MILWAUKEE, April 25,
2024 /PRNewswire/ -- Harley-Davidson, Inc.
("Harley-Davidson," "HDI," or the "Company") (NYSE: HOG) today
reported first quarter 2024 results.
"Harley-Davidson delivered a good start to the year with a six
percent retail growth in North
America, our largest and most important region," said
Jochen Zeitz, Chairman, President
and CEO, Harley-Davidson. "We are very pleased with the reception
of this year's new product line-up led by our new Touring
motorcycles and look forward to continuing the positive momentum as
the riding season comes into full swing."
First Quarter 2024 Highlights and Results
- Delivered diluted EPS of $1.72
- HDMC operating income margin of 16.2 percent
- North America motorcycle
retail up 6 percent, driven by sales of new Touring motorcycles,
introduced at the end of January
- HDMC revenue down 5 percent, primarily due to planned decrease
in motorcycle shipments
- HDFS operating income down 8 percent, while revenue was up 12
percent
- Repurchased $98 million of shares
(2.5 million shares) on a discretionary basis
- LiveWire successfully launched its 3rd electric
motorcycle, S2 Mulholland, and became market leader in the U.S. for
on-road electric motorcycles
- Company updates its full-year 2024 financial outlook
First Quarter 2024 Results
Harley-Davidson, Inc. Consolidated Financial Results
$ in millions
(except EPS)
|
1st
quarter
|
2024
|
2023
|
Change
|
Revenue
|
$1,730
|
$1,789
|
-3 %
|
Operating
Income
|
$263
|
$370
|
-29 %
|
Net Income Attributable
to HDI
|
$235
|
$304
|
-23 %
|
Diluted EPS
|
$1.72
|
$2.04
|
-16 %
|
Consolidated revenue in the first quarter was down 3 percent
driven by an HDMC revenue decrease of 5 percent, partially offset
by HDFS revenue growth of 12 percent.
Consolidated operating income in the first quarter was down 29
percent, resulting from declines of 29 percent at HDMC and 8
percent at HDFS respectively, and an operating loss of $29 million in the LiveWire segment. Consolidated
operating income margin in the first quarter was 15 percent
relative to 21 percent in the first quarter a year ago.
Harley-Davidson Motor Company (HDMC) – Results
$ in
millions
|
1st
quarter
|
2024
|
2023
|
Change
|
Motorcycle Shipments
(thousands)
|
57.7
|
62.2
|
-7 %
|
Revenue
|
$1,476
|
$1,558
|
-5 %
|
Motorcycles
|
$1,222
|
$1,302
|
-6 %
|
Parts
& Accessories
|
$166
|
$168
|
-1 %
|
Apparel
|
$64
|
$71
|
-10 %
|
Licensing
|
$9
|
$6
|
44 %
|
Other
|
$15
|
$10
|
51 %
|
Gross Margin
|
31.2 %
|
35.8 %
|
-4.5 pts.
|
Operating
Income
|
$238
|
$336
|
-29 %
|
Operating
Margin
|
16.2 %
|
21.6 %
|
-5.4 pts.
|
First quarter global motorcycle shipments decreased 7 percent,
in-line with our expectations. Revenue was down 5 percent driven by
the decrease in wholesale shipments and lower global pricing,
partially offset by favorable mix. Parts & Accessories revenue
was down 1 percent, while Apparel revenue was down 10 percent, as
the prior period included anniversary product apparel.
First quarter gross margin was down 4.5 points due to the
impacts of pricing and sales incentives, lower volume, and higher
manufacturing costs. First quarter operating income margin was down
5.4 points due to the factors above, where operating expenses were
roughly flat in the quarter.
Harley-Davidson Retail Motorcycle Sales
Motorcycles
(thousands)
|
1st
quarter
|
2024
|
2023
|
Change
|
North
America
|
27.5
|
26.0
|
6 %
|
EMEA
|
5.3
|
5.9
|
-11 %
|
Asia Pacific
|
6.0
|
6.9
|
-12 %
|
Latin
America
|
0.6
|
0.6
|
2 %
|
Worldwide
Total
|
39.4
|
39.4
|
0 %
|
Global retail motorcycle sales in the first quarter were flat
versus prior year. North America
retail performance was up 6 percent, driven by sales of the new
Touring motorcycles, which were introduced at the end of January.
International markets did not receive new 2024 Street Glide and
Road Glide motorcycles in dealerships until the end of the first
quarter. The decline in EMEA of 11 percent was driven by weakness
in Germany and France. The decline in APAC of 12 percent was
due to weakness in particular in China. Latin
America experienced modest growth in both Mexico and Brazil.
Harley-Davidson Financial Services (HDFS) – Results
$ in
millions
|
1st
quarter
|
2024
|
2023
|
Change
|
Revenue
|
$249
|
$223
|
12 %
|
Operating
Income
|
$54
|
$58
|
-8 %
|
HDFS' operating income declined by $5
million in the first quarter or 8 percent. This was due to
higher interest expense and a higher provision for credit losses
which was driven by several factors, similar to last year, relating
to the current macro-economic environment. Total quarter ending
financing receivables were $7.9
billion, which was up 4 percent versus prior year, primarily
due to an increase in commercial finance receivables.
LiveWire – Results
$ in
millions
|
1st
quarter
|
2024
|
2023
|
Change
|
Electric Motorcycle
Unit Sales
|
117
|
63
|
86 %
|
Revenue
|
$5
|
$8
|
-39 %
|
Operating
Loss
|
($29)
|
($25)
|
NM
|
LiveWire revenue for the first quarter decreased by 39 percent.
The revenue decline was due to a decrease in STACYC electric
balance bike volumes and electric motorcycle product mix. Electric
motorcycle unit sales increased, driven by new product launches,
including the launch of the new S2 Mulholland model in the first
quarter 2024. LiveWire's operating loss of $29 million in the first quarter was the result
of continuing to develop new motorcycle models and investing in
initiatives to reduce EV systems costs commensurate with the
early-stage nature of the business.
Harley-Davidson, Inc. Other Results – First Quarter
2024
- Generated $104 million of cash
from operating activities
- Effective tax rate was 20 percent
- Paid cash dividends of $24
million
- Repurchased $98 million of shares
(2.5 million shares) on a discretionary basis
- Cash and cash equivalents of $1.5
billion at the end of the quarter
2024 Financial Outlook
For the full year 2024, the Company reaffirms the following
guidance and continues to expect:
- HDMC: revenue flat to down 9 percent and operating income
margin of 12.6 to 13.6 percent
- HDFS: operating income flat to up 5 percent
- LiveWire: electric motorcycle unit sales of 1,000 to 1,500
- Harley-Davidson, Inc: capital investments of $225 to $250
million
For the full year 2024, the Company is revising its LiveWire
operating loss guidance and now expects:
- LiveWire: improved operating loss of $105 to $115
million, from previous guidance of an operating loss of
$115 to $125
million
Company Background
Harley-Davidson, Inc. is the parent company
of Harley-Davidson Motor Company and Harley-Davidson
Financial Services. Our vision: Building our legend and leading our
industry through innovation, evolution and emotion. Our mission:
More than building machines, we stand for the timeless pursuit of
adventure. Freedom for the soul. Our ambition is to maintain our
place as the most desirable motorcycle brand in the world. Since
1903, Harley-Davidson has defined motorcycle culture by delivering
a motorcycle lifestyle with distinctive and customizable
motorcycles, experiences, motorcycle accessories, riding gear and
apparel. Harley-Davidson Financial Services provides
financing, insurance and other programs to help get riders on the
road. Harley-Davidson also has a controlling interest in
LiveWire Group, Inc., the first publicly traded all-electric
motorcycle company in the United
States. LiveWire is the future in the making for the pursuit
of urban adventure and beyond. Drawing on its DNA as an agile
disruptor from the lineage of Harley-Davidson and capitalizing on a
decade of learnings in the EV sector, LiveWire's ambition is to be
the most desirable electric motorcycle brand in the world. Learn
more at harley-davidson.com and livewire.com.
Webcast
Harley-Davidson will discuss its financial results and
outlook on an audio webcast at 8:00 a.m. CDT today. The webcast
login and supporting slides can be accessed
at http://investor.harley-davidson.com/news-and-events/events-and-presentations.
The audio replay will be available by approximately 10:00 a.m. CDT.
Cautionary Note Regarding Forward-Looking Statements
The company intends that certain matters discussed in this press
release and our associated comments are "forward-looking
statements" intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of
1995. These forward-looking statements can generally be identified
as such because the context of the statement will include words
such as the company "believes," "anticipates," "expects," "plans,"
"may," "will," "estimates," "targets," "intends," "forecasts," "is
on track," "sees," "feels," or words of similar meaning. Similarly,
statements that describe or refer to future expectations, future
plans, strategies, objectives, outlooks, targets, guidance,
commitments, or goals are also forward-looking statements. Such
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially,
unfavorably or favorably, from those anticipated as of the date of
this press release. Certain of such risks and uncertainties are
described below. Shareholders, potential investors, and other
readers are urged to consider these factors in evaluating the
forward-looking statements and are cautioned not to place undue
reliance on such forward-looking statements. The forward-looking
statements included in this press release are only made as of the
date of this press release, and the company disclaims any
obligation to publicly update such forward-looking statements to
reflect subsequent events or circumstances.
Important factors that could affect future results and cause
those results to differ materially from those expressed in the
forward-looking statements include, among others, the Company's
ability to: (a) execute its business plans and strategies,
including The Hardwire, each of the pillars, and the evolution
of LiveWire as a standalone brand, which includes the risks
noted below; (b) manage supply chain and logistics issues,
including quality issues, unexpected interruptions or price
increases caused by supplier volatility, raw material shortages,
inflation, war or other hostilities, including the conflict in
Ukraine and the Red Sea conflict,
or natural disasters and longer shipping times and increased
logistics costs; (c) accurately analyze, predict and react to
changing market conditions and successfully adjust to shifting
global consumer needs and interests; (d) maintain and enhance the
value of the Harley-Davidson brand; (e) realize the expected
business benefits from LiveWire operating as a separate public
company, which may be affected by, among other things: (i) the
ability of LiveWire to execute its plans to develop, produce,
market and sell its electric vehicles; (ii) competition; and (iii)
other risks and uncertainties indicated in documents filed with the
SEC by the Company or LiveWire Group, Inc., including those risks
and uncertainties noted in Risk Factors under Item 1.A of LiveWire
Group Inc.'s Annual Report on Form 10-K for the year ended December
31, 2023; (f) successfully access the capital and/or credit markets
on terms that are acceptable to the Company and within its
expectations; (g) successfully carry out its global manufacturing
and assembly operations; (h) develop and introduce products,
services and experiences on a timely basis that the market accepts,
that enable the Company to generate desired sales levels and that
provide the desired financial returns, including successfully
implementing and executing plans to strengthen and grow its
leadership position in Grand American Touring, large Cruiser and
Trike, and grow its complementary businesses; (i) perform in a
manner that enables the Company to benefit from market
opportunities while competing against existing and new competitors;
(j) manage the quality and regulatory non-compliance issues
relating to the brake hose assemblies provided to the Company by
Proterial Cable America, Inc. in a manner that avoids future
quality or non-compliance issues and additional costs or recall
expenses that are material; (k) manage through changes in general
economic and business conditions, including changing capital,
credit and retail markets, and the changing domestic and
international political environments, including as a result of the
conflict in Ukraine and the Red Sea conflict; (l) manage the impact
that prices for and supply of used motorcycles may have on its
business, including on retail sales of new motorcycles; (m)
prevent, detect and remediate any issues with its motorcycles or
any issues associated with the manufacturing processes to avoid
delays in new model launches, recall campaigns, regulatory agency
investigations, increased warranty costs or litigation and adverse
effects on its reputation and brand strength, and carry out any
product programs or recalls within expected costs and timing; (n)
successfully manage and reduce costs throughout the business; (o)
manage risks related to a resurgence of the COVID-19 pandemic,
emergence of a new pandemic, epidemic, disease outbreak or other
public health crises, such as supply chain disruptions, its ability
to carry out business as usual, and government actions and
restrictive measures implemented in response; (p) continue to
develop the capabilities of its distributors and dealers,
effectively implement changes relating to its dealers and
distribution methods, including the Company's dealership footprint,
and manage the risks that its dealers may have difficulty obtaining
capital and managing through changing economic conditions and
consumer demand; (q) successfully appeal: (i) the revocation of the
Binding Origin Information (BOI) decisions that allowed the Company
to supply its European Union (EU) market with certain of its
motorcycles produced at its Thailand operations at a reduced tariff
rate and (ii) the denial of the Company's application for temporary
relief from the effect of the revocation of the BOI decisions; (r)
continue to develop and maintain a productive relationship with
Zhejiang Qianjiang Motorcycle Co., Ltd. and launch related products
in a timely manner and that meet or exceed customers' expectations;
(s) maintain a productive relationship with Hero MotoCorp as a
distributor and licensee of the Harley-Davidson brand name in
India; (t) manage and predict the impact that new, reinstated or
adjusted tariffs may have on the Company's ability to sell products
internationally, and the cost of raw materials and components,
including the temporary lifting of the incremental tariffs on
motorcycles imported into the EU from the U.S., which was extended
to March 31, 2025; (u) accurately predict the margins of its
segments in light of, among other things, tariffs, inflation,
foreign currency exchange rates, the cost associated with product
development initiatives and the Company's complex global supply
chain; (v) successfully maintain a manner in which to sell
motorcycles in China and the Company's Association of Southeast
Asian Nations (ASEAN) countries that does not subject its
motorcycles to incremental tariffs; (w) manage its Thailand
corporate and manufacturing operation in a manner that allows the
Company to avail itself of preferential free trade agreements and
duty rates, and sufficiently lower prices of its motorcycles in
certain markets; (x) retain and attract talented employees, and
eliminate personnel duplication, inefficiencies and complexity
throughout the organization; (y) accurately estimate and adjust to
fluctuations in foreign currency exchange rates, interest rates and
commodity prices; (z) manage the credit quality, the loan servicing
and collection activities, and the recovery rates of
Harley-Davidson Financial Services' loan portfolio; (aa) prevent a
cybersecurity breach involving consumer, employee, dealer,
supplier, or Company data and respond to evolving regulatory
requirements regarding cybersecurity and data privacy; (bb) adjust
to tax reform, healthcare inflation and reform and pension reform,
and successfully estimate the impact of any such reform on the
Company's business; (cc) manage through the effects inconsistent
and unpredictable weather patterns may have on retail sales of
motorcycles; (dd) implement and manage enterprise-wide information
technology systems, including systems at its manufacturing
facilities; (ee) manage changes, prepare for, and respond to
evolving requirements in legislative and regulatory environments
related to its products, services and operations, including
increased environmental, safety, emissions or other regulations;
(ff) manage its exposure to product liability claims and commercial
or contractual disputes; (gg) continue to manage the relationships
and agreements that the Company has with its labor unions to help
drive long-term competitiveness; (hh) achieve anticipated results
with respect to the Company's preowned motorcycle program,
Harley-Davidson Certified, the Company's H-D1 Marketplace, and
Apparel and Licensing; and (ii) optimize capital allocation in
light of the Company's capital allocation priorities.
The Company's ability to sell its motorcycles and related
products and services and to meet its financial expectations also
depends on the ability of the Company's dealers to sell its
motorcycles and related products and services to retail customers.
The Company depends on the capability and financial capacity of its
dealers to develop and implement effective retail sales plans to
create demand for the motorcycles and related products and services
they purchase from the Company. In addition, the Company's dealers
and distributors may experience difficulties in operating their
businesses and selling Harley-Davidson motorcycles and related
products and services as a result of weather, economic conditions,
or other factors.
HDFS' retail credit losses have normalized in recent quarters to
higher levels after a period of historically low levels of credit
losses. Further, the Company believes that HDFS's retail credit
losses will continue to change over time due to changing consumer
credit behavior, macroeconomic conditions, including the impact of
inflation and HDFS's efforts to increase prudently structured loan
approvals to sub-prime borrowers. In addition, HDFS's efforts to
adjust underwriting criteria based on market and economic
conditions and the actions that the Company has taken and could
take that impact motorcycle values may impact HDFS's retail credit
losses.
The Company's operations, demand for its products, and its
liquidity could be adversely impacted by work stoppages, facility
closures, strikes, natural causes, widespread infectious disease,
terrorism, war or other hostilities, including the conflict in
Ukraine and the Red Sea conflict,
or other factors. Refer to "Risk Factors" under Item 1.A of the
Company's Annual Report on Form 10-K for the year ended
December 31, 2023 for a discussion of
additional risk factors and a more complete discussion of some of
the cautionary statements noted above.
### (HOG-Earnings)
Harley-Davidson,
Inc.
|
Condensed Consolidated
Statements of Operations
|
(In thousands, except
per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
HDMC revenue
|
|
|
|
|
|
$ 1,476,106
|
|
$ 1,557,829
|
Gross profit
|
|
|
|
|
|
461,070
|
|
557,026
|
Selling, administrative
and engineering expense
|
|
|
|
|
|
222,625
|
|
221,290
|
Operating income
from HDMC
|
|
|
|
|
|
238,445
|
|
335,736
|
|
|
|
|
|
|
|
|
|
LiveWire
revenue
|
|
|
|
|
|
4,704
|
|
7,762
|
Gross (loss)
profit
|
|
|
|
|
|
(3,941)
|
|
1,264
|
Selling, administrative
and engineering expense
|
|
|
|
|
|
25,300
|
|
25,811
|
Operating loss
from Livewire
|
|
|
|
|
|
(29,241)
|
|
(24,547)
|
|
|
|
|
|
|
|
|
|
HDFS revenue
|
|
|
|
|
|
248,797
|
|
223,095
|
HDFS expense
|
|
|
|
|
|
194,922
|
|
164,675
|
Operating income
from HDFS
|
|
|
|
|
|
53,875
|
|
58,420
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
|
|
|
263,079
|
|
369,609
|
Other income,
net
|
|
|
|
|
|
20,564
|
|
20,096
|
Investment
income
|
|
|
|
|
|
14,404
|
|
10,025
|
Interest
expense
|
|
|
|
|
|
(7,679)
|
|
(7,720)
|
Income before income
taxes
|
|
|
|
|
|
290,368
|
|
392,010
|
Income tax
provision
|
|
|
|
|
|
58,135
|
|
90,181
|
Net income
|
|
|
|
|
|
$
232,233
|
|
$
301,829
|
Less: Loss attributable
to noncontrolling interests
|
|
|
|
|
|
2,708
|
|
2,261
|
Net income attributable
to Harley-Davidson, Inc.
|
|
|
|
|
|
$
234,941
|
|
$
304,090
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
$
1.73
|
|
$
2.08
|
Diluted
|
|
|
|
|
|
$
1.72
|
|
$
2.04
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
136,109
|
|
146,048
|
Diluted
|
|
|
|
|
|
136,921
|
|
148,931
|
|
|
|
|
|
|
|
|
|
Cash dividends per
share:
|
|
|
|
|
|
$
0.1725
|
|
$
0.1650
|
|
|
|
|
|
|
|
|
|
LiveWire results
presented in the Company's financial statements represent the
LiveWire reportable segment as determined in accordance with
Financial
Accounting Standards Board (FASB) Accounting Standards Codification
(ASC) 280 Segment
Reporting which may differ
from LiveWire Group, Inc. results.
|
Harley-Davidson,
Inc.
|
Condensed Consolidated
Balance Sheets
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
|
2024
|
|
2023
|
|
2023
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
|
|
$ 1,464,614
|
|
$ 1,533,806
|
|
$ 1,561,200
|
Accounts receivable, net
|
|
|
|
305,991
|
|
267,200
|
|
333,533
|
Finance receivables, net
|
|
|
|
2,523,250
|
|
2,113,729
|
|
2,245,628
|
Inventories, net
|
|
|
|
779,575
|
|
929,951
|
|
830,521
|
Restricted cash
|
|
|
|
129,745
|
|
104,642
|
|
164,965
|
Other current assets
|
|
|
|
182,730
|
|
214,401
|
|
154,660
|
|
|
|
|
5,385,905
|
|
5,163,729
|
|
5,290,507
|
|
|
|
|
|
|
|
|
|
Finance receivables,
net
|
|
|
|
5,382,772
|
|
5,384,536
|
|
5,328,095
|
Other long-term
assets
|
|
|
|
1,566,243
|
|
1,592,289
|
|
1,410,983
|
|
|
|
|
$
12,334,920
|
|
$
12,140,554
|
|
$
12,029,585
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
$ 1,030,320
|
|
$
996,021
|
|
$ 1,029,710
|
Short-term deposits, net
|
|
|
|
240,445
|
|
253,309
|
|
144,854
|
Short-term debt
|
|
|
|
938,719
|
|
878,935
|
|
501,243
|
Current portion of long-term debt, net
|
|
|
|
1,281,840
|
|
1,255,999
|
|
1,408,777
|
|
|
|
|
3,491,324
|
|
3,384,264
|
|
3,084,584
|
|
|
|
|
|
|
|
|
|
Long-term debt,
net
|
|
|
|
4,988,891
|
|
4,990,586
|
|
5,275,169
|
Other long-term
liabilities
|
|
|
|
518,619
|
|
513,409
|
|
573,983
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
3,336,086
|
|
3,252,295
|
|
3,095,849
|
|
|
|
|
$
12,334,920
|
|
$
12,140,554
|
|
$
12,029,585
|
Harley-Davidson,
Inc.
|
Condensed Consolidated
Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
|
|
|
$
103,997
|
|
$
46,677
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
|
|
|
(46,356)
|
|
(45,114)
|
Finance
receivables, net
|
|
|
|
|
|
(65,855)
|
|
(26,293)
|
Other investing
activities
|
|
|
|
|
|
(289)
|
|
821
|
Net cash used by
investing activities
|
|
|
|
|
|
(112,500)
|
|
(70,586)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of medium-term notes
|
|
|
|
|
|
-
|
|
693,276
|
Repayments of
medium-term notes
|
|
|
|
|
|
-
|
|
(350,000)
|
Proceeds from
securitization debt
|
|
|
|
|
|
-
|
|
547,706
|
Repayments of
securitization debt
|
|
|
|
|
|
(234,178)
|
|
(310,640)
|
Net increase
(decrease) in unsecured commercial paper
|
|
|
|
|
|
58,794
|
|
(270,119)
|
Borrowings of
asset-backed commercial paper
|
|
|
|
|
|
334,561
|
|
-
|
Repayments of
asset-backed commercial paper
|
|
|
|
|
|
(46,154)
|
|
(62,634)
|
Net (decrease)
increase in deposits
|
|
|
|
|
|
(6,758)
|
|
51,822
|
Dividends
paid
|
|
|
|
|
|
(24,385)
|
|
(24,123)
|
Repurchase of
common stock
|
|
|
|
|
|
(107,812)
|
|
(96,767)
|
Other financing
activities
|
|
|
|
|
|
7
|
|
69
|
Net cash (used)
provided by financing activities
|
|
|
|
|
|
(25,925)
|
|
178,590
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
|
|
|
(7,020)
|
|
3,820
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase
in cash, cash equivalents and restricted cash
|
|
|
|
|
|
$
(41,448)
|
|
$
158,501
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash:
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
|
|
|
|
$ 1,648,811
|
|
$ 1,579,177
|
Net (decrease) increase
in cash, cash equivalents and restricted cash
|
|
|
|
|
|
(41,448)
|
|
158,501
|
Cash, cash equivalents
and restricted cash, end of period
|
|
|
|
|
|
$ 1,607,363
|
|
$ 1,737,678
|
|
|
|
|
|
|
|
|
|
Reconciliation of cash,
cash equivalents and restricted cash on the Consolidated
balance
sheets to the Consolidated statements of cash
flows:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
$ 1,464,614
|
|
$ 1,561,200
|
Restricted
cash
|
|
|
|
|
|
129,745
|
|
164,965
|
Restricted cash
included in Other long-term assets
|
|
|
|
|
|
13,004
|
|
11,513
|
Cash, cash
equivalents and restricted cash per the Consolidated statements of
cash flows
|
|
|
$ 1,607,363
|
|
$ 1,737,678
|
HDMC Revenue and
Motorcycle Shipment Data
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
|
|
2024
|
|
2023
|
HDMC REVENUE (in
thousands)
|
|
|
|
|
|
|
|
|
Motorcycles
|
|
|
|
|
|
$ 1,221,540
|
|
$ 1,302,378
|
Parts and
accessories
|
|
|
|
|
|
166,193
|
|
167,671
|
Apparel
|
|
|
|
|
|
64,112
|
|
71,391
|
Licensing
|
|
|
|
|
|
8,930
|
|
6,210
|
Other
|
|
|
|
|
|
15,331
|
|
10,179
|
|
|
|
|
|
|
$ 1,476,106
|
|
$ 1,557,829
|
|
|
|
|
|
|
|
|
|
HDMC U.S. MOTORCYCLE
SHIPMENTS
|
|
|
|
|
|
41,577
|
|
42,588
|
|
|
|
|
|
|
|
|
|
HDMC WORLDWIDE
MOTORCYCLE SHIPMENTS
|
|
|
|
|
|
|
|
|
Grand American Touring(a)
|
|
|
|
|
|
35,356
|
|
32,219
|
Cruiser
|
|
|
|
|
|
15,691
|
|
21,258
|
Sport and Lightweight
|
|
|
|
|
|
4,963
|
|
6,585
|
Adventure Touring
|
|
|
|
|
|
1,662
|
|
2,175
|
|
|
|
|
|
|
57,672
|
|
62,237
|
(a)
Includes Trike
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiveWire Motorcycle
Shipments
|
|
|
|
|
|
117
|
|
63
|
HDMC Gross
Profit
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
The estimated impact of
significant factors affecting the comparability of gross profit
from the first quarter of 2023 to the first quarter of 2024
were
as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
2023 gross
profit
|
|
|
|
|
|
$
557
|
|
|
Volume
|
|
|
|
|
|
(31)
|
|
|
Price and sales
incentives
|
|
|
|
|
|
(47)
|
|
|
Foreign currency
exchange rates and hedging
|
|
|
|
|
|
(4)
|
|
|
Shipment mix
|
|
|
|
|
|
7
|
|
|
Raw material
prices
|
|
|
|
|
|
1
|
|
|
Manufacturing and other
costs
|
|
|
|
|
|
(22)
|
|
|
|
|
|
|
|
|
(96)
|
|
|
2024 gross
profit
|
|
|
|
|
|
$
461
|
|
|
HDFS Finance
Receivables Allowance for Credit Losses
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
|
|
2024
|
|
2023
|
Balance, beginning of
period
|
|
|
|
|
|
$
381,966
|
|
$
358,711
|
Provision for credit
losses
|
|
|
|
|
|
61,010
|
|
52,364
|
Charge-offs, net of
recoveries
|
|
|
|
|
|
(62,615)
|
|
(52,644)
|
Balance, end of
period
|
|
|
|
|
|
$
380,361
|
|
$
358,431
|
Worldwide Retail Sales
of Harley-Davidson Motorcycles(a)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
|
|
|
March 31,
|
|
March 31,
|
|
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
United
States
|
|
|
|
|
|
25,726
|
|
24,277
|
Canada
|
|
|
|
|
|
1,760
|
|
1,744
|
Total North
America
|
|
|
|
|
|
27,486
|
|
26,021
|
EMEA
|
|
|
|
|
|
5,264
|
|
5,917
|
Asia Pacific
|
|
|
|
|
|
6,034
|
|
6,881
|
Latin
America
|
|
|
|
|
|
621
|
|
606
|
Total worldwide retail
sales
|
|
|
|
|
|
39,405
|
|
39,425
|
(a)
Data source for retail sales figures
shown above is new sales warranty and registration information
provided by dealers and compiled by the Company. The Company must
rely on information that its dealers supply concerning new retail
sales, and the Company does not regularly verify the information
that its dealers supply. This information is subject to
revision.
|
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SOURCE Harley-Davidson, Inc.