Harley-Davidson Overhauls Business, Rewires Company for Success; Second Quarter 2020 Results Reflect COVID-19 Impact and Response

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MILWAUKEE, WI – July 30, 2020 – (Motor Sports NewsWire) – Harley-Davidson, Inc. (“Harley-Davidson”) (NYSE:HOG) today announced actions it has taken to rewire the company, setting the foundation for a 5-year plan as the most desirable motorcycle brand in the world. The company also reported second quarter 2020 financial results, and its ongoing actions to manage the impacts of COVID-19 on its business.

“I’m very pleased with our accomplishments in these times of extraordinary challenges and uncertainty. Through all of this, we have made significant progress toward the goals of The Rewire; the positive feedback from key stakeholders and the early impacts we are seeing in the marketplace are very encouraging,” said Jochen Zeitz, chairman, president and CEO, Harley-Davidson. “A total rewire is necessary to make Harley-Davidson a high-performance company. Building on our strong brand legacy, we are reinvigorating our core profit driving business – powered by our strongest dealers, most exciting products and careful inventory management, while focusing on the most important opportunities for future expansion. We’re overhauling our operating model and our product plan and are rewiring our market structure and organization to focus on the strengths of our brand and company. We are now working on our new 5-year strategic plan, The Hardwire, which will be grounded in enhancing the desirability of our brand and protecting the value of our iconic products.”

New Operating Model: Reduced Complexity and Increased Speed
Vast changes to the company’s operating model under The Rewire include all areas of the business globally, from commercial operations to center-led support functions. Significant work has been undertaken to eliminate duplication, inefficiencies and complexity throughout the organization. As previously announced, the streamlined structure requires 700 fewer positions across its global operations.

Refined Motorcycle Line-Up and High-Impact Product Launches
The company plans to rewire its product offering to more precisely match customer desires and to strengthen the value of its products. The company will also improve product timing and go-to-market plans to achieve the greatest market impact.

Highlights of the new approach include:

  • Streamlining planned motorcycle models by approximately 30 percent; balancing investments between current stronghold categories and new, high-potential segments
  • Expanding product offerings of its best-selling, iconic motorcycles
  • Delivering its first Adventure Touring motorcycle – Pan America 1250 – in 2021
  • Shifting annual product launch timing from August to early in the first quarter
  • Reinvigorating launch efforts including collaborations with key influencers to bring the brand and new products to life drive brand desirability

Among other plans, the company is set to launch a new marketing campaign including a collaboration with Jason Momoa to celebrate the shared journey and unrelenting spirit of Harley-Davidson.

Growth through Parts & Accessories and General Merchandise
The company is intensifying focus on its Parts & Accessories and General Merchandise businesses, encouraging customers to customize their entire riding experience to match their own style. Now part of the new Commercial function, new leadership has designed strategies for each business aligned to the company’s motorcycle and market priorities with the goal of delivering a holistic experience in the marketplace.

Reset Global Business and Focus on High-Potential Markets
Harley-Davidson plans to concentrate on approximately 50 markets primarily in North America, Europe and parts of Asia Pacific that represent the vast majority of the company’s volume and growth potential. The company is evaluating plans to exit international markets where volumes and profitability do not support continued investment in line with the future strategy.

The company also plans to shift resources and marketing investments into the regions for maximum impact. As part of this effort, the company has streamlined regional offices and created new groups of high potential countries that will have the autonomy, within a clearly defined framework, to drive the business. Additionally, the company plans to optimize its dealer network to provide an improved and integrated customer experience.

Protecting Value
Harley-Davidson has revamped its approach to supply and inventory management focusing on products and initiatives that add value, while significantly reducing discounting and price promotions. This is expected to drive retail pricing to help preserve the value and desirability of Harley-Davidson motorcycles for its customers and brand.

The Rewire
All of the above efforts of The Rewire aim to provide a better starting point for the future and to build desirability for the Harley-Davidson brand and products.

The Rewire outcomes and other highlights at the end of Q2:

  • $250 million in cash savings (excluding restructuring charges) including SG&A and capital reductions expected in 2020
  • Restructuring charges of $42 million expected to result in approximately $100 million in ongoing annual savings based upon actions taken
  • Global dealer inventory down 32 percent
  • On average, U.S. new Model Year 2020 motorcycles selling at MSRP
  • Used Harley-Davidson pricing up significantly at retail and auction

The Rewire is expected to continue through the end of the year, leading to a first look at the company’s 2021-2025 strategic plan, The Hardwire, expected in the fourth quarter. Building on the foundation and principles of The Rewire, the driver of the new plan will be Harley-Davidson as the most desirable motorcycle brand in the world for its customers, employees, community and investors.

COVID-19 Response and Recovery
The company continues to proactively manage its business through the pandemic and has implemented robust protocols to keep workers safe in its factories. Most non-production workers will continue to work from home until the end of the year. Its response and recovery plans include supporting global dealers and customers. At the end of the quarter, about 93 percent of its global dealers were open for retail motorcycle sales following pandemic interruptions.

Included in the company’s broad cost and cash savings measures are SG&A reductions, curtailed capital spending, suspended discretionary share repurchases and a prudent approach to dividend payments. The company announced it will pay a third quarter cash dividend of $0.02 per share, in line with its second quarter dividend. The dividend is payable September 25, 2020 to the shareholders of record of the company’s common stock as of September 10, 2020.

The company has also further strengthened its strong liquidity position with nearly $4.7 billion in liquidity at the end of the quarter.

Second Quarter 2020 Results
Harley-Davidson, Inc Consolidated Financial Results

$ in millions (except EPS)

2nd quarter

6 months

2020

2019

Change

2020

2019

Change

Revenue

$865

$1,633

(47)%

$2,163

$3,017

(28)%

Net (Loss) Income

$(92)

$196

(147)%

$(23)

$324

(107)%

GAAP Diluted EPS

$(0.60)

$1.23

(149)%

$0.15

$2.03

(107)%

Adjusted Diluted EPS

$(0.35)

$1.46

(124)%

$0.16

$2.44

(93)%

Second quarter 2020 results reflect the impacts of COVID-19 and also the actions taken in the second quarter to rewire the company. Q2 GAAP diluted EPS was $(0.60) versus $1.23 in Q2 2019. Excluding restructuring plan costs and the impact of recent tariffs, adjusted Q2 diluted EPS was $(0.35) versus $1.46 in Q2 2019. Second quarter net loss was $92 million on consolidated revenue of $865 million versus net income of $196 million on consolidated revenue of $1.6 billion in Q2 2019.

Harley-Davidson Retail Motorcycle Sales

Motorcycles (thousands)

2nd quarter

6 months

2020

2019

Change

2020

2019

Change

U.S.

31.3

42.8

(27)%

55.0

70.9

(22)%

Canada

2.3

3.3

(30)%

3.8

5.2

(28)%

North America

33.6

46.0

(27)%

58.8

76.1

(23)%

EMEA

11.0

15.6

(30)%

18.7

26.4

(29)%

Asia Pacific

6.9

7.7

(10)%

12.6

13.7

(8)%

Latin America

1.2

2.5

(51)%

3.0

4.8

(37)%

Worldwide Total

52.7

71.8

(27)%

93.2

121.0

(23)%

Global retail motorcycle sales in the second quarter of 2020 were significantly impacted by COVID-19. U.S. retail sales finished down 27 percent compared to prior year.

Motorcycles and Related Products Segment Results

$ in millions

2nd quarter

6 months

2020

2019

Change

2020

2019

Change

Motorcycle Shipments (thousands)

28.4

68.8

(59)%

81.3

127.6

(36)%

Total Revenue

$669

$1,434

(53)%

$1,769

$2,630

(33)%

Motorcycles Revenue

$447

$1,128

(60)%

$1,346

$2,093

(36)%

Parts & Accessories Revenue

$169

$221

(24)%

$303

$381

(20)%

General Merchandise Revenue

$38

$65

(42)%

$87

$120

(28)%

Gross Margin

16.1%

31.7%

(15.6) pts.

24.1%

30.5%

 (6.4) pts.

Operating (Loss) Income

($121)

$181

(167)%

($36)

$289

(113)%

Operating Margin

-18.1%

12.6%

(30.7) pts.

-2.1%

11.0%

(13.1) pts.

Revenue from the Motorcycles and Related Products segment was down in the second quarter of 2020 compared to prior year primarily driven by the temporary motorcycle manufacturing suspension during most of the quarter related to COVID-19. Gross margin and operating margin were down during the quarter primarily due to lower productivity and absorption resulting from the suspension of manufacturing.

Financial Services Segment Results

$ in millions

2nd Quarter

6 months

2020

2019

Change

2020

2019

Change

Revenue

$196

$199

(1)%

$394

$387

2%

Operating Income

$5

$76

(94)%

$28

$134

(79)%

Financial Services segment second quarter operating income of $5 million was down 94 percent driven by an increase in the provision for loan losses related to COVID-19’s impact on economic projections.

Other Results
Cash – Cash and cash equivalents were $3.9 billion at the end of second quarter of 2020, compared to $925 million at the end of Q2 2019. Harley-Davidson generated $610 million of cash from operating activities year-to-date 2020 compared to $496 million year-to-date 2019.

Tax Rate – Harley-Davidson’s year-to-date effective tax rate was 3.7 percent compared to 24.1 percent in Q2 2019.

Dividend & Share Repurchase – The company paid a cash dividend of $0.02 per share for the second quarter of 2020. The company did not repurchase shares on a discretionary basis during the second quarter of 2020. During the quarter, there were 153 million weighted-average diluted common shares outstanding and 18 million shares remained on board-approved share repurchase authorizations.

2020 Outlook 
Given the uncertainty that remains surrounding the impact and duration of the COVID-19 pandemic, the company is not providing financial guidance.

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. Since 1903, Harley-Davidson has defined motorcycle culture with an expanding range of leading-edge, distinctive and customizable motorcycles in addition to riding experiences and exceptional motorcycle accessories, riding gear and apparel. Harley-Davidson Financial Services provides financing, insurance and other programs to help get Harley-Davidson riders on the road. Learn more at www.harley-davidson.com.

Webcast Presentation
Harley-Davidson will discuss financial results, developments in the business, and a summary of The Rewire efforts on an audio webcast at 8:00 a.m. CT 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. CT.

Non-GAAP Disclosure
This press release includes financial measures that have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP) and are therefore referred to as non-GAAP financial measures. The non-GAAP measures described below are intended to be considered by users as supplemental information to the equivalent GAAP measures, to aid investors in better understanding the company’s financial results. The company believes that these non-GAAP measures provide useful perspective on underlying business results and trends, and a means to assess period-over-period results. These non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP measures may not be the same as similarly titled measures used by other companies due to possible differences in method and in items or events being adjusted.

The non-GAAP measures included in this press release are adjusted net income and adjusted diluted EPS excluding restructuring plan costs and the impact of recent EU and China tariffs. Restructuring plan costs include restructuring expenses as presented in the consolidated statements of income and costs associated with temporary inefficiencies incurred in connection with the manufacturing optimization initiative included in Motorcycles and Related Products cost of goods sold. The impact of recent EU and China tariffs includes incremental European Union and China tariffs imposed beginning in 2018 on the company’s products shipped from the U.S., as well as incremental U.S. tariffs imposed beginning in 2018 on certain items imported from China. The impact of recent EU and China tariffs excludes higher metals cost resulting from the U.S. steel and aluminum tariffs. These adjustments are consistent with the approach used for 2018 to determine performance relative to financial objectives under the company’s incentive compensation plans. These non-GAAP measures, as well as a reconciliation of the comparable GAAP measure to these non-GAAP measures are included later in this press release.

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. 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,” “is on-track” 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 following: (i) the COVID-19 pandemic including the length and severity of the pandemic across the globe and the pace of recovery following the pandemic; (ii) adverse economic, political or market conditions in the U.S. and international markets and other factors such as natural disasters; and (iii) the Company’s ability to: (A) create and execute its business plans and strategies, and strengthen its existing business while allowing for desirable growth; (B) manage and predict the impact that new or adjusted tariffs may have on the company’s ability to sell products internationally, and the cost of raw materials and components; (C) successfully carry out its global manufacturing and assembly operations; (D) accurately analyze, predict and react to changing market conditions and successfully adjust to shifting global consumer needs and interests, including successfully implementing and executing plans to exit international markets where volumes and profitability do not support continued investment in line with the future strategy; (E) successfully access the capital and/or credit markets on terms that are acceptable to the company and within its expectations; (F) develop and maintain a productive relationship with Zhejiang Qianjiang Motorcycle Co., Ltd. and launch related products in a timely manner; (G) 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; (H) perform in a manner that enables the company to benefit from market opportunities while competing against existing and new competitors; (I) realize expectations concerning market demand for electric models, which will depend in part on the building of necessary infrastructure; (J) 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; (K) manage supply chain issues, including quality issues and any unexpected interruptions or price increases caused by raw material shortages or natural disasters; (L) manage the impact that prices for and supply of used motorcycles may have on its business, including on retail sales of new motorcycles; (M) successfully manage and reduce costs throughout the business; (N) balance production volumes for its new motorcycles with consumer demand; (O) manage risks that arise through expanding international manufacturing, operations and sales; (P) manage through changes in general economic and business conditions, including changing capital, credit and retail markets, and the changing political environment; (Q) successfully determine, implement on a timely basis, and maintain a manner in which to sell motorcycles in the European Union, China, and the company’s ASEAN countries that does not subject its motorcycles to incremental tariffs; (R) accurately estimate and adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices; (S) continue to develop the capabilities of its distributors and dealers, effectively implement changes relating to its dealers and distribution methods and manage the risks that its independent dealers may have difficulty obtaining capital and managing through changing economic conditions and consumer demand; (T) retain and attract talented employees, and eliminate personnel duplication, inefficiencies and complexity throughout the organization; (U) prevent a cybersecurity breach involving consumer, employee, dealer, supplier, or company data and respond to evolving regulatory requirements regarding data security; (V) manage the credit quality, the loan servicing and collection activities, and the recovery rates of HDFS’ loan portfolio; (W) 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; (X) manage through the effects inconsistent and unpredictable weather patterns may have on retail sales of motorcycles; (Y) implement and manage enterprise-wide information technology systems, including systems at its manufacturing facilities; (Z) grow ridership, globally; (AA) manage changes and prepare for requirements in legislative and regulatory environments for its products, services and operations; (BB) manage its exposure to product liability claims and commercial or contractual disputes; (CC) 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; (DD) continue to manage the relationships and agreements that the company has with its labor unions to help drive long-term competitiveness; and (EE) accurately predict the margins of its Motorcycles and Related Products segment in light of, among other things, tariffs, the cost associated with product development initiatives and the company’s complex global supply chain.

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, or other factors. Other factors are described in risk factors that the company has disclosed in documents previously filed with the Securities and Exchange Commission. Many of these risk factors are impacted by the current changing capital, credit and retail markets and the company’s ability to manage through inconsistent economic conditions.

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 independent dealers to sell its motorcycles and related products and services to retail customers. The company depends on the capability and financial capacity of its independent 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 independent 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, the impact of COVID-19, or other factors. In recent years, HDFS has experienced historically low levels of retail credit losses, but there is no assurance that this will continue. The company believes that HDFS’ retail credit losses may increase over time due to changing consumer credit behavior and HDFS’ efforts to increase prudently structured loan approvals to sub-prime borrowers, as well as actions that the company has taken and could take that impact motorcycle values. Refer to “Risk Factors” under Item 1A of the company’s Annual Report on Form 10-K for the year ended December 31, 2019 and Part II, Item 1A of any subsequently filed Quarterly Report on Form 10-Q, for a discussion of additional risk factors and a more complete discussion of some of the cautionary statements noted above.

### (HOG-F)

Harley-Davidson, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Three months ended

Six months ended

June 28,

June 30,

June 28,

June 30,

2020

2019

2020

2019

Motorcycles and Related Products revenue

$ 669,274

$1,434,004

$1,769,062

$2,629,641

Gross profit

107,628

454,738

426,548

802,177

Selling, administrative and engineering expense

187,647

263,587

422,000

489,015

Restructuring expense 

41,005

10,423

41,005

24,053

  Operating (loss) income from Motorcycles and Related Products

(121,024)

180,728

(36,457)

289,109

Financial Services revenue

195,953

198,615

394,409

387,358

Financial Services expense

190,084

123,086

365,594

253,098

Financial Services restructuring expense

944

944

  Operating income from Financial Services

4,925

75,529

27,871

134,260

Operating (loss) income

(116,099)

256,257

(8,586)

423,369

Other income, net

156

4,037

311

8,697

Investment income

5,757

3,571

410

9,929

Interest expense

7,769

7,784

15,524

15,515

(Loss) income before income taxes

(117,955)

256,081

(23,389)

426,480

Income tax (benefit) provision

(25,738)

60,450

(867)

102,904

Net (loss) income

$ (92,217)

$   195,631

$   (22,522)

$   323,576

(Net loss) earnings per share:

  Basic

$   (0.60)

$      1.23

$     (0.15)

$      2.03

  Diluted

$   (0.60)

$      1.23

$     (0.15)

$      2.03

Weighted-average shares:

  Basic

153,199

158,813

153,103

159,061

  Diluted

153,199

159,425

153,103

159,724

Cash dividends per share:

$   0.020

$     0.375

$     0.400

$     0.750

Harley-Davidson, Inc.

Reconciliation of GAAP Amounts to Non-GAAP Amounts

(In thousands, except per share amounts) 

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Three months ended

Six months ended

June 28,

June 30,

June 28,

June 30,

2020

2019

2020

2019

Net (loss) income excluding restructuring plan costs and the impact of recent tariffs

Net (loss) income (GAAP)

$ (92,217)

$  195,631

$   (22,522)

$  323,576

Restructuring plan costs

41,949

14,414

41,949

31,624

Impact of incremental tariffs

7,100

34,400

19,707

55,377

Tax effect of adjustments(a)

(10,693)

(11,837)

(14,009)

(21,097)

Adjustments, net of tax

38,356

36,977

47,647

65,904

Adjusted net (loss) income (non-GAAP)

$ (53,861)

$   232,608

$    25,125

$   389,480

Diluted EPS excluding restructuring plan costs and the impact of recent tariffs

Diluted EPS (GAAP)

$   (0.60)

$      1.23

$     (0.15)

$      2.03

Adjustments net of tax, per share

0.25

0.23

0.31

0.41

Adjusted diluted EPS (non-GAAP)

$   (0.35)

$      1.46

$      0.16

$      2.44

(a) The income tax effect of adjustments has been computed using the company’s effective income tax rate

Harley-Davidson, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

(Unaudited)

June 28,

December 31,

June 30,

2020

2019

2019

ASSETS

Current assets:

    Cash and cash equivalents

$ 3,856,597

$   833,868

$   924,638

    Accounts receivable, net

271,431

259,334

325,306

    Finance receivables, net

1,901,620

2,272,522

2,362,125

    Inventories, net

429,339

603,571

470,610

    Restricted cash

189,712

64,554

82,248

    Other current assets

163,135

168,974

147,234

6,811,834

4,202,823

4,312,161

Finance receivables, net

5,078,371

5,101,844

5,232,280

Other long-term assets

1,265,947

1,223,492

1,195,875

$13,156,152

$10,528,159

$10,740,316

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

    Accounts payable and accrued liabilities

$   921,672

$   876,668

$   940,369

    Short-term debt

1,547,388

571,995

405,695

    Current portion of long-term debt, net

2,186,037

1,748,109

2,396,188

4,655,097

3,196,772

3,742,252

Long-term debt, net

6,488,499

5,124,826

4,650,176

Pension and postretirement healthcare liabilities

126,997

128,651

185,289

Other long-term liabilities

261,854

273,911

251,958

Shareholders’ equity

1,623,705

1,803,999

1,910,641

$13,156,152

$10,528,159

$10,740,316

Harley-Davidson, Inc.

Condensed Consolidated Statements of Cash Flows

 (In thousands)

(Unaudited)

(Unaudited)

Six months ended

June 28,

June 30,

2020

2019

Net cash provided by operating activities

$   610,203

$   496,232

Cash flows from investing activities:

  Capital expenditures

(67,026)

(83,229)

  Finance receivables, net

(83,871)

(296,070)

  Acquisition of business

(7,000)

  Other investing activities

(381)

21,724

Net cash used by investing activities

(151,278)

(364,575)

Cash flows from financing activities:

  Proceeds from issuance of medium-term notes

1,396,602

546,655

  Repayments of medium-term notes

(1,400,000)

(750,000)

  Proceeds from securitization debt

2,064,450

1,021,353

  Repayments of securitization debt

(369,613)

(113,806)

  Net increase (decrease) in unsecured commercial paper

831,354

(728,606)

  Net increase in credit facilities

150,000

  Borrowings of asset-backed commercial paper

225,187

23,373

  Repayments of asset-backed commercial paper

(143,306)

(155,286)

  Deposits

17,995

  Dividends paid

(61,917)

(120,841)

  Repurchase of common stock

(7,156)

(104,621)

  Issuance of common stock under employee stock option plans

41

833

Net cash provided (used) by financing activities

2,703,637

(380,946)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(382)

3,439

Net increase (decrease) in cash, cash equivalents and restricted cash

$3,162,180

$ (245,850)

Cash, cash equivalents and restricted cash:

Cash, cash equivalents and restricted cash, beginning of period

$   905,366

$ 1,259,748

Net increase (decrease) in cash, cash equivalents and restricted cash

3,162,180

(245,850)

Cash, cash equivalents and restricted cash, end of period

$4,067,546

$1,013,898

Reconciliation of cash, cash equivalents and restricted cash on the Consolidated balance sheets to the Consolidated statements of cash flows: 

  Cash and cash equivalents

$ 3,856,597

$   924,638

  Restricted cash

189,712

82,248

  Restricted cash included in Other long-term assets

21,237

7,012

  Cash, cash equivalents and restricted cash per the Consolidated statements of cash flows

$ 4,067,546

$ 1,013,898

Motorcycles and Related Products Revenue

 and Motorcycle Shipment Data

(Revenue in thousands) 

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Three months ended

Six  months ended

June 28,

June 30,

June 28,

June 30,

2020

2019

2020

2019

MOTORCYCLES AND RELATED PRODUCTS REVENUE

  Motorcycles

$ 446,738

$ 1,128,063

$ 1,346,103

$ 2,092,638

  Parts & accessories

168,708

221,258

303,393

380,961

  General merchandise

37,805

64,644

86,965

120,045

  Licensing

4,903

9,911

12,932

18,488

  Other

11,120

10,128

19,669

17,509

$ 669,274

$ 1,434,004

$ 1,769,062

$ 2,629,641

U.S. MOTORCYCLE SHIPMENTS

11,051

41,404

44,075

75,909

WORLDWIDE MOTORCYCLE SHIPMENTS

    Touring

9,709

30,923

31,306

55,966

    Cruiser(a)

11,874

22,691

32,005

43,142

    Sportster®/ Street

6,786

15,143

18,031

28,540

28,369

68,757

81,342

127,648

(a)Includes Softail®, CVOTM, and LiveWireTM

Worldwide Retail Sales of Harley-Davidson Motorcycles(a)

Three months ended

Six months ended

June 30,

June 30,

June 30,

June 30,

2020

2019

2020

2019

United States

31,340

42,762

55,072

70,853

Canada

2,287

3,279

3,753

5,227

Total North America

33,627

46,041

58,825

76,080

Europe(b)

9,738

13,552

16,272

22,979

EMEA – Other

1,226

2,067

2,422

3,437

Total EMEA

10,964

15,619

18,694

26,416

Asia Pacific(c)

4,364

4,544

8,073

8,330

Asia Pacific – Other

2,524

3,126

4,567

5,414

Total Asia Pacific

6,888

7,670

12,640

13,744

Latin America

1,233

2,516

2,992

4,757

      Total worldwide retail sales

52,712

71,846

93,151

120,997

(a) Data source for retail sales figures shown above is new sales warranty and registration information provided by Harley-Davidson 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.

(b) Includes Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden, Switzerland and the United Kingdom. Retail sales for Greece and Portugal were reclassified from Europe to EMEA – Other for 2019 to be consistent with the 2020 presentation.

(c) Includes Japan, Australia, New Zealand and South Korea

Motorcycle Registration Data(a)

Six months ended

June 30,

June 30,

2020

2019

United States(b) 

127,360

144,623

Europe(c)

220,472

260,301

(a) Data includes on-road models with internal combustion engines with displacements greater than 600cc’s and electric motorcycles with kilowatt peak power equivalents greater than 600cc’s (601+cc). On-road 601+cc models include dual purpose models, three-wheeled motorcycles and autocycles. Registration data for Harley-Davidson Street® 500 motorcycles is not included in this table.

(b) United States industry data is derived from information provided by Motorcycle Industry Council. This third-party data is subject to revision and update.

(c) Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden, Switzerland, and the United Kingdom. Industry data is derived from information provided by Management Services Helwig Schmitt GmbH. Prior year registrations have been revised to exclude Greece and Portugal registrations. This third party data is subject to revision and update.

Source: Harley-Davidson, Inc.

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