Issue link: https://read.dmtmag.com/i/208245
12 • November 4, 2013 • Powersports Business www.PowersportsBusiness.com FINANCIAL P ZiiOS, McGraw partnership forged at AIMExpo Cloud-based DMS provider ZiiOS and McGraw Powersports Group, a provider of insurance and extended coverage products, announced a new partnership during AIMExpo in Orlando. Dealers who offer McGraw's Western Service Extended Contracts will be able to seamlessly complete those contracts for new and used units directly from the ZiiOS platform. ZiiOS is a division of Dominion Powersports Solutions. Dealerships will see an immediate impact on profitability, making it easier to offer and sell Western Service Contract (WSC) agreements. Polaris tops $1 billion in sales in Q3 With opening remarks citing the tumult in Washington and the company's hopes for stronger leadership in the months and years ahead, Polaris CEO Scott Wine announced record third quarter results that showed net income increasing 24 percent to $116.9 million ($1.64 per diluted share) and sales rising to $1.1 billion. This is the first time in Polaris history the company exceeded $1 billion in quarterly sales. "Over the past five years Polaris faced tough decisions, and we did what was required to build a stronger, more diverse and much more profitable company that we are today," Wine said. "We now expect our elected officials in Washington to make their own difficult choices and set a course that will revitalize our economy. While I am not certain what will happen in our nation's capital, I am confident that Polaris will remain focused on innovation execution, which our team did extremely well in the third quarter." The Minnesota-based manufacturer also announced its retail sales increased 12 percent year-over-year in the third quarter, while gross profit margin percentage increased 90 basis points to 30.4 percent primarily due to higher selling prices and lower product costs. All told, the positive results led Polaris to lift its full year 2013 earnings guidance to a range of $5.30 to $5.37 per diluted share, up 20 to 22 percent over 2012 based on expected full year 2013 sales growth of 15 to 16 percent. In the conference call, Wine mentioned See Polaris, Page 13 Dealership staff will no longer need to manually check for warranty coverage and cost or write the document. Data appears immediately within ZiiOS and can be used for future reporting of sold agreements or future agreement offerings. "In tough economic times, dealers have been looking for an inexpensive but featurerich DMS platform, and now they have it with ZiiOS," said Troy Billen, assistant vice president of sales for McGraw Powersports. "Rather than investing operating and investment capital in hardware and software that either becomes outdated or costs a fortune to maintain, ZiiOS is a simple cloud-based subscription service that lets dealers operate profitably from inception. We believe this 'dealer first' approach is a successful model and that ZiiOS is, and will continue to be, the trend setter in this arena." Western Service Contract Corp. is one of the nation's largest independent motorcycle and PWC service contract providers. Dealers that offer Western Service Contracts can provide additional protection for customers beyond the manufacturer's warranty, allowing motorcycle and PWC dealers to establish longterm relationships beyond the initial sale. "ZiiOS is thrilled to provide this seamless and profitable integration to all dealership sales/ F&I departments," said Tifani Daves, director of sales for Dominion Powersports Solutions. "Right from a ZiiOS sales deal, you can easily quote WSC products available for the specific year/make/model selected and automatically include those items in vendor financing and payments. The WSC agreement is ready to print See Partnership, Page 13 NORTHWEST -11.0% Service Department 17.3% Major Units 13.0% -1.2% Parts Department 5.8% Parts Department Overall Parts Department Service Department 1.0% Service Department Major Units -2.1% 4.7% 5.7% Major Units WEST -4.7% Overall 4.7% Overall Parts Department 3.5% 8.0% Major Units SOUTH -5.2% 5.8% Overall Parts Department -0.6% UNITED STATES Service Department 7.7% 8.7% -4.2% Parts Department 2.6% Major Units Major Units 6.1% Service Department 4.9% Overall Overall SEPTEMBER 2013 PARTS SALES Overall same store sales were up 6.1 percent for 1,346 metric and V-twin dealers in the U.S. in September. The Northwest was the only region to see an overall decrease, down 2.1 percent year-overyear. Parts took a dive in every region, with the Northwest taking the biggest hit, down 11 percent from September 2012. Nationally, parts were down 4.2 percent. The Midwest had the most improved month overall, up 13 percent year-over-year. 554 dealers were up in parts, while 792 were down. SERVICE SALES In service, 681 dealers were up, and 585 were down. MAJOR UNIT SALES FOR MORE ON THE SAME STORE SALES DATA For more information on this report and other industry data, contact: adplightspeed.com/dataservices Nationally, 704 dealers were up in units, while 480 were down. POWERSPORTS BUSINESS WINNERS AND LOSERS STOCK MARKET ACTIVITY 260 0.74% 140 120 100 80 PSB INDEX VALUE DOW JONES INDEXED S&P 500 INDEXED 10/14/13 0.85 9/16/13 116.395 160 8/20/13 S&P 500 Index 180 7/23/13 -1.25% 6/21/13 -1.68 5/28/13 133.088 200 5/7/13 Dow Jones Index 220 4/17/13 5.54% 3/15/13 12.73 240 2/22/13 % Change 242.530 P12x13-PSB14-Finance.indd 12 wo pri int aff dec ser ed co dea N Service Department Powersports Business Index Source: Wells Fargo Securities LLC ha set gre A B C Eu In In Ja M Ph S S Ta Th NORTHEAST -2.7% MIDWEST -0.8% MARKET WATCH 10/14/13 wit DEALER FINANCIAL SNAPSHOT STOCK MARKET WATCH Change from 9/16 ww Company MarineMax, Inc. Speedway Motorsports, Inc. Spy Inc. Arctic Cat, Inc. Polaris Industries, Inc. ArvinMeritor Orbital Engine Corp. Ltd. ADR Deere & Company ADP Cooper Tire & Rubber Stock Ticker HZO TRK XSPY ACAT PII ARM OE DE ADP CTB Price 10/14/13 $14.11 $19.82 $1.38 $60.23 $131.27 $8.12 $2.39 $83.10 $72.86 $25.80 Percent Change 16.8% 10.6% 10.0% 7.7% 6.0% -0.2% -0.4% -0.5% -1.7% -20.0% 10/30/13 12:11 PM