American Motorcycle Dealer AMD 251 June 2020 | Page 18

NEWS
BRIEFS
Polaris Q1 2020 - Sales Rev -6%,
Indian & Slingshot +7% at $127m
Sources: AMD, IDN, FT, Reuters, PSB, MPN, B&B, BDN, MCN, AP, Bloomberg, MSNW, Electrek, electricmotorcycles.news
Vance &
Hines has a
new video
available on
its website
for its
Fuelpak FP3.
Designed for
dealers to
refer
customers to
when
planning the
purchase of the FP3, the film
points riders to the ease of
install and use - Connect, Tune
and Ride. Connect the Fuelpak
FP3 to the bike's data port, and
pair it with Bluetooth to any
Android or iOS device. Tune the
bike with any number of dynotuned
maps, created by the
technicians at Vance & Hines.
Step three, the most critical and
the one that dealers must
encourage customers to do
straight away - ride!
National Powersport Auctions (NPA)
has introduced a new app for
dealers. Features include one-tap
access to the NPA Value Guide,
current real-time market prices,
projected returns on inventory, the
ability to sell inventory through
consignment or NPA 'Direct Buy'.
NPA 'Simulcast' will be added soon.
Italian headquartered brake
manufacturer Brembo continues
to have multiple problems with
product recalls. Following
widespread issues with its
master cylinder pistons, the
company has now been hit by a
second and equally widespread
brake pad problem - one that
could see the rear brake pad
friction material become
separated from the backing
plate. The latest recalls affect
the Ducati 1299 Superleggera
and a Triumph model, but it is
thought to be an issue for any
bike using Brembo's BRM10B
compound. There are thought to
be thousands of such bikes in
circulation in the United States
and worldwide. According to
Asphalt & Rubber, Brembo front
brake pads could have their
attachment issues.
Dorna Sports, the MotoGP and WSBK
Championships rights holder, has
outlined plans which, if approved,
would see the MotoGP season get
underway with two races at the
Circuito de Jerez-Angel Nieto at
Jerez, with a GP of Spain on July
19th and Andalusia GP on July 26th.
These races would be followed by a
Motul FIM WSBK round at the venue
on August 2nd.
CEO Scott Wine: "We opened 2020
on an upswing, with retail demand
significantly outpacing our
expectations, but the abrupt impact
of COVID-19 in mid-March
drastically altered our momentum."
Polaris Industries, Minnesota, has
reported 2020 Q1 sales revenue down
by -6% to $1,405m, but in a market
where Q1 North American retail sales
are reported as down in the high-single
digit percent, Indian Motorcycle retail
sales were up low-single digit percent.
Motorcycles segment sales at Polaris,
including PG&A, totaled $127m, up
+7% compared to the first quarter of
2019, driven by increased sales of both
Indian Motorcycle and Slingshot
models. Sector gross profit for the first
quarter of 2020 was a loss of $1m
compared to a profit of $4m in the first
quarter of 2019.
North American consumer retail sales
for Indian Motorcycle increased lowsingle
digit percent during the first
quarter of 2020 in a weak mid to
heavyweight two-wheel motorcycle
industry that was down high-teens
percent. North American consumer
retail sales for Polaris' Motorcycle
segment, including both Indian
Motorcycle and Slingshot, increased
low-single digit percent during the first
quarter of 2020, while the North
American motorcycle industry retail
sales for mid to heavyweight
motorcycles, including three-wheel
vehicles, was down mid-teens percent
in the first quarter of 2020.
CEO Scott Wine said: "We opened
2020 on an upswing, with retail
demand significantly outpacing our
expectations, but the abrupt impact of
COVID-19 in mid-March drastically
altered our momentum.
"Since then we have honed our focus
to four goals which will guide us
through this crisis: the safety of our
employees; the viability of Polaris; the
strength of our dealer network and
stewardship for our shareholders and
other stakeholders.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(In Millions, Except Per Share Data) Three months ended March 31
2020 2019
Sales 1,405.2 1,495.7
Cost of sales 1,112.3 1,143.2
Gross profit 292.9 352.5
Operating expenses:
Selling and marketing 150.2 129.3
Research and development 78.4 67.1
General and administrative 78.5 92.9
Total operating expenses 307.1 289.3
Income from financial services 19.7 18.7
Operating income 5.5 81.9
Net income (5.4) 48.4
Diluted Net income per share: $(0.09) $0.78
"Through fast action and bold
decisions, we enhanced workplace
safety and realigned our operations to
match evolving demand trends. We
also moved aggressively to optimize
our cost structure, preserve liquidity,
and augment our financial strength
and flexibility; we are actively
supporting our dealers as they find
innovative ways to serve customers
and reignite demand.
"We expect the COVID-19 pandemic,
and its corresponding shock to the
economy, to be a substantial challenge
for the global economy and our
business through the remainder of the
year and possibly longer.
"Nevertheless, I am confident in our
dedicated and hard-working Polaris
team’s ability to navigate through this
unprecedented environment and
emerge a better, stronger and more
agile business. Regardless of the
headwinds we face, our commitment
to be a customer-centric, highly
efficient growth company remains
unchanged - we believe this vision will
propel our business forward and
further solidify our position as the
global leader in Powersports."
Off-Road Vehicles (“ORV”) and
Snowmobiles segment sales, including
PG&A, totaled $824m for the first
quarter of 2020, down -5%.
ORV wholegood sales for Q1 were
-7%; Polaris North American ORV retail
sales were down high-single digit
percent for the quarter, with both sideby-side
vehicles and ATV vehicles down
high-single digit percent. The North
American ORV industry was
approximately flat compared to the
first quarter last year.
The company reported a Q1 net loss of
$5m, or $0.09 per diluted share. First
quarter reported net loss was $0.09
per share. The company entered into an
incremental $300m 364-day
unsecured term-loan facility on April 9,
2020, further increasing its liquidity
position. Gross profit decreased -17%
to $293m for Q1.
18 AMERICAN MOTORCYCLE DEALER - JUNE 2020 www.AMDchampionship.com