MILWAUKEE, Feb. 8, 2024
/PRNewswire/ -- Harley-Davidson, Inc. ("Harley-Davidson," "HDI," or
the "Company") (NYSE: HOG) today reported fourth quarter and full
year 2023 results.
"In the third year of our Hardwire strategy we have made
progress in key elements of our strategic plan - focusing on our
most profitable products and markets, which we believe will
continue to yield benefits to the business and have set us up for
long-term value creation despite the current challenging
environment for the industry," said Jochen
Zeitz, Chairman, President and CEO, Harley-Davidson. "We are
excited by the early read of our new Model Year launch, the most
comprehensive product development in the touring platform in well
over 10 years, that will redefine the Harley-Davidson Grand
American Touring experience for years to come and lay the
foundation to drive retail sales growth in '24."
2023 Highlights and Results
- Delivered diluted EPS of $4.87
- Achieved 13.6% operating margin at HDMC
- HDMC unit profitability returned to historically healthy
levels
- HDMC global motorcycle shipments of 179,984, down 7%
year-over-year
- HDFS operating income finished down 26%
- LiveWire launched the Del Mar electric motorcycle – the first
bike off the S2 platform
Fourth Quarter 2023 Summary of Results
- Delivered diluted EPS of $0.18
- HDMC global motorcycle shipments of 29,544, down 13%
year-over-year
- HDFS operating income declined 10%
- LiveWire sold 514 electric motorcycles
2024 Financial Outlook
For the full year 2024, the Company expects:
- HDMC: revenue flat to down 9% and operating income margin of
12.6% to 13.6%
- HDFS: operating income flat to up 5%
- LiveWire: electric motorcycle unit sales of 1,000 to 1,500 and
operating loss of $115 to
$125 million
- Harley-Davidson, Inc: capital investments of $225 to $250
million
Fourth Quarter and Full Year 2023 Results
Harley-Davidson, Inc. Consolidated Financial Results
$ in millions
(except EPS)
|
4th
quarter
|
Full
Year
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
Revenue
|
$1,053
|
$1,142
|
-8 %
|
$5,836
|
$5,755
|
1 %
|
Operating Income
(Loss)
|
($21)
|
$4
|
nm
|
$779
|
$909
|
-14 %
|
Net Income Attributable
to HDI
|
$26
|
$42
|
-38 %
|
$707
|
$741
|
-5 %
|
Diluted EPS
|
$0.18
|
$0.28
|
-36 %
|
$4.87
|
$4.96
|
-2 %
|
In the fourth quarter, consolidated revenue was down 8 percent,
driven by a revenue decline of 14 percent at HDMC, partially offset
by revenue growth of 15 percent at HDFS. In the fourth quarter, the
consolidated operating loss was $21
million versus operating income of $4
million in the prior year's period. The result was driven by
an operating loss of $44 million at
HDMC, a decline of 10 percent at HDFS, and an operating loss of
$35 million in the LiveWire
segment.
For the full year, consolidated revenue was up 1 percent, driven
by a revenue increase of 16 percent at HDFS, partially offset by a
revenue decline of 1 percent at HDMC. For the full year,
consolidated operating income was down 14 percent. The result was
driven by an operating income decline of 2 percent at HDMC and a
decline of 26 percent at HDFS, and a higher operating loss in the
LiveWire segment.
Harley-Davidson Motor Company (HDMC) – Results
$ in millions
(except units)
|
4th
quarter
|
Full
Year
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
Motorcycle Shipments
(thousands)
|
29.5
|
34.0
|
-13 %
|
180.0
|
193.5
|
-7 %
|
Revenue
|
$792
|
$919
|
-14 %
|
$4,845
|
$4,888
|
-1 %
|
Motorcycles
|
$583
|
$666
|
-13 %
|
$3,799
|
$3,787
|
0 %
|
Parts
& Accessories
|
$130
|
$151
|
-14 %
|
$698
|
$732
|
-5 %
|
Apparel
|
$57
|
$73
|
-21 %
|
$244
|
$271
|
-10 %
|
Licensing
|
$8
|
$10
|
-27 %
|
$29
|
$39
|
-27 %
|
Other
|
$14
|
$18
|
-22 %
|
$75
|
$58
|
29 %
|
Gross Margin
|
22.9 %
|
26.5 %
|
-3.6 pts.
|
32.3 %
|
31.3 %
|
1.1 pts.
|
Operating Income
(Loss)
|
($44)
|
($32)
|
nm
|
$661
|
$677
|
-2 %
|
Operating
Margin
|
(5.6 %)
|
(3.5 %)
|
-2.1 pts.
|
13.6 %
|
13.9 %
|
-0.2 pts.
|
In the fourth quarter, global motorcycle shipments at HDMC
decreased 13 percent due to prudent dealer inventory management and
market conditions. Revenue was down 14 percent, due to lower
volumes, where improved mix was offset by incentive spend. Parts
& Accessories revenue was down 14 percent largely in-line with
revenue from Motorcycles. Apparel revenue was down 21 percent
driven by high dealer inventory levels resulting in lower
replenishment.
Fourth quarter gross margin was down 3.6 points behind the
impacts of lower volume, higher sales incentives, and other
manufacturing costs, more than offsetting the benefits of
shipment mix and lower raw material costs. Fourth quarter operating
margin fell by 2.1 points due to the factors above, where operating
expenses were lower in the quarter due in part to LiveWire
transaction costs in the prior year's period.
Harley-Davidson Retail Motorcycle Sales
(excludes LiveWire units)
Motorcycles
(thousands)
|
4th
quarter
|
Full
Year
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
North
America
|
17.5
|
19.2
|
-9 %
|
105.9
|
117.1
|
-10 %
|
EMEA
|
5.1
|
6.6
|
-22 %
|
27.0
|
30.5
|
-11 %
|
Asia Pacific
|
6.8
|
7.5
|
-10 %
|
27.0
|
27.9
|
-3 %
|
Latin
America
|
0.8
|
0.6
|
46 %
|
2.9
|
2.9
|
0 %
|
Worldwide
Total
|
30.2
|
33.8
|
-11 %
|
162.8
|
178.5
|
-9 %
|
|
In the fourth quarter, global retail sales of Harley-Davidson
motorcycles were down 11 percent versus prior year. North America retail performance was down 9
percent and continues to be impacted by both the high interest rate
environment and the discontinuation of legacy Sportster at the
end of 2022 in the region. The decline in EMEA of 22 percent was
driven by weakness in the France
and German markets. The decline in APAC of 10 percent was driven by
weakness in the Australian and New
Zealand markets. Latin
America sales increases were driven by growth in both
Brazil and in Mexico.
For the full year, global retail sales of Harley-Davidson
motorcycles were down 9 percent versus prior year. North American
retail performance continues to be adversely impacted by higher
interest rates, economic uncertainty, and lower sales of non-core
motorcycles. EMEA retail has been adversely impacted by sluggish
economic growth and the planned mix shift towards the profitable
core product segments. APAC retail performance experienced strong
growth in the first half of the year but slowed in the second half
of the year, with overall growth in Japan for the year.
Harley-Davidson Financial Services (HDFS) –
Results
$ in
millions
|
4th
quarter
|
Full
Year
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
Revenue
|
$246
|
$214
|
15 %
|
$954
|
$821
|
16 %
|
Operating
Income
|
$58
|
$64
|
-10 %
|
$235
|
$318
|
-26 %
|
|
HDFS revenue was up $32 million in
the fourth quarter, an increase of 15 percent versus prior year,
driven primarily by higher interest income. HDFS operating income
decline of $6 million, or down 10
percent, was driven by higher interest expense, higher operating
expenses, and an increased provision for credit losses. The
increase in the provision for credit losses was driven by several
factors relating to the current macroeconomic environment. Total
quarter ending net finance receivables were $7.5 billion, which was up 5 percent versus prior
year, driven primarily by an increase in wholesale commercial
lending receivables.
LiveWire - Results
$ in
millions
|
4th
quarter
|
Full
Year
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
Electric Motorcycle
Shipments (units)
|
514
|
69
|
645 %
|
660
|
597
|
11 %
|
Revenue
|
$15
|
$9
|
67 %
|
$38
|
$47
|
-18 %
|
Operating
Loss
|
($35)
|
($29)
|
nm
|
($117)
|
($85)
|
nm
|
In the fourth quarter, LiveWire revenue increased to
$15 million from $9 million, driven by unit sales of the new Del
Mar electric motorcycles. LiveWire operating loss of $35 million in the fourth quarter, in-line with
our expectations, was driven by continued product development and
other spending associated with the delivery of the Del Mar electric
motorcycle to market.
Other 2023 Harley-Davidson, Inc. Results
- Generated $755 million of cash
from operating activities
- Effective tax rate was 19.8%
- Paid cash dividends of $96
million
- Repurchased $350 million of
shares (10.2 million shares) on a discretionary basis
- Financing raised for HDFS of $2.5
billion
- Cash and cash equivalents of $1.5
billion at year end
Segment Reporting Structure
LiveWire Group, Inc. ("LiveWire Group") became a separate public
company trading on the New York Stock Exchange (Ticker: LVWR) on
September 27, 2022. Harley-Davidson
has a controlling equity interest in LiveWire Group and continues
to consolidate LiveWire Group results with adjustments for
non-controlling shareholder interests. Net Income attributable to
Harley-Davidson, Inc. and EPS reflect these adjustments.
Beginning with the fourth quarter of 2022, new business segment
reporting now includes:
- Harley-Davidson Motor Company (HDMC): Group that is
accountable for the design, manufacturing, marketing and sales of
Harley-Davidson motorcycles and related products
- Harley-Davidson Financial Services (HDFS): Group that
provides motorcycle and related products financing and insurance
products and services for our dealers and retail customers
- LiveWire: Group that is accountable for the design,
marketing and sales of LiveWire electric motorcycles and related
products, including STACYC electric balance bikes
- Harley-Davidson, Inc. (HDI): Corporate entity for the
overall Company, under which HDMC, HDFS and LiveWire operate
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.
CST 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. CST.
Cautionary Note Regarding Forward-Looking
Statements
The Company intends that certain matters
discussed in this press release 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 by
reference to this footnote or because the context of the statement
will include words such as the Company "believes," "anticipates,"
"expects," "plans," "may," "will," "estimates," "targets,"
"intends," "forecasts," "sees," 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 conflict between Israel and Hamas, or natural disasters and
longer shipping times and increased logistics costs, including by
successfully implementing pricing surcharges; (c) accurately
analyze, predict and react to changing market conditions and
successfully adjust to shifting global consumer needs and
interests; (d) 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, 2022; (e) successfully access the
capital and/or credit markets on terms that are acceptable to the
Company and within its expectations; (f) successfully carry out its
global manufacturing and assembly operations; (g) 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; (h) perform in a manner that enables the Company to
benefit from market opportunities while competing against existing
and new competitors; (i) 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; (j) 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; (k) manage the
impact that prices for and supply of used motorcycles may have on
its business, including on retail sales of new motorcycles; (l)
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; (m)
successfully manage and reduce costs throughout the business; (n)
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; (o) continue to
develop the capabilities of its distributors and dealers,
effectively implement changes relating to its dealers and
distribution methods and manage the risks that its dealers may have
difficulty obtaining capital and managing through changing economic
conditions and consumer demand; (p) 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; (q) continue to develop and maintain a
productive relationship with Zhejiang Qianjiang Motorcycle Co.,
Ltd. and launch related products in a timely manner; (r) maintain a
productive relationship with Hero MotoCorp as a distributor and
licensee of the Harley-Davidson brand name in India; (s) 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; (t)
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; (u) 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; (v) 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; (w) retain and attract talented
employees, and eliminate personnel duplication, inefficiencies and
complexity throughout the organization; (x) accurately estimate and
adjust to fluctuations in foreign currency exchange rates, interest
rates and commodity prices; (y) manage the credit quality, the loan
servicing and collection activities, and the recovery rates of
Harley-Davidson Financial Services' loan portfolio; (z) prevent a
cybersecurity breach involving consumer, employee, dealer,
supplier, or Company data and respond to evolving regulatory
requirements regarding data security; (aa) 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; (bb) manage through the effects inconsistent
and unpredictable weather patterns may have on retail sales of
motorcycles; (cc) implement and manage enterprise-wide information
technology systems, including systems at its manufacturing
facilities; (dd) 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;
(ee) manage its exposure to product liability claims and commercial
or contractual disputes; (ff) continue to manage the relationships
and agreements that the Company has with its labor unions to help
drive long-term competitiveness; (gg) 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 (hh) 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.
In recent years, Harley-Davidson Financial Services (HDFS)
experienced historically low levels of retail credit losses, but
credit losses have been normalizing to higher levels in recent
quarters. 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 conflict between
Israel and Hamas, 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, 2022 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)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
HDMC revenue
|
|
$
791,648
|
|
$
918,683
|
|
$ 4,844,594
|
|
$ 4,887,672
|
Gross profit
|
|
181,352
|
|
243,810
|
|
1,566,542
|
|
1,527,873
|
Selling, administrative
and engineering expense
|
|
225,526
|
|
275,811
|
|
905,391
|
|
850,786
|
Operating (loss)
income from HDMC
|
|
(44,174)
|
|
(32,001)
|
|
661,151
|
|
677,087
|
|
|
|
|
|
|
|
|
|
LiveWire
revenue
|
|
15,366
|
|
9,218
|
|
38,298
|
|
46,833
|
Gross (loss)
profit
|
|
(5,372)
|
|
2,276
|
|
(5,956)
|
|
2,904
|
Selling, administrative
and engineering expense
|
|
29,563
|
|
30,827
|
|
110,853
|
|
88,219
|
Operating loss
from Livewire
|
|
(34,935)
|
|
(28,551)
|
|
(116,809)
|
|
(85,315)
|
|
|
|
|
|
|
|
|
|
HDFS revenue
|
|
246,197
|
|
214,381
|
|
953,586
|
|
820,625
|
HDFS expense
|
|
188,234
|
|
150,116
|
|
718,844
|
|
503,119
|
Operating income
from HDFS
|
|
57,963
|
|
64,265
|
|
234,742
|
|
317,506
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
|
(21,146)
|
|
3,713
|
|
779,084
|
|
909,278
|
Other income,
net
|
|
17,672
|
|
18,209
|
|
71,808
|
|
48,652
|
Investment
income
|
|
15,727
|
|
8,324
|
|
46,771
|
|
4,538
|
Interest
expense
|
|
(7,683)
|
|
(7,680)
|
|
(30,787)
|
|
(31,235)
|
Income before income
taxes
|
|
4,570
|
|
22,566
|
|
866,876
|
|
931,233
|
Income tax (benefit)
provision
|
|
(18,716)
|
|
(17,111)
|
|
171,830
|
|
192,019
|
Net income
|
|
$
23,286
|
|
$
39,677
|
|
$
695,046
|
|
$
739,214
|
Less: Loss attributable
to noncontrolling interests
|
|
2,524
|
|
2,194
|
|
11,540
|
|
2,194
|
Net income attributable
to Harley-Davidson, Inc.
|
|
$
25,810
|
|
$
41,871
|
|
$
706,586
|
|
$
741,408
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.19
|
|
$
0.29
|
|
$
4.96
|
|
$
5.01
|
Diluted
|
|
$
0.18
|
|
$
0.28
|
|
$
4.87
|
|
$
4.96
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares:
|
|
|
|
|
|
|
|
|
Basic
|
|
138,520
|
|
146,187
|
|
142,378
|
|
148,012
|
Diluted
|
|
141,464
|
|
148,956
|
|
145,103
|
|
149,351
|
|
|
|
|
|
|
|
|
|
Cash dividends per
share:
|
|
$
0.1650
|
|
$
0.1575
|
|
$
0.6600
|
|
$
0.6300
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
2023
|
|
2022
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
|
|
|
|
$ 1,533,806
|
|
$ 1,433,175
|
Accounts receivable, net
|
|
|
|
|
|
267,200
|
|
252,225
|
Finance receivables, net
|
|
|
|
|
|
2,113,729
|
|
1,782,631
|
Inventories, net
|
|
|
|
|
|
929,951
|
|
950,960
|
Restricted cash
|
|
|
|
|
|
104,642
|
|
135,424
|
Other current assets
|
|
|
|
|
|
214,401
|
|
196,238
|
|
|
|
|
|
|
5,163,729
|
|
4,750,653
|
|
|
|
|
|
|
|
|
|
Finance receivables,
net
|
|
|
|
|
|
5,384,536
|
|
5,355,807
|
Other long-term
assets
|
|
|
|
|
|
1,592,289
|
|
1,386,016
|
|
|
|
|
|
|
$
12,140,554
|
|
$
11,492,476
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
|
|
$
996,021
|
|
$
998,947
|
Short-term deposits, net
|
|
|
|
|
|
253,309
|
|
79,710
|
Short-term debt
|
|
|
|
|
|
878,935
|
|
770,468
|
Current portion of long-term debt, net
|
|
|
|
|
|
1,255,999
|
|
1,684,782
|
|
|
|
|
|
|
3,384,264
|
|
3,533,907
|
|
|
|
|
|
|
|
|
|
Long-term debt,
net
|
|
|
|
|
|
4,990,586
|
|
4,457,052
|
Other long-term
liabilities
|
|
|
|
|
|
513,409
|
|
594,709
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
3,252,295
|
|
2,906,808
|
|
|
|
|
|
|
$
12,140,554
|
|
$
11,492,476
|
Harley-Davidson,
Inc.
|
Condensed Consolidated
Statements of Cash Flows
|
(In
thousands)
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Twelve months
ended
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
|
|
|
$
754,887
|
|
$
548,461
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
|
|
|
(207,404)
|
|
(151,669)
|
Finance
receivables, net
|
|
|
|
|
|
(302,720)
|
|
(623,833)
|
Other investing
activities
|
|
|
|
|
|
(2,180)
|
|
2,491
|
Net cash used by
investing activities
|
|
|
|
|
|
(512,304)
|
|
(773,011)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from
issuance of medium-term notes
|
|
|
|
|
|
1,446,304
|
|
495,785
|
Repayments of
medium-term notes
|
|
|
|
|
|
(1,056,680)
|
|
(950,000)
|
Proceeds from
securitization debt
|
|
|
|
|
|
1,045,547
|
|
1,826,891
|
Repayments of
securitization debt
|
|
|
|
|
|
(1,193,526)
|
|
(1,442,860)
|
Net increase in
unsecured commercial paper
|
|
|
|
|
|
107,146
|
|
16,003
|
Borrowings of
asset-backed commercial paper
|
|
|
|
|
|
42,429
|
|
448,255
|
Repayments of
asset-backed commercial paper
|
|
|
|
|
|
(237,370)
|
|
(302,922)
|
Net increase in
deposits
|
|
|
|
|
|
129,855
|
|
26,605
|
Cash received
from business combination
|
|
|
|
|
|
-
|
|
114,068
|
Dividends
paid
|
|
|
|
|
|
(96,310)
|
|
(93,180)
|
Repurchase of
common stock
|
|
|
|
|
|
(363,987)
|
|
(338,627)
|
Other financing
activities
|
|
|
|
|
|
1,946
|
|
(1,985)
|
Net cash used by
financing activities
|
|
|
|
|
|
(174,646)
|
|
(201,967)
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
|
|
|
1,697
|
|
(19,525)
|
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash, cash equivalents and restricted cash
|
|
|
|
|
|
$
69,634
|
|
$
(446,042)
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash:
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
|
|
|
|
$ 1,579,177
|
|
$ 2,025,219
|
Net increase (decrease)
in cash, cash equivalents and restricted cash
|
|
|
|
|
|
69,634
|
|
(446,042)
|
Cash, cash equivalents
and restricted cash, end of period
|
|
|
|
|
|
$ 1,648,811
|
|
$ 1,579,177
|
|
|
|
|
|
|
|
|
|
Reconciliation of cash,
cash equivalents and restricted cash on the Consolidated balance
sheets to the Consolidated statements of cash
flows:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
$ 1,533,806
|
|
$ 1,433,175
|
Restricted
cash
|
|
|
|
|
|
104,642
|
|
135,424
|
Restricted cash
included in Other long-term assets
|
|
|
|
|
|
10,363
|
|
10,578
|
Cash, cash
equivalents and restricted cash per the Consolidated statements of
cash flows
|
|
|
$ 1,648,811
|
|
$ 1,579,177
|
HDMC Revenue and
Motorcycle Shipment Data
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
HDMC REVENUE (in thousands)
|
|
|
|
|
|
|
|
|
Motorcycles
|
|
$
582,590
|
|
$
666,387
|
|
$ 3,798,977
|
|
$ 3,787,484
|
Parts and
accessories
|
|
130,096
|
|
151,350
|
|
698,095
|
|
731,645
|
Apparel
|
|
57,261
|
|
72,547
|
|
244,333
|
|
271,107
|
Licensing
|
|
7,686
|
|
10,483
|
|
28,599
|
|
39,423
|
Other
|
|
14,015
|
|
17,916
|
|
74,590
|
|
58,013
|
|
|
$
791,648
|
|
$
918,683
|
|
$ 4,844,594
|
|
$ 4,887,672
|
|
|
|
|
|
|
|
|
|
HDMC U.S. MOTORCYCLE
SHIPMENTS
|
|
16,883
|
|
17,839
|
|
113,867
|
|
118,836
|
|
|
|
|
|
|
|
|
|
HDMC WORLDWIDE MOTORCYCLE SHIPMENTS
|
|
|
|
|
|
|
|
|
Grand American Touring(a)
|
|
16,413
|
|
14,558
|
|
92,683
|
|
89,849
|
Cruiser
|
|
10,069
|
|
11,685
|
|
63,945
|
|
59,010
|
Sport and Lightweight
|
|
2,379
|
|
5,709
|
|
18,228
|
|
33,894
|
Adventure Touring
|
|
683
|
|
2,031
|
|
5,128
|
|
10,774
|
|
|
29,544
|
|
33,983
|
|
179,984
|
|
193,527
|
(a)
Includes CVO™ and
Trike
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LiveWire Motorcycle
Shipments
|
|
514
|
|
69
|
|
660
|
|
597
|
HDMC Gross
Profit
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
The estimated impact of
significant factors affecting the comparability of gross profit
from 2022 to 2023 were as follows (in millions):
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
Twelve months
ended
|
|
|
2022 gross
profit
|
|
$
244
|
|
|
|
$
1,528
|
|
|
Volume
|
|
(40)
|
|
|
|
(131)
|
|
|
Price and sales
incentives
|
|
(60)
|
|
|
|
139
|
|
|
Foreign currency
exchange rates and hedging
|
|
-
|
|
|
|
(54)
|
|
|
Shipment mix
|
|
50
|
|
|
|
133
|
|
|
Raw material
prices
|
|
16
|
|
|
|
38
|
|
|
Manufacturing and other
costs
|
|
(29)
|
|
|
|
(86)
|
|
|
|
|
(63)
|
|
|
|
39
|
|
|
2023 gross
profit
|
|
$
181
|
|
|
|
$
1,567
|
|
|
HDFS Finance
Receivables Allowance for Credit Losses
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Balance, beginning of
period
|
|
$
392,714
|
|
$
360,096
|
|
$
358,711
|
|
$
339,379
|
Provision for credit
losses
|
|
56,662
|
|
50,561
|
|
227,158
|
|
145,133
|
Charge-offs, net of
recoveries
|
|
(67,410)
|
|
(51,946)
|
|
(203,903)
|
|
(125,801)
|
Balance, end of
period
|
|
$
381,966
|
|
$
358,711
|
|
$
381,966
|
|
$
358,711
|
Worldwide Retail Sales
of Harley-Davidson Motorcycles(a)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
United
States
|
|
16,694
|
|
18,367
|
|
98,468
|
|
109,190
|
Canada
|
|
769
|
|
816
|
|
7,422
|
|
7,924
|
Total North
America
|
|
17,463
|
|
19,183
|
|
105,890
|
|
117,114
|
EMEA
|
|
5,121
|
|
6,562
|
|
27,005
|
|
30,510
|
Asia Pacific
|
|
6,763
|
|
7,532
|
|
26,953
|
|
27,905
|
Latin
America
|
|
815
|
|
557
|
|
2,923
|
|
2,922
|
Total worldwide retail
sales
|
|
30,162
|
|
33,834
|
|
162,771
|
|
178,451
|
|
|
|
|
|
|
|
|
|
(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.