income tax adjustment [1] [6] | (0.6) | (11.3) | |
| Normalized net income [1] | 137.1 | 222.0 | |
| Normalized income tax expense [1] | 49.3 | 77.0 | |
| Financing costs adjusted | 16.5 | 17.1 | |
| Financing income adjusted | (1.0) | (1.2) | |
| Depreciation expense adjusted | 70.2 | 64.1 | |
| Normalized EBITDA [1] | $272.1 | $379.0 |
| [1] | See “Non-IFRS Measures” section. |
| [2] | During Fiscal 2022, the Company incurred a prepayment premium of $15.1 million and derecognized unamortized transaction costs of $29.2 million related to the full repayment of its outstanding U.S. $597.0 million Term Loan B-2. |
| [3] | Costs related to business combinations. |
| [4] | The Company incurred costs related to the wind-down of the outboard engine production such as, but not limited to, idle costs and other exit costs. |
| [5] | The Company is involved, from time to time, in restructuring and reorganization activities in order to gain flexibility and improve efficiency. The costs related to these activities are mainly composed of severance costs and retention salaries. |
| [6] | Income tax adjustment is related to income tax on Normalized elements subject to tax and for which income tax has been recognized. |
| (in millions of Canadian dollars, except per share data) | Three-month periods ended | ||
| April 30,2022 | April 30,2021 | ||
| Depreciation expense reconciliation | |||
| Depreciation expense | $71.3 | $65.8 | |
| Depreciation of intangible assets related to business combinations | 1.1 | 1.1 | |
| Evinrude outboard engine wind-down [2] | — | 0.6 | |
| Depreciation expense adjusted | $70.2 | $64.1 | |
| Income tax expense reconciliation | |||
| Income tax expense | $48.7 | $65.7 | |
| Income tax adjustment [3] | (0.6) | (11.3) | |
| Normalized income tax expense [1] | $49.3 | $77.0 | |
| Financing costs reconciliation | |||
| Financing costs | $16.5 | $82.7 | |
| Transaction costs on long-term debt [4] | — | 44.3 | |
| Loss on NCIB | — | 21.3 | |
| Financing costs adjusted | $16.5 | $17.1 | |
| Financing income reconciliation | |||
| Financing income | $(2.8) | $(1.2) | |
| Gain on NCIB | (1.8) | — | |
| Financing income adjusted | $(1.0) | $(1.2) | |
| Normalized EPS – diluted [1] calculation | |||
| Normalized net income [1] | $137.1 | $222.0 | |
| Non-controlling interests | 0.1 | 0.2 | |
| Weighted average number of shares – Diluted | 82,701,016 | 87,606,457 | |
| Normalized EPS – diluted [1] | $1.66 | $2.53 |
| [1] | See “Non-IFRS Measures” section. |
| [2] | During the three-month periods ended April 30, 2022 and 2021, the Company incurred costs related to the wind-down of the outboard engine production such as, but not limited to, idle costs and other exit costs. |
| [3] | Income tax adjustment is related to income tax on Normalized elements subject to tax and for which income tax has been recognized. |
| [4] | During Fiscal 2022, the Company incurred a prepayment premium of $15.1 million and derecognized unamortized transaction costs of $29.2 million related to the full repayment of its outstanding U.S. $597.0 million Term Loan B-2. |
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