<<< Continued from cover Flying solo with the financial media for the first time, and fronting up to the investor community (one that is caught between performance anxiety and the potential of the impending share buyback), for the first time in his capacity as President & CEO, Matt Levatich is quoted as saying "in the face of a tough competitive environment, driven mostly by currency and greater competitive activity, we are leveraging our many strengths and meeting the challenge head on. "Our actions during the quarter have had a positive impact.We are encouraged by the momentum at retail as the quarter progressed, both in the U.S. and internationally. "We are confident in the strength of our business and the strategies we have in place to maintain our industry leadership and grow our business over the long term. Our singular focus on the customer through unrivalled products, unique experiences and our expanding dealer network is the bedrock we are building on to continue to grow our reach and impact with customers across the globe." evenue from motorcycle parts and accessories was $256.8 million during the quarter, down 5.4 percent, and revenue from general merchandise, which includes MotorClothes apparel and accessories, was $77.5 million, up 1.5 percent compared to the year-ago period. Through six months, net income was $569.7 million on consolidated revenue of $3.50 billion compared to six-month 2014 net income of $620.1 million on consolidated revenue of $3.73 billion. Six-month 2015 diluted earnings per share were $2.71, down 3.9 percent from EPS of $2.82 in the year-ago period. Gross margin was 39.2 percent in the second quarter of 2015 compared to 39.5 percent in the second quarter of 2014. Second-quarter operating margin for the motorcycles segment was 23.1 percent compared to operating margin of 25.8 percent in last year's second quarter. ix-month revenue from motorcycles was down 8.0 percent to $2.56 billion, revenue from parts and accessories decreased 6.2 percent to $440.7 million and revenue from general merchandise increased 2.5 percent to $143.9 million compared to the first six months of 2014. Gross margin through six months was 39.1 percent, and operating margin was 23.0 percent compared to 38.6 percent and 24.1 percent respectively in the yearago period. Second-quarter 2015 diluted earnings per share were $1.44 compared to EPS of $1.62 in the year-ago period. Second-quarter net income was $299.8 million on consolidated revenue of $1.82 billion compared to net income
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Harley-Davidson sales revenue and production dataâ&#x20AC;Ś 2nd quarter 2015 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
SIX MONTHS ENDED
2015 Q2
2014 Q2
2015 Q2
2014 Q2
$1,650,783 $647,214 $380,603 $299,810
$1,834,285 $724,139 $473,256 $354,153
$3,161,353 $1,237,489 $726,057 $569,664
$3,405,973 $1,316,270 $820,948 $620,070
$1.44
$1.62
$2.71
$2.82
NET SALES REVENUE Figures are shown in $1,000s
THREE MONTHS ENDED
H-D Motorcycles Parts & Accessories General Merchandise Other MOTORCYCLE SHIPMENT DATA United States Exports Total H-D PRODUCT MIX Touring Custom Sportster Total RETAIL SALES OF H-D MOTORCYCLES:
United States Canada EMEA Region Asia Pacific Region Latin America Region Total of $354.2 million on consolidated revenue of $2.00 billion in the year-ago period. Operating income from financial services was $81.9 million in the second quarter of 2015, a 10.0 percent increase compared to operating income of $74.4 million in last year's second quarter. Second quarter financial services results are said to reflect higher net interest income. Through six months, operating income from financial services was $146.6 million compared to operating income of $137.6 million through six months of 2014. The company previously indicated it expected operating income from financial services to be down modestly in 2015, but now expects operating income to be up modestly compared to the prior year. The company continues to expect a full-year 2015 operating margin of approximately 18 percent to 19 percent for the motorcycles segment. The
AMERICAN MOTORCYCLE DEALER - AUGUST 2015
2014 Q2
2015 Q2
2014 Q2
$1,308,837 $256,840 $77,518 $7,588
$1,480,914 $271,572 $76,386 $5,413
$2,563,958 $440,712 $143,946 $12,737
$2,785,953 $469,707 $140,500 $9,813
NOTE: H-D MOTORCYLE SHIPMENT DATA IS NOT THE SAME AS RETAIL REGISTRATIONS
55,128 30,044 85,172
63,043 29,174 92,217
2015 Q2
2014 Q2
34,563 29,952 20,657 85,172
41,095 32,231 18,891 92,217
2015 Q2
2014 Q2
57,790 3,737 16,179 8,517 2,708 88,931
58,225 4,146 17,764 7,302 2,781 90,218
company also continues to expect 2015 capital expenditures of $240 million to $260 million. On a discretionary basis, the company repurchased 2.8 million shares of HarleyDavidson, Inc. common stock during the second quarter of 2015 at a cost of $164.8 million. In the second quarter of 2015, there were approximately 208.6 million weighted-average diluted common shares outstanding, compared to approximately 219.2 million shares in the year-ago quarter. s reported in AMD Magazine last month, on June 17, 2015, the company disclosed that its Board of Directors authorized the company to repurchase up to an additional 15.0 million shares of its common stock and, significantly, to do so with no dollar limit. This repurchase authorization is in addition to the share repurchases that the Board authorized in February 2014, pursuant to which the company was
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SIX MONTHS ENDED
2015 Q2
111,792 52,969 164,761
2015 Q2 73,360 53,348 38,053 164,761
2015 Q2 93,278 5,860 25,567 15,614 5,273 145,592
117,334 55,565 172,899
2014 Q2 77,273 61,380 34,246 172,899
2014 Q2 93,955 6,155 27,704 14,480 5,339 147,633
authorized to repurchase up to 20.0 million shares of its common stock with no dollar limit. The company also disclosed that it intends to incur long-term debt in the third quarter of 2015 in the amount of $750 million and to use the proceeds to repurchase common stock through the remainder of 2015. These repurchases will be in addition to already planned repurchases, which were expected to be in line with repurchases made in the second half of 2014. However, the company now expects the combined effects of the additional indebtedness and share repurchases to be only slightly accretive to earnings per share in 2015, with the full effect on earnings per share beginning in 2016. At the end of the second quarter, 31.0 million shares remained on boardapproved share-repurchase authorizations. www.AMDchampionship.com