American Motorcycle Dealer AMD 236 March 2019 - Page 6

<<< Continued from cover motorcycling,” said Levatich. Through 2022, the ‘More Roads’ strategy aims to deliver on key goals, including new products (keep current riders engaged and inspire a new generation of Harley-Davidson riders); broader access (meet customers where they are and how they want to engage with a multi-channel retail experience); stronger dealers (drive a performance framework to improve dealer financial strength and the Harley-Davidson customer experience). The company believes its accelerated plan will drive revenue growth and expand operating margins and expects to fund strategic opportunities while maintaining its current investment and return profile and capital allocation strategy. On a full-year basis, earnings per share (EPS) was up year-over-year on positive revenue growth. The company says it “achieved all stated 2018 milestones associated with its ‘More Roads to Harley-Davidson’ accelerated plan for growth.” Full-year 2018 GAAP diluted EPS was $3.19, up +5.6 percent; year-ago GAAP diluted EPS was $3.02. Excluding restructuring plan costs (including manufacturing optimization) and the impact of incremental tariffs, 2018 diluted EPS was $3.78. Full-year 2018 net income was $531.5 million on consolidated revenue of $5.72 billion versus net income of $521.8 million on consolidated revenue of $5.65 billion in 2017. However, fourth quarter 2018 GAAP diluted EPS was $0.00; year-ago GAAP diluted EPS was $0.05. Excluding restructuring plan costs (including manufacturing optimization) and the impact of incremental tariffs, fourth quarter 2018 diluted EPS was $0.17. Fourth quarter 2018 net income was only $0.5 million on consolidated revenue of $1.15 billion versus net income of $8.3 million on consolidated revenue of $1.23 Harley-Davidson sales revenue and production data… 4th quarter 2018 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 2018 Q4 2017 Q4 2018 Q4 2017 Q4 $955,633 $263,577 $3,743 $495 $1,047,045 $320,599 $99,200 $8,314 $4,968,646 $1,616,850 $713,523 $531,451 $4,915,027 $1,642,697 $882,081 $521,759 $0.00 $0.05 $3.19 $3.02 $738,167 $142,168 $58,444 $7,623 $789,970 $167,170 $71,236 $8,720 $3,882,963 $754,663 $241,964 $50,380 $3,765,620 $800,702 $262,776 $46,743 NET SALES REVENUE H-D Motorcycles Parts & Accessories General Merchandise Other MOTORCYCLE SHIPMENT DATA United States Exports Total H-D NOTE: H-D MOTORCYLE SHIPMENT DATA IS NOT THE SAME AS RETAIL REGISTRATIONS 24,376 19,113 43,489 26,475 20,723 47,198 PRODUCT MIX 2018 Q4 2017 Q4 2018 Q4 2017 Q4 Touring Cruiser Sportster/ Street Total 17,817 16,578 9,094 43,489 2018 Q4 19,353 19,651 8,194 47,198 2017 Q4 101,942 78,529 48,194 228,665 2018 Q4 99,745 87,344 54,409 241,498 2017 Q4 20,849 1,350 7,353 7,244 2,515 39,311 23,195 1,318 7,460 7,720 2,449 42,142 132,868 9,690 46,602 28,724 10,167 228,051 147,972 10,081 44,935 30,348 9,452 242,788 RETAIL SALES OF H-D MOTORCYCLES: United States Canada EMEA Region Asia Pacific Region Latin America Region Total 132,433 96,232 228,665 144,893 96,605 241,498 billion in 2017. Despite the growing pressure on margins and net profitability during the year, Harley-Davidson repurchased $382 million of shares and paid dividends totaling $1.48 per share, up +1.4 percent versus the prior year. Cash from operations was up over $200 million, or +20 percent, compared to 2017. The Financial Services segment finished the year with record earnings of $291.2 million, up 5.8 percent. H-D Market Share 2009-2018 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 United States (601+cc) Total Market New Registrations 325,500 278,500 289,900 299,400 305,900 313,627 328,800 311,710 288,802 263,750 H-D Retail Sales 162,385 143,391 150,900 161,300 167,800 171,079 168,240 161,658 147,972 132,868 United States H-D percentage Market Share 49.9% 51.5% 52.1% 53.9% 54.9% 54.5% 51.2% 51.9% 51.2% 50.4% EMEA (601+ cc) Total Market New Registrations 368,000 344,800 328,500 300,400 281,800 319,801 351,700 391,936 390,619 397,669 H-D Retail Sales 36,444 37,378 39,900 36,200 36,100 38,491 43,287 45,838 44,935 46,602 European H-D percentage market share 9.9% 10.8% 12.1% 12.1% 12.8% 12.0% 12.3% 11.7% 11.5% 11.7% USA 66.93 64.56 64.49 64.71 64.74 63.84 63.58 62.11 60.95 58.26 EMEA 16.49 18.54 18.85 17.22 16.34 16.91 16.36 17.61 18.51 20.43 Total International 33.07 35.44 35.51 35.29 35.26 36.16 36.42 37.89 39.05 41.74 Percentage of H-D retail sales: 6 AMERICAN MOTORCYCLE DEALER - MARCH 2019 www.AMDchampionship.com