Issue link: https://read.dmtmag.com/i/243961
m ? uust er is at s d re e JONESFROM PAGE 10 CONTINUED my store evaluation, I noticed 15-20 banker boxes stacked in a hallway off the showroom floor. These boxes contained deal jackets from the previous few years of business. Remember, each single piece of paper left unsecured with nonpublic personal information can be fined up to $11,000. (I explained to the dealer if anyone had walked in from the IRS, FTC or a state agency, the fines could have easily reached several million dollars.) Ironically, the boxes were stacked outside of an empty office with a locking door where they could have easily been stored and been in compliance. The dealer quickly remedied the situation and avoided a potentially costly mistake. Compliance is a very important topic for ely ns is a- ng s r caet ng 11 any dealership in our industry, not only in 2014, but beyond as well. While it may seem very daunting to bring your store in compliance, it really should not be that difficult. Look at your operation and identify your weak areas. If someone wanted to steal your customer's information, where could they easily obtain it? Begin asking your employees how familiar they are with the rules. Do they know what the Red Flags Rule is? Do they know the requirements of the Safeguards Rule? Are they providing Risk Based Pricing notices to your customers when it is applicable? These are more steps that will help your dealership obtain compliance in 2014. PSB Peter Jones is an industry trainer and consultant as well as founder of Peter Jones Powersports and can be reached at peter@peterjonespowersports.com or 904/742-3080. FOREIGN CURRENCY EXCHANGE Ago 1/6/14 1 Month 6 Months Ago Year Ago Annual Price Price%Change Price%Change Price%Change High Low Australian Dollar 1.12 1.10 -1.5% 1.10 -1.1% 0.96 -14.3% 0.95 1.13 British Pound 0.61 0.610.4% 0.67 10.3% 0.622.3% 0.600.67 Canadian Dollar 1.07 1.06-0.4% 1.06-0.8% 0.99-7.6% 0.98 1.07 Euro 0.73 0.73-0.3% 0.78 6.3% 0.77 4.6% 0.72 0.78 Indian Rupee 62.34 61.63 -1.1% 60.40 -3.1% 55.12 -11.6% 53.12 68.14 Indonesian Rupiah 12,180 11,962 -1.8% 9,942 -18.4% 9,660 -20.7% 9,62012,260 Japanese Yen 104.53 102.70 -1.7% 100.90 -3.5% 88.04 -15.8% 87.13105.11 Malaysian Ringget 3.29 3.23-1.6% 3.19-3.0% 3.05-7.3% 2.96 3.33 Phillipine Peso 44.70 43.95-1.7% 43.40-2.9% 40.90-8.5%40.57 44.76 Singapore Dollar 1.27 1.25-1.4% 1.28 1.0% 1.23-3.0% 1.22 1.28 South Korean Won 1,066 1,058 -0.7% 1,142 7.2% 1,064 -0.2% 1,050 1,161 Taiwan Dollar 30.00 29.58-1.4% 30.03 0.1% 29.00-3.3%28.95 30.15 Thailand Bhat 33.13 32.32-2.4% 31.13-6.0% 30.53-7.8%28.61 33.13 Note: A positive percent change reflects a weakening of the U.S. dollar and a strengthening of the foreign currency. POWERSPORTS BUSINESS STOCKS POWERSPORTS BUSINESS INDEX COMPONENTS Company Arctic Cat, Inc. ARI Network Services, Inc. Assurant, Inc. Brunswick Corp. General Electric Co. Harley-Davidson, Inc. Honda Motor Corp. ADR Orbital Engine Corp. Ltd. ADR Polaris Industries, Inc. Stock Price PricePercent 52-Week Ticker 1/6/14 12/6/13Change High Low ACAT $57.01 $56.14 1.5% $61.13 $33.23 ARIS $3.26 $3.40 -4.1% $3.47 $1.51 AIZ $66.18 $65.33 1.3% $66.73 $34.83 BC $45.54 $45.67 -0.3% $47.08 $29.92 GE $27.26 $26.94 1.2% $28.09 $20.68 HOG $68.63 $68.53 0.1% $69.75 $48.40 HMC $40.80 $41.94 -2.7% $42.96 $35.15 OE $2.44 $2.29 6.5% $7.00 $1.99 PII $143.64 $135.98 5.6% $146.41 $82.80 DOMESTIC STOCKS OF INTEREST Company ArvinMeritor ADP Bridgestone Corp. ADR Carlisle Companies Cooper Tire & Rubber Dover Corporation Intl. Speedway Corp. Cl. A Deere & Company MarineMax, Inc. Spy Inc. Speedway Motorsports, Inc. Universal Technical Institute Stock Price PricePercent 52-Week Ticker 1/6/14 12/6/13Change High Low ARM $10.32 $7.79 32.5% $10.51 $4.11 ADP $79.81 $79.66 0.2% $83.82 $58.43 BRDCY $18.63 $17.96 3.7% $19.17 $12.67 CSL $78.32 $75.03 4.4% $80.21 $59.19 CTB $25.18 $24.01 4.9% $34.80 $20.55 DOV $94.59 $91.65 3.2% $97.00 $65.40 ISCA $34.75 $33.90 2.5% $35.85 $26.02 DE $89.91 $85.32 5.4% $95.60 $79.50 HZO $15.91 $15.55 2.3% $16.95 $9.30 XSPY $1.38 $1.38 0.0% $2.25 $0.50 TRK $19.71 $20.07 -1.8% $20.75 $16.01 UTI $13.52 $15.09 -10.4% $15.16 $9.96 INTERNATIONAL STOCKS OF INTEREST Company BMW AG BRP, Inc. Kawasaki Heavy Industries KTM Powersports AG Michelin NGK Sparkplug Suzuki Motor Yamaha Motor Yokohama Rubber Stock Price PricePercent 52-Week Ticker 1/6/14 12/6/13Change High Low BMW-ETR 82.99 €82.14 € 1.0%86.10 €63.27 € DOO-TSE $28.87 $28.00 3.1% $30.77 $23.41 7012-TKS 436 ¥ 412 ¥ 5.8% 446 ¥ 228 ¥ KTM-WBO 62.85 €60.00 € 4.8%64.99 €45.50 € ML-PAR75.54 €77.21 € -2.2%84.71 €57.23 € 5334-TKS 2494 ¥ 2306 ¥ 8.2% 2523 ¥ 1074 ¥ 7269-TKS 2789 ¥ 2560 ¥ 8.9% 2919 ¥ 2049 ¥ 7272-TKS 1551 ¥ 1580 ¥ -1.8% 1825 ¥ 958 ¥ 5101-TKS 1012 ¥ 992 ¥ 2.0% 1312 ¥ 604 ¥ Source: Wells Fargo Securities LLC Source: Wells Fargo Securities LLC ed ir to p is Powersports Business • January 27, 2014 • 11 FINANCE www.PowersportsBusiness.com DIGEST BRP turns to Capital One for private label credit card Capital One (NYSE: COF) has signed a three-year financing services agreement with BRP US Inc. This new relationship reinforces Capital One's commitment to building its private label credit card business. The contract covers revolving financing for BRP's Ski-Doo snowmobiles, Sea-Doo watercraft and Can-Am ATVs, side-by-side vehicles and Spyder roadsters sold by BRP dealers in the U.S. "Capital One values strategic partnerships with brands such as BRP that deliver real value and offer consumers expanded buying power and a great customer experience," said Bill Cilluffo, executive vice president, Card Partnerships at Capital One. "We're looking forward to working with BRP, and are honored to help support its growth and position as an industry leader." Capital One's partnership with BRP provides consumers with access to credit that can be used for accessories, services and/or vehicles at BRP dealerships. Offerings include a Life of Loan product, which is designed to be paid off over a set term, as well as promotional rate financing options, which have a low intro APR for a set period of time. "BRP is always looking for new ways to ease the purchase process for our consumers. This three-year agreement with Capital One provides our American dealers with options they can present to their customers," said Yves Leduc, vice-president and general manager, North America division. P10x11-PSB2-Finance.indd 11 INDIAN TO OUTSELL VICTORY IN 2014, ANALYST PREDICTS New little brother Indian Motorcycle is expected to outsell its older Polaris family member, Victory, in 2014, according to a "Top 10 Predictions for 2014" list by Robin M. Farley, an analyst with UBS Investment Research. In a research note provided to Powersports Business, Farley provided three predictions in the leisure stock segment. certainly raise awareness of the 3-wheel market overall and may give that segment higher coolness factor." SUPERCHIPS PARENT COMPANY ACQUIRED Z Capital Partners, L.L.C., a leading private equity firm that makes controlling investments in companies in need of revitalization or restructuring, announced that Hot Rod Brands LLC, an affiliate of Z Capital has acquired MSD Performance Group ("MSDP"), one of the world leaders in vehicle aftermarket performance parts. MSDP sells products under the MSD, Racepak, Powerteq, Edge and Superchips brands. The acquisition was part of a Section 363 Bankruptcy auction and was approved on Nov. 26. MSDP filed a voluntary Chapter 11 bankruptcy protection petition on Sept. 6. "MSDP is now well positioned Polaris chairman and CEO Scott Wine could see the company's for the future," said Ron Turcotte, newest brand, Indian, outsell Victory in 2014. CEO of MSDP. "In recent years, we "1. We believe Polaris' Indian motorcycle have expanded our portfolio of products will outsell Victory motorcycles in 2014, and technology, and the Z Capital acquisiwhich suggests unit retail sales of roughly tion will allow for an even greater ability to 15K in its first full year. serve our customers with new, innovative 2. We believe that Harley's U.S. motorproduct offerings. With a restructured balcycle retail sales, given the comp against last ance sheet, major reduction in debt and an year's 13 percent decline, could easily grow engaged owner, MSDP is poised for positive 10 percent in Q1 (though that would be internal growth as well as growth through needed to get to 5 percent growth for the focused acquisitions." year, since Q1 has the easiest comp.) "We are excited to complete this acquisi3. We believe Polaris will introduce the tion," said James J. Zenni, president and CEO Slingshot in 1H '14 which we believe will of Z Capital. "As an industry leader in the be targeting a younger demographic than automotive performance aftermarket for over the more comfortable seat of BRP's Spyder 40 years, we believe that MSDP is well posi(thus little customer overlap), though we tioned for future success. We are committed think the marketing of PII's Slingshot will to supporting MSDP's strategy and remain as dedicated as ever to enhancing the business. We look forward to working with the talented MSDP leadership team to expand into new markets, introduce new products and propel MSDP's path of future growth." MSD Performance, Inc., headquartered in El Paso, Texas, operates in the street enthusiast, professional racer and powersports markets where they maintain industry leading market share positions across all of their product categories under the MSD, Racepak, Superchips and Edge brands. IT'S 'GAME, SET ... MAXXIS' AT AUSTRALIAN OPEN For the fourth consecutive year, Maxxis will sponsor the Australian Open in Melbourne, the largest sports event in the southern hemisphere and the first of the tennis Grand Slam tournaments. In addition to being an Official Sponsor, Maxxis is the Official Tire of the Australian Open. Under the terms of the deal, Maxxis will have signage on Rod Laver Arena (Center Court) and is entitled to use the Australian Open logo in marketing materials and promotional activities. Maxxis has gained extensive global exposure for its brand through sponsorship of the Open. The 2013 Australian Open was broadcast to more than 200 countries, and drew additional attention through social media and more than 8.8 million views on the official Australian Open YouTube channel. In order to capitalize on its already strong brand awareness in Australia, Maxxis has organized a high-impact marketing push, including a major national billboard campaign, for the lead-up and duration of this year's Australian Open. This campaign carries the tag-line "Game, Set … Maxxis." PSB 1/15/14 11:56 AM