Here are a few stories that came across my desk that I think are relevant and interesting to the powersports business community.
1 – Education Takes Center Stage at AIMExpo 2023 – From MIC
AIMExpo is doubling-down on the educational offerings for the 2023 show scheduled for February 15-17 in Las Vegas, including an expanded educational series on the main stage and the return of dealer-focused classroom sessions.
“Our industry is evolving at a rapid pace, from electrification and macro-economic forces, to ever-changing best-business practices,” said Andre Albert, director, marketing and events, at the Motorcycle Industry Council. “We’ve developed an educational lineup for AIMExpo 2023 with that in mind, to deliver information and actionable content that attendees will be able bring back to their businesses and see positive results.”
The MIC Board of Directors will kick off the series on the main stage Wednesday with a State of the Industry panel, followed by key data insights from industry economists David Savlowitz and Michael Ponton of Competitive Analytics. On Thursday, see what the future of powersports holds from the distributors’ perspective, with Marc McAllister of Tucker Powersports, Paul Langley of Parts Unlimited and Drag Specialties, and Chera Gibb of Arrowhead Engineered Products, in AIMExpo’s first-ever Distributors Panel, moderated by Tony Gonzalez of Garage Composites.
“This is shaping up to be our biggest, most comprehensive educational series,” Albert said. “If you want to know what the powersports landscape is going to look like in the future, and what industry stakeholders are doing to prepare for it, then you can’t miss this show.”
Motorcycle Industry Council’s American International Motorcycle Expo is North America’s largest powersports tradeshow and will be at the Las Vegas Convention Center February 15-17, 2023. For information and to register, go to www.AIMExpoUSA.com.
*Schedule subject to change
Wednesday
9:30am – 10:30am
Disruptive Thinking: MIC Symposium Session
State of the Industry Panel, MIC Board of Directors
11am – 12pm
Disruptive Thinking: MIC Symposium Session
David Savlowitz and Michael Ponton, Competitive Analytics
1pm – 1:45pm
Dealer Excellence Classroom Session
Tech Excellence: Automating for Efficiency – Best Practices for Inventory & Lead Management, presented by DX1, BlackPurl
1pm – 1:45pm
Dealer Excellence Classroom Session
Digital Excellence: Social Engagement/Connecting with Your Community, presented by MassMedia
2pm – 3pm
Disruptive Thinking: MIC Symposium Session
Dealer Panel: Dealer Best Practices, moderated by Jared Burt, HeroHub
4pm – 4:45pm
Dealer Excellence Classroom Session
Inventory Excellence: What Does the Used Inventory Landscape Tell Us, presented by Jim Woodruff, National Powersport Auctions
4pm – 4:45pm
Dealer Excellence Classroom Session
Digital Excellence: Becoming a Digital Dealer presented by BlackPurl
5pm – 5:30pm
KEYNOTE: TBD
Thursday
9:30am – 10:30am
Disruptive Thinking: MIC Symposium Session
EV & Powersports, Getting Amp’d Whether You Want to or Not: How to Successfully Incorporate Non-ICE in Your ICE Dealership
11am – 12pm
Disruptive Thinking: MIC Symposium Session
The Future of Powersports from the Distributors’ Perspective – Marc McAllister, Tucker Powersports; Paul Langley, Parts Unlimited and Drag Specialties; Chera Gibb, Arrowhead Engineered Products; moderated by Tony Gonzalez, Garage Composites
1pm – 1:45pm
Dealer Excellence Classroom Session
Digital Marketing Excellence: presented by Sean Finley, Digital Throttle
1pm – 1:45pm
Dealer Excellence Classroom Session – To Be Announced
2pm – 3pm
Disruptive Thinking: MIC Symposium Session
MIC Dealer Advisory Council Panel: The Challenges Facing Our Industry Today Compared to Yesterday and Tomorrow, moderated by Rick Alcon, R&S Powersports Group
4pm – 4:45pm
Dealer Excellence Classroom Session
Data Excellence: Making the Data Do Your Work presented by David Savlowitz, Competitive Analytics
4pm – 4:45pm
Dealer Excellence Classroom Session – To Be Announced
Friday
10am – 10:50am
Disruptive Thinking: MIC Symposium Session
David Savlowitz and Michael Ponton, Competitive Analytics
11am – 11:45am
Disruptive Thinking: MIC Symposium Session
Market Expansion: How Other Industries are Tackling the Problem, presented by Andy Leisner, PADI, and Cinnamon Kernes, MIC
Register now to attend the biggest and most important powersports trade show in North America:
ABOUT AIMEXPO
AIMExpo, the premier powersports trade event, is produced by the Motorcycle Industry Council. MIC exists to preserve, protect, and promote motorcycling through government relations, communications, media relations, statistics and research, aftermarket programs, data communications standards, and involvement in technical and regulatory issues. As a not-for-profit national industry association, the MIC seeks to support motorcyclists by representing manufacturers, distributors, dealers, and retailers of motorcycles, scooters, ATVs, ROVs, motorcycle/ATV/ROV parts, accessories, and related services, and members of allied trades such as insurance, finance and investment companies, media companies, and consultants. The MIC is headquartered in Irvine, Calif., with a government relations office in metropolitan Washington, D.C. First called the MIC in 1970, the organization has been in operation since 1914. Keep up with the industry association on Twitter @followMIC and at 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.
2 – Eric Bondy Joins S&S Cycle as VP of Sales and Business Development – From S&S Cycles
S&S Cycle, the leader in powersports performance, today announced Eric Bondy has joined the leadership team as Vice President of Sales and Business Development. In this role, Bondy will lead S&S Cycle’s global sales and business development efforts.
Eric joins S&S Cycle after a successful stint with Malibu Boats and before that executive roles with Textron, Kymco and Arctic Cat. “Eric is a seasoned powersports leader that brings with him a deep understanding of our space, the S&S team is particularly excited to have him join our organization and help write the next chapter of this storied brand” shares Paul Skarie, President and CEO.
S&S recently expanded into the SxS space with the launch of their off-road division, added several million in new manufacturing capabilities and has seen substantial growth across the last five years.
About S&S Cycle
The performance aftermarket, both 2 and 4 wheel was born on race tracks around the world. Enthusiasts in their single car garages grinding aluminum and welding steel late into the night, all in the hopes of a quicker ET or a higher top speed. For many it stayed on the local tracks, a select few translated their passion for performance into global enterprises. In 1958 George Smith chose the latter and across the next sixty plus years S&S Cycle would mature from grassroots racing effort to world class manufacturer and OEM partner. All the while racing has remained a core competency, from speed records at the Bonneville Salt Flats to multi year championships in American Flat Track, S&S is the go to for high performance on and off the race track.
3 – Piaggio, Foton Motor Group sign joint development agreement – From Powersports Business
Roberto Colaninno, chairman and CEO of Piaggio & C. S.p.A., and Wang Shuhai, vice general manager of Foton Motor Group, recently signed a preliminary agreement in Mantua.
The agreement permits the development of a new range of four-wheel electric light commercial vehicles, consolidating the partnership set up by the two groups in September 2017 for joint development of innovative solutions for the light commercial vehicles market.
Over the coming months, a team of representatives from the two groups will work on the development and approval of a production and commercial plan and on the contractual documents with a view – in the event of a successful outcome of the above activities – to finalizing the technical documentation for the project and the contracts by Spring 2023.
READ THE ORIGINAL POST – https://powersportsbusiness.com/top-stories/2022/11/29/piaggio-foton-motor-group-sign-joint-development-agreement/
4 – Kawasaki returns to AIMExpo 2023 – From Motorcycle Industry Council
| KAWASAKI KEYS IN ON NEW DEALER PROSPECTS AS IT RETURNS TO AIMEXPO 2023 |
Kawasaki Motors Corp., U.S.A., is returning to the AIMExpo show floor, February 15-17, 2023, in Las Vegas with its Dealer Development & Training team to connect and strategize with potential new dealers as it begins to grow its dealer network.
“To be able to meet, face-to-face, with hundreds of dealers from across the country as we kick off the sales year is a tremendous opportunity,” said Kawasaki’s Alan J. Schapel, senior manager, Dealer Development & Training. “Dealers are often the first point of contact for our consumers — especially new riders — making them one of the most important ambassadors of our products, therefore, it is our priority to ensure that we select only the best new dealers to represent the Kawasaki brand.”
Commanding more than 250,000 square-feet of exhibit space at the Las Vegas Convention Center, AIMExpo will also feature a comprehensive education schedule focused on providing dealers with actionable content and information that they can use the moment they return to their shops.
“We are excited to have Kawasaki join us for AIMExpo 2023,” said Cinnamon Kernes, vice president of market expansion. “Kawasaki, one of the earliest members of the Motorcycle Industry Council and a long-time industry leader, has always been at the forefront of powersports trends and innovation. Their planned use of this show as a platform to connect with dealer prospects and focus on the B2B side of their business is exactly what AIMExpo is about – connecting the industry with the industry.”
5 – Fox Factory invests $1 million in first year of Trail Trust – From Fox Factory Holding Corp
Fox Factory created Trail Trust in November 2021 to become a new kind of champion – one that leads the way in delivering sustainable adventure to everyone. In just one year, Fox Factory has donated over $1 million to more than 70 nonprofit organizations across seven countries worldwide.
“As an industry leader, we believe it’s our responsibility to ensure that our playgrounds continue to exist for generations to come, and that the outdoor adventurers enjoying these playgrounds represent people of all ages, genders, races, backgrounds, and ability levels,” explains Jackie Martin, Fox Factory’s Chief Purpose and Inclusion Officer.
From volunteer-led grassroots organizations to national nonprofits, Trail Trust partners are building and maintaining new trail systems, educating the public about responsible recreation, and providing opportunities for everyone to experience the thrill of adventure.
Kootenay Adaptive Sport Association, Trail Trust partner and nonprofit organization, advocates for access, trails, and recreation opportunities for adaptive mountain bikers.
“Thanks to support from Trail Trust, we have been able to expand our reach and role within the aMTB [adaptive mountain bike] community, build and develop important policies, and lay the groundwork for even more access to sport and recreation in North America. We’re grateful for Fox Factory’s commitment to making mountain biking more inclusive,” shares Mike Riediger, Chief Executive Officer of Kootenay Adaptive.
When it comes to off-road motorized recreation, Trail Trust’s continued partnership with the National Off-Highway Vehicle Conservation Council is focused on educating stakeholders about how to design, construct, maintain and manage sustainable OHV trails. Trail Trust is also working with organizations like Nevada Outdoor School to educate adventurers of all ages about how to safely and responsibly engage in off-road recreation.
Follow along the Trail Trust journey by visiting “The Journal,” which highlights partners and showcases the impact of their work.
Fox Factory aims to invest $10 million globally through Trail Trust by 2030. That’s $10 million going toward new trails, education initiatives, youth programs, bike parks, desert clean ups, and more. The goal is to specifically expand access to 100,000 adventurers from underrepresented populations.
Join the journey to champion sustainable adventure for all. Know of a nonprofit organization that shares this vision? Encourage them to visit www.trailtrust.com to learn more about this Fox Factory initiative and apply for funding.
6 – DO YOU DARE? Brush Away Limits with the 2023 KTM LC8 and LC8C Adventure Range – From KTM North America
KTM has furthered the possibilities of the Travel and Adventure motorcycle segment with its sharp 2023 LC8 and LC8c ADVENTURE range. Joining the recently-unveiled 2023 KTM 890 ADVENTURE R is the new KTM 890 ADVENTURE, the bike that has made any trail, any trip, any road, or any distance an exercise of ease with just the right amount of adrenaline—thanks to unbeatable power, weight, agility, and specification—is now even better.
The KTM 890 ADVENTURE has been crafted as the ultimate master of all conditions and distances. The raspy and responsive LC8 engine puts surroundings into motion, but the ride-by-wire delivered power is as assuring as it is thrilling, controllable as it can be wild, stable as it is spectacular. A low center of gravity with the 5.3-gallon (20-liter) fuel tank design pushes the slim form of the KTM 890 ADVENTURE to the forefront and accentuates the ergonomics in both sitting and standing positions. The robust steel subframe means that the heaviest of pillions and packages are a breeze.
So, how can the best be made better? Well, KTM has put the bike into a 360 analytical spin and have pinpointed several ways in which the rider’s time in the saddle can be even more enjoyable and, just as important, unrestrained.
For 2023, one of the most significant changes has been made to the front mask between the head of the bike and the fuel tank. A connected fairing section offers improved protection from the elements while spending long stretches in the saddle, and it is now further reinforced to offer more security and more load-bearing capability for larger GPS devices. Further along, the KTM 890 ADVENTURE has wider panels on the tank and side panels to give the seat protection against unwanted bumps or scrapes.
For handling road and offroad duty with equal adeptness, reworked WP APEX 43 mm front forks now come with adjustment for rebound and compression, accessible from the top caps. The APEX shock, engineered and slotted into the bike to minimize height, has new settings orientated for the demands of adventure riding.
The use of a new 9.3 mp ABS unit feeds from the 6D sensor to enable full braking power in a range of scenarios. The improved ABS is synced with the ride modes, allowing OFFROAD ABS (maximizing braking control through disengagement on the rear wheel and lowered intervention on the front) to be activated automatically in OFFROAD or RALLY mode. The KTM 890 ADVENTURE can be clicked into STREET, OFFROAD, RAIN and an optional RALLY mode to adjust engine and traction control character. An innovative DEMO setting gifts the rider the chance to try the full gamut of optional Rider Aids for the first 1,500 km before deciding whether to purchase and keep them permanently.
KTM has streamlined the ride due to a new, higher screen that offers increased wind protection and is inspired by the product used on the KTM 450 RALLY. They have also packed more comfort into the 2-part seat with a new soft foam structure and a slimmer front fender for superior aerodynamics and rain protection.
The overhauled 5” TFT display draws particular attention, not only for the revised hardware (bonded mineral glass for extra scratch and glare resistance) but the redesigned software system of menus and infographics that make alterations to the behavior of the KTM 890 ADVENTURE even simpler. The backlight changes intensity as it reacts to the environment and better synchronicity between the TFT and the KTMconnect App means seeing Turn-by-Turn+ navigation directions, listening to audio and taking calls has never been easier or more intuitive. A 2023 feature now enables riders to list their ‘top-10’ calls by the last ones made or favorites list and is another added convenience of the advanced setup. The Turn-by-Turn+ empowers the rider to add extra customization to their navigation details on the go and from the bike’s TFT menu without having to stop and fish around for their mobile device.
Sportier graphics and more dynamic looks (the plastics are color injected and using in-mold decals where possible for extra resistance, as seen on the KTM offroad bikes) comes with other, practical additions such as the new aluminum engine and tank protector. Other additions include a handlebar switch with hazard warning, different tires for offroad emphasis thanks to PIRELLI SCORPION STRs and LED indicators.
2023 KTM 890 ADVENTURE Highlights:
- Upgraded ergonomics and bodywork for more protective and comfortable riding
- Low weight, proven race-derived chassis for perfect performance yet practical compromise
- Revised WP Suspension settings and adjusters for more response and adaptability
- Optimized travel ‘friendliness’ with better TFT menus, App options, reworked Ride Modes, higher screen and more versatile and comfortable 2-piece seat
- More offroad orientated tires with PIRELLI SCORPION STRs
- Two fresh color options and new racier graphics set
The 2023 KTM 890 ADVENTURE R was launched in September at the 2022 KTM Adventure Rider Rally in Tamarack, Idaho, the perfect backdrop to showcase the most extreme Adventure motorcycle in KTM’s arsenal. Featuring many of the same updates as the new KTM 890 ADVENTURE but with even more hyper-focused offroad attributes, there’s one more update to share for the “R” model. The 2023 KTM 890 ADVENTURE R will now be fitted with new Mitas ENDURO TRAIL+ tires, selected to deliver offroad-focused performance and thoroughly tested by offroad legends Quinn Cody and Chris Birch.
These two new middleweight Adventure machines join the flagship 2023 KTM 1290 SUPER ADVENTURE R and KTM 1290 SUPER ADVENTURE S to comprise nothing less than the most exhilarating and capable range of 2-cylinder Adventure motorcycles on the market. Both the LC8, 1,301 cc powered KTM 1290 SUPER ADVENTURE R and KTM 1290 SUPER ADVENTURE S were completely redesigned in 2022 – the former being the most offroad capable, large-displacement machine available and the latter being the sportiest Adventure street motorcycle conceivable.
Kitting out your KTM ADVENTURE is a breeze with KTM PowerParts. Extra protective components, luggage racks and units, GPS and smartphone brackets, heated grips, different seats, and headlight kits, are just some of the optional additions.
The KTM LC8 and LC8c ADVENTURE range will begin shipping to authorized KTM dealers from December onward.
7 – GASGAS GOES BIG WITH TWO FACTORY EDITION MOTOCROSS MODELS FOR 2023! – From GasGas
GET ON THE GAS WITH THE ALL-NEW GASGAS MC 450F AND MC 250F DIRT BIKES
One year on from launching our first-ever race team replica dirt bike and we’re back with more! And not just one, but two factory edition motocross models. Built for maximum on-track performance, the all-new GASGAS MC 450F Factory Edition and MC 250F Factory Edition bikes have been designed and developed together with GASGAS Factory Racing, so you know they’re going to be good! Both feature brand-new motors, new frames, and are packed full of the latest technology, with pretty much everything else being improved over the outgoing generation. So, if you’re a racer focused on winning, you’re going to need one. It’s as simple as that!
GASGAS unveils two awesome TLD Race Team replica motocross bikes
New models developed with GASGAS Factory Racing for maximum performance
Watch Justin Barcia and Pierce Brown ride the new bikes right here
The MC 450F Factory Edition benefits from a new cylinder head and CP piston – a potent combination that gives a boost to overall performance and amplifies the on-track experience for all riders. With the motor now lighter than ever, as well as being repositioned within the all-new frame to improve mass centralization, the bike’s already agile handling characteristics are taken to the next level.
As the newest and freshest model added to the GASGAS line-up, the MC 250F Factory Edition is pretty much an all-new dirt bike. Headlining this awesome bike is the powerful, high-revving, motor that’s super compact to save weight. Together with the new frame it makes carving through corners so, so easy. The brand-new motor features a new cylinder, cylinder head and piston, crankcases, and gearbox, which all work as one to make the MC 250F Factory Edition quite possibly the very best 250cc 4-stroke motocrosser out there.
Rewarding riders who really push the pace, the WP Suspension fitted on the Factory Edition models is set up firmer to favor aggressive riding. Up front, the WP XACT front forks feature a new hydrostop for improved bottoming resistance while the slightly slower rebound setting takes the sting out of heavy landings. At the rear, the WP XACT shock is all-new, better performing, and easily adjustable by hand for quick and easy trackside changes.
Shared updates across both GASGAS Factory Edition models.
New generation frame – Hydroformed, laser cut, and robot welded, the new frame is as strong and as flexible as it gets. Super-stable at high speed without compromising things in the corners, the frame is finished with a tough, electronic red powder coating.
New aluminum subframe – Strong and light. Contributing to the overall handling of the Factory Edition bikes, the aluminum subframe is super reliable.
New die-cast swingarm – An improved casting process knocks off 190 grams when compared to the old swingarm. Still strong and designed to work with the flex of the new frame, the swingarm is complete with a new chain guide designed to prevent mud build-up and help maintain forward momentum in deeply rutted turns.
New bodywork and graphics – Fresh new plastics and the latest Red Bull/Troy Lee Designs/ GASGAS Factory Racing graphics sure look the business. But there’s a lot more to the updated bodywork as the contact areas for your knees are now larger, which allows riders to grip the bike more when getting on the gas.
Bigger fuel tank – If you’re competing in the pro ranks then you’ll enjoy the larger fuel tank as you can go the full distance with no fear of running out.
New footrest design – Mounted further inwards on the frame to help prevent them from catching on deep ruts or take offs when scrubbing, the new footrests feature a larger surface area to improve control in all conditions.
Updated suspension settings – With the WP forks set-up to maintain forward momentum after heavy landings and the all-new WP shock as good as rear suspension gets, attacking the track has never felt so good. Plus, both the forks and shock are adjustable by hand, for quick and easy set-up changes.
State-of-the-art electronics with Traction Control and Quickshifter – Helping to get the power down in slick conditions, Traction Control is essential for all hardpack tracks while the Quickshifter ensures super-smooth gear changes – even when wide open!
New map selector switch to engage mappings, launch control, traction control and quickshift – Easy to operate, even when riding, the handlebar-mounted Map Select Switch houses all the buttons to activate Launch Control, Traction Control, and the Quickshifter.
Lighter motors and new engine position – Low in weight and positioned to play a vital role in handling, the Factory Edition motors aren’t just fast, but they help each bike handle perfectly.
Redesigned 250 motor – All-new and designed for pro level racing, the 250cc 4-stroke motor may well be the best out there!
Updated 450 motor – Refined to be lower in weight and still produce copious amounts of power, the 450 motor is designed to centralize mass for perfect handling.
Beyond the super-cool Troy Lee Designs/Red Bull/GASGAS Factory Racing graphics, the very best race-tested components have been fitted to both factory edition models. Every single part is designed to improve performance and durability while the latest in electronic wizardry allows riders to customize the power to suit their style.
Take a look at the full list of what’s included on both the GASGAS MC 450F Factory Edition and MC 250F Factory Edition motocross bikes, it’s seriously impressive…
Troy Lee Designs/Red Bull/GASGAS Factory Racing replica graphics from the 2023 season
- Ribbed Factory Seat Cover
- Factory Racing Triple Clamps (anodized red)
- Factory Wheels (anodized black)
- Dunlop tires
- Black rear sprocket
- Gold x-ring chain
- Factory Start Device
- Semi-Floating Front Brake Disc
- Factory Racing Brake Disc Guard
- 2K Carbon Composite Skid Plate
- Frame Protection Kit (red)
- Hour meter with FI status LED and low fuel warning
- Map Select Switch to control Launch Control, Traction Control, and Quickshift
- Akrapovic “Slip-On Line” titanium exhaust system
- Billet Hinson Outer Clutch Cover
- Black Neken Fatbar with GASGAS bar pad
- Softer ODI Lock-On Grips
- Firmer suspension settings
Unlocking even more power from the new, more compact, and easier to work on motors is a lightweight Akrapovič Slip-On Line titanium exhaust system. Giving a significant boost to both torque and top speed, it’s the very latest offering from Akrapovič, which as well as improving performance, looks the absolute business.
Not only super-fast, but these new Factory Edition bikes also handle like a dream. Firmer settings on the WP XACT suspension encourage riders to attack the track and big jumps with full confidence, safe in the knowledge that heavy landings will be soaked up with no loss of forward momentum. Up front, red anodized Factory Racing Triple Clamps allow riders to customize the ergonomics, while soft ODI Lock-On grips improve comfort. A grippy, ribbed seat cover keeps riders where they want to be when getting on the gas.
Dunlop Geomax MX33 tires hook up in all conditions, and are fitted to our black Factory Wheels, which are rock solid and add to the real race bike flavor. We’ve bolted on a Semi-Floating Front Brake Disc, so you’ll never miss your line in the corners and protected it with a Factory Racing Brake Disc Guard for when things get wild in the first turn!
Finishing off both bikes in style is a long list of parts taken straight from our Technical Accessories range. From front to back, there’s a Factory Start Device, Neken handlebars, a 2K Carbon Composite Skid Plate, Hinson Clutch Cover, a red Frame Protection Kit, a black Rear Sprocket, and a gold x-ring chain. Finally, to make sure riders stay on top of servicing their bike, we’ve installed an Hour Meter to ensure no one ever loses track of just how many hours they’ve spent on this awesome bike.
For more information and to check out the full spec of both factory edition motocross bikes, head to GASGAS.com.
The MC 450F Factory Edition and MC 250F Factory Edition models will be available in all US based GASGAS dealerships in January 2023. European and all non-US customers will be able to get their hands on the MC 450F Factory Edition a couple of months later, in March. For full pricing details and more information, please visit your local GASGAS dealer.
8 – BRP Reports Fiscal Year 2023 Third Quarter Results – From BRP Inc
- Revenues of $2,709 million, up 71% compared to the same period last year, a record performance for a single quarter in the Company’s history;
- Normalized EBITDA [1] of $488 million, up 94% compared to the same period last year;
- Retail sales up for Powersports products by 43% compared to the same period last year, and market share gains for SSV in North America;
- Normalized diluted EPS [1][2] of $3.64, an increase of $2.16 per share or 146% and a record performance for a single quarter, and diluted EPS of $1.76, an increase of $0.23 per share, or 15%, compared to the same period last year;
- Acquisition of 80% of the outstanding shares of Pinion GmbH, and the purchase of substantially all the assets related to the powersports business of Kongsberg Automotive ASA in Quebec, and
- Increasing full-year guidance for Revenues, Normalized EBITDA [1] and Normalized EPS – diluted [1] upward by $0.35, now ranging from $11.65 to $12.00 representing a growth of 17% to 21% compared to Fiscal 2022.
VALCOURT, QUEBEC, CANADA – December 1, 2022 – (Motor Sports NewsWire) – BRP Inc. (TSX: DOO, NASDAQ: DOOO) today reported its financial results for the three- and nine-month periods ended October 31, 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.
“BRP delivered record fiscal 2023 third quarter results, well ahead of expectations, driven by our team’s solid execution and our operational discipline. Our strong product line-ups, additional production capacity and proactive approach to navigating supply chain challenges with the support of our suppliers and dealers were key factors in achieving exceptional retail growth of 43% for powersports in North America,” said José Boisjoli, President and CEO, BRP.
“Given these strong results and the visibility we have on deliveries for the rest of the year, we are increasing our full-year guidance with an expected Normalized EPS of $11.65 to $12.00. Looking ahead, we are in a strong position to sustain our growth thanks to our industry-leading brands, relentless innovation, proven performance and quality products,” concluded Mr. Boisjoli.
| [1] See “Non-IFRS Measures” section of this press release |
| [2] Earnings per share is defined as “EPS” |
| Financial Highlights | Three-monthperiods ended | Nine-monthperiods ended | ||
| (in millions of Canadian dollars, except per share data and margin) | October 31, 2022 | October 31, 2021 | October 31, 2022 | October 31, 2021 |
| Revenues | $2,709.3 | $1,588.0 | $6,957.1 | $5,300.4 |
| Gross Profit | 654.7 | 410.6 | 1,711.8 | 1,522.7 |
| Gross Profit (%) | 24.2 % | 25.9 % | 24.6 % | 28.7 % |
| Normalized EBITDA [1] | 487.9 | 251.7 | 1,178.3 | 1,045.7 |
| Net income | 141.6 | 127.7 | 500.3 | 585.0 |
| Normalized net income [1] | 292.5 | 123.7 | 667.5 | 595.2 |
| Earnings per share – diluted [2] | 1.76 | 1.53 | 6.15 | 6.81 |
| Normalized earnings per share – diluted [1] | 3.64 | 1.48 | 8.21 | 6.93 |
| Weighted average number of shares – diluted | 80,253,434 | 83,525,890 | 81,137,287 | 85,791,361 |
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 36% to 41% (previously ”Up 33% to 38%”) |
| Seasonal Products | 2,524.1 | Up 26% to 29% (previously ”Up 24% to 29%”) |
| Powersports PA&A and OEM Engines | 1,143.5 | Up 17% to 22% |
| Marine | 512.8 | Flat to up 5% (previously ”Up 12% to 17%”) |
| Total Company Revenues | 7,647.9 | Up 27% to 32% (previously ”Up 26% to 31%”) |
| Normalized EBITDA [3] | 1,462.1 | Up 15% to 18% (previously ”Up 14% to 17%”) |
| Effective Tax Rate [3][4] | 25.4 % | 25.0% to 25.5% (previously ”26.0% to 26.5%”) |
| Normalized Earnings per Share – Diluted [3] | $9.92 | Up 17% to 21% ($11.65 to $12.00)(previously $11.30 to $11.65) |
| Net income | 794.6 | ~$780M to $810M |
| Other assumptions for FY23 Guidance |
| Depreciation Expenses: ~$305M (previously ~$320M)Net Financing Costs Adjusted: ~$110M (previously ~$100M)Weighted average number of shares – diluted: ~81.5M sharesCapital Expenditures: ~$675M to $700M |
| [1] See “Non-IFRS Measures” section of this press release |
| [2] Earnings per share is defined as “EPS” |
| [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. |
THIRD QUARTER RESULTS
Despite the pressure on the global supply chain network, and the recent cybersecurity incident, the Company increased revenues during the third quarter of Fiscal 2023, notably by increasing its production output and the conversion rate of substantially completed units available for retail. The increase in revenues for the three and nine-month periods this fiscal year compared to Fiscal 2022 is explained by the strong consumer demand and supported by the additional available capacity, such as the new Juarez 3 facility dedicated to SSV production. However, the deliveries of PWC and 3WV in the quarter occurred after the peak in the retail season and drove an increase in the dealer network inventory at the end of the third quarter.
Revenues
Revenues increased by $1,121.3 million, or 70.6%, to $2,709.3 million for the three-month period ended October 31, 2022, compared to $1,588.0 million for the corresponding period ended October 31, 2021. The increase in revenue was primarily due to a higher wholesale volume of SSV, PWC, 3WV and snowmobile sold and the introduction of the Sea-Doo pontoon. The increase includes a favourable foreign exchange rate variation of $51 million.
- Year-Round Products [6] (47% of Q3-23 revenues): Revenues from Year-Round Products increased by $543.5 million, or 73.8%, to $1,279.8 million for the three-month period ended October 31, 2022, compared to $736.3 million for the corresponding period ended October 31, 2021. The increase in revenues was due to a high volume of SSV and 3WV sold. The higher volume of SSV sold was due to added capacity and improved supply chain. The increase in 3WV volume was the result of the late shipment of model year 2022 which are usually delivered during the second quarter. The increase includes a favourable foreign exchange rate variation of $47 million.
- Seasonal Products [6] (38% of Q3-23 revenues): Revenues from Seasonal Products increased by $583.6 million, or 133.5%, to $1,020.9 million for the three-month period ended October 31, 2022, compared to $437.3 million for the corresponding period ended October 31, 2021. The increase in revenues was primarily attributable to a higher volume of PWC sold due to late shipment of model year 2022 which are usually delivered during the second quarter. The increase was also attributable to a higher volume of snowmobiles sold and the introduction of the Sea-Doo pontoon.
- Powersports PA&A and OEM Engines [6] (11% of Q3-23 revenues): Revenues from Powersports PA&A and OEM Engines increased by $14.1 million, or 5.0%, to $298.0 million for the three-month period ended October 31, 2022, compared to $283.9 million for the corresponding period ended October 31, 2021. The increase in revenues was driven by favourable pricing and the introduction of the Sea-Doo pontoon.
- Marine [6] (4% of Q3-23 revenues): Revenues from the Marine segment decreased by $17.5 million, or 12.8%, to $118.8 million for the three-month period ended October 31, 2022, compared to $136.3 million for the corresponding period ended October 31, 2021. The decrease in revenues was primarily due to a lower volume of boats sold due to supply chain disruptions and the cybersecurity incident which delayed the new product introductions, partially offset by favourable pricing and a favourable mix of boats sold. The decrease includes a favourable foreign exchange rate variation of $2 million.
| [6] The inter-segment transactions are included in the analysis. |
North American Retail Sales
The Company’s North American retail sales for powersports products increased by 43% [7] for the three-month period ended October 31, 2022 compared to the three-month period ended October 31, 2021. The increase was mainly attributable to PWC and SSV.
- Year-Round Products: retail sales increased on a percentage basis in the high-twenties range compared to the three-month period ended October 31, 2021. In comparison, the Year-Round Products industry recorded an increase on a percentage basis in the low single-digits over the same period.
- Seasonal Products: retail sales increased on a percentage basis in the high-seventies range compared to the three-month period ended October 31, 2021. In comparison, the Seasonal Products industry increased on a percentage basis in the low-teens range over the same period while the Company increased on a percentage basis in the low-sixties range when excluding pontoons.
- Marine: retail sales for Marine products decreased by 47% compared to the three-month period ended October 31, 2021 as a result of lower product availability.
Gross profit
Gross profit increased by $244.1 million, or 59.4%, to $654.7 million for the three-month period ended October 31, 2022, compared to $410.6 million for the corresponding period ended October 31, 2021. Gross profit margin percentage decreased by 170 basis points to 24.2% from 25.9% for the three-month period ended October 31, 2021. The increase in gross profit was primarily due to the favourable volume of SSV and PWC sold and a favourable pricing across all product lines. The decrease in gross profit margin percentage was attributable to higher logistics, commodities and labour costs due to inefficiencies related to supply chain disruptions, idle costs related to the cybersecurity incident and higher sales programs resulting from historical low levels in Fiscal 2022. The decrease was partially offset by higher volume and favourable pricing. The increase in gross profit includes a favourable foreign exchange rate variation of $29 million.
Operating expenses
Operating expenses increased by $44.8 million, or 19.9%, to $269.9 million for the three-month period ended October 31, 2022, compared to $225.1 million for the three-month period ended October 31, 2021. The increase in operating expenses was mainly attributable to an increase in selling and marketing and research & development expenses to support future growth and also from continued product investments and higher general and administrative expenses mainly for the modernization of the Company’s software infrastructure to support future growth.
Normalized EBITDA [8]
Normalized EBITDA [8] increased by $236.2 million, or 93.8%, to $487.9 million for the three-month period ended October 31, 2022, compared to $251.7 million for the three-month period ended October 31, 2021. The increase was primarily due to higher gross profit partially offset by higher operating expenses.
Net Income
Net income increased by $13.9 million to $141.6 million for the three-month period ended October 31, 2022, compared to the $127.7 million for the three-month period ended October 31, 2021. The increase was primarily due to a higher operating income, partially offset by an unfavourable foreign exchange rate variation impact on the U.S. denominated long-term debt.
| [7] Including Sea-Doo pontoons. |
| [8] See “Non-IFRS Measures” section of the press release. |
NINE-MONTH PERIOD ENDED OCTOBER 31, 2022
Revenues
Revenues increased by $1,656.7 million, or 31.3%, to $6,957.1 million for the nine-month period ended October 31, 2022, compared to $5,300.4 million for the corresponding period ended October 31, 2021. The increase in revenue was primarily due to a higher volume of SSV, snowmobile, 3WV and PWC sold, the introduction of Sea-Doo pontoons and favourable pricing across all product lines. The increase includes a favourable foreign exchange rate variation of $34 million.
Normalized EBITDA [9]
Normalized EBITDA [9] increased by $132.6 million, or 12.7%, to $1,178.3 million for the nine-month period ended October 31, 2022, compared to $1,045.7 million for the nine-month period ended October 31, 2021. The increase was primarily due to higher gross profit, partially offset by higher operating expenses.
Net Income
Net income decreased by $84.7 million to $500.3 million for the nine-month period ended October 31, 2022, compared to $585.0 million for the nine-month period ended October 31, 2021. The decrease in net income was primarily due to the unfavourable impact of the foreign exchange rate variation on the U.S. denominated long-term debt, partially offset by a higher operating income and lower net financing costs.
LIQUIDITY AND CAPITAL RESOURCES
The Company generated net cash flows from operating activities totaling $342.3 million for the nine-month period ended October 31, 2022 compared to $61.2 million for the nine-month period ended October 31, 2021. The increase was mainly due to favourable changes in working capital, primarily driven by higher provisions.
The Company invested $397 million of its liquidity in capital expenditures to add production capacity and modernize the Company’s software infrastructure to support future growth and $209 million in business combinations. The Company also returned $344 million to its shareholders through quarterly dividend payouts and its share repurchase programs.
Dividend
On November 29, 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 January 13, 2023 to shareholders of record at the close of business on December 30, 2022.
CONFERENCE CALL AND WEBCAST PRESENTATION
Today at 9 a.m. EST, BRP Inc. will host a conference call and webcast to discuss its FY23 third quarter results. 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 42690816), please dial 1 (888) 396-8049 (toll-free in North America). Click here for International numbers.
The Company’s third quarter FY23 webcast presentation is posted in the Quarterly Reports section of BRP’s website.
| [9] See “Non-IFRS Measures” section of the press release. |
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, statements relating to the impact that the cybersecurity incident will have on its systems and operations, the Company’s ability to mitigate financial consequences due to the cybersecurity incident, and its lack of impact on its financial year-end guidance updated on November 30, 2022, 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 MD&A, including the following: reasonable 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, 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 margins, will remain at current levels; the supply base will remain able to support product development and planned production rates on commercially acceptable terms in a timely manner; the cybersecurity incident and its consequences will be adequately contained and will have limited impact on the planned wholesale; 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 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, cybersecurity incident and wind-down costs, non-recurring gain or loss and acquisition-related costs, may 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 | Nine-month periods ended | ||||
| (in millions of Canadian dollars) | October 31,2022 | October 31,2021 | October 31,2022 | October 31,2021 | |
| Net income | $141.6 | $127.7 | $500.3 | $585.0 | |
| Normalized elements | |||||
| Foreign exchange (gain) loss on long-term debt and lease liabilities | 133.0 | (10.4) | 149.0 | (61.7) | |
| Cybersecurity incident costs [2] | 23.3 | — | 23.3 | — | |
| (Gain) loss on NCIB | — | — | (1.8) | 21.3 | |
| Depreciation of intangible assets related to business combinations | 1.5 | 1.0 | 3.6 | 3.1 | |
| Transaction costs and other related expenses [3] | 2.1 | — | 2.1 | 5.8 | |
| Evinrude outboard engine wind-down [4] | — | (0.7) | — | 1.7 | |
| Restructuring and related costs [5] | 0.8 | — | 0.8 | (0.1) | |
| Transaction costs on long-term debt [6] | — | — | — | 44.3 | |
| Other elements | — | 0.1 | 1.1 | 2.9 | |
| Income tax adjustment [1] [7] | (9.8) | 6.0 | (10.9) | (7.1) | |
| Normalized net income [1] | 292.5 | 123.7 | 667.5 | 595.2 | |
| Normalized income tax expense | 87.6 | 45.9 | 219.4 | 210.0 | |
| Financing costs adjusted | 33.3 | 16.4 | 77.4 | 49.4 | |
| Financing income adjusted | (0.3) | (0.7) | (2.8) | (3.5) | |
| Depreciation expense adjusted | 74.8 | 66.4 | 216.8 | 194.6 | |
| Normalized EBITDA [1] | $487.9 | $251.7 | $1,178.3 | $1,045.7 |
| [1] See “Non-IFRS Measures” section. |
| [2] During Fiscal 2023, the Company incurred costs related to a cybersecurity incident. These costs are mainly comprised of recovery costs, idle costs such as direct labor during shutdown period, etc. |
| [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] 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. |
| [7] Income tax adjustment is related to the income tax on Normalized elements subject to tax and for which income tax has been recognized, adjustment related to the impact of foreign currency translation from Mexican operations, as well as the unrecognized tax benefits related to Evinrude outboard engine wind-down in Fiscal 2021. |
| (millions of Canadian dollars, except per share data) | Three-month periods ended | Nine-month periods ended | |||
| October 31,2022 | October 31,2021 | October 31,2022 | October 31,2021 | ||
| Depreciation expense reconciliation | |||||
| Depreciation expense | $76.3 | $67.4 | $220.4 | $199.1 | |
| Depreciation of intangible assets related to business combinations | 1.5 | 1.0 | 3.6 | 3.1 | |
| Evinrude outboard engine wind-down [2] | — | — | — | 1.4 | |
| Depreciation expense adjusted | $74.8 | $66.4 | $216.8 | $194.6 | |
| Income tax expense reconciliation | |||||
| Income tax expense | $77.8 | $51.9 | $208.5 | $202.9 | |
| Income tax adjustment [3] | (9.8) | 6.0 | (10.9) | (7.1) | |
| Normalized income tax expense [1] | $87.6 | $45.9 | $219.4 | $210.0 | |
| Financing costs reconciliation | |||||
| Financing costs | $33.1 | $16.5 | $77.4 | $114.9 | |
| Transaction costs on long-term debt [4] | — | — | — | 44.3 | |
| Loss on NCIB | — | — | — | 21.3 | |
| Other | (0.2) | 0.1 | — | (0.1) | |
| Financing costs adjusted | $33.3 | $16.4 | $77.4 | $49.4 | |
| Financing income reconciliation | |||||
| Financing income | $(0.3) | $(0.7) | $(4.6) | $(3.5) | |
| Gain on NCIB | — | — | (1.8) | — | |
| Financing income adjusted | $(0.3) | $(0.7) | $(2.8) | $(3.5) | |
| Normalized EPS – basic [1] calculation | |||||
| Normalized net income [1] | $292.5 | $123.7 | $667.5 | $595.2 | |
| Non-controlling interests | 0.4 | 0.1 | 1.7 | 0.5 | |
| Weighted average number of shares – basic | 78,735,106 | 81,168,487 | 79,573,969 | 83,312,905 | |
| Normalized EPS – basic [1] | $3.71 | $1.52 | $8.37 | $7.14 | |
| Normalized EPS – diluted [1] calculation | |||||
| Normalized net income [1] | $292.5 | $123.7 | $667.5 | $595.2 | |
| Non-controlling interests | 0.4 | 0.1 | 1.7 | 0.5 | |
| Weighted average number of shares – Diluted | 80,253,434 | 83,525,890 | 81,137,287 | 85,791,361 | |
| Normalized EPS – diluted [1] | $3.64 | $1.48 | $8.21 | $6.93 |
| [1] See “Non-IFRS Measures” section. |
| [2] During Fiscal 2022, 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 the income tax on Normalized elements subject to tax and for which income tax has been recognized, adjustment related to the impact of foreign currency translation from Mexican operations, as well as the unrecognized tax benefits related to Evinrude outboard engine wind-down in Fiscal 2021. |
| [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. |
9 – Katie Lucas Named Chief Administrative Officer of Lucas Oil – From Lucas Oil Products
– Lucas Oil Products today announced the appointment of Katie Lucas, the company’s vice president of strategy and philanthropy, to the position of chief administrative officer. In this role, she will be responsible for blending day-to-day operations with long-term strategic goals, providing oversight of company policies, procedures, campaigns and growth initiatives.
“Over the years I’ve known and worked with Katie, I’ve seen her ability to motivate teams and drive initiatives forward while exemplifying the vision and core values that have made Lucas Oil what it is today,” said Forrest Lucas, CEO of Lucas Oil. “We are in a unique position to continue the legacy of our iconic American brand while advancing and elevating our focus to meet the needs of the next generation. Katie is the right person to meet these goals, tapping into efficiencies that will help the company thrive.”
As vice president of strategy and philanthropy, Katie shaped company strategy and business development initiatives, adding long-term vision and insight to new and ongoing initiatives. She will further advance strategic planning as CAO to pursue growth and adapt to a changing automotive landscape. Together with the Lucas Oil executive team, she will lay the groundwork for an enduring corporate strategy and culture equipped for the next 20 plus years.
Under Katie’s leadership, Lucas Oil has been recognized for philanthropic efforts supporting local and national non-profits and was recently named Outstanding Corporation by the Inland Empire Association of Fundraising Professionals for its exceptional commitment to the Loma Linda University Children’s Hospital in Loma Linda, California.
Katie was named one of Indiana Business Journal’s Forty under 40, recognized for her professional success and civic involvement in central Indiana. Her other non-profit affiliations include the National Medal of Honor Museum Foundation, Ascension St. Vincent Foundation, Wheeler Mission, Grit & Grace Nation Foundation, EDGE Mentoring and many others.
For more information or to schedule an interview with Katie Lucas, please contact [email protected].
About Lucas Oil
Founded in 1989 by Forrest and Charlotte Lucas, Lucas Oil Products was created with the simple philosophy of producing the best lubricants and additives available anywhere. Lucas Oil offers the most diversified range of innovative engine oil, gear oil and additive products refined by years of specialized research, development and testing. The company’s high performance engine oils and gear oils are widely recognized as best-in-class in the automotive, powersports, marine, industrial, outdoor, and motorsports marketplaces. In total, Lucas Oil boasts more than 300 premium products, representing the largest variety of shelf products of any oil company in the United States with a distribution network across 48 different countries.
Lucas Oil’s commitment to motorsports includes long standing support for high profile regional and national racing series, and the distribution of exclusive motorsports content from across the globe via MAVTV, a Lucas Oil owned and operated television network. The company also serves as the exclusive oil and lubricant partner of Monster Jam®, the Dallas Cowboys, the Indianapolis Colts and Lucas Oil Stadium. For more information, please visit www.LucasOil.com.
Contact: Lucas Oil Corporate Communications
310-374-6177
[email protected]
10 – HISUN appoints district sales manager for the Great Lakes Region – From Powersports Business
HISUN USA has announce the appointment of Kelly Rees as district sales manager for the Great Lakes region. Rees will be tasked with expanding opportunities for HISUN USA and its dealer network in Kentucky, Indiana, Ohio, West Virginia and Michigan while continuing to help increase consumer awareness.
Rees is a lifelong Powersports enthusiast and has spent countless hours at the racetrack running an amateur road race team in the Masters of the Mountains Series. The team racked up 43 championships along the way, which led Rees to a three-year stint managing Rickdiculous Racing in MotoAmerica with rider Hayden Gillim, who earned multiple top-three finishes in the SuperSport Championship two years straight. During this time, Rees became the Director of Schools for the Utah Sportbike Association and an FIM Certified Technical Inspector.
When asked what he loves about working in Powersports he said, “Everything about it.” He loves that he can throw on a helmet and ride twisties if he needs to be alone. Or have a fantastic day riding with a group of family and friends. He loves that powersports is everything from basic transportation to an adrenaline rush—but more importantly—it gets people outside and brings them together.
Rees believes in accountability and a management style where one owns their decisions and the corresponding results—good or bad. “I just try to be honest,” he said. “There are pros and cons to everything in business. But if we make informed decisions, we can build a winning plan. I bring a different background than many of the people at Hisun. We learn from these different perspectives and experience levels, and this melting pot of management styles and ideas is a catalyst for success. I’m excited to join a brand that offers such a strong product, great dealer margins and affordability to the customer.”
“We’re thrilled to have another industry veteran like Kelly join the HISUN USA sales team,” said Jason Walling, National Sales Manager for HISUN USA. “His racing background and practical industry and dealership experience make him the ideal hire as we expand the HISUN footprint.”
11 – Dealer group acquires sixth location, plans to consolidate two facilities – From Powersports Business
Powersports Business associate editor Madelyn Hubbard recently interviewed Chaz Cole, vice president of fixed operations of The Cole Group. The group recently acquired its sixth dealership, Harley-Davidson of West Virginia, located in South Charleston.
The acquisition was only the beginning of a significant development plan. The group has agreed to acquire a seven-acre lot that is positioned off a major I-64 exit in Teays Valley, West Virginia, where Harley-Davidson of West Virginia and Black Sheep Harley-Davidson of Huntington will be consolidated into one dealership.
“We’re really excited about this opportunity,” said Cole. “I think that it is definitely a unique opportunity to merge two stores in the state into a brand-new facility.”
Cole was excited for the future of the dealership. It will be located in a rapidly growing county that is positioned between Huntington and South Charleston, two of the largest cities in West Virginia.
The construction of the building is expected to begin next year, and the entire project is projected to conclude within the next two years. In the meantime, there are plans underway to utilize the seven acres so that the state-of-the-art facility may best serve its customers. Read more about the plans for the new dealership in an upcoming edition of the magazine.
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READ ORIGINAL POST HERE – https://powersportsbusiness.com/top-stories/2022/12/01/dealer-group-acquires-sixth-location-plans-to-consolidate-two-facilities/
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