" In 2017 we are investing in some significant changes and additions to the TR staff, in inventory management and industrial engineering, in business and sales analytics and in warranty and returns administration,"
“ we are forecasting flat for 2017... but we have momentum”
is nothing new. MAG had debt and the prior owners [ Leonard Green & Partners of Los Angeles ] still have a significant stake in the combined business, but their risk has now been spread across all of MAG, as is that of all the lenders.“ It is no secret that the market, especially in the second half of 2016, has been
" In 2017 we are investing in some significant changes and additions to the TR staff, in inventory management and industrial engineering, in business and sales analytics and in warranty and returns administration,"
Eric Cagle, President, Tucker Rocky & Biker ' s Choice
challenging, and like any business we dealt with those challenges. We are realistic and understand that market conditions will remain uncertain, so we are only forecasting that we will be broadly flat in 2017, and we are geared accordingly.“ The rumors that have been circulating about our financial status are largely unfounded. We have very strong cash flow generating capabilities. We had strong cash flow in 2016, and we expect the same in 2017. We don’ t have any operating constraints based on our financial structure.“ The debt is largely term debt. The strength of our owners means we have favorable interest rates and the debt terms are out to 2021 and 2022. We have the earnings power to service our quarterly interest payments, and there are no balloon payments. At this point the focus remains on performance, and like any business, if we get that right, then we will have options when the debt reaches maturity. As to what they may look like come the time, and how we may choose to act when the time comes, well we can’ t know that at this stage. We just have to continue to focus on the day job so we can make sure the options are good ones; and at this time it looks they will be.“ It has been a tougher market for sure, but I have confidence that we can build significant value in the next two or more years.” Asked to elaborate on the synergies and benefits he thinks the merger has brought, Graves is adamant that what is being achieved will be a game changer for the long-term health and viability of the market, as well as for the three businesses concerned.“ There is now a platform that wasn’ t there two years ago, and as that stabilizes it will bring two distinct and equally important benefits.“ We needed to expand and strengthen Tucker Rocky in the V-twin market, and in
Rivera Primo: Michael Pocevicius and Maritza Rodriguez- recent new products include their Brute III Extreme enclosed belt for high horsepower street or competition applications requiring above average strength and reliability. Primo say that the 11mm 1-3 / 4” Kevlar poly chain super belt is extremely durable and designed expressly to live with the extreme shock loads generated by large displacement, highly modified American V-twins – they rate the Brute III as a 150 + hp design, which comes complete with their Pro-Clutch assembly; www. riveraprimoinc. com
National Cycle: Paul Gomez, left, with Peter Bernacchi. Recent new products from the Maywood, Illinois manufacturer include their new ' Mohawk ', an update to their famous fork mounted flyscreen that features a taller, wider size with a special ' V ' profile for added wind management- made from thick 4.5mm dark tint, hard coated polycarbonate for durability with smooth radius edges and sharp optical quality; www. nationalcycle. com
Cardo Systems: One of the world’ s leading manufacturers of rider communications systems, the company never seems to stop innovating. Jamie Cheek, their North American VP Sales, told AMD that their new Scala Rider‘ DMC’( Dynamic Mesh Communication) technology“ allows for full intercom conferencing from two to 15 riders at a range of up to five miles, with parallel audio streaming allowing riders to listen to music or GPS instructions during their conversations. Our Packtalk / Smartpack entertainment system allows for full uninterrupted intercom communications from two to 15 riders. We are proud to provide the only products in the industry that have the DMC technology”; www. cardosystems. com www. AMDchampionship. com AMERICAN MOTORCYCLE DEALER- APRIL 2017 23