News and stories from the world of Powersports business.
Polaris Announces Senior Leadership Change
Polaris Inc. announced that its President of Off Road Steve Menneto is leaving for a new career opportunity.
“From his start as a part of the sales team, to overseeing our Motorcycles business, to these last five years leading our Off Road team, I want to thank Steve for the lasting contributions he made over his 27-year tenure at Polaris. We wish him the very best as he moves into this new chapter,” said Polaris Chief Executive Officer Mike Speetzen. “I will be taking on more direct management of our largest business segment and am excited to work more closely with all the talented leaders and employees within Off Road as well as with the dealer network.”
These leadership changes are effective today. (7/22/24)
Honda Opens New Distribution Center in Phoenix, Arizona
American Honda today announced a partnership with global logistics-services leader Maersk on the opening of a new 150,000-square-foot distribution center in Phoenix, Arizona. The facility will support Honda’s Powersports and Products division, strengthening the company’s ability to serve its regional dealer network in the Southwestern United States. The facility will provide warehousing and distribution services for a wide range of recreational, utility and outdoor equipment. Previously, Honda serviced the Southwestern U.S. from the Los Angeles area.
“Phoenix offers us excellent proximity to our dealer network, which enhances our ability to serve customers more efficiently,” said John Stevens, Director of Powersports Sales Operations at American Honda. “Maersk’s deep knowledge of our business and rapid execution in establishing the new location has helped us drive forward on key aspects of our regional business strategy.”
The Maersk Contract Logistics Team activated operations at the Phoenix site within just 90 days of the December 2023 contract award. The fast activation included locating the facility, finalizing the lease, and taking delivery of initial stock. The facility commenced operations in March 2024. The distribution-center staff provides a range of value-added services, including coordination of distribution to Honda’s regional dealer network, return management, light assembly and quality control.
“We’re privileged to support Honda’s growth in an expanding market,” said Jeff Kellan, Maersk North American Head of Contract Logistics. “Our distribution centers are a key node in the global chain of services we’re able to provide to Honda, from ocean shipping and landside transportation to contract logistics. We look forward to honoring the relationship we’ve built over the years through reliable execution of services and delivering exceptional value, day in and day out, for years to come.”
The Phoenix distribution center is Maersk’s third facility actively supporting Honda’s needs. In 2011, Maersk established facilities in Shreveport, Louisiana, followed by Kansas City, Missouri, in 2020.
ATV.com Welcomes Kyra Sacdalan
VerticalScope Inc. is excited to welcome Kyra Sacdalan as the new Editor of ATV.com.
Kyra’s background includes extensive experience in the off-road powersports world including as Editor-in-Chief of UTV Sports Magazine and Managing Editor of Adventure Motorcycle Magazine, all while continuing to operate a creative agency she co-founded.
“I’m thrilled to have Kyra joining the team,” says Colum Wood, VP of Content at VerticalScope. “Her strong background and adventurous spirit help solidify VerticalScope’s leadership in the powersports publishing industry, alongside titles like Motorcycle.com and ADVRider.com.”
“Her unique background and perspective will add a new dimension to a world-class website, further cementing its position in the industry.”
Sacdalan operates out of Arizona where she has excellent access to new product as well as ideal locations to test.
“ATV.com is an outlet that has so much potential,” Sacdalan says. “So, it’s really exciting for me to be able to join a team like VerticalScope that’s invested in publishing quality content across their range of properties. I look forward to working together with everyone to breathe new life into a classic VS title like ATV.com!”
For editorial enquiries please contact [email protected]
For sales enquiries please contact [email protected]
Major OEMs Make ‘Early Decision’ for AIMExpo 2025
| Excitement for AIMExpo 2025 has started early as major powersports manufacturers continue to pack the show floor. More than 15 OEMs have committed including Honda, Kawasaki, KTM, Moto Morini, Piaggio Group, Royal Enfield, Segway, Suzuki, Triumph, and Yamaha, and the momentum isn’t slowing. AIMExpo 2025 will be at the Las Vegas Convention Center, February 5-7. “We’ve had more manufacturers commit to the 2025 show, earlier than ever before,” said Cinnamon Kernes, Vice President of Market Expansion and Events at the Motorcycle Industry Council. “And attendees — OEMs, dealers, aftermarket manufacturers, service providers — have been telling us how valuable it has been for them to start their sales season at North America’s premier powersports tradeshow. From new products and models that get to be examined up close; to insights gained through our symposiums and powerful education program; to the invaluable media exposure from TV, magazines, social influencers and more; and to the face-to-face connections and business meetings conducted at the show, AIMExpo has become a crucial part of their yearly business plan.” With early commitments to AIMExpo from nearly 250 exhibitors, including four major distributors, the show floor will be expanding for AIMExpo 2025, covering over 300,000 square feet of space at the Las Vegas Convention Center. “AIMExpo is the once-a-year, must-attend event for the powersports industry,” said John Hinz, President, KTM North America. It’s important that we come together to benchmark the business, discuss industry challenges, learn from each other, and align on strategic decisions that positively impact the future. AIMExpo provides a great opportunity to connect and discuss business with our dealers, showcase new products, meet with vendors, and support the growth of our industry.”  |
| AIMExpo 2025 will also have many new features, including two new experiential activations — the Digital & Tech Sector, an area focused on providing dealers with digital retail solutions for the future, and the AIMExpo Starting Line, featuring a charity auction hosted by NPA, race simulators, a FREE coffee lounge sponsored by Dealer Rocket, and more. “This is truly shaping up to be our biggest feature- and exhibitor-packed show as we take more steps to ‘un-tradeshow the tradeshow,’” said Andre Albert, Director, Marketing and Events at the MIC. “By creating more experiential activations, and by recognizing and partnering with key brands, media, complimentary events, and industry players, AIMExpo brings us together, helping build a stronger industry. Register early — you’re not going to want to miss this!” |
2025 KTM 85 SX – STEP UP INTO THE BIG LEAGUES
Filling the gap between the KTM 65 SX and the KTM 125 SX, the 2025 KTM 85 SX provides young racers the ideal platform to launch into full-size motocross competition, ready to pick up the baton and continue its domination in the 85 cc class.
The 2025 KTM 85 SX is developed to be as close to a scaled-down version of a full-size KTM Motocross machine as possible, with international testing in Europe, North America, and Australia. This has resulted in an 85 cc screamer that not only looks like it’s bigger siblings but behaves like them, sharing the same high levels of quality and attention to detail.
For 2025, the KTM 85 SX has been updated significantly to enhance handling characteristics, boost rider confidence, and improve engine performance in the low to mid-rpm range.
A completely new frame, subframe, and swingarm provide the basis for the update over the previous generation. Based on the full-sized KTM SX frame concept, the high-strength chromium molybdenum steel frame integrates carefully calculated longitudinal flex and torsional rigidity parameters for unmatched rider feedback, energy absorption, and straight-line stability. This is mated to a 1-piece polyamide glass fiber reinforced aluminum subframe, reducing overall weight and providing a platform to integrate the electronics. Manufactured using a gravity die-cast process, the one-piece aluminum swingarm offers exceptional strength with minimal weight. The topology has been optimized for maximum rigidity, and an improved casting process reduces the weight by 300 grams. Additionally, a 20 mm rear axle has been fitted to optimize and match the chassis flex characteristics.
The new frame also allowed for a new riding experience with a steering head at 26.5° —half a degree flatter than the previous generation—and moved rearwards by 6 mm. This has aided in cornering stability and a more planted feel in high-speed acceleration, further supported by a wider steering angle of 35°, which has improved the steering angle by 2° over its predecessor.
The engine position has also been tweaked, with a 3° rotation upwards to maintain a more direct connection point with the swingarm. This has allowed for the most effective weight distribution when hitting jumps.
Regarding suspension updates, the 2025 KTM 85 SX benefits from an all-new, fully-adjustable WP XACT monoshock, mirroring the latest technology found in the full-size Motocross range. Linked directly to the swingarm with a PDS (Progressive Damping System) format, the WP XACT monoshock has a different mounting point to the previous generation, allowing for a more compact rear shock design with a shorter stroke. This provides improved rider feedback and stability over larger jumps and rough tracks.
A notable update over the previous generation is a lower suspension travel of 289 mm compared to 305 mm on the previous model. This has aided dramatically in controlling rebound and compression in the rear shock, with a more planted feel, better traction, and overall improved handling.
Up front, the 2025 KTM 85 SX maintains the championship-proven and lightweight 43 mm WP XACT USD AER fork. Compared to the previous generation, the air pressure is tuned to 4.8 bar from the previous 5.0 bar for a smoother ride and suspension compliance.
An updated engine has improved power in the low and mid-rpm range and increased torque and performance. This is made possible by a new cylinder head and spark plug, ignition, exhaust, shift drum, and updated carburetor settings.
Changes on the new generation KTM 85 SX have also extended to the overall looks, with all-new slimmer bodywork mimicking that of the full-sized KTM SX range. This new look is also functional, allowing for better contact with young riders’ boots when standing up. New footpegs, a larger radiator, and improved triple clamps round out the changes.
The 2025 KTM 85 SX is another example of KTM’s dedication to mini-cross, with the same amount of energy and attention going to the development of grassroots racing as it imparts at a Supercross level.
The new 2025 KTM 85 SX will be rolling off the Austria production line in July and will be available at authorized KTM dealers from August onward. For more information, visit ktm.com.
Watch the all-new 2025 KTM 85 SX in action HERE. To be the first to see this new machine in person, check out its unveiling on the main stage during opening ceremonies at the 2024 AMA Amateur National Motocross Championship at Loretta Lynn’s on Sunday, July 28th.
GASGAS ANNOUNCES CUTTING-EDGE MC 85 FOR 2025!
When it comes to building high-performance 2-stroke dirt bikes, GASGAS sure knows a thing or two! So, for model year 2025, our super-popular MC 85 has undergone a complete overhaul – maximizing power from the motor while introducing an all-new frame and new WP XACT shock, to deliver confidence-inspiring handling and better stability. Not one component on the bike was overlooked by our engineers during the development process of this new generation model. The end result? A super-fun dirt bike that’s easy to ride fast for guaranteed good times!
- GASGAS comes out swinging with an all-new generation MC 85!
- New frame, all-red bodywork, and an updated motor headline the improvements
- Find the awesome new MC 85 this July at a GASGAS dealer near you
For youngsters aged between 11 and 15 years old, we know there are a few options out there when it comes to moving up to the 85 class. But at the top of everyone’s list, thanks to a long list of serious updates for 2025, should be the awesome MC 85!
The new generation model has been developed with serious input from a global team of young test riders, with their feedback allowing our highly skilled team of engineers to build what may well be the best production 85cc motocross bike ever made! And just like before, there are two options to choose from with the MC 85 – one with 17”/14” wheels for smaller riders and another with 19”/16” wheels for those kids who grow just that little bit quicker!
The main objective for everyone involved in building the new MC 85 was to make it much easier to ride and control, compared to the outgoing model. There’s an all-new frame that maximizes stability and creates a lighter feel through the turns. A new WP XACT shock for better traction when getting on the gas. A new, lighter swingarm, and new footpegs, too. But wait up, that’s not everything…
Our already awesome MC 85 motor wasn’t overlooked when it came to developing this new bike! Top-end performance was already super impressive for an 85cc dirt bike, so the focus was put on squeezing out more low to mid-range power and boosting torque. And with a new cylinder head, ignition, exhaust, spark plug, and settings inside the KEIHIN carburetor, in addition to the revised airbox for increased airflow, we can safely say it is mission accomplished. Then, to make sure the MC 85 runs at the perfect temperature at all times for maximum power, new radiators, made by PANKL, keep the motor running cool.
And, on top of all that, the motor is repositioned in the frame to help balance the bike out even more. Plus, there’s new, all-red bodywork and new graphics to match the big bikes. The side panels are now even slimmer than before too, so kids can move around much more easily to emulate their GASGAS Factory Racing heroes!
Overall, the new MC 85 is designed to look just like our full size bikes, which lets kids do their thing on a scaled down version of what they can expect to ride when they get a bit older. Trust us, little rippers from around the world are going to love everything about the 2025 GASGAS MC 85. The post-ride smiles will tell you everything you need to know about how good it really is!
Technical Highlights
- New frame – All-new for 2025 to improve cornering and stability, especially when getting on the gas out of turns. Frame protectors keep it looking fresh, too.
- New WP XACT shock – A new mounting point on the frame and slight reduction in travel creates a more balanced and planted feel for improved traction and control.
- Updated motor – A new cylinder head, ignition, spark plug, and carburetor settings boost low to mid-range power and torque.
- New exhaust system – Designed in line with the motor updates for maximum performance.
- New bodywork and graphics – Mirroring the full size bikes for a sweet new look with slimmer side panels improving control.
- New shift drum – Finished with a new coating for strength and smoother shifting.
- New swingarm – Lighter in weight by 300g and positioned a little more level than before thanks to the shorter shock and new frame. This leads to a lower back end for easier movement on the bike.
- New footpegs – Redesigned to prevent mud from building up for total control in all conditions.
- New radiators – Made by PANKL so you just know they’re up to the job of keeping the motor cool!
- Redesigned airbox – With improved airflow for maximum performance.
- Hour meter – Records time spent on the bike to help you keep on top of routine servicing.
Check out the full spec and all the spicy details of the MC 85 right here.
You’ll find the 2025 GASGAS MC 85 in dealerships worldwide from July! Find your nearest dealer, right here.
Explore imagery of the new MC 85 here.
Download the 2025 GASGAS MC 85 Press Kit right here.
For everything GASGAS, head to the website to discover our new models, the latest news, and the very best dirt bike videos.
LiveWire Group, Inc. Reports 2024 Second Quarter Financial Results
LiveWire Group, Inc. (“LiveWire” or the “Company”) (NYSE: LVWR) today reported second quarter 2024 results.
“In the second quarter, we achieved continued growth in existing markets for our Electric Motorcycles segment. In fact, we maintained our position as the #1 on-road electric motorcycle retailer in the U.S. for the first half of 2024. With a 12 percent improvement in consolidated operating loss for the quarter over prior year, we remain committed to cost reduction initiatives while investing in portfolio expansion in both our Electric Motorcycles and STACYC segments, with upcoming new products planned,” said Karim Donnez, CEO, LiveWire.
Second Quarter 2024 Summary of Results
- Unit sales of 158 electric motorcycles, an increase of 35% over first quarter 2024 and triple digit increase over second quarter 2023.
- In line with expectations, consolidated operating loss improved by $3.8 million driven by overall cost reduction initiatives.
LiveWire Group, Inc. – Consolidated Results
| $ in millions* | 2nd quarter | ||
| 2024 | 2023 | Change | |
| Motorcycle Units | 158 | 33 | 379% |
| Electric Balance Bike Units | 3,825 | 8,206 | (53%) |
| Consolidated Revenue | $6.4 | $7.0 | (8%) |
| Electric Motorcycles | $2.4 | $0.8 | 219% |
| STACYC | $4.0 | $6.3 | (36%) |
| Consolidated Operating Loss | ($28.2) | ($32.0) | 12% |
| Electric Motorcycles | ($26.8) | ($31.9) | 16% |
| STACYC | ($1.4) | ($0.1) | (1,492%) |
| Net Loss | ($24.8) | ($40.7) | 39% |
| *Amounts may not add or recalculate due to rounding. |
The Company’s consolidated net loss was $24.8 million for the second quarter of 2024 compared to $40.7 million in the same period of the prior year driven by the segment results noted below, a decrease of $1.2 million in interest income offset by an increase of $13.2 million of non-operating income related to the decrease in fair value of the outstanding warrants as of June 30, 2024 as compared to prior year.
LiveWire Group, Inc. is comprised of two business segments:
- Electric Motorcycles – focused on the sale of electric motorcycles and related products
- STACYC – focused on the sale of electric balance bikes for kids and related products
Electric Motorcycles
Electric Motorcycles revenue increased $1.7 million in the second quarter of 2024 compared to the prior year period, due to higher unit sales in the quarter. Selling, engineering and administrative expenses decreased $3.1 million compared to the prior year largely as a result of overall cost reduction initiatives. In line with expectations, operating loss decreased by $5.1 million compared to the second quarter of 2023 driven by decreases in selling, engineering and administrative expenses and cost of goods sold.
STACYC
In line with expectations, STACYC revenue and operating income were down compared to same quarter 2023 primarily due to a reduction in third party branded distributor volumes and a planned increase in spend relating to product development costs for new models.
2024 Financial Outlook
For the full year 2024, the Company continues to expect:
- Electric Motorcycle sales of 1,000 to 1,500 revenue units
- LiveWire Group operating loss of $105 to $115 million
Webcast
The public is invited to attend an audio webcast from 8-9 a.m. CDT. LiveWire leadership will be joining the Harley-Davidson, Inc. audio webcast to discuss our results, developments in the business, and updates to the Company’s outlook. The webcast login can be accessed at https://investor.livewire.com/news-events-1/events/default.aspx. The audio replay will be available by approximately 10:00 a.m. CDT.
About LiveWire
LiveWire has a dedicated focus on the electric motorcycle sector. LiveWire’s majority shareholder is Harley-Davidson, Inc. LiveWire comes from the lineage of Harley-Davidson and is capitalizing on a decade of its learnings in the EV sector. With a dedicated focus on EV, LiveWire plans to develop the technology of the future and to invest in the capabilities needed to lead the transformation of motorcycling. www.livewire.com
Cautionary Note Regarding Forward-Looking Statements
The Company intends that certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release, including statements concerning possible or assumed future actions, business strategies, events or results of operations, and any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Words or phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “is on track,” “may,” “might,” “objective,” “ongoing,” “plan,” “potential,” “predict,” “project,” “remain committed,” “should,” “target,” “will” and “would,” or similar words or phrases, or the negatives of those words or phrases, may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward-looking. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. These forward-looking statements speak only as of the date of this press release and are subject to a number of important factors that could cause actual results to differ materially from those in the forward-looking statements, including the risks, uncertainties and assumptions described in prior public filings titled “Risk Factors.” These forward-looking statements are subject to numerous risks, including, without limitation, the following: our history of losses and expectation to incur significant expenses and continuing losses for the foreseeable future; our limited operating history, the rollout of our business and the timing of expected business milestones, including our ability to develop and manufacture electric vehicles of sufficient quality and appeal to customers on schedule and on a large scale; our financial and business performance, including financial projections and business metrics and any underlying assumptions thereunder; our ability to obtain funding for our operations and manage costs; our future capital requirements and sources and uses of cash; changes in our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans, including our ability to effectively execute the Company’s relocation and streamlined headcount plan within expected costs and time and our ability to realize the expected savings in 2024 and on an ongoing annual basis; our ability to attract and retain a large number of customers; challenges we face as a pioneer into the highly-competitive and rapidly evolving electric vehicle industry; our operational and financial risks if we fail to effectively and appropriately separate the LiveWire business from the H-D business; H-D making decisions for its overall benefit that could negatively impact our overall business; our relationship with H-D and its impact on our other business relationships; our ability to leverage contract manufacturers, including H-D and Kwang Yang Motor Co., Ltd., a Taiwanese company (“KYMCO”), to contract manufacture our electric vehicles; retail partners being unwilling to participate in our go-to-market business model or their inability to establish or maintain relationships with customers for our electric vehicles; potential delays in the design, manufacture, financing, regulatory approval, launch and delivery of our electric vehicles; building out our supply chain, including our dependency on our existing suppliers and our ability to source suppliers, in each case many of which are single-sourced or limited-source suppliers, for our critical components such as batteries and semiconductor chips; our ability to rely on third-party and public charging networks; our ability to attract and retain key personnel; our business, expansion plans and opportunities, including our ability to scale our operations and manage our future growth effectively; the effects on our future business of competition, the pace and depth of electric vehicle adoption generally and our ability to achieve planned competitive advantages with respect to our electric vehicles and products, including with respect to reliability, safety and efficiency; our business and H-D’s business overlapping and being perceived as competitors; our inability to maintain a strong relationship with H-D or to resolve favorably any disputes that may arise between us and H-D; our dependency on H-D for a number of services, including services relating to quality and safety testing. If those service arrangements terminate, it may require significant investment for us to build our own safety and testing facilities, or we may be required to obtain such services from another third-party at increased costs; any decision by us to electrify H-D products, or the products of any other company; our expectations regarding our ability to obtain and maintain intellectual property protection and not infringe on the rights of others; potential harm caused by misappropriation of our data and compromises in cybersecurity; changes in laws, regulatory requirements, governmental incentives and fuel and energy prices; the impact of health epidemics, including the COVID-19 pandemic, on our business, the other risks we face and the actions we may take in response thereto; litigation, regulatory proceedings, complaints, product liability claims and/or adverse publicity; and the possibility that we may be adversely affected by other economic, business and/or competitive factors. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond our control, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur, and actual results could differ materially from those projected in the forward-looking statements. Moreover, we operate in an evolving environment. Some of these risks and uncertainties may in the future be amplified by new risk factors and uncertainties that may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties. As a result of these factors, we cannot assure you that the forward-looking statements in this press release will prove to be accurate. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances, or otherwise. You should read this earnings release completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.
| LiveWire Group, Inc. | ||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||
| (In thousands, except per share amounts) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three months ended | Six months ended | |||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||||
| Revenue, net | $ | 6,449 | $ | 7,026 | $ | 11,427 | $ | 14,788 | ||||||
| Costs and expenses: | ||||||||||||||
| Cost of goods sold | 8,231 | 9,966 | 17,336 | 16,464 | ||||||||||
| Selling, administrative and engineering expense | 26,383 | 29,044 | 52,678 | 55,215 | ||||||||||
| Total operating costs and expenses | 34,614 | 39,010 | 70,014 | 71,679 | ||||||||||
| Operating loss | (28,165 | ) | (31,984 | ) | (58,587 | ) | (56,891 | ) | ||||||
| Interest income | 1,596 | 2,754 | 3,612 | 5,446 | ||||||||||
| Change in fair value of warrant liabilities | 1,792 | (11,438 | ) | 6,550 | (10,370 | ) | ||||||||
| Loss before income taxes | (24,777 | ) | (40,668 | ) | (48,425 | ) | (61,815 | ) | ||||||
| Income tax provision | 28 | 64 | 24 | 64 | ||||||||||
| Net loss | $ | (24,805 | ) | $ | (40,732 | ) | $ | (48,449 | ) | $ | (61,879 | ) | ||
| Net loss per share, basic and diluted | $ | (0.12 | ) | $ | (0.20 | ) | $ | (0.24 | ) | $ | (0.31 | ) | ||
| Weighted-average shares, basic and diluted | 203,184 | 202,409 | 203,136 | 202,407 | ||||||||||
| LiveWire Group, Inc. | |||||||
| Consolidated Balance Sheets | |||||||
| (In thousands) | |||||||
| (Unaudited) | |||||||
| June 30, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 113,011 | $ | 167,904 | |||
| Accounts receivable, net | 1,911 | 4,295 | |||||
| Accounts receivable from related party | 468 | 3,402 | |||||
| Inventories, net | 34,062 | 32,122 | |||||
| Other current assets | 2,035 | 3,004 | |||||
| Total current assets | 151,487 | 210,727 | |||||
| Property, plant and equipment, net | 36,818 | 37,682 | |||||
| Goodwill | 8,327 | 8,327 | |||||
| Deferred tax assets | 6 | 4 | |||||
| Lease assets | 1,197 | 1,868 | |||||
| Intangible assets, net | 1,185 | 1,347 | |||||
| Other long-term assets | 5,896 | 6,192 | |||||
| Total assets | $ | 204,916 | $ | 266,147 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 1,392 | $ | 3,554 | |||
| Accounts payable to related party | 18,399 | 20,371 | |||||
| Accrued liabilities | 18,291 | 21,189 | |||||
| Current portion of lease liabilities | 688 | 1,152 | |||||
| Total current liabilities | 38,770 | 46,266 | |||||
| Long-term portion of lease liabilities | 561 | 792 | |||||
| Deferred tax liabilities | 105 | 93 | |||||
| Warrant liabilities | 5,769 | 12,319 | |||||
| Other long-term liabilities | 685 | 814 | |||||
| Total liabilities | 45,890 | 60,284 | |||||
| Shareholders’ equity: | |||||||
| Preferred Stock | — | — | |||||
| Common Stock | 20 | 20 | |||||
| Treasury Stock | (2,896 | ) | (1,969 | ) | |||
| Additional paid-in-capital | 342,346 | 339,783 | |||||
| Accumulated deficit | (180,437 | ) | (131,988 | ) | |||
| Accumulated other comprehensive income | (7 | ) | 17 | ||||
| Total shareholders’ equity | 159,026 | 205,863 | |||||
| Total liabilities and shareholders’ equity | $ | 204,916 | $ | 266,147 | |||
| LiveWire Group, Inc. | |||||||
| Consolidated Statements of Cash Flows | |||||||
| (In thousands) | |||||||
| (Unaudited) | |||||||
| Six months ended | |||||||
| June 30, 2024 | June 30, 2023 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (48,449 | ) | $ | (61,879 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities | |||||||
| Depreciation and amortization | 5,042 | 1,372 | |||||
| Change in fair value of warrant liabilities | (6,550 | ) | 10,370 | ||||
| Stock compensation expense | 2,563 | 4,202 | |||||
| Provision for doubtful accounts | 22 | 55 | |||||
| Deferred income taxes | 10 | 63 | |||||
| Inventory write-down | 3,249 | 1,626 | |||||
| Cloud computing arrangements development costs | — | (640 | ) | ||||
| Other, net | (572 | ) | (629 | ) | |||
| Changes in current assets and liabilities: | |||||||
| Accounts receivable, net | 2,362 | (2,407 | ) | ||||
| Accounts receivable from related party | 2,934 | 118 | |||||
| Inventories | (5,189 | ) | (4,585 | ) | |||
| Other current assets | 1,215 | 1,905 | |||||
| Accounts payable and accrued liabilities | (3,550 | ) | (1,357 | ) | |||
| Accounts payable to related party | (1,972 | ) | 10,591 | ||||
| Net cash used by operating activities | (48,885 | ) | (41,195 | ) | |||
| Cash flows from investing activities: | |||||||
| Capital expenditures | (5,080 | ) | (8,175 | ) | |||
| Net cash used by investing activities | (5,080 | ) | (8,175 | ) | |||
| Cash flows from financing activities: | |||||||
| Repurchase of common stock | (928 | ) | — | ||||
| Proceeds received from exercise of warrants (Note 7) | — | 2 | |||||
| Net cash used by financing activities | (928 | ) | 2 | ||||
| Net decrease in cash and cash equivalents | $ | (54,893 | ) | $ | (49,368 | ) | |
| Cash and cash equivalents: | |||||||
| Cash and cash equivalents—beginning of period | $ | 167,904 | $ | 265,240 | |||
| Net decrease in cash and cash equivalents | (54,893 | ) | (49,368 | ) | |||
| Cash and cash equivalents—end of period | $ | 113,011 | $ | 215,872 | |||
Harley-Davidson Delivers Second Quarter Financial Results
Harley-Davidson, Inc. (“Harley-Davidson,” “HDI,” or the “Company”), (NYSE: HOG) today reported second quarter 2024 results.
“Despite a challenging market, we are pleased with our second quarter performance, in which we grew our U.S. market share in a declining market, with notable unit growth of more than 11 percent in the important core category of Touring1,” said Jochen Zeitz, Chairman, President and CEO, Harley-Davidson. “We continue to be focused on executing our Hardwire strategy, leveraging our innovation and product pipeline while delivering on our cost productivity goals.”
Second Quarter 2024 Highlights and Related Results
- Delivered diluted EPS of $1.63
- HDMC operating income margin of 14.7 percent
- North America motorcycle retail performance was down 1 percent, while retail sales of Touring and CVO motorcycles was up more than 12 percent in the U.S.
- Touring market share of 75 percent, up 5.3 percent in first half of the year1
- HDMC revenue up 13 percent driven by global motorcycle shipments up 16 percent
- HDFS operating income up 21 percent, and revenue was up 10 percent
- Company revises its full year 2024 financial outlook to reflect the current environment
- Today, Harley-Davidson announced plan to repurchase $1 billion of shares through 20262
Second Quarter 2024 Results
Harley-Davidson, Inc. Consolidated Financial Results
| $ in millions (except EPS) | 2nd quarter | ||
| 2024 | 2023 | Change | |
| Revenue | $1,619 | $1,446 | 12 % |
| Operating Income | $241 | $221 | 9 % |
| Net Income Attributable to HDI | $218 | $178 | 23 % |
| Diluted EPS | $1.63 | $1.22 | 34 % |
Consolidated revenue in the second quarter was up 12 percent, driven primarily by an HDMC revenue increase of 13 percent. HDFS revenue was up 10 percent in the second quarter.
Consolidated operating income in the second quarter was up 9 percent, driven by an increase of 2 percent at HDMC, an increase of 21 percent at HDFS, and a decreased operating loss at the LiveWire segment. Consolidated operating income margin in the second quarter was 14.9 percent relative to 15.3 percent in the second quarter a year ago.
| 1 Source: U.S. 601+cc Street Legal Market Share for Q2 2024 from Motorcycle Industry Council (MIC). |
| 2 See press release dated July 25, 2024 |
Harley-Davidson Motor Company (HDMC) – Results
| $ in millions | 2nd quarter | ||
| 2024 | 2023 | Change | |
| Motorcycle Shipments (thousands) | 49.7 | 42.9 | 16 % |
| Revenue | $1,349 | $1,198 | 13 % |
| Motorcycles | $1,069 | $891 | 20 % |
| Parts & Accessories | $194 | $216 | -10 % |
| Apparel | $63 | $66 | -4 % |
| Licensing | $6 | $5 | 7 % |
| Other | $17 | $20 | -14 % |
| Gross Margin | 32.1 % | 34.8 % | -2.7 pts. |
| Operating Income | $198 | $194 | 2 % |
| Operating Margin | 14.7 % | 16.2 % | -1.5 pts. |
Second quarter global motorcycle shipments increased by 16 percent. Revenue was up 13 percent driven by increased shipments and improved mix, partially offset by lower pricing and foreign exchange effects. Parts & Accessories revenue was down 10 percent. Apparel was down 4 percent as the prior year’s period included a greater benefit from anniversary product apparel sales.
Second quarter gross margin was down 2.7 points due to the impacts of pricing and sales incentives, higher manufacturing costs, and adverse impacts from foreign exchange. These effects were partially offset by higher wholesale volumes and improved mix. Second quarter operating income margin was down 1.5 points, where operating expenses increased modestly.
Harley-Davidson Retail Motorcycle Sales
| Motorcycles (thousands) | 2nd quarter | ||
| 2024 | 2023 | Change | |
| North America | 34.8 | 35.1 | -1 % |
| EMEA | 8.0 | 8.1 | -1 % |
| Asia Pacific | 6.3 | 7.5 | -16 % |
| Latin America | 0.8 | 0.8 | 0 % |
| Worldwide Total | 50.0 | 51.5 | -3 % |
Global retail motorcycle sales in the second quarter were down 3 percent versus prior year. North America retail performance was down 1 percent, with U.S. retail up slightly.
The decline in EMEA of 1 percent was driven by weakness in Central Europe, but partially offset by growth in other markets. The decline in APAC of 16 percent was driven primarily by weakness in China and Latin America was largely flat.
Harley-Davidson Financial Services (HDFS) – Results
| $ in millions | 2nd quarter | ||
| 2024 | 2023 | Change | |
| Revenue | $264 | $240 | 10 % |
| Operating Income | $71 | $59 | 21 % |
HDFS operating income increased by $12 million in the second quarter, or 21 percent, driven by higher interest income and a lower provision for credit losses, partially offset by increased borrowing costs and higher operating expenses. Total quarter ending financing receivables were $8.0 billion, which was up 7 percent versus Q2 2023, primarily due to an increase in commercial finance receivables.
LiveWire – Results
| $ in millions | 2nd quarter | ||
| 2024 | 2023 | Change | |
| Electric Motorcycle Unit Sales | 158 | 33 | 379 % |
| Revenue | $6 | $7 | -8 % |
| Operating Loss | ($28) | ($32) | 12 % |
LiveWire revenue for the second quarter decreased by 8 percent, due to a decrease in STACYC third party branded distributor volumes, partially offset by an increase in electric motorcycle unit sales. Operating loss improved by approximately $4 million (or 12 percent) driven by overall cost reduction initiatives.
Other Harley-Davidson, Inc. 2024 Results – through end of Q2
- Generated $578 million of cash from operating activities
- Effective tax rate was 19 percent
- Paid cash dividends of $47 million
- Repurchased $200 million of shares (5.5 million shares) on a discretionary basis
- Cash and cash equivalents of $1.8 billion at the end of the quarter
2024 Financial Outlook
For the full year 2024, the Company now expects:
- HDMC: revenue down 5 to 9 percent compared to 2023 and operating income margin of 10.6 to 11.6 percent
For the full year 2024, the Company continues to expect:
- HDFS: operating income flat to up 5 percent compared to 2023
- LiveWire: electric motorcycle unit sales of 1,000 to 1,500 and operating loss of $105 to $115 million
- Harley-Davidson, Inc: capital investments of $225 to $250 million
Company Background
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. Our ambition is to maintain our place as the most desirable motorcycle brand in the world. Since 1903, Harley-Davidson has defined motorcycle culture by delivering a motorcycle lifestyle with distinctive and customizable motorcycles, experiences, motorcycle accessories, riding gear and apparel. Harley-Davidson Financial Services provides financing, insurance and other programs to help get riders on the road. Harley-Davidson also has a controlling interest in LiveWire Group, Inc., the first publicly traded all-electric motorcycle company in the United States. LiveWire is the future in the making for the pursuit of urban adventure and beyond. Drawing on its DNA as an agile disruptor from the lineage of Harley-Davidson and capitalizing on a decade of learnings in the EV sector, LiveWire’s ambition is to be the most desirable electric motorcycle brand in the world. Learn more at harley-davidson.com and livewire.com.
Webcast
Harley-Davidson will discuss its financial results and outlook on an audio webcast at 8:00 a.m. CDT today. The webcast login and supporting slides can be accessed at http://investor.harley-davidson.com/news-and-events/events-and-presentations. The audio replay will be available by approximately 10:00 a.m. CDT.
Cautionary Note Regarding Forward-Looking Statements
The company intends that certain matters discussed in this press release and our associated comments are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the company “believes,” “anticipates,” “expects,” “plans,” “may,” “will,” “estimates,” “targets,” “intends,” “forecasts,” “is on track,” “sees,” “feels,” or words of similar meaning. Similarly, statements that describe or refer to future expectations, future plans, strategies, objectives, outlooks, targets, guidance, commitments, or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially, unfavorably or favorably, from those anticipated as of the date of this press release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this press release are only made as of the date of this press release, and the company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the Company’s ability to: (a) execute its business plans and strategies, including The Hardwire, each of the pillars, and the evolution of LiveWire as a standalone brand, which includes the risks noted below; (b) manage supply chain and logistics issues, including quality issues, unexpected interruptions or price increases caused by supplier volatility, raw material shortages, inflation, war or other hostilities, including the conflict in Ukraine and the Red Sea conflict, or natural disasters and longer shipping times and increased logistics costs; (c) accurately analyze, predict and react to changing market conditions and successfully adjust to shifting global consumer needs and interests; (d) maintain and enhance the value of the Harley-Davidson brand; (e) realize the expected business benefits from LiveWire operating as a separate public company, which may be affected by, among other things: (i) the ability of LiveWire to execute its plans to develop, produce, market and sell its electric vehicles; (ii) the demand for and consumer willingness to adopt two- and three-wheeled electric vehicles; and (iii) other risks and uncertainties indicated in documents filed with the SEC by the Company or LiveWire Group, Inc., including those risks and uncertainties noted in Risk Factors under Item 1.A of LiveWire Group Inc.’s Annual Report on Form 10-K for the year ended December 31, 2023; (f) successfully access the capital and/or credit markets on terms that are acceptable to the Company and within its expectations; (g) successfully carry out its global manufacturing and assembly operations; (h) develop and introduce products, services and experiences on a timely basis that the market accepts, that enable the Company to generate desired sales levels and that provide the desired financial returns, including successfully implementing and executing plans to strengthen and grow its leadership position in Grand American Touring, large Cruiser and Trike, and grow its complementary businesses; (i) perform in a manner that enables the Company to benefit from market opportunities while competing against existing and new competitors; (j) manage through changes in general economic and business conditions, including changing capital, credit and retail markets, and the changing domestic and international political environments, including as a result of the conflict in Ukraine and the Red Sea conflict; (k) manage the impact that prices for and supply of used motorcycles may have on its business, including on retail sales of new motorcycles; (l) prevent, detect and remediate any issues with its motorcycles or any issues associated with the manufacturing processes to avoid delays in new model launches, recall campaigns, regulatory agency investigations, increased warranty costs or litigation and adverse effects on its reputation and brand strength, and carry out any product programs or recalls within expected costs and timing; (m) successfully manage and reduce costs throughout the business; (n) manage risks related to a resurgence of the COVID-19 pandemic, emergence of a new pandemic, epidemic, disease outbreak or other public health crises, such as supply chain disruptions, its ability to carry out business as usual, and government actions and restrictive measures implemented in response; (o) continue to develop the capabilities of its distributors and dealers, effectively implement changes relating to its dealers and distribution methods, including the Company’s dealership footprint, and manage the risks that its dealers may have difficulty obtaining capital and managing through changing economic conditions and consumer demand; (p) successfully appeal: (i) the revocation of the Binding Origin Information (BOI) decisions that allowed the Company to supply its European Union (EU) market with certain of its motorcycles produced at its Thailand operations at a reduced tariff rate and (ii) the denial of the Company’s application for temporary relief from the effect of the revocation of the BOI decisions; (q) manage the quality and regulatory non-compliance issues relating to the brake hose assemblies provided to the Company by Proterial Cable America, Inc. in a manner that avoids future quality or non-compliance issues and additional costs or recall expenses that are material; (r) maintain a productive relationship with Hero MotoCorp as a distributor and licensee of the Harley-Davidson brand name in India; (s) manage and predict the impact that new, reinstated or adjusted tariffs may have on the Company’s ability to sell products internationally, and the cost of raw materials and components, including the temporary lifting of the incremental tariffs on motorcycles imported into the EU from the U.S., which was extended to March 31, 2025; (t) accurately predict the margins of its segments in light of, among other things, tariffs, inflation, foreign currency exchange rates, the cost associated with product development initiatives and the Company’s complex global supply chain; (u) successfully maintain a manner in which to sell motorcycles in China and the Company’s Association of Southeast Asian Nations (ASEAN) countries that does not subject its motorcycles to incremental tariffs; (v) manage its Thailand corporate and manufacturing operation in a manner that allows the Company to avail itself of preferential free trade agreements and duty rates, and sufficiently lower prices of its motorcycles in certain markets; (w) retain and attract talented employees, and eliminate personnel duplication, inefficiencies and complexity throughout the organization; (x) accurately estimate and adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices; (y) manage the credit quality, the loan servicing and collection activities, and the recovery rates of Harley-Davidson Financial Services’ loan portfolio; (z) prevent a ransomware attack or cybersecurity breach involving consumer, employee, dealer, supplier, or Company data and respond to evolving regulatory requirements regarding cybersecurity and data privacy; (aa) adjust to tax reform, healthcare inflation and reform and pension reform, and successfully estimate the impact of any such reform on the Company’s business; (bb) manage through the effects inconsistent and unpredictable weather patterns may have on retail sales of motorcycles; (cc) implement and manage enterprise-wide information technology systems, including systems at its manufacturing facilities; (dd) manage changes, prepare for, and respond to evolving requirements in legislative and regulatory environments related to its products, services and operations, including increased environmental, safety, emissions or other regulations; (ee) manage its exposure to product liability claims and commercial or contractual disputes; (ff) continue to manage the relationships and agreements that the Company has with its labor unions to help drive long-term competitiveness; (gg) achieve anticipated results with respect to the Company’s preowned motorcycle program, Harley-Davidson Certified, the Company’s H-D1 Marketplace, and Apparel and Licensing; and (hh) optimize capital allocation in light of the Company’s capital allocation priorities.
The Company’s ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the Company’s dealers to sell its motorcycles and related products and services to retail customers. The Company depends on the capability and financial capacity of its dealers to develop and implement effective retail sales plans to create demand for the motorcycles and related products and services they purchase from the Company. In addition, the Company’s dealers and distributors may experience difficulties in operating their businesses and selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions, or other factors.
HDFS’ retail credit losses have normalized in recent quarters to higher levels after a period of historically low levels of credit losses. Further, the Company believes that HDFS’s retail credit losses will continue to change over time due to changing consumer credit behavior, macroeconomic conditions, including the impact of inflation and HDFS’s efforts to increase prudently structured loan approvals to sub-prime borrowers. In addition, HDFS’s efforts to adjust underwriting criteria based on market and economic conditions and the actions that the Company has taken and could take that impact motorcycle values may impact HDFS’s retail credit losses.
The Company’s operations, demand for its products, and its liquidity could be adversely impacted by work stoppages, facility closures, strikes, natural causes, widespread infectious disease, terrorism, war or other hostilities, including the conflict in Ukraine and the Red Sea conflict, or other factors. Refer to “Risk Factors” under Item 1.A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 for a discussion of additional risk factors and a more complete discussion of some of the cautionary statements noted above.
### (HOG-Earnings)
| Harley-Davidson, Inc. | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| (In thousands, except per share amounts) | ||||||||
| (Unaudited) | ||||||||
| Three months ended | Six months ended | |||||||
| June 30, | June 30, | June 30, | June 30, | |||||
| 2024 | 2023 | 2024 | 2023 | |||||
| HDMC revenue | $ 1,348,906 | $ 1,198,136 | $ 2,825,012 | $ 2,755,965 | ||||
| Gross profit | 433,126 | 417,474 | 894,196 | 974,500 | ||||
| Selling, administrative and engineering expense | 235,221 | 223,137 | 457,845 | 444,427 | ||||
| Operating income from HDMC | 197,905 | 194,337 | 436,351 | 530,073 | ||||
| LiveWire revenue | 6,448 | 7,026 | 11,152 | 14,788 | ||||
| Gross loss | (1,784) | (2,940) | (5,725) | (1,676) | ||||
| Selling, administrative and engineering expense | 26,382 | 29,044 | 51,682 | 54,855 | ||||
| Operating loss from Livewire | (28,166) | (31,984) | (57,407) | (56,531) | ||||
| HDFS revenue | 263,539 | 240,361 | 512,336 | 463,456 | ||||
| HDFS expense | 192,176 | 181,376 | 387,098 | 346,051 | ||||
| Operating income from HDFS | 71,363 | 58,985 | 125,238 | 117,405 | ||||
| Operating income | 241,102 | 221,338 | 504,182 | 590,947 | ||||
| Other income, net | 15,879 | 7,226 | 36,443 | 27,322 | ||||
| Investment income | 14,811 | 11,151 | 29,215 | 21,176 | ||||
| Interest expense | (7,680) | (7,696) | (15,359) | (15,416) | ||||
| Income before income taxes | 264,112 | 232,019 | 554,481 | 624,029 | ||||
| Income tax provision | 48,706 | 58,189 | 106,842 | 148,370 | ||||
| Net income | $ 215,406 | $ 173,830 | $ 447,639 | $ 475,659 | ||||
| Less: Loss attributable to noncontrolling interests | 2,863 | 4,209 | 5,571 | 6,470 | ||||
| Net income attributable to Harley-Davidson, Inc. | $ 218,269 | $ 178,039 | $ 453,210 | $ 482,129 | ||||
| Earnings per share: | ||||||||
| Basic | $ 1.64 | $ 1.24 | $ 3.36 | $ 3.33 | ||||
| Diluted | $ 1.63 | $ 1.22 | $ 3.34 | $ 3.27 | ||||
| Weighted-average shares: | ||||||||
| Basic | 133,412 | 143,414 | 134,759 | 144,724 | ||||
| Diluted | 134,108 | 145,787 | 135,513 | 147,351 | ||||
| Cash dividends per share: | $ 0.1725 | $ 0.1650 | $ 0.3450 | $ 0.3300 | ||||
| LiveWire results presented in the Company’s financial statements represent the LiveWire reportable segment as determined in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 280 Segment Reporting which may differ from LiveWire Group, Inc. results. |
| Harley-Davidson, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | (Unaudited) | |||||||
| June 30, | December 31, | June 30, | ||||||
| 2024 | 2023 | 2023 | ||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 1,849,159 | 1,533,806 | 1,521,940 | |||||
| Accounts receivable, net | 321,285 | 267,200 | 329,487 | |||||
| Finance receivables, net | 2,472,784 | 2,113,729 | 1,979,645 | |||||
| Inventories, net | 668,924 | 929,951 | 846,033 | |||||
| Restricted cash | 137,486 | 104,642 | 135,618 | |||||
| Other current assets | 188,002 | 214,401 | 201,702 | |||||
| 5,637,640 | 5,163,729 | 5,014,425 | ||||||
| Finance receivables, net | 5,545,780 | 5,384,536 | 5,530,221 | |||||
| Other long-term assets | 1,576,822 | 1,592,289 | 1,470,915 | |||||
| $ 12,760,242 | $ 12,140,554 | $ 12,015,561 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued liabilities | $ 1,038,234 | $ 996,021 | $ 950,110 | |||||
| Short-term deposits, net | 206,972 | 253,309 | 216,293 | |||||
| Short-term debt | 497,792 | 878,935 | 695,356 | |||||
| Current portion of long-term debt, net | 2,021,344 | 1,255,999 | 604,700 | |||||
| 3,764,342 | 3,384,264 | 2,466,459 | ||||||
| Long-term debt, net | 4,949,871 | 4,990,586 | 5,765,246 | |||||
| Other long-term liabilities | 612,713 | 513,409 | 594,000 | |||||
| Shareholders’ equity | 3,433,316 | 3,252,295 | 3,189,856 | |||||
| $ 12,760,242 | $ 12,140,554 | $ 12,015,561 | ||||||
| Harley-Davidson, Inc. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Six months ended | ||||||||
| June 30, | June 30, | |||||||
| 2024 | 2023 | |||||||
| Net cash provided by operating activities | $ 577,642 | $ 410,520 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (87,835) | (86,526) | ||||||
| Finance receivables, net | (308,988) | (259,520) | ||||||
| Other investing activities | (206) | 850 | ||||||
| Net cash used by investing activities | (397,029) | (345,196) | ||||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of medium-term notes | 495,856 | 1,446,304 | ||||||
| Repayments of medium-term notes | – | (1,056,680) | ||||||
| Proceeds from securitization debt | 547,618 | 547,706 | ||||||
| Repayments of securitization debt | (506,489) | (645,377) | ||||||
| Net decrease in unsecured commercial paper | (379,743) | (75,229) | ||||||
| Borrowings of asset-backed commercial paper | 351,429 | 33,547 | ||||||
| Repayments of asset-backed commercial paper | (125,654) | (129,961) | ||||||
| Net increase in deposits | 56,007 | 122,288 | ||||||
| Dividends paid | (47,359) | (48,193) | ||||||
| Repurchase of common stock | (209,675) | (169,645) | ||||||
| Other financing activities | 8 | 76 | ||||||
| Net cash provided by financing activities | 181,998 | 24,836 | ||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (10,821) | (490) | ||||||
| Net increase in cash, cash equivalents and restricted cash | $ 351,790 | $ 89,670 | ||||||
| Cash, cash equivalents and restricted cash: | ||||||||
| Cash, cash equivalents and restricted cash, beginning of period | $ 1,648,811 | $ 1,579,177 | ||||||
| Net increase in cash, cash equivalents and restricted cash | 351,790 | 89,670 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ 2,000,601 | $ 1,668,847 | ||||||
| Reconciliation of cash, cash equivalents and restricted cash on the Consolidated balance sheets to the Consolidated statements of cash flows: | ||||||||
| Cash and cash equivalents | $ 1,849,159 | $ 1,521,940 | ||||||
| Restricted cash | 137,486 | 135,618 | ||||||
| Restricted cash included in Other long-term assets | 13,956 | 11,289 | ||||||
| Cash, cash equivalents and restricted cash per the Consolidated statements of cash flows | $ 2,000,601 | $ 1,668,847 | ||||||
| HDMC Revenue and Motorcycle Shipment Data | ||||||||
| (Unaudited) | ||||||||
| Three months ended | Six months ended | |||||||
| June 30, | June 30, | June 30, | June 30, | |||||
| 2024 | 2023 | 2024 | 2023 | |||||
| HDMC REVENUE (in thousands) | ||||||||
| Motorcycles | $ 1,068,693 | $ 890,919 | $ 2,290,233 | $ 2,193,297 | ||||
| Parts and accessories | 193,865 | 215,520 | 360,058 | 383,192 | ||||
| Apparel | 63,393 | 66,356 | 127,504 | 137,747 | ||||
| Licensing | 5,485 | 5,116 | 14,414 | 11,326 | ||||
| Other | 17,470 | 20,225 | 32,803 | 30,403 | ||||
| $ 1,348,906 | $ 1,198,136 | $ 2,825,012 | $ 2,755,965 | |||||
| HDMC U.S. MOTORCYCLE SHIPMENTS | 32,334 | 24,229 | 73,911 | 66,817 | ||||
| HDMC WORLDWIDE MOTORCYCLE SHIPMENTS | ||||||||
| Grand American Touring(a) | 29,345 | 20,270 | 64,701 | 52,489 | ||||
| Cruiser | 14,410 | 15,476 | 30,101 | 36,734 | ||||
| Sport and Lightweight | 4,094 | 6,161 | 9,057 | 12,746 | ||||
| Adventure Touring | 1,811 | 1,027 | 3,473 | 3,202 | ||||
| 49,660 | 42,934 | 107,332 | 105,171 | |||||
| (a) Includes Trike | ||||||||
| LiveWire Motorcycle Shipments | 158 | 33 | 275 | 96 | ||||
| HDMC Gross Profit | ||||||||
| (Unaudited) | ||||||||
| The estimated impact of significant factors affecting the comparability of gross profit from the second quarter of 2023 to the second quarter of 2024 were as follows (in millions): | ||||||||
| Three months ended | Six months ended | |||||||
| 2023 gross profit | $ 417 | $ 975 | ||||||
| Volume | 40 | 9 | ||||||
| Price and sales incentives | (45) | (92) | ||||||
| Foreign currency exchange rates and hedging | (14) | (18) | ||||||
| Shipment mix | 51 | 58 | ||||||
| Raw material prices | 8 | 9 | ||||||
| Manufacturing and other costs | (24) | (47) | ||||||
| 16 | (81) | |||||||
| 2024 gross profit | $ 433 | $ 894 | ||||||
| HDFS Finance Receivables Allowance for Credit Losses | ||||||||
| (Unaudited) | ||||||||
| Three months ended | Six months ended | |||||||
| June 30, | June 30, | June 30, | June 30, | |||||
| 2024 | 2023 | 2024 | 2023 | |||||
| Balance, beginning of period | $ 380,361 | $ 358,431 | $ 381,966 | $ 358,711 | ||||
| Provision for credit losses | 56,030 | 57,278 | 117,040 | 109,642 | ||||
| Charge-offs, net of recoveries | (42,874) | (33,929) | (105,489) | (86,573) | ||||
| Balance, end of period | $ 393,517 | $ 381,780 | $ 393,517 | $ 381,780 | ||||
| Worldwide Retail Sales of Harley-Davidson Motorcycles(a) | ||||||||
| (Unaudited) | ||||||||
| Three months ended | Six months ended | |||||||
| June 30, | June 30, | June 30, | June 30, | |||||
| 2024 | 2023 | 2024 | 2023 | |||||
| United States | 32,258 | 32,161 | 57,984 | 56,438 | ||||
| Canada | 2,579 | 2,899 | 4,339 | 4,643 | ||||
| Total North America | 34,837 | 35,060 | 62,323 | 61,081 | ||||
| EMEA | 8,015 | 8,120 | 13,279 | 14,037 | ||||
| Asia Pacific | 6,322 | 7,525 | 12,356 | 14,406 | ||||
| Latin America | 824 | 821 | 1,445 | 1,427 | ||||
| Total worldwide retail sales | 49,998 | 51,526 | 89,403 | 90,951 | ||||
| (a) Data source for retail sales figures shown above is new sales warranty and registration information provided by dealers and compiled by the Company. The Company must rely on information that its dealers supply concerning new retail sales, and the Company does not regularly verify the information that its dealers supply. This information is subject to revision. |
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