Issue link: https://read.dmtmag.com/i/258703
4 • February 17, 2014 • Powersports Business NEWS www.PowersportsBusiness.com www.powersportsbusiness.com Editorial and Sales: 800.848.6247 Subscriber Service: 866.238.3237 EDITOR IN CHIEF: Dave McMahon 763/383-4411 (dmcmahon@powersportsbusiness.com) MANAGING EDITOR: Liz Keener 763/383-4413 (lkeener@powersportsbusiness.com) SENIOR EDITOR: Tom Kaiser 763/383-4424 (tkaiser@powersportsbusiness.com) ASSOCIATE DIGITAL EDITOR: Christopher Gerber SENIOR ART DIRECTOR: Dodi Vessels PRODUCTION ARTIST: Kelsey Houle (khoule@epgmediallc.com) PRODUCTION MANAGER: Angela Schmieg VICE PRESIDENT/TRADE GROUP: Amy Collins NATIONAL SALES DIRECTOR Allison Gruhn 763/383-4467 (agruhn@powersportsbusiness.com) NATIONAL ACCOUNT MANAGER Mark Rosacker 763/383-4433 (mrosacker@snowgoer.com) NATIONAL ACCOUNT MANAGER David J. Voll 763/383-4421 (dvoll@ridermagazine.com) PRODUCTION SPECIALIST: Cherri Perschmann GROUP SENIOR SALES SPECIALIST: Bernadette Wohlman CEO: Mark Adams SR. VICE PRESIDENT/FINANCE AND OPERATIONS: Gerald Winkel SR. VICE PRESIDENT/MARKET DEVELOPMENT: Joanne Juda-Prainito VICE PRESIDENT/OPERATIONS AND HUMAN RESOURCES: Mary Jo Tomei CONTRIBUTORS: COLUMNISTS: Hal Ethington, Steve Jones, Brian Gallmeier CONTRIBUTING WRITERS: Guido Ebert DEALER ADVISORY BOARD: Hooksett Kawasaki-Polaris, Jim Whalley; Hacker's Yamaha & Honda, Rick Hacker; Honda/Polaris of Lubbock, Morris Baker; All Action Water Sports, Ray Leps POWERSPORTS BUSINESS (ISSN #1522-7944) is published 15 times per year – monthly except twice in May and December, the Market Data Book in September – by EPG Media, LLC, 3300 Fernbrook Lane N #200, Plymouth, MN 55447. Periodicals postage paid at St. Paul, MN and additional mailing offices. SUBSCRIPTION INFORMATION: Free to qualified members of the motorcycle, all-terrain vehicle, snowmobile and personal watercraft industries. Annual subscription rate is $56 per year for U.S residents, $76 for Canadian residents and $96 for residents in other countries. All paid subscriptions must be paid in advance and in U.S. funds only. POSTMASTER: Send address changes to Powersports Business, P.O. Box 5858, Harlan, IA 51593-1358. CUSTOMER SERVICE: Visit www.powersportsbusiness.com, email powersportsbusiness@cdsfulfillment.com, call 866-238-3237 or write to Powersports Business, PO Box 5858, Harlan, IA 51593-1358. CANADIAN RETURN ADDRESS: EPG Media, LLC, 4960-2 Walker Road, Windsor, Ontario N9A 6J3. Publication Sales Agreement #40012332. EDITORIAL: All manuscripts, materials, photographs and artwork submitted are at mailer's risk and must include self-addressed envelope with sufficient postage for return. Send editorial materials to EPG Media, LLC, 3300 Fernbrook Lane N, Suite 200, Minneapolis, MN 55447, 763/383-4400. No responsibility will be assumed for unsolicited materials. Powersports Business is a registered trademark of EPG Media, LLC. Copyright 2013 by EPG Media, LLC. All rights reserved. Reproduction in whole or part is prohibited unless expressly authorized by publisher. REPRINTS: For more information on e-prints or reprints from Powersports Business, contact Bernadette Wohlman, 800/848-6247 x2464. Printed in U.S.A. PSB / RBC CAPITAL MARKETS Q4 DEALER SURVEY RATE THE FOLLOWING WHERE APPLICABLE, WHAT TYPE OF GROWTH ARE YOU EXPECTING BY LINE OF BUSINESS (NEW PRODUCTS ONLY, MEASURED IN UNITS) OVER THE NEXT 12 MONTHS? HOW WOULD YOU CHARACTERIZE YOUR CURRENT INVENTORY LEVELS BY LINE OF BUSINESS? TO WHAT EXTENT HAVE YOUR CONCERNS ABOUT THE FOLLOWING EXTERNAL RISK FACTORS CHANGED OVER THE PAST FEW MONTHS? 7% 8% 5% 5% 12% 4% 26% 29% 27% 18% 31% 18% 26% 23% 38% 49% 34% 50% 33% 30% 24% 22% 19% 19% 8% 10% 6% 6% 4% 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Overall Business Conditions New Unit Sales Used Unit Sales P&A Sales Service Department F&I Very strong Somewhat strong Average Somewhat weak Very weak 27% 6% 8% 3% 11% 14% 29% 19% 29% 19% 28% 25% 39% 56% 48% 51% 48% 49% 5% 18% 13% 23% 13% 11% 1% 2% 4% 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% U.S. political environment High/rising gasoline prices Financing costs/ availability Housing market Economic and/ or political issues outside of the U.S. Employment outlook Significantly less concerned Somewhat less concerned About the same Somewhat more concerned Significantly more concerned 3% 2% 14% 3% 6% 5% 4% 2% 11% 5% 34% 16% 17% 12% 13% 10% 22% 21% 33% 33% 31% 20% 21% 19% 25% 33% 15% 38% 33% 40% 42% 48% 31% 33% 1% 6% 4% 7% 8% 9% 2% 5% 2% 4% 9% 5% 4% 5% 1% 3% 4% 5% 6% 1% 2% 1% 2% 3% 2% 2% 2% 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Side-by-Sides ATVs Heavyweight Motorcycles Sport bikes Off-road bikes Scooters PWC Snowmobiles -30% or worse -20% -10% -5% Flat +5% +10% +20% +30% or better 24% 23% 55% 41% 27% 25% 24% 36% 63% 73% 41% 55% 68% 69% 70% 53% 13% 4% 4% 4% 5% 6% 6% 11% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Side-by-sides ATVs Heavyweight Motorcycles Sport Bikes Off-road bikes Scooters PWC Snowmobiles Too low About right Too heavy HOW WOULD YOU CHARACTERIZE CUSTOMER TRAFFIC IN THE LAST THREE MONTHS COMPARED TO THE SAME PERIOD LAST YEAR? HOW WOULD YOU CHARACTERIZE YOUR DEALERSHIP'S PROFIT MARGINS NOW VS. A YEAR AGO? IN GENERAL, TO WHAT EXTENT HAS YOUR BUSINESS OUTLOOK CHANGED COMPARED TO SIX MONTHS AGO? Significantly better 8% Somewhat better 30% About the same 22% Somewhat worse 34% Significantly worse 6% Significantly better 8% Somewhat better 31% About the same 35% Somewhat worse 22% Significantly worse 4% Significantly better 5% Somewhat better 35% About the same 36% Somewhat worse 20% Significantly worse 4% expected to normalize somewhat following a strong 2013. Here are some outtakes from RBC Capital Markets analyst John Kempf's survey report: BRP INC. Growth and outlook appear positive in SSV, snowmobiles Dealers expect solid growth in Spyder. Sales of side-by-side vehicles looked good in Q4, with dealers also having a positive view on NTM [next 12 months] growth. Dealers' views on ATV sales and the product lineup are middle of the road… . Snowmobiles seem to be a bright spot for BRP, as dealers reported strong Q4 sales and a solid NTM outlook. Dealers saw growth in Q4 sales of the Can-Am Spyder and are expecting solid NTM growth (next only to Indian Motorcycles); however, perception of the quality of the 2014 product line-up was more fairly negative (we expect because of the non-traditional niche of the Spyder). POLARIS INDUSTRIES Positive dealer response on SxS and ATV qual- ity and growth outlook Dealers were positive about Q4 sales of both side-by-side and ATV product lines and have a solid NTM growth outlook. With the recent launch of several new products, it is not surprising that dealers have a positive view of the relative quality of the product lineup, something that should support the NTM growth outlook. Dealers were positive on Q4 sales and have a very positive outlook for Indian motorcycles; however, this is off a base of zero. Interestingly, despite solid growth expectations, dealers had a mixed view on the relative quality of the product line. Finally, dealers saw mediocre snowmo- bile sales in Q4, although they have a more positive 12-month outlook. WINNING DEALERS The following dealers who completed the PSB/ RBC Capital Markets Q4 Dealer Survey were randomly selected to win a $100 Best Buy gift card, courtesy of RBC Capital Markets: Donald Meyers Jr., Harley-Davidson of Baltimore, MD Rick Cook, Iron City Polaris, Phoenix, AZ Dan Boyle, Proshop Motorsports and Marine, Henderson, NV Ralph Tolbert, Honda Direct Line, Bellaire, OH Brent Rowsey, Big Delta Powersports, Batesville, MS See RBC, Page 6 P01x09-PSB3-News.indd 4 2/5/14 10:03 AM