American Motorcycle Dealer AMD 244 November 2019 | Page 8

<<< Continued from cover
term objectives," said Matt Levatich,
President and Chief Executive Officer
of Harley-Davidson. "We'll continue to
fuel all aspects of the riding experience
and add new solutions to fully
develop, engage and retain riders
through their journey, starting with the
very first spark of interest," said
Levatich.
Harley says that during the quarter it
delivered GAAP diluted EPS of $0.55
($0.68 for the year-ago period),
repurchased $112.5 million of shares,
paid dividends of $0.375 per share
and improved their worldwide year-
over-year retail sales rate.
Excluding restructuring plan costs and
the impact of recent EU and China
tariffs, adjusted third quarter 2019
diluted EPS was $0.70 compared to
$0.82 in the third quarter of 2018.
Third quarter 2019 net income was
$86.6 million on consolidated revenue
of $1.27 billion versus net income of
$113.9 million on consolidated
revenue of $1.32 billion in 2018.
Harley is also pointing to the launch of
its new model year 2020 motorcycles,
including Low Rider S, CVO Tri Glide
and LiveWire; introduced the IRONe
electric-powered two-wheelers for
kids; realized significant savings from
its manufacturing optimization
initiative; progressed its 'More Roads
to Harley-Davidson' accelerated plan
for growth and activated 'Amplify
Brand' as a "fourth 'More Roads'
growth catalyst to build committed
riders".
The company says it also "advanced its
brand amplification efforts and
developed capabilities to invigorate
the Harley-Davidson experience and
build committed riders.
"During the quarter, Harley-Davidson
sharpened its U.S. and international
objectives through 2027 to better
align with its expanded efforts to build
committed riders.
"Harley-Davidson's strategic
objectives through 2027 are: expand
to four million total Harley-Davidson
riders in the U.S., grow international
business to 50 percent of annual
HDMC revenue, launch 100 new high-
8
Harley-Davidson sales revenue and production data… 3rd quarter 2019
Income statements in
$1,000s (except share)
THREE MONTHS ENDED
Net sales revenue
Gross profit
Total operating income
Net income
Diluted earnings
per common share
NINE MONTHS ENDED
2019 Q3 2018 Q3 2019 Q3 2018 Q3
$1,068,942
$320,064
$119,844
$86,563 $1,123,945
$347,415
$149,416
$113,855 $3,698,583
$1,122,241
$543,213
$410,139 $4,013,013
$1,353,273
$709,780
$530,956
$0.55 $0.68 $2.58 $3.17
$779,344
$203,173
$60,334
$17,480 $821,670
$212,406
$58,266
$20,923 $2,871,982
$584,134
$180,379
$34,989 $3,144,796
$612,495
$183,520
$42,757
NET SALES REVENUE
H-D Motorcycles
Parts & Accessories
General Merchandise
Other
MOTORCYCLE SHIPMENT DATA
United States
International
Total
PRODUCT MIX
Touring
Cruiser
Sportster/Street
RETAIL SALES OF H-D MOTORCYCLES:
United States
Canada
EMEA Region
Asia Pacific Region
Latin America Region
Total
impact motorcycles, and do so
profitably and sustainably.
"'More Roads to Harley-Davidson' is
the company's accelerated plan for
growth that drives the company's
strategy to deliver sustainable growth
and build the next generation of riders
from 2018 through 2022. The
company is focusing investment and
building new capabilities to invigorate
the Harley-Davidson brand to spark
AMERICAN MOTORCYCLE DEALER - NOVEMBER 2019
NOTE: H-D MOTORCYLE SHIPMENT DATA IS NOT THE SAME AS RETAIL REGISTRATIONS
25,572
20,265
45,837 26,213
22,426
48,639
2019 Q3 2018 Q3
19,905
16,225
9,707 22,204
16,049
10,386
2019 Q3 2018 Q3
34,903
2,560
10,483
8,078
2,498
58,522 36,220
2,453
10,543
7,433
2,577
59,226
passion that deepens rider
commitment. To reflect this, 'Amplify
Brand' was added as a growth catalyst
in the 'More Roads' plan and will
bolster the other growth catalysts of
New Products, Broader Access and
Stronger Dealers.
"The company plans to maintain its
investment and return profile and
capital allocation strategy, while it
funds strategic opportunities expected
to drive revenue growth and expand
operating margin, through 2022.
"During the third quarter, Harley-
Davidson continued to advance its
'More Roads' plan initiatives by
realizing improvements in retail sales,
service revenue and website visits for
dealers participating in Harley-
Davidson performance consulting;
strengthened its leadership in the
electrification of motorcycles;
launched high impact new models and
added significant technology to its
class-leading model year 2020
motorcycles to inspire new and
existing riders; announced the
presenting partnership with 2020
Hella Mega music experience tour."
In terms of manufacturing
optimization, Harley says it realized
total savings of $16.7 million and
incurred costs of $10.0 million in the
101,481
72,004
173,485
2019 Q3
75,871
59,367
38,247
2019 Q3
105,756
7,787
36,899
21,822
7,255
179,519
108,057
77,119
185,176
2018 Q3
84,125
61,951
39,100
2018 Q3
112,019
8,340
39,249
21,480
7,652
188,740
third quarter. Since the first quarter of
2018, the company closed its wheel
manufacturing facility in Australia and
consolidated its motorcycle assembly
plant in Kansas City, Mo. into its plant
in York, Pa. The company continues to
expect 2019 full year costs of $40
million to $50 million, 2019 full year
savings of $25 million to $30 million
and ongoing annual cash savings of
$65 million to $75 million after 2020.
Financial Services segment third
quarter operating income of $72.9
million was down -13.0 percent.
Cash and marketable securities were
$862.4 million at the end of the third
quarter of 2019, compared to $937.0
million in 2018. Through September,
Harley-Davidson generated $848.6
million of cash from operating
activities in 2019 compared to $1.12
billion in 2018. The company paid a
cash dividend of $0.375 per share in
the third quarter, and a cumulative
total of $1.125 per share for the first
nine months of 2019. On a
discretionary basis, Harley-Davidson
repurchased 3.3 million shares of its
common stock during the quarter for
$112.5 million. During the quarter,
there were approximately 156.9
million weighted-average diluted
common shares outstanding.
www.AMDchampionship.com