PowerSports Business

July 10, 2017

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FINANCIAL Defender, Maverick X3 among OEM's top performers BRP reported its financial results for the three-month period ended April 30. Reve- nues increased by $26.3 million, or 2.8 per- cent, to $956.2 million, in comparison with $929.9 million for the corresponding period ended April 30, 2016. "I am very pleased with BRP's performance in the start of this new fiscal year, with excellent first quarter revenues and profitability. Our side-by-side business continues on its positive trend with great demand for the Can-Am Defender and Maverick X3 vehi- cles (SSV)," said José Boisjoli, president and CEO. "Even though the Sea-Doo season is only just starting, we can see a good momentum in the watercraft business. Our Parts, Accessories and Clothing business has also performed very well this quarter, due to good end-of-season snowmobile parts sales and to strong interest in our new SSV accessories. "I consider that we are in an excellent posi- tion to reach our strategic objectives as the entire team remains aligned towards their real- ization. We are introducing our new Can-Am off-road lineup with several innovations, and I am sure it will be well received by the mar- ket," said Boisjoli. "What's more, snowmobile spring orders from dealers were higher than planned. All this, combined with the excellent results from the first quarter, have led us to increase our guidance." In closing, Boisjoli added: "The Board of Directors approved the declaration of a quar- terly dividend and the launch of a substantial issuer bid. These decisions reflect our solid financial position, strong ongoing cashflow 12 • July 10, 2017 • Powersports Business www.PowersportsBusiness.com Boisjoli 'very pleased' with BRP's fiscal Q1 STOCK MARKET WATCH DEALER FINANCIAL SNAPSHOT MAY 2017 CDK Global Recreation's 1,631 powersports dealer- ships in the U.S. increased sales 2.9 percent overall in May 2017, compared to the same period in 2016. The West, South and Northeast all experienced growth in each category. The Midwest saw a slight decrease in its major unit sales, but a 9.2 percent increase in parts sales. The Northwest was down in service 2.3 percent, but had the highest increase in parts sales, up 10.6 percent. PARTS SALES 930 dealers were up in parts, and 701 were down. SERVICE SALES In service, 853 dealers were up and 731 were down. MAJOR UNIT SALES Major unit sales saw 724 dealers up and 674 down. NORTHWEST 10.6% Parts Department -2.3% Service Department 2.6% Major Units 3.1% Overall MIDWEST 9.2% Parts Department 2.3% Service Department -0.8% Major Units 0.6% Overall NORTHEAST 6.1% Parts Department 3.1% Service Department 8.3% Major Units 7.9% Overall SOUTH 5.1% Parts Department 3.9% Service Department 1.1% Major Units 1.9% Overall WEST 6.1% Parts Department 2.3% Service Department 3.4% Major Units 3.4% Overall UNITED STATES 6.9% Parts Department 2.5% Service Department 2.4% Major Units 2.9% Overall Stock Price Percent Company Ticker 6/19/17 Change ARI Network Services, Inc. ARIS $6.49 32.7% Spy Inc. XSPY $0.13 30.0% Brunswick Corp. BC $60.52 10.5% Speedway Motorsports, Inc. TRK $18.81 8.3% Deere & Company DE $127.72 4.9% Honda Motor Corp. ADR HMC $27.70 -0.1% Polaris Industries, Inc. PII $86.87 -0.2% Marine Max, Inc. HZO $18.15 -0.5% Cooper Tire & Rubber CTB $35.65 -1.0% Carlisle Companies CSL $96.35 -4.0% POWERSPORTS BUSINESS WINNERS AND LOSERS See BRP, Page 13 MARKET WATCH Change 6/16/17 from 5/19 % Change Powersports Business Index 269.021 7.27 2.78% Dow Jones Index 185.997 4.04 2.22% S&P 500 Index 165.605 3.50 2.16% Source: Wells Fargo Securities LLC 0 50 100 150 200 250 300 11/7/16 12/2/16 12/30/16 1/20/17 2/22/17 3/10/17 4/7/17 5/4/17 5/19/17 6/16/17 PSB INDEXED DOW JONES INDEXED S&P 500 INDEXED STOCK MARKET ACTIVITY FOR MORE ON THE SAME STORE SALES DATA For more information on this report and other industry data, contact: cdkrecreation.com/dataservices JOSÉ BOISJOLI Milwaukee-based ARI Network Services, Inc. has entered into a definitive agreement to be acquired by an affiliate of True Wind Capital Management, LLC, a San Francisco-based pri- vate equity firm focused on investing in leading technology companies. Under the terms of the agreement, ARI shareholders will receive $7.10 in cash for each share of ARI common stock they o w n . T h e p u r c h a s e p r i c e r e p r e s e n t s a premium of approxi- mately 33 percent to ARI's average closing price for the period of 60 trading days ending June 20, 2017. The all-cash trans- action represents an e n t e r p r i s e v a l u e o f approximately $140 million and has been unanimously approved by ARI's Board of Directors. "We are very excited to partner with the True Wind team. This transaction is the result of an extensive process, and we believe it represents a great outcome for our share- holders," said Roy W. Olivier, ARI president and CEO. "The investment by True Wind positions ARI to accelerate our pace of inno- vation and better positions ARI to capitalize on future growth opportunities." "ARI is a market leader with an experi- enced management team. The company's mission-critical software, data and digital marketing solutions provide customers best- in-class technology to run their businesses," said Adam Clammer, founding partner at True Wind Capital. PSB ARI Network Services set to be acquired ROY OLIVIER

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