PowerSports Business

October 2, 2017

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FINANCE 16 • October 2, 2017 • Powersports Business www.PowersportsBusiness.com Wells Fargo Commercial Distribution Finance (CDF) announced it has extended a preferred dealer financing program with KYMCO USA. This program will continue to offer inventory financing solutions and other services to support KYMCO's dealer network. "We've fostered a strong relationship with KYMCO over the past 16 years, and our team looks forward to offering them the financial tools they need to grow their business," said Jeff Green, vice president and commercial leader, CDF. "We value our relationship with KYMCO, and we're honored to move forward with this program." "Working with CDF has given us the flex- ibility to support our dealer network and has become a critical aspect for us in improving our business," said Bruce Ramsey, KYMCO USA vice president of Sales and Market- ing. "They are a valued partner, and we are excited to keep up the momentum as our business keeps growing." TCF REPORTS REVENUE GROWTH IN Q2 TCF Financial Corporation (NYSE: TCF) reported net income of $60.4 million for the second quarter of 2017, compared with $57.7 million for the second quarter of 2016 and $46.3 million for the first quar- ter of 2017. Diluted earnings per common share were 33 cents for the second quarter of 2017, compared with 31 cents for the second quarter of 2016 and 25 cents for the first quarter of 2017. "TCF reported solid second quarter results driven by strong revenue and balance sheet growth and stable credit quality," said Craig R. Dahl, chairman and chief executive officer. "TCF's strong growth in net interest income was a key driver in creating a more stable source of revenue. We were able to generate margin expansion on both a linked quarter and year-over-year basis primarily due to our asset sensitive balance sheet. In addition, a strong quarter of leasing and equipment finance revenue continues to demonstrate the strength of our diversified model. "TCF's auto finance business is perform- ing as expected following the announced stra- tegic shift last quarter." 6D HELMETS WINS GRAND PRIZE OF $500K AS INVESTMENT The U.S. Commerce Department's National Institute of Standards and Technology, the NFL, GE and Under Armour announced that a collaborative team of materials designers has been selected as the grand prize winner of Head Health Challenge III. Head Health Challenge III was designed to spur the discovery, design, and development of advanced materials to better absorb or miti- gate force within helmets and other sports and consumer products that protect against traumatic brain injury. The $500,000 grand prize winning team used computer modeling and a series of iterative improvements to create a novel material with an unusual geometric struc- ture. The team is Dynamic Research, of Torrance, California, which specializes in applied research, development and con- sulting in areas such as vehicle safety and biomechanics, and 6D Helmets, of Brea, California, developers of the Omni-Direc- tional Suspension, a head-protection tech- nology first commercialized for the action sports community for use in motorcycle and bicycle helmets. PSB DIGEST Wells Fargo CDF extends KYMCO dealer financing program percentage increased by 70 basis points to 21.2 percent from 20.5 percent for the six- month period ended July 31, 2016. The increase in gross profit margin percentage was primarily due to a favourable product mix in SSV, partially offset by higher production costs and higher sales program costs driven by the increase in retail sales. YEAR-ROUND PRODUCTS R e v e n u e s f r o m Y e a r - R o u n d P r o d u c t s increased by $113.1 million, or 34.7 per- cent, to $439.4 million for the three-month period ended July 31, 2017, compared with $326.3 million for the corresponding period ended July 31, 2016. The increase resulted from a higher volume and a favorable product mix of SSV sold due mainly to the introduction of the Can-Am Maverick X3. SEASONAL PRODUCTS Revenues from Seasonal Products increased by $38.1 million, or 13.6 percent, to $318.6 million for the three-month period ended July 31, 2017, compared with $280.5 million for the corresponding period ended July 31, 2016. The increase resulted primarily from a higher volume of PWC sold. PROPULSION SYSTEMS Revenues from Propulsion Systems increased by $5.5 million, or 5.5 percent, to $105.4 mil- lion for the three-month period ended July 31, 2017, compared with $99.9 million for the corresponding period ended July 31, 2016. The increase in revenues was mainly attributable to a higher volume and a favorable product mix of outboard engines sold, partially offset by a lower volume of motorcycle engines sold. PAC (PARTS, ACCESSORIES, CLOTHING AND OTHER SERVICES) Revenues from PAC increased by $14.2 mil- lion, or 9.5 percent, to $163.6 million for the three-month period ended July 31, 2017, com- pared with $149.4 million for the correspond- ing period ended July 31, 2016. The increase was mainly attributable to a higher volume of SSV accessories sold. PSB BRP CONTINUED FROM PAGE 14

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