Category Archives: Sales figures

Arctic Cat Announces FY2015 Q3 Earnings

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The 2015 Wildcat Sport XT, a recent addition to the Arctic Cat side-by-side lineup.

The 2015 Wildcat Sport XT, a recent addition to the Arctic Cat side-by-side lineup.

Last week Arctic Cat reported on their third quarter earnings for fiscal year 2015. For the quarter ending on December 31, 2014 net sales for the third quarter decreased to $193.7 million from $225.8 million for the same quarter last year and net earnings decreased to $7.5 million or $8.9 million as adjusted from $12.1 million. Year-to-date net sales increased 2.5% to $599.9 million from $585.1 million a year ago and net earnings decreased to $26.4 million or $32.3 million as adjusted from $41 million. Here are some highlights of the earnings call as it relates to utility vehicles.

  • ATV and UTV sales for the quarter increased 7.3% to $83.9 million from $78.2 million as growth in Wildcat side-by-sides were offset by decreases in core ATVs.
  • For the first three quarters to date sales of ATVs and UTVs decreased 4.3% to $217.3 million from $227.2 million. Strong sales of Wildcat side-by-side models were offset by lower than planned sales of core ATV sales to dealers in North America and international regions, including Russia.
  • A $7 million charge in the 4th quarter will be taken related to reducing core ATV inventory.
  • Wildcat models gained further market share in this category during the third quarter this year.
  • For the calendar year sales of side-by-side Wildcats grew 34% versus the industry’s 17%.
  • Three new Wildcat Sport models on a new 60-inch wide chassis were introduced. The new chassis’ width is a mid-sized option between the original Wildcat and the recently successfully introduced Wildcat Trail model, which has a narrower 50-inch stance.
  • A new 2016 model year HDX Prowler will be announced in early February
  • Arctic Cat signed an OEM agreement with a terrain company during the third quarter to build private label side-by-side vehicles for the commercial line equipment business. They expect to begin shipping products to this customer in March.

Learn more:  Seekingalpha.com (earnings call transcript)

Comment:  In search of growth many UTV manufacturers are looking to enter into other market segments either by adding new product lines or developing partnerships. Arctic Cat’s new Sport line and OEM agreement are more examples of this trend. From comments during the earnings call, the OEM agreement is with Toro. This will give Arctic Cat a distribution network into the commercial and turf markets. Their current powersports network of dealers is not the best match for tapping into the commercial market. For Toro, UTVs are a relatively small part of their business and development resources are probably better spent their core products, while they take advantage of Arctic Cat’s engineering expertise in the UTV market.

GPS Industries Introduces New Fleet Management System

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GPS Industries has introduced their Visage Resort Edition fleet management system for golf car fleets. The Visage Resort Edition includes navigation tools, maps and two-way communication capabilities, and the recently-launched Visage Media Network. The Visage Media Network consists of 10-inch color touchscreens affixed to guest-assigned cars and can deliver a range of content such as resort news, internal promotions for resort restaurants, special events like concerts and off-site excursions and information on resort real estate for sale. Sponsored content provides an additional revenue opportunity for the resort or golf course, and access to an affluent audience for advertisers. The Visage Resort Edition was launched at the high end Casa de Campo Resort in the Dominican Republic. According to management Visage  is installed in 900-plus golf-car fleets, primarily in North America, Europe and the Middle East for 80% global market share, GPSI predicts 35% annual growth over 2014.  Learn more:  Worldgolf.com

 

Comment:  Golf courses are still experiencing a tough market and the net number of golf courses in the US are expected to decline slightly over the next few years. Products like Visage help course managers squeeze some more revenue out of their existing base of participating golfers. The fleet data can also help them manage their fleet more efficiently. The market for these type of products has grown significantly in the last few years.

Pro Armor Recalls Doors For Polaris RZR 800 and 900

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The Pro Armor door being recalled.

The Pro Armor door being recalled.

A closeup of the door's problematic latch.

A closeup of the door’s problematic latch.

Pro Armor is recalling about 300 doors that were sold as accessories for model year 2010 through 2014 Polaris RZR 800 and RZR 900 models because a problem with the door latch can allow the door to open while the vehicle is moving. The details from the Consumer Safety Products Commission follow.

Recall Details
Units – About 300

Description

This recall involves Pro Armor doors sold as accessories for model year 2010 through 2014 Polaris RZR 800 and RZR 900 models. The doors have a black powder coated finish and have four major components: a large square sheet metal panel, a smaller triangular sheet metal panel, a tubular metal frame and a latch. The panels are interchangeable and come in two styles. One style has cutout vents along the top and the other style has none. The smaller panel has a white Pro Armor logo below the cutouts. The door frame has the logo and “Pro Armor” on the top tube. The latch is silver with a black locking mechanism that attaches to the vehicle frame and a handle that attaches to the door.

Hazard: – The latch pin can disengage from the latch and allow the door to open while the vehicle is moving, posing a risk of ejection of an unrestrained rider and impact or laceration hazards.

Incidents/Injuries – Pro Armor has received 23 reports of the latch pin disengaging. No injuries have been reported.

Remedy – Consumers should immediately stop using vehicles with these doors and contact Pro Armor for a free repair kit.

Sold at – Powersports dealers and online nationwide from June 2014 through October 2014 for about $550 to $600 for the set of doors.

Manufacturer(s) – LSI Products Inc. dba Pro Armor, Riverside, Calif.

Learn more:  CPSC.gov

Comment:  This is a pretty small recall in terms of the number of units. Polaris recently acquired Pro Armor.

LiV Golf Cars Trying To Enter Fleet Golf Car Market

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The Evolve fleet golf car from LiV Golf Cars

The Evolve fleet golf car from LiV Golf Cars powered by lithium batteries.

The Prosper fleet golf car from LiV Golf Cars powered by lithium batteries.

The Prosper fleet golf car from LiV Golf Cars powered by lithium batteries.

LiV Golf Cars based in Libby, Montana is hoping to break into the golf car fleet market in 2015 with a pair of lithium battery powered electric golf cars. Started in 2013 with the aid of a $368,000 grant from the local government, the company to date has produced 34 vehicles during the course of their product development and initial sales process. According to CEO Jon Hoster 15-20 of those vehicles are on five different golf courses located in California, Phoenix and Las Vegas. The development process took longer than expected but their two models, the Evolve and the Prosper are now ready for market. Under the terms of the grant the company must employ 22 people by September 2015. Currently the company employs two but Hoster hopes to add 15-20 in 2015.

What is unique about the Evolve and Prosper are that they are powered by Lithium Iron Phosphate batteries as opposed to lead acid batteries typically found in electric fleet golf cars. The company states the advantages of the lithium batteries are that they last longer, three to four times longer, than lead-acid batteries; are lighter leading to less compaction on courses; and reduce vehicle maintenance. The batteries have a 6-year warranty.

The Evolve is targeted towards more upscale courses and features an aluminum alloy chassis, independent front and rear leaf spring suspension, water-directional sun top, and impact resistant body molding. The Prosper has a tubular steel chassis instead of aluminum and has a hydraulic shock absorber with coil over springs front suspension instead of Macpherson strut front suspension. Both models feature a 48-volt system with a D&D Motor Systems, separately excited motor and a lithium iron phosphate battery pack. There is no mention of pricing for the vehicles on their website.  Learn more:  Thewesternnews.com

Comment:  Cracking the fleet golf car market will be a difficult task. It is a very price sensitive market that is dominated by E-Z-GO and Club Car with Yamaha a distant third. All three should have a significant cost advantage given their size and manufacturing volume compared to such a small company. There is also the issue of having the proper distribution and servicing network to service fleet golf cars. Golf cars are a revenue generator for courses and any down time impacts the bottom line. On top of these challenges the golf industry has faced some difficult economic times with a decline in the number of courses since 2006 as well as ongoing attrition in the number of golfers.

Arctic Cat Reports Earnings For Fiscal 2015 2Q

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Despite weak ATV sales, side-by-side revenue increased as Arctic Cat Wildcat Trail models continued to sell well.

Despite weak ATV sales, side-by-side sales increased as demand for Arctic Cat Wildcat Trail models remained strong.

Arctic Cat reported revenue of $262.5 million for the fiscal 2015 second quarter, an increase of about 10% from last year. Sales were driven by their snowmobile and parts, garments and accessories (PG&A) divisions which offset weakness in their ATV business that includes ATVs and side-by-sides. The ATV business declined 4% from the previous year’s quarter and 10% year to date. The company fell short of their expectations for ATV sales but strong sales continued for their Wildcat side-by-side models. There was also a significant charge for a recall of some of their older ATVs. Some highlights of the earnings call as it relates to utility vehicles/side-by-sides include:

  • 15 new 2015 model year ATVs and side-by-sides were unveiled in the quarter
  • Demand for their side-by-side products remains strong driven by the Wildcat Trail line and recently introduced Wildcat Sport
  • Wildcat sales also helped generate revenue for the PG&A business
  • Management reports Arctic Cat is outperforming the overall side-by-side market

Learn more:  Seekingalpha.com (earnings call transcript)

Comment:  Despite weakness in their ATV business Arctic Cat remains a strong competitor to Polaris in the high performance segment of the side-by-side market. They are particularly strong in the trail sub-segment where the vehicles are narrower to allow access to legacy ATV trails.

Polaris Reports Strong Quarterly Earnings for Q3 2014

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New 2015RZR XP 1000 EPS Desert Edition

RZR XP 1000’s like the new 2015 RZR XP 1000 EPS Desert Edition helped drive sales.

Polaris reported an 18% year over year increase in revenue for third quarter 2014 driven by increases in their motorcycle, PG&A and Off-road Vehicle (ORV) divisions. ORV which includes side-by-sides and ATVs recorded a 17% increase. With another strong quarter, management raised their guidance for full-year results in 2014. Some highlights of the earnings call as it relates to Small, Task-Oriented Vehicles include:

  • ORV revenue up 14% year-to-date
  • Market share gains in the quarter for both side-by-sides and ATVs in North America adds to their #1 positions
  • ORV revenue was driven by side-by-sides that outpaced the industry believed to be growing at 10%
  • The 2 and 4 seat RZR XP 1000’s as well as the RZR 900 Trail are selling well
  • In the commercial UTV segment Brutus retail sales continue to grow sequentially and year-over-year for both Polaris and Bobcat
  • Commercial national accounts and fleet sales were strong
  • The Gravely Atlas UTV was launched in the quarter
  • Defense related ORV revenue was flat for the quarter but up 25% year-to-date with international sales of the MRZR contributing
  • The Small Vehicle division reported an 8% revenue increase in the quarter due to GEM and Aixam
  • Year-to-date Small Vehicle revenue is up 52%
  • GEM reported retail sales increase of 20% on action in B2B and GSA sales
  • While Aixam grew despite a weakening European market, Goupil revenue decreased with softness in the French economy, their major market
  • The Opole, Poland factory opened and will produce ORV and other products for the European and Middle East markets
  • International sales were helped by strong ORV sales in India and Australia
  • Currency issues provided some headwind in foreign markets

Learn more:  Seekingalpha.com (earnings call transcript)

Comments:  Despite some macro economic issues the Polaris juggernaut keeps on rolling as they continue to add market share despite increased competition in the side-by-side and ATV markets. Their large market share and subsequent production volume gives them an advantage in driving down vehicle costs and provides funding for their robust R&D budget and new model pipeline. The large number of models they market allows them to target specific sub-segments with specific vehicle capabilities and characteristics. In turn this makes it more difficult for competitors to match up on a vehicle to vehicle basis in each sub-segment.

Honda Recalling 2014 Pioneer 700 UTVs

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All the two and four passenger versions (shown here) of the Honda 2014 Pioneer 700 are being recalled.

All the two and four passenger versions (shown here) of the Honda 2014 Pioneer 700 are being recalled.

Honda announced a recall of all models of the 2014 Honda Pioneer 700 utility vehicle because of an issue with debris and vegetation accumulation on the middle skid plate. The buildup can come in contact with the exhaust system resulting in smoke or fire. There have been 10 reports of incidents involving fires but no injuries have been reported. The recall involves both two and four passenger versions sold from August 2013 through September 2014. The following vehicle models and serial numbers are affected by the recall:

Model Number           Serial Number Range (All begin with 1HF)         Number of Seats
SXS 700M2 2AC        VE0225E4000006 to VE022XE4006304             2
SXS 700M2 4AC        VE0284E4000003 to VE0284E4001202             2
SXS 700M4 AC          VE0204E4000013 to VE020XE4006849             4
SXS 700M4 3AC        VE0268E4000004 to VE0269E4001503             4

Owners should immediately stop using the recalled vehicle and take it to an authorized Honda dealer to have the original middle skid plate removed and an updated middle skid plate installed free of charge.  Learn more:  CPSC.gov

Comment:  This is a large recall, about four to five times the number of utility vehicles that we typically see recalled. This is also a blow to Honda in their efforts to become more competitive in the UTV market. The Pioneer models, both the 700 and the 500 which were not recalled, were their latest entry into the market. The introduction of the Pioneer UTVs represented a renewed commitment and dedication of resources by Honda towards the side-by-side market.

Pricing For Green Tech Automotive LSVs

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The G2 sedan a LSV from Green Tech Automotive

The G2 sedan a LSV from Green Tech Automotive

Green Tech Automotive recently announced pricing for their MyCar and G2 sedan with the MyCar starting at $17,140 and the G2 sedan at $21,250. Green Tech Automotive is projecting to build 30,000 vehicles annually, down from earlier projections of 250,000 several years ago. Learn more:  Torquenews.com

Comment:  As the article notes, these price points are pretty high. They will be double or close to double the price of some of the other LSVs on the market. In addition these vehicles appear to be targeting the personal transportation segment of the LSV market. This is not the majority or the fastest growing portion of the LSV market. The biggest market for LSVs in recent years has been commercial/institutional uses such federal, state and local governments, colleges and universities and parks departments. As Polaris has found out with GEM this is a slower sales process than the consumer end of the market. The current LSV market does not have the demand to meet production volume of 30,000 vehicles annually. I would be surprised if Green Tech Automotive can even reach 10% of their target.

Arctic Cat Recalls 5,600 Wildcat Trail and Wildcat Trail XT Side by Side

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The Arctic Cat Wildcat Trail XT in Mat Black being recalled.

The Arctic Cat Wildcat Trail XT in Mat Black being recalled.

WildcatTrail_Lime_2014 LARGE

The Arctic Cat Wildcat Trail in Lime Green being recalled.

Last week Arctic Cat announced the recall of approximately 5,600 Wildcat Trail and Wildcat Trail XT side by sides because of a potential fire hazard related to leakage from oil cooler lines.  Arctic Cat has received 60 reports of oil leaking and one report of fire but no injuries have been reported.

The recall involves all 2014 Arctic Cat Wildcat Trail and Wildcat Trail XT side-by-side utility vehicles with Vehicle Identification Numbers (VIN) 000001 through 316232. The VIN is located on the frame tube near the driver’s side front wheel. These units were sold in red, green, lime green, team arctic green and mat black. The words “Arctic Cat” and “Wildcat Trail” appear on the sides of these vehicles and on the hood.

Consumers should stop using the recalled side-by-sides and contact an Arctic Cat dealer to schedule a free repair. The vehicles were sold nationwide from December 2013 through July 2014 for about $11,400 to $12,400. Learn more:  CPSC.gov

Comment:  This UTV recall is a little larger than the usual UTV recalls we see which often involve up to 3,000 to 4,000 vehicles. The Wildcat Trail UTVs are more narrow than typical UTVs to access trails that in the past were only accessible by ATVs. Earlier this year Arctic Cat recalled some Prowler 500 HDX vehicles but had not recalled any UTVs for several years before then.

 

Kandi Technologies Delivers First NEVs For Shanghai’s Car-Share Program

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Kandi Technologies NEV

Kandi Technologies NEV

Last month Kandi Technologies announced the delivery of 208 neighborhood electric vehicles for the launch of the Shanghai Jinshan“Car-Share” Program. The program’s manager plans to have 3,000 to 5,000 vehicles in service by the end of 2014. The first car-share program was launched last year in Hangzou.

The car-share stations which provide a variety of services, such as charging, maintenance, battery recycling, are located at airports, train stations, hotels, business centers, selected residential areas and other places that are typically congested. A network system provides EV rental service to individual drivers in and around the city. It also provides EV maintenance and battery charging to self-service users. Lastly, a tracking system allows the Car-Share Program management to keep a close watch at the status and precise location of each vehicle.

The company expects to roll-out the program to many more cities in the next few years.

In China the vehicles for this program are sometimes referred to as neighborhood electric vehicles, they are similar but not the same as NEVs in the US. While they are small and lack some of the features of a fully functional highway capable vehicle like NEVs in the US, these vehicles from Kandi Technologies have a reported top speed of 80 km/hr compared to 40 km/hr. Learn more:  Kandivehicle.com