Here are a few stories that came across my desk that I think are relevant and interesting to the powersports business community.
1 – Erik Chase named New Territory Sales Manager for NPA Dallas facility
National Powersports Auctions, NPA, has announced the hiring of Territory Sales Manager for New Mexico, Southern Texas and Louisiana, Erik Chase. Donny Erickson, the previous sales manager for that territory, is not leaving NPA but transferring to another region and is happy to support Erik as the new man for the job.
Chase has been riding motorcycles since he was eight years old. He started his powersports career at Central Texas Harley-Davidson in 2015. Over the last five years, Chase was a Pre-Owned Inventory Manager and Salesperson at a dealership in Austin, Texas, where he was responsible for consigning and buying units through NPA. Chase joins NPA with firsthand experience of the benefits NPA delivers.
Chase enjoyed the sales side of the industry and was ready to move up to NPA. “Having worked with NPA for four years, I knew it would be a great fit for my next career step. I’m looking forward to traveling, meeting new people and forging great relationships with different dealerships around the states,” Chase said.
Chase is a welcome addition to the NPA sales team and understands how beneficial the pre-owned market is to a business. “We are lucky to have Erik as part of our national sales team and look forward to the continued growth of the territory,” Mike Murray, Vice President of Sales said.
Dealers can reach Erik at [email protected] or 737.226.8031.
2 – HardDrive announces new V-Twin Sales Director Marty Norris
Marty Norris has been announced as the Director of V-Twin Sales, bringing 25 years of diverse experience within the V-Twin market to the HardDrive brand.
“In the past I have held positions as a Harley mechanic, shop foreman, service manager, shop owner, distributor rep and the Sales and Marketing manager at NAMZ Custom Cycle Products,” Norris said. “I look forward to putting my experience in the V-Twin field to work to continue to build the HardDrive product offering and team.”
“We are excited to have Marty back as our Director of V-Twin Sales here at HardDrive,” Kyle Gills, VP of Field Sales said. “Marty was a valued HardDrive team member in the past and we welcome him back with the additional knowledge and insight he has into the V-Twin Market. HardDrive is a large portion of our growth plan and Marty is the next step in that direction.”
Marty will lead HardDrive regional sales managers and representative force as the company continues to offer service, product and delivery through Western Power Sports and their HardDrive division.
3 – Harley-Davidson Appoints Rafeh Masood to Board of Directors – From Harley-Davidson, Inc.
Harley-Davidson, Inc. (“Harley-Davidson”) (NYSE: HOG) announced today that its board of directors has appointed Rafeh Masood as a member of the board, effective immediately. Masood currently serves as Executive Vice President (EVP) and Chief Customer Officer at Bed Bath & Beyond Inc. (NASDAQ: BBBY).
“Rafeh joins with exceptional knowledge of digital and omnichannel strategy and operations, which are an important and integral part of our Hardwire strategy,” said Jochen Zeitz, Chairman, CEO and President, Harley-Davidson. “His expertise in all these areas will be most helpful as we focus on our consumer and their relationship with our brand and product, ensuring riders and non-riders alike can engage with Harley-Davidson as they choose.”
Masood joined Bed Bath & Beyond Inc. in May 2020 as EVP and Chief Digital Officer and was appointed to his current role in November 2021, where he oversees marketing, digital and customer experience. Masood previously served as Senior Vice President and Chief Digital Officer at BJ’s Wholesale Club Holdings, Inc. In this role, Masood was responsible for the company’s online and omnichannel business, including strategy, customer experience, and product development. Previously, Masood held leadership roles in customer innovation, technology, operations and procurement at DICK’s Sporting Goods, Sears and BAWAG Group.
“I am honored to join the Board of Directors of Harley-Davidson and help this legendary brand strengthen its relationships with consumers,” said Rafeh Masood. “Jochen and his team continue to bring exceptional vision and innovation to everything they do, and I look forward to working with my fellow Board members to further enhance Harley-Davidson’s reputation as the world’s most desirable motorcycle brand.”
Masood holds a B.S. in Information Systems and an MBA from DePaul University.
About Harley-Davidson
Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley- Davidson Financial Services. Our vision: Building our legend and leading our industry through innovation, evolution and emotion. Our mission: More than building machines, we stand for the timeless pursuit of adventure. Freedom for the soul. Since 1903, Harley-Davidson has defined motorcycle culture with an expanding range of leading-edge, distinctive and customizable motorcycles in addition to riding experiences and exceptional motorcycle accessories, riding gear and apparel. Harley-Davidson Financial Services provides financing, insurance and other programs to help get Harley-Davidson riders on the road. Learn more at www.harley-davidson.com.
4 – Polaris Off-Road 2023 Lineup Highlighted by Rider-Inspired Updates, Dynamic New Trims & Industry-First Connected Vehicle Features – From Polaris
New RIDE COMMAND+ Enhances the Ownership Experience with Connected Vehicle Features,
Provides Convenient Access to Vehicle’s Health and Location via Smartphone or Mobile Device
New GENERAL XP 1000 Sport Trim Opens the Door for More Riders to Get In & Experience Adventure;
A Host of Rider-Inspired Updates Allow Riders to Feel the Thrill & Get More Done
MINNEAPOLIS, MN (August 2, 2022) – Polaris Off-Road, the world leader in powersports and innovation, today announced its 2023 lineup, comprising a dynamic mix of rider-inspired vehicle updates, fresh new looks, and the expansion of RIDE COMMAND+ — a mobile-app that builds off its RIDE COMMAND technology to offer industry-first connected vehicle services.
“Over the last year, we’ve accelerated our pursuit to deliver the vehicles and performance our customers ask for. Whether it be the next-level performance capabilities of the RZR Turbo R and RZR Pro R, or the technologically advanced, all-electric RANGER XP Kinetic – we continuously raise the bar and set industry standards,” said Steve Menneto, President of Polaris Off-Road. “As the leader in off-road, we continue to innovate and evolve our lineup to serve a broad array of riders. The 2023 model year lineup is the latest example of our team’s ongoing commitment to answer the call from our riders.”
For thrill-seekers, the 2023 RZR lineup offers an updated color mix and fresh trim offerings, including a meaner, blacked-out take on the dune-dominating RZR Turbo R. For customers hungry for adventure, there’s the all-new GENERAL XP 1000 Sport—delivering strong, powerful trail performance at a great price. Already the ultimate machine for those wanting to get more done on the job, the RANGER XP 1000 Northstar Trail Boss Edition expands its capabilities with a host of work-enhancing new features. And for the ATV community, Sportsman models offer exciting new color options, along with new CV guards on specific models for added durability.
Continuing its ongoing efforts to enhance the ownership experience, Polaris is significantly expanding its RIDE COMMAND service with the all-new RIDE COMMAND+. Building on RIDE COMMAND’s existing suite of industry-leading features, RIDE COMMAND+ helps riders stay connected to their vehicle through a robust, mobile-enabled service that provides a whole new level of vehicle information, security, and control. RIDE COMMAND+ is accessed through the Polaris app, RIDE COMMAND website, or the in-vehicle display system.
“Pushing forward with industry-first technologies has been a cornerstone of our success,” Menneto continued. “With RIDE COMMAND+, we’re unlocking a new wave of innovation for the off-road market that enables owners to manage and maximize their vehicle and riding experience through connected vehicle technology.”
From the latest technology to updates and enhancements that will appeal to a broad range of off-road riders, the Polaris Off-Road 2023 model year lineup includes:
RIDE COMMAND+
RIDE COMMAND+ features vehicle-to-cellular connectivity that allows riders to conveniently check on the current vehicle’s status, while its Vehicle Health feature will run issue diagnostic reports and monitor fuel/charge levels to confirm the vehicle’s readiness. The RIDE COMMAND+ Vehicle Locator will be an extremely beneficial feature for hunters, or anyone enjoying the outdoors, when having to leave their vehicle parked. The Vehicle Locator feature delivers a pinpoint location to the machine. RIDE COMMAND+ delivers enhanced mobile technology for riders to connect, drive and adventure.
Adding to an already-robust set of offerings, Polaris will continue to expand the RIDE COMMAND+ service with even more industry-leading features using Over the Air (OTA) updates. Coming later in 2022, RIDE COMMAND+ will offer its riders added security with Location and Bump Alerts. Bump Alert, a 24/7 monitoring feature, will send a notification any time the vehicle has been bumped or moved. If moved, the Vehicle Locator feature will provide its latest coordinates. In addition, Polaris will introduce Ride Tracking+, where riders can automatically track their rides using the vehicle’s GPS location without having to use their mobile phone’s data. After the ride, riders will be able to generate a full report from the day’s ride, including time logged, miles traveled, waypoints and elevation changes. The report is a fun and helpful tool to not only relive the ride, but to plan future trips.
RIDE COMMAND+ will launch standard on all 2023 RANGER XP Kinetic models and all 2023 RANGER XP 1000 Northstar Trail Boss Edition models. The service is available as an accessory add-on for all trims in the following 2023 models: RANGER 1000, RANGER XP 1000, RANGER 570, Sportsman 570, Sportsman 450, Sportsman 850 and Sportsman XP 1000. Polaris plans to further roll out vehicle compatibility for RIDE COMMAND+.
Riders can access the new service via the Polaris mobile app, web, or the in-vehicle, seven-inch touchscreen display system. Riders will receive a 36-month trial of RIDE COMMAND+ when purchasing the stock models standard with the service. Riders adding RIDE COMMAND+ via accessory will receive a 12-month trial. At the conclusion of each trial period, riders can sign up and continue the service for $99/year.
To activate RIDE COMMAND+, riders must download and login to the Polaris app and add the connected vehicle to their digital garage.
RANGER
RANGER continues to set the bar high with several rider-inspired upgrades across its 2023 lineup.
The 2023 RANGER XP 1000 NorthStar Trail Boss comes packed with new upgrades specifically designed to meet the demands of hardworking riders. The NorthStar Trail Boss gets a new LED rear work light to illuminate the bed of the vehicle and make it easier to work in low-light conditions. A new 12V cargo box power port provides mobile power for seamless, convenient operation of sprayers. NorthStar Trail Boss also receives a new overhead switch panel so customers can add additional lighting and other accessory switches easier than ever before. Last, this model will come factory-installed with the new RIDE COMMAND+ technology. All other RANGER XP 1000 and 1000 customers can also purchase the new LED rear work light, 12V cargo box power, overhead switch panel as optional accessories.
The 2023 RANGER lineup receives additional upgrades so customers can work and play in total confidence. To improve performance in low-light conditions, RANGER installed LED headlights to all Premium trims, now including the RANGER SP 570 Premium, RANGER 1000 Premium, and RANGER XP 1000 Premium. Additionally, the RANGER SP 570 Premium, RANGER XP 1000 Premium, and RANGER XP 1000 NorthStar will come stock with a USB charging port in the dash so customers can stay connected and charge small electronic devices while on the go.
2023 RANGER Model Lineup:
- RANGER XP 1000 NorthStar Trail Boss: Starting at $32,399 ($39,099 CAN)
- RANGER XP 1000 NorthStar: Starting at $27,899 ($33,499 CAN)
- RANGER 1000 Premium: Starting at $17,899 ($21,599 CAN)
- RANGER 1000 Premium CREW: Starting at $19,699 ($23,699 CAN)
- RANGER XP 1000: Starting at $20,299 ($24,499 CAN)
- RANGER XP 1000 CREW: Starting at $22,099 ($26,199 CAN)
- RANGER SP 570: Starting at $11,699 ($14,799 CAN)
- RANGER SP 570 CREW: Starting at $13,499 ($16,999 CAN)
The 2023 RANGER lineup will begin shipping to dealers this fall. To learn more about the 2023 RANGER family, please visit https://ranger.polaris.com/ or join the conversation and follow on Facebook®, Instagram®, YouTube® and Twitter®.
Accessories
For RANGER accessory news, Polaris is launching an all-new Prospector Pro 2.0 track system across all off-road brands. These new tracks are built with flexible sides and a slight curve toward the inside to allow stable handling, a more comfortable ride, precise steering for long-distance riding and long working hours.
Polaris partner Kolpin is also expanding its line of storage solutions to meet more riders’ needs in advance of the upcoming fall and hunt seasons.
RZR
The Polaris RZR lineup continues to push the limits and accelerate beyond the everyday with industry-leading technology, performance and design.
The high-performance, next-level strong RZR Turbo R will feature new black fenders and rockers, plus two new colorways. Whether you’re looking to make a statement on the trail or fly under the radar with a dark and menacing look, the RZR Turbo R can suit either desire as it’s now available in Orange Madness and Matte Onyx Black. The multi-terrain RZR Pro XP also features a rugged design to take on tough terrain, while still providing all-day comfort. In 2023, the RZR Pro XP Premium trim will now feature a PMX head unit by Rockford Fosgate to take your audio experience to the next level.
Full 2023 RZR Model Lineup:
- Polaris RZR Pro R: Starting at $37,499 ($46,399 CAN), available in 2-seat and 4-seat
- Polaris RZR Turbo R: Starting at $27,799 ($34,499 CAN), available in 2-seat and 4-seat
- Polaris RZR Pro XP: Starting at $24,599 ($29,999 CAN), available in 2-seat and 4-seat
- Polaris RZR XP 1000: Starting at $21,899 ($26,999 CAN), available in 2-seat and 4-seat
- Polaris RZR Trail S: Starting at $17,899 ($21,399 CAN)
- Polaris RZR Trail: Starting at $15,499 ($18,499 CAN)
The 2023 RZR Trail, RZR Trail S and RZR XP 1000 will begin shipping to dealers this fall, while the 2023 RZR Pro XP, RZR Turbo R and RZR Pro R will begin shipping this winter. Both the 2023 RZR Pro R and Turbo R models will be available for demos at Trail Hero and Camp RZR later this year. To learn more about the 2023 RZR family, please visit https://rzr.polaris.com/ or join the conversation and follow on Facebook®, Instagram®, YouTube® and Twitter®.
Accessories
Along with the 2023 RZR updates, Polaris is launching a variety of new accessories, including a refresh of the full Pro Armor lighting portfolio. This update brings stronger output, along with an improved design, to all single-row/dual-row light bars and cube spot lights, which have fitment across the four off-road brands. Additionally, some of the products have a new amber lens option, which helps light cut through dust and snow for greater visibility.
Two new Pro Armor wheels are launching for RZR, providing additional customization offerings for riders. These join new size options coming to a handful of existing tire styles.
Lastly, Polaris partner Pro Armor is expanding the lineup of grills and steering wheels, with multiple colors and trim levels to deliver next-level customization to side-by-side riders.
GENERAL
Designed and purpose-built as the ultimate machine for riders and their gear, the Polaris GENERAL is the perfect machine for adventurers seeking new destinations.
New in 2023, Polaris expands its lineup to include the GENERAL XP 1000 Sport, which will be available in both two- and four-seat models. As the entry-level model, this new Sport trim makes GENERAL XP 1000 even more accessible to riders, while still offering the same class-leading capabilities, comfort and style.
2023 GENERAL Model Lineup:
- GENERAL XP 1000 Ultimate: Starting at $29,299 ($35,999 CAN), available in 2-seat and 4-seat
- GENERAL XP 1000 Premium: Starting at $26,999 ($33,299 CAN), available in 2-seat and 4-seat
- GENERAL XP 1000 Sport: Starting at $24,499 ($29,599 CAN), available in 2-seat and 4-seat
- GENERAL 1000 Sport: Starting at $18,199 ($22,599 CAN), available in White Lightning with new eye catching graphics and a new hood, in 2-seat
The 2023 GENERAL lineup will begin shipping to dealers this fall. To learn more about the 2023 GENERAL family, please visit https://general.polaris.com/ or join the conversation and follow on Facebook®, Instagram®, YouTube® and Twitter®.
Sportsman
Polaris Sportsman, the long-standing No. 1 selling automatic 4×4 ATV, gets exciting new colors on the 450, 570 and 850 lineup for a fresh look and feel. Additionally, 2023 Sportsman 450 and 570 models include redesigned rear rack extenders – making the vehicle more versatile. The rack extender will help riders pack more cargo, while its convenient cargo tie-down anchor will secure items and keep them from sliding off while riding. Building on Sportsman’s legendary toughness, new CV guards were added on the Sportsman 570 EPS and Premium models for added durability and protection in rough terrain.
2023 Sportsman Model Lineup:
- Sportsman 450: Starting at $6,999 ($8,499 CAN)
- Sportsman 570: Starting at $7,999 ($9,299 CAN)
- Sportsman 850: Starting at $10,699 ($12,799 CAN)
- Sportsman 1000: Starting at $15,499 ($18,499 CAN)
The 2023 Sportsman lineup will begin shipping to dealers this fall. To learn more about the 2023 Sportsman family, please visit https://atv.polaris.com/ or join the conversation and follow on Facebook®, Instagram®, YouTube® and Twitter®.
Youth
With continued commitment to grow the off-road community, the Polaris ORV Youth lineup sets the standard for the next generation of riders. For 2023, Polaris expands its Outlaw 70 EFI lineup with an all-new Limited Edition (LE) trim option in Lime Squeeze, providing stand-out style while still offering class-leading capabilities and comforts in this kid-friendly ATV. The 2023 RANGER 150 EFI utility side-by-side comes equipped with new seat belt and shift boot covers, while also showcasing a new Avalanche Grey color. Parents can still expect the same top-of-the-line safety features in all Youth side-by-sides including helmet-aware technology, digital speed limiting and geofencing, while Youth ATV’s come with an adjustable speed limiter and safety tether.
2023 Youth Model Lineup:
- Outlaw 70 EFI Limited Edition: Starting at $2,399 ($2,899 CAN)
- Outlaw 70 EFI: Starting at $2,399 ($2,899 CAN)
- Outlaw 110 EFI: Starting at $3,599 ($4,299 CAN)
- Sportsman 110: Starting at $3,599 ($4,299 CAN)
- Phoenix 200: Starting at $4,499 ($5,199 CAN)
- RANGER 150 EFI: Starting at $6,299 ($7,299 CAN)
- RZR 200 EFI: Starting at $6,799 ($7,799 CAN)
The 2023 Polaris Youth lineup will begin shipping to dealers this winter.
To learn more about the Polaris ORV 2023 lineup and to stay up to date on testing and demo opportunities, please visit https://offroad.polaris.com/ or join the conversation and follow on Facebook®, Instagram®, YouTube® and Twitter®.
About Polaris
As the global leader in powersports, Polaris Inc. (NYSE: PII) pioneers product breakthroughs and enriching experiences and services that have invited people to discover the joy of being outdoors since our founding in 1954. Polaris’ high-quality product line-up includes the Polaris RANGER®, RZR® and Polaris GENERAL™ side-by-side off-road vehicles; Sportsman® all-terrain off-road vehicles; military and commercial off-road vehicles; snowmobiles; Indian Motorcycle® mid-size and heavyweight motorcycles; Slingshot® moto-roadsters; Aixam quadricycles; Goupil electric vehicles; and pontoon and deck boats, including industry-leading Bennington pontoons. Polaris enhances the riding experience with a robust portfolio of parts, garments, and accessories. Proudly headquartered in Minnesota, Polaris serves more than 100 countries across the globe. www.polaris.com
5 – Roland Sands Design launches V-twin parts brand – From Powersports Business
Roland Sands Design has announced the release of the all-new SECTOR Performance Parts Product Line.
Designed, engineered, and manufactured in Long Beach, California, the SECTOR collection from Roland Sands Design is a highly detailed V-twin performance product line. A complete riser offering has been developed, with adjustability, gauge mounts and high-performance finishes tested for durability and long-term quality.
The products have been designed with the racetrack in mind, but also built for the street with the fit, finish and performance expected from RSD. Each product in the all-new collection has a unique design language that pushes the aesthetics of the machine. The all-new SECTOR product line will be launched in various phases starting with the Modular Riser System & Gauge Relocation Systems for HD touring Softail and Sportster fitments. Information about additional parts will drop soon.
“We are beyond stoked to get the SECTOR product to market, it’s been a long time coming,” Roland Sands, president and CEO of RSD said. “We are proud to offer an American made product for American made motorcycles. The SECTOR product line has been designed utilizing our experience on the racetrack and adapted for the street. RSD has a legacy of performance bike builds, racing and parts for V-Twin applications. This is a segment we helped pioneer as a brand and with SECTOR we’re putting the RSD brand at the top of the category.”
6 – ROHVA PROPOSES SAFETY ENHANCEMENTS TO SIDE-BY-SIDES – From Motorcycle and Powersports News
The member companies of the Recreational Off-Highway Vehicle Association (ROHVA) put consumer safety first. Each company takes pride in producing high-quality, durable products. Each constantly seeks to innovate and improve vehicle safety. As part of these commitments, ROHVA works on the industry’s behalf to maintain voluntary industry-wide safety standards first published in 2011. Most recently, ROHVA has worked closely with the Consumer Product Safety Commission (CPSC) to address rare incidents involving fire and debris penetration hazards. ROHVA is now preparing a revised safety standard that includes new testing methods intended to reduce such risks. ROHVA has shared its detailed plans with CPSC. ROHVA is confident that the proposed revisions will adequately address the safety concerns raised by CPSC. Once the revised voluntary standard takes effect, it should eliminate any basis for CPSC to pursue formal rulemaking on these subjects. ROHVA is opposed to the proposed CPSC rulemaking for this and other reasons and will submit written comments in opposition to CPSC’s rulemaking notice.
ROHVA welcomes all interested parties and members of the public to submit comments concerning their use of and experience with ROVs and to express support for ROHVA’s voluntary standards. Detailed instructions for doing so are available in CPSC’s June 21 rulemaking notice at: https://www.federalregister.gov/public-inspection/2022-15355/safety-standard-for-debris-penetration-hazards.
CPSC expects to release a separate notice in the near future regarding fire hazards.
7 – Ducati deliveries, revenue, operating profit announced for the first half of 2022 – From Powersports Business
Despite ongoing supply and logistics challenges, Ducati has concluded exceptional results in the semester from January to June 2022. The company’s revenue grew by 5.4%, raising from 514 to 542 million euros. This is the highest figure ever recorded by the motorcycle manufacturer in the first six months of the year.
Operating profit also improved and marks a +14.8% increase, growing from 59 to 68 million euros compared with the same period in 2021.
The Bologna-based motorbike manufacturer delivered a total of 33,265 motorcycles to enthusiast customers, containing a loss in deliveries of – 3.6% compared to the same period in 2021 (34.515). This result was achieved due to great flexibility, constant dialogue with partners and the trade union, despite the difficulties related to the supply crisis.
“2021 was a record year for Ducati with the best result ever in terms of deliveries, revenues and operating profit,” Claudio Domenicali, CEI of Ducati said. “2022 is proving to be a more challenging year: despite strong demand from enthusiasts, as evidenced by the order portfolio which at the end of the first half is up +86% over the same period of 2021, the strong discontinuity in the world of logistics and supply remains. However, we managed to obtain satisfactory results considering the context in which we are operating, especially in terms of revenue, which is the best ever recorded in the first six months of the year. I would like to thank once again all the enthusiasts who continue to choose us, and I personally apologize to all those who had to or will have to wait longer than necessary to receive their bike.”
“The financial performance of Ducati in the first half of 2022 again shows a solid improvement of the company compared to the previous year,” Henning Jens, CFO of Ducati said. “Considering the unpredictable challenges in the supply chain, including significant raw material cost increases and parts shortages, this result proves the high resilience of our financial set up and the flexibility of our operations. With 542 million Euros revenue, we achieved a new record, driven by a very high demand from our customers. Also, based on fixed cost discipline and improved margins, we could even increase Operating Profit from 59 to 68 million euros by 14.8% versus the same period of 2021. Backed by a very solid liquidity position, we will continue our investments in a qualitative growth of Ducati with new attractive premium products.”
Italy is confirmed as the first market for Ducati with 6,028 motorcycles delivered, followed by North America with 5,239 units, Germany with 3,745 motorcycles and France with 2,647. The numbers are significant in China, which reaches +12% with 2,411 motorcycles delivered.
Since its launch in 2020, the Multistrada V4 has had growing success among enthusiasts. Overtime it has been able to live up to the expectations created, establishing itself as an ideal bike for any type of trip and taking a place among the most popular models in the Ducati range. Also, for the first half of 2022, the Multistrada V4 is the most delivered bike with 6,139 units. Next is the Monster, with 4,776 motorcycles delivered and the Scrambler Ducati 800 family with 3,999 motorcycles.
Thanks to its solid financial position, Ducati continues its ambitious development path that will lead the company to improve and grow further, also by means of entry into new market segments, always respecting its values of style, sophistication and performance. All investments for technological development and product and process innovation are self-financed.
The continuous improvement and expansion of the global sales network, with the aim of serving the community of Ducatisti around the world, are also an important part of the company’s growth path. Through the digitization of processes and omnichannel within its dealers, Ducati wants to guarantee its enthusiasts an unforgettable experience that reflects the company’s values. To date, the Ducati network has 797 dealerships in over 90 countries around the world, 21 of which have been opened in the first six months of 2022.
8 – Tyler Schwartzott wins Yamaha U.S. Technician Grand Prix – From Powersports Business
Tyler Schwartzott won first place in the 2022 Yamaha U.S. Technician Grand Prix, held in Atlanta in June. Schwartzott will continue to compete at the World Technician Grand Prix competition in Japan in October.
READ THE ENTIRE POST HERE – https://powersportsbusiness.com/top-stories/2022/08/03/tyler-schwartzott-wins-yamaha-u-s-technician-grand-prix/
9 – THE FIRST BRP EXPERIENCE CENTER OPENS AT FAIRMONT LE CHÂTEAU MONTEBELLO – From BRP
Valcourt, Quebec, Canada, July 27, 2022 – BRP (TSX: DOO) (NASDAQ: DOOO) is proud to announce the launch of the very firstBRP Experience Center in its home province of Quebec. The opening of the facility reflects BRP’s commitment to making powersports accessible to all. In partnership with Fairmont Le Château Montebello, the Center will provide adventure enthusiasts with the opportunity to explore uncharted waters, experience the exhilaration of off-roading and have fun in the snow. These unique experiences will leave everyone speechless. The Center is accessible not only to guests of Fairmont Le Château Montebello, but to all who wish to discover or reconnect with the natural beauty of the region.
“The launch of this first BRP Experience Center is part of a global strategy introduced in 2019 that aims to promote access to our products and allow more people to enjoy unique recreational experiences,” said Simon Cazelais, Director of Global Marketing Strategy, and Innovation at BRP. “The Montebello Center is our testing ground. It will allow us to interact directly with adventure enthusiasts to continuously refine our products and services. Ultimately, we hope to roll out this groundbreaking concept around the world by adding more breathtaking destinations!”
A year-round tourist attraction!
The experiences offered will be tailored to the seasons. Several watercraft and motorized vehicles await adventure enthusiasts at Fairmont Le Château Montebello, including Sea-Doo watercraft and the Sea-Doo Switch pontoon, as well as Can-Am off-road ATVs or side-by-side vehicles. The Can-Am on-road Ryker Sport and Can-Am Spyder F3 will then be added to the fleet, followed by Ski-Doo snowmobiles in the winter. Excursions for groups or individuals, for a few hours or a full day, allow you to discover the vast playground available at Fairmont Le Château Montebello. All excursions will be operated by B46 Adventures. In addition to their many years of experience in the wilderness adventure field, all B46 Adventures guides are AEQ certified and always put safety first.
Fairmont Le Château Montebello is a perfect partner for this new adventure thanks to its prime location that allows access to the majestic Ottawa River and amazon trails year-around. For over 90 years, Fairmont Le Château Montebello has been delivering an unrivaled resort experience to visitors. They will now have the added opportunity to discover the region through the BRP Experience Center. Imagine exploring the picturesque trails of the region in a Can-Am Commander XT in the morning and enjoying a beautiful Ottawa River sunset aboard the famous Sea-Doo Switch.
”We are proud to partner with BRP, a world-leader in powersports, thanks to the launch of the first BRP Experience Center at Fairmont Le Château Montebello. This new offering is in line with one of our core objectives to diversify the activities offered to our clients, and to showcase the Outaouais tourism industry,” said Steve Chang, General Manager at Fairmont Le Château Montebello.
BRP has also been offering adventure enthusiasts experiences through a worldwide network of BRP-certified outfitters for more than two years thanks to itsUncharted Society adventures program. With over 100 outfitters and 147 adventures available in the U.S., Canada and Australia, beginners and experts alike can experience powersports and have a truly life-changing adventure. Similar to the BRP Experience Center, this program is designed to provide access to powersports for all adventure enthusiasts, to take them out of their comfort zone and to venture into uncharted territory.
To learn more about the brand new and first BRP Experience Center, visitwww.experiencesbrp.com..
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.
About Fairmont
Fairmont Hotels & Resorts is where the intimate equally coexists with the infinite – an unrivaled portfolio of more than 80 extraordinary hotels where grand moments of life, heartfelt pleasures and personal milestones are celebrated and remembered long after any visit. Since 1907, Fairmont has created magnificent, meaningful and unforgettable hotels, rich with character and deeply connected to the history, culture and community of its destinations – places such as The Plaza in New York City, The Savoy in London, Fairmont San Francisco, Fairmont Banff Springs in Canada, Fairmont Peace Hotel in Shanghai, and Fairmont The Palm in Dubai. Famous for its engaging service, awe-inspiring public spaces, locally inspired cuisine, and iconic bars and lounges, Fairmont also takes great pride in its pioneering approach to hospitality and leadership in sustainability and responsible tourism practices. Fairmont is part of Accor, a world leading hospitality group consisting of more than 5,200 properties and 10,000 food and beverage venues throughout 110 countries.
fairmont.com |all.accor.com |group.accor.com
10 – REV’IT! ANNOUNCES PURCHASE OF BESPOKE ITALIAN BRAND VIRCOS – From Motorcycle and Powersports News
Vircos has been manufacturing custom-tailored leather road racing suits of the highest quality in Italy for more than 30 years. REV’IT! Sport International began its collaboration with Vircos in 2007, a relationship founded on common values with a shared passion for motorcycle racing.
READ THE ENTIRE POST HERE – https://www.motorcyclepowersportsnews.com/revit-announces-purchase-bespoke-italian-brand-vircos/
11 – Fox Factory Holding Corp. Announces Second 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 second quarter ended July 1, 2022.
Second Quarter Fiscal 2022 Highlights
- Sales increased 23.9% to $406.7 million, compared to $328.2 million in the same period last fiscal year
- Gross profit increased 28.7% to $142.9 million, compared to $111.1 million in the same period last fiscal year. Gross margin percentage increased 120 basis points to 35.1%, compared to 33.9% in the same period last fiscal year; non-GAAP adjusted gross margin percentage increased 120 basis points to 35.3% compared to 34.1% in the same period last fiscal year
- Net income was $53.5 million, or 13.2% of sales and $1.26 of earnings per diluted share, compared to $44.3 million, or 13.5% of sales and $1.05 of earnings per diluted share in the same period last fiscal year
- Non-GAAP adjusted net income was $58.6 million, or $1.38 of non-GAAP adjusted earnings per diluted share, compared to $51.0 million, or $1.20 of non-GAAP adjusted earnings per diluted share in the same period last fiscal year
- Adjusted EBITDA was $88.1 million, or 21.7% of sales, compared to $69.7 million, or 21.2% of sales in the same period last fiscal year
“We are pleased to report another quarter of record revenue and profitability in an increasingly complex and challenging macro business environment. Not only did we surpass the $400.0 million quarterly revenue mark for the first time, but we also delivered record gross margin, EBITDA, and net income,” commented Mike Dennison, FOX’s Chief Executive Officer. “We are still seeing healthy demand across most of our diversified portfolio for the balance of the year. However, the ongoing macroeconomic and geopolitical volatility have caused us to slow both hiring and spending in an effort to stay in front of what will most likely be turbulent months ahead.”
Sales for the second quarter of fiscal 2022 were $406.7 million, an increase of 23.9% as compared to sales of $328.2 million in the second quarter of fiscal 2021. This increase reflects a 28.1% increase in Specialty Sports Group sales and a 20.9% increase in Powered Vehicles Group sales. The increase in Specialty Sports Group sales is driven by continued strong demand in the original equipment manufacturer (“OEM”) channel. The increase in Powered Vehicles Group sales is primarily due to strong performance in our upfitting product lines.
Gross margin was 35.1% for the second quarter of fiscal 2022, a 120 basis point increase from gross margin of 33.9% in the second quarter of fiscal 2021. Non-GAAP adjusted gross margin increased 120 basis points to 35.3% from the same prior fiscal year period, excluding the effects of strategic transformation costs. The increase in gross margin was primarily driven by favorable product mix and improved factory efficiencies. 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 $72.5 million for the second quarter of fiscal 2022, compared to $58.4 million in the second quarter of fiscal 2021. Operating expenses increased by $14.1 million primarily due to higher employee related costs, higher insurance and facility-related expenses, and higher commission costs. As a percentage of sales, operating expenses for the second quarter of fiscal 2022 remained unchanged at 17.8%, when compared to the second quarter of fiscal 2021. Non-GAAP operating expenses were $66.5 million, or 16.3% of sales in the second quarter of fiscal 2022, compared to $51.4 million, or 15.7% of sales, in the second 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 18.9% in the second quarter of fiscal 2022, compared to 13.3% in the second quarter of fiscal 2021. The increase in the Company’s effective tax rate was primarily due to the impact of recently finalized U.S. tax regulations which limit the amount of newly generated foreign taxes that are creditable against U.S. income taxes and resulted in an increase in the impact of foreign withholding taxes, net of foreign tax credits; as well as decreased benefits from the effects of stock-based compensation. These increases were partially offset by a lower tax rate on foreign derived intangible income.
Net income in the second quarter of fiscal 2022 was $53.5 million, compared to $44.3 million in the second quarter of the prior fiscal year. Earnings per diluted share for the second quarter of fiscal 2022 were $1.26, compared to earnings per diluted share of $1.05 for the second quarter of fiscal 2021.
Non-GAAP adjusted net income in the second quarter of fiscal 2022 was $58.6 million, or $1.38 of adjusted earnings per diluted share, compared to adjusted net income of $51.0 million, or $1.20 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 second quarter of fiscal 2022 was $88.1 million, compared to $69.7 million in the second quarter of fiscal 2021. Adjusted EBITDA margin in the second quarter of fiscal 2022 was 21.7%, compared to 21.2% in the second 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.
First Six Months Fiscal 2022 Results
Sales for the six months ended July 1, 2022 were $784.7 million, an increase of 28.8% compared to the first six months in fiscal 2021. Sales of Specialty Sports and Powered Vehicle products increased 35.2% and 24.1%, respectively, for the first six months of fiscal 2022 compared to the prior year fiscal period.
Gross margin was 33.5% in the first six months of fiscal 2022, a 80 basis point decrease, compared to gross margin of 34.3% in the first six months of fiscal 2021. On a non-GAAP basis, adjusted gross margin was 33.8% in the first six months of fiscal 2022, a 70 basis point decrease, compared to 34.5% in the first six months of fiscal 2021, excluding the effects of strategic transformation costs. The decrease in gross margin for the first six months of fiscal 2022 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.
Net income attributable to FOX stockholders in the first six months of fiscal 2022 was $101.5 million, compared to $82.3 million in the first six months of the prior fiscal year. Earnings per diluted share for the first six months of fiscal 2022 was $2.40, compared to $1.94 in the same period of fiscal 2021.
Non-GAAP adjusted net income in the first six months of fiscal 2022 was $114.4 million, or $2.70 of adjusted earnings per diluted share, compared to $95.5 million, or $2.25 of adjusted earnings per diluted share in the same period of the prior fiscal year. Reconciliations of net income attributable to FOX stockholders to non-GAAP adjusted net income and the calculation of non-GAAP adjusted earnings per share are provided at the end of this press release.
Adjusted EBITDA increased to $159.9 million in the first six months of fiscal 2022, compared to $130.1 million in the first six months of fiscal 2021. Adjusted EBITDA margin decreased to 20.4% in the first six months of fiscal 2022, compared to 21.3% in the first six months of fiscal 2021. Reconciliations of net income to adjusted EBITDA and the calculation of non-GAAP adjusted EBITDA margin are provided at the end of this press release.
Balance Sheet Highlights
As of July 1, 2022, the Company had cash and cash equivalents of $108.6 million compared to $179.7 million as of December 31, 2021. Inventory was $349.1 million as of July 1, 2022, compared to $279.8 million as of December 31, 2021. As of July 1, 2022, accounts receivable and accounts payable were $195.4 million and $161.6 million, respectively, compared to $142.0 million and $100.0 million, respectively, as of December 31, 2021. Prepaids and other current assets were $267.7 million as of July 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 due to several factors, including receipt of long lead time items that had been delayed, higher levels of safety stock to mitigate uncertainty, and natural growth to meet anticipated demand. The increases in accounts receivable and accounts payable reflect business growth as well as the timing of vendor payments. Total debt was $410.0 million as of July 1, 2022, compared to $378.5 million as of December 31, 2021, due to increases in working capital.
Fiscal 2022 Guidance
For the third 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 $1.15 to $1.35.
For the fiscal year 2022, the Company expects sales in the range of $1,535 million to $1,565 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 third 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 (800) 459-5346, and international listeners may dial (203) 518-9544; the conference ID is FOXFQ222 or 36937222. 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. Non-GAAP adjusted gross margin is defined as non-GAAP adjusted gross profit divided by total sales. 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 gross margin, 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 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 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 | ||||||
| July 1, | December 31 | ||||||
| 2022 | 2021 | ||||||
| (unaudited) | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 108,637 | $ | 179,686 | |||
| Accounts receivable (net of allowances of $322 and $410 at July 1, 2022 and December 31, 2021, respectively) | 195,449 | 142,040 | |||||
| Inventory | 349,050 | 279,837 | |||||
| Prepaids and other current assets | 267,723 | 123,107 | |||||
| Total current assets | 920,859 | 724,670 | |||||
| Property, plant and equipment, net | 194,601 | 192,003 | |||||
| Lease right-of-use assets | 42,606 | 38,752 | |||||
| Deferred tax assets | 44,176 | 34,998 | |||||
| Goodwill | 323,965 | 323,299 | |||||
| Intangibles, net | 186,074 | 197,021 | |||||
| Other assets | 5,942 | 4,986 | |||||
| Total assets | $ | 1,718,223 | $ | 1,515,729 | |||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 161,614 | $ | 99,984 | |||
| Accrued expenses | 110,846 | 112,378 | |||||
| Current portion of long-term debt | — | 17,500 | |||||
| Total current liabilities | 272,460 | 229,862 | |||||
| Line of credit | 410,000 | — | |||||
| Long-term debt, less current portion | — | 360,953 | |||||
| Other liabilities | 33,836 | 30,832 | |||||
| Total liabilities | 716,296 | 621,647 | |||||
| Stockholders’ equity | |||||||
| Preferred stock, $0.001 par value — 10,000 authorized and no shares issued or outstanding as of July 1, 2022 and December 31, 2021 | — | — | |||||
| Common stock, $0.001 par value — 90,000 authorized; 43,153 shares issued and 42,263 outstanding as of July 1, 2022; 43,010 shares issued and 42,120 outstanding as of December 31, 2021 | 42 | 42 | |||||
| Additional paid-in capital | 347,439 | 344,119 | |||||
| Treasury stock, at cost; 890 common shares as of July 1, 2022 and December 31, 2021 | (13,754 | ) | (13,754 | ) | |||
| Accumulated other comprehensive income | 7,853 | 4,876 | |||||
| Retained earnings | 660,347 | 558,799 | |||||
| Total stockholders’ equity | 1,001,927 | 894,082 | |||||
| Total liabilities and stockholders’ equity | $ | 1,718,223 | $ | 1,515,729 |
FOX FACTORY HOLDING CORP.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
| For the three months ended | For the six months ended | ||||||||||
| July 1, | July 2, | July 1, | July 2, | ||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||
| Sales | $ | 406,705 | $ | 328,164 | $ | 784,682 | $ | 609,300 | |||
| Cost of sales | 263,761 | 217,076 | 521,478 | 400,288 | |||||||
| Gross profit | 142,944 | 111,088 | 263,204 | 209,012 | |||||||
| Operating expenses: | |||||||||||
| Sales and marketing | 24,175 | 17,840 | 46,764 | 34,698 | |||||||
| Research and development | 14,214 | 11,216 | 26,856 | 21,092 | |||||||
| General and administrative | 28,444 | 24,226 | 54,011 | 44,595 | |||||||
| Amortization of purchased intangibles | 5,636 | 5,083 | 10,943 | 10,048 | |||||||
| Total operating expenses | 72,469 | 58,365 | 138,574 | 110,433 | |||||||
| Income from operations | 70,475 | 52,723 | 124,630 | 98,579 | |||||||
| Interest and other expense, net: | |||||||||||
| Interest expense | 1,697 | 1,598 | 3,674 | 4,502 | |||||||
| Other expense, net | 2,816 | 83 | 4,508 | 1,042 | |||||||
| Interest and other expense, net | 4,513 | 1,681 | 8,182 | 5,544 | |||||||
| Income before income taxes | 65,962 | 51,042 | 116,448 | 93,035 | |||||||
| Provision for income taxes | 12,464 | 6,767 | 14,900 | 10,774 | |||||||
| Net income | $ | 53,498 | $ | 44,275 | $ | 101,548 | $ | 82,261 | |||
| Earnings per share: | |||||||||||
| Basic | $ | 1.27 | $ | 1.05 | $ | 2.41 | $ | 1.96 | |||
| Diluted | $ | 1.26 | $ | 1.05 | $ | 2.40 | $ | 1.94 | |||
| Weighted-average shares used to compute earnings per share: | |||||||||||
| Basic | 42,218 | 42,028 | 42,181 | 41,940 | |||||||
| Diluted | 42,352 | 42,367 | 42,367 | 42,355 |
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 and six months ended July 1, 2022 and July 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 | For the six months ended | ||||||||||||||
| July 1, | July 2, | July 1, | July 2, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net income | $ | 53,498 | $ | 44,275 | $ | 101,548 | $ | 82,261 | |||||||
| Amortization of purchased intangibles | 5,636 | 5,083 | 10,943 | 10,048 | |||||||||||
| Patent litigation-related expenses | 132 | 158 | 201 | 468 | |||||||||||
| Other acquisition and integration-related expenses (1) | 210 | 1,737 | 1,298 | 3,152 | |||||||||||
| Strategic transformation costs (2) | 663 | 781 | 2,339 | 1,289 | |||||||||||
| Tax impacts of reconciling items above (3) | (1,498 | ) | (1,045 | ) | (1,891 | ) | (1,732 | ) | |||||||
| Non-GAAP adjusted net income | $ | 58,641 | $ | 50,989 | $ | 114,438 | $ | 95,486 | |||||||
| Non-GAAP adjusted EPS | |||||||||||||||
| Basic | $ | 1.39 | $ | 1.21 | $ | 2.71 | $ | 2.28 | |||||||
| Diluted | $ | 1.38 | $ | 1.20 | $ | 2.70 | $ | 2.25 | |||||||
| Weighted average shares used to compute non-GAAP adjusted EPS | |||||||||||||||
| Basic | 42,218 | 42,028 | 42,181 | 41,940 | |||||||||||
| Diluted | 42,352 | 42,367 | 42,367 | 42,355 |
(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. For the three and six month periods ended July 1, 2022, $663 and $2,339 is classified as costs of sales, respectively. For the three and six month periods ended July 2, 2021, $781 and $1,289 is classified as cost of sales, respectively.
(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 and six months ended July 1, 2022 and July 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 | For the six months ended | ||||||||||||||
| July 1, | July 2, | July 1, | July 2, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Net income | $ | 53,498 | $ | 44,275 | $ | 101,548 | $ | 82,261 | |||||||
| Provision for income taxes | 12,464 | 6,767 | 14,900 | 10,774 | |||||||||||
| Depreciation and amortization | 12,563 | 11,062 | 24,410 | 21,031 | |||||||||||
| Non-cash stock-based compensation | 4,061 | 3,374 | 7,090 | 5,868 | |||||||||||
| Patent litigation-related expenses | 132 | 158 | 201 | 468 | |||||||||||
| Other acquisition and integration-related expenses (1) | 210 | 1,576 | 1,184 | 2,831 | |||||||||||
| Strategic transformation costs (2) | 663 | 781 | 2,339 | 1,289 | |||||||||||
| Interest and other expense, net | 4,513 | 1,681 | 8,182 | 5,544 | |||||||||||
| Adjusted EBITDA | $ | 88,104 | $ | 69,674 | $ | 159,854 | $ | 130,066 | |||||||
| Net Income Margin | 13.2 | % | 13.5 | % | 12.9 | % | 13.5 | % | |||||||
| Adjusted EBITDA Margin | 21.7 | % | 21.2 | % | 20.4 | % | 21.3 | % |
(1) Represents various acquisition-related costs and expenses incurred to integrate acquired entities into the Company’s operations, excluding $114 in stock-based compensation for the six month period ended July 1, 2022, and $161 and $321 of stock-based compensation for the three and six month periods ended July 2, 2021, respectively.
(2) Represents costs associated with various strategic initiatives including the expansion of the Powered Vehicles Group’s manufacturing operations. For the three and six month periods ended July 1, 2022, $663 and $2,339 is classified as costs of sales, respectively. For the three and six month periods ended July 2, 2021, $781 and $1,289 is classified as cost of sales, respectively.
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 and six months ended July 1, 2022 and July 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 | For the six months ended | ||||||||||||||
| July 1, | July 2, | July 1, | July 2, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Sales | $ | 406,705 | $ | 328,164 | $ | 784,682 | $ | 609,300 | |||||||
| Gross Profit | $ | 142,944 | $ | 111,088 | $ | 263,204 | $ | 209,012 | |||||||
| Strategic transformation costs (1) | 663 | 781 | 2,339 | 1,289 | |||||||||||
| Non-GAAP Adjusted Gross Profit | $ | 143,607 | $ | 111,869 | $ | 265,543 | $ | 210,301 | |||||||
| Gross Margin | 35.1 | % | 33.9 | % | 33.5 | % | 34.3 | % | |||||||
| Non-GAAP Adjusted Gross Margin | 35.3 | % | 34.1 | % | 33.8 | % | 34.5 | % |
(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 and six months ended July 1, 2022 and July 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 | For the six months ended | ||||||||||||||
| July 1, | July 2, | July 1, | July 2, | ||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| Sales | $ | 406,705 | $ | 328,164 | $ | 784,682 | $ | 609,300 | |||||||
| Operating Expense | $ | 72,469 | $ | 58,365 | $ | 138,574 | $ | 110,433 | |||||||
| Amortization of purchased intangibles | (5,636 | ) | (5,083 | ) | (10,943 | ) | (10,048 | ) | |||||||
| Patent litigation-related expenses | (132 | ) | (158 | ) | (201 | ) | (468 | ) | |||||||
| Other acquisition and integration-related expenses (1) | (210 | ) | (1,737 | ) | (1,298 | ) | (3,152 | ) | |||||||
| Non-GAAP operating expense | $ | 66,491 | $ | 51,387 | $ | 126,132 | $ | 96,765 | |||||||
| Operating expense as a percentage of sales | 17.8 | % | 17.8 | % | 17.7 | % | 18.1 | % | |||||||
| Non-GAAP operating expense as a percentage of sales | 16.3 | % | 15.7 | % | 16.1 | % | 15.9 | % |
(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 change in China-Taiwan relations on our business, our operations or our supply chain, 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]
12 – BRP Acquires Majority Stake in German-Based Pinion to Spur the Development of New Urban Mobility Solutions – From BRP Inc.
BRP Inc. (TSX: DOO, NASDAQ: DOOO) is pleased to announce the acquisition of an 80% stake in Pinion GmbH, a pioneer in gearbox technology based in Denkendorf, Germany. Driven by a passion to shape sustainable mobility, Pinion’s team of over 60 full-time employees designs, develops, assembles, and sells mechanical gearboxes for traditional and electric bicycles. The company’s leading gearboxes are modeled after automobile transmission technology and offer unique cycling dynamics and unparalleled shifting performance.
“Beyond our existing powersports and marine products, we are expanding our addressable market and entering untapped categories such as urban mobility and services,” said José Boisjoli, President and CEO of BRP. “This acquisition is strategic for us as it enables BRP to leverage Pinon’s unique, state-of-the-art technology in order to spur the development of new electric human assisted products. We are pleased to welcome the Pinion team.”
Pinion was founded in 2008 by Christoph Lermen and Michael Schmitz, two automotive engineers. Both Co-Founders and Managing Directors will remain shareholders of Pinion, as will Managing Director and shareholder Thomas Raith. All three leaders will continue to shape the company’s path to success and play a key role in its strategic direction alongside Pinion’s highly skilled employees. Offices will be maintained in Germany.
Christoph Lermen, Co-Founder and Managing Director, Pinion GmbH, added: “BRP’s culture of relentless innovation and focus on R&D mirrors our own. We are proud to join such a respected company and look forward to breaking new ground with them. Together, we will continue providing class-leading Pinion gearbox technology to our 100+ valued bicycle manufacturers while at the same time expanding our offering and developing next-generation drive solutions.”
This announcement follows BRP’s acquisition of Great Wall Motor Austria GmbH, a leading EV R&D centre based in Kottingbrunn, Austria, specializing in e-drive systems and transmissions, solidifying BRP’s expertise in electric powertrain technology for existing product lines and upcoming product introductions.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
Certain information included in this release, including, but not limited to, the anticipated benefits associated with this acquisition, statements relating to the integration of Pinion GmbH in the Company’s business, and the Company’s plans for existing product lines and upcoming product introductions, the Company’s business and strategic plans, 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. Further details and descriptions of these and other factors are disclosed in BRP’s annual information form dated March 24, 2022.
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.
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