NEWS & EVENTS

Harley-Davidson Announces Fourth Quarter, Full-Year 2019 Results

01/28/2020
 

MILWAUKEE, Jan. 28, 2020 /PRNewswire/ -- Harley-Davidson, Inc. (NYSE:HOG) today reported fourth quarter and full-year 2019 results. Fourth quarter earnings per share (EPS) was up year-over-year and overall performance in the quarter and full-year was in line with company expectations. The company advanced its More Roads to Harley-Davidson plan and is on-track to realize its expectation of significant growth in 2021.

2019 Highlights and Results

  • Delivered fourth quarter GAAP diluted EPS of $0.09; up year-over-year
  • Advanced More Roads plan, on-track for significant 2021 growth
  • Increased focus on rider commitment; in the U.S., 527,000 riders joined in 2019, up year-over-year1
  • Tempered worldwide year-over-year retail sales rate of decline
  • Completed steps to mitigate the majority of recent EU and China tariff impacts in 2020
  • Completed key milestones of the manufacturing optimization initiative and exceeded expected full-year savings
  • Repurchased $286.7 million of shares; increased dividends 1.4 percent versus prior year to $1.50 per share

Fourth quarter 2019 GAAP diluted EPS was $0.09. Year-ago GAAP diluted EPS was $0.00. Excluding restructuring plan costs and the impact of recent EU and China tariffs, adjusted fourth quarter 2019 diluted EPS was $0.20 compared to $0.17 in the fourth quarter of 2018. Fourth quarter 2019 net income was $13.5 million on consolidated revenue of $1.07 billion versus net income of $0.5 million on consolidated revenue of $1.15 billion in the fourth quarter of 2018.

Full-year 2019 GAAP diluted EPS was $2.68. Year-ago GAAP diluted EPS was $3.19. Excluding restructuring plan costs and the impact of recent EU and China tariffs, adjusted 2019 diluted EPS was $3.36 compared to $3.78 in 2018. Full-year 2019 net income was $423.6 million on consolidated revenue of $5.36 billion versus net income of $531.5 million on consolidated revenue of $5.72 billion in 2018.

"Our performance in Q4 and the full year was in line with our expectations and indicative of increased business stability driven by the tremendous efforts of our employees and dealers," said Matt Levatich, president and chief executive officer of Harley-Davidson. "In 2019, we took important steps toward returning to significant growth in 2021 – including launching LiveWire, our first electric motorcycle, optimizing our global dealer network and expanding our international footprint," said Levatich.

Strategy to Build Riders; Accelerated plan for growth

Harley-Davidson's strategy to build the next generation of Harley-Davidson riders globally is supported by these strategic objectives from 2017 through 2027: expand to 4 million total Harley-Davidson riders in the U.S., grow international business to 50 percent of annual Harley-Davidson Motor Company (HDMC) revenue, launch 100 new high impact motorcycles, deliver superior return on invested capital for HDMC (S&P 500 top 25%) and grow its business without growing its environmental impact.

More Roads to Harley-Davidson is the company's accelerated plan for growth that aims to deliver sustainable growth and build committed riders from 2018 through 2022. The company is focusing investment and building new capabilities to invigorate the Harley-Davidson brand to spark passion that deepens rider commitment. The company's More Roads plan leverages and integrates new products, broader access, stronger dealers and amplifying the brand as catalysts to ignite and sustain momentum and deliver growth.

The company plans to maintain its targeted investment and return profile and capital allocation strategy, while it funds strategic opportunities expected to drive significant revenue growth and expand operating margin starting in 2021.

In 2019, Harley-Davidson continued to advance its More Roads plan initiatives, including:

  • Asserted its leadership in the electrification of motorcycles with the launch of LiveWire™, the company's first electric motorcycle, and IRONe™, an electric-powered two-wheeler for kids
  • Launched new high impact models and delivered significant technology to its class-leading model year 2020 motorcycles to inspire new and existing riders
  • Commissioned Thailand manufacturing facility and established a China distribution center, increasing customer access with more competitive prices
  • Improved and expanded global ecommerce and digital capabilities
  • Advanced good-to-great dealers – meeting its customer experience and sales conversion targets
  • Honed and accelerated efforts to amplify brand and build committed riders; more riders joined Harley-Davidson in the U.S. in 2019 compared to 2018 and the total pool of Harley-Davidson riders in the U.S. grew to 3.1 million in 20191

"We see 2020 as the pivotal year in the transformation of Harley-Davidson. This year we will broaden the reach of our brand and build more committed riders as we enter new and growing segments in motorcycling and eBicycles; more and easier access to two-wheeled freedom on a Harley is well underway," said Levatich.

Manufacturing Optimization

Harley-Davidson exceeded full-year expected savings from its manufacturing optimization initiative, realizing savings of $32.2 million, ahead of its estimate of $25 million to $30 million and incurred costs of $43.0 million in 2019. Aiming to further improve its manufacturing operations and cost structure, the company initiated efforts in the first quarter of 2018 including closing its wheel manufacturing facility in Australia and consolidating its motorcycle assembly plant in Kansas City, Mo. into its plant in York, Pa. The company continues to expect annual ongoing cash savings of $65 million to $75 million starting in 2021.

Harley-Davidson Retail Motorcycle Sales

Vehicles

4th Quarter

Full-Year

2019

2018

Change

2019

2018

Change

U.S.

20,204

20,849

(3.1)%

125,960

132,868

(5.2)%

EMEA

7,187

7,353

(2.3)%

44,086

46,602

(5.4)%

Asia Pacific

7,691

7,244

6.2 %

29,513

28,724

2.7 %

Latin America

2,513

2,515

(0.1)%

9,768

10,167

(3.9)%

Canada

1,159

1,350

(14.1)%

8,946

9,690

(7.7)%

International Total

18,550

18,462

0.5 %

92,313

95,183

(3.0)%

Worldwide Total

38,754

39,311

(1.4)%

218,273

228,051

(4.3)%

U.S. retail sales rate declines continued to temper. The year-over-year retail sales rate of decline in the fourth quarter was the lowest in 12 quarters and the full-year retail sales rate of decline was the lowest since 2016. Fourth quarter 601+cc U.S. market share was up 1.0 percentage points, to 50.4 percent and full-year market share was 49.1 percent, down slightly versus 2018.

International retail sales were up slightly in the fourth quarter behind continued growth in emerging markets. Full-year international retail sales finished down 3.0 percent. Harley-Davidson's full-year 601+cc Europe market share was 8.9 percent.

Motorcycles and Related Products Segment Results

$ in thousands

4th Quarter

Full-Year

2019

2018

Change

2019

2018

Change

Motorcycle Shipments (vehicles)

40,454

43,489

(7.0)%

213,939

228,665

(6.4)%

Revenue

$874,095

$955,633

(8.5)%

$4,572,678

$4,968,646

(8.0)%

   Motorcycles

$666,287

$738,167

(9.7)%

$3,538,269

$3,882,963

(8.9)%

   Parts & Accessories

$129,266

$142,168

(9.1)%

$713,400

$754,663

(5.5)%

   General Merchandise

$57,187

$58,444

(2.2)%

$237,566

$241,964

(1.8)%

Gross Margin

25.2%

27.6%

(2.3) pts.

29.4%

32.5%

(3.2) pts.

Operating (Loss) Income

($46,460)

($59,543)

22.0%

$289,620

$422,363

(31.4)%

Operating Margin

(5.3)%

(6.2)%

0.9 pts.

6.3%

8.5%

(2.2) pts.

Revenue from the Motorcycles and Related Products (Motorcycles) segment was down in the fourth quarter and on a full-year basis. Full-year operating income decreased primarily due to lower revenues and increased tariff costs, partially offset by lower SG&A and restructuring expense.

Financial Services Segment Results

$ in thousands

4th Quarter

Full-Year

2019

2018

Change

2019

2018

Change

Revenue

$198,176

$190,229

4.2%

$789,111

$748,229

5.5 %

Operating Income

$58,855

$63,286

(7.0)%

$265,988

$291,160

(8.6)%

Financial Services segment full-year operating income of $266.0 million was down 8.6 percent.

Other Results

Cash and marketable securities were $833.9 million at the end of the year, compared to $1.21 billion at the end of 2018. Harley-Davidson generated $868.3 million of cash from operating activities in 2019 compared to $1.21 billion in 2018. The company paid a cash dividend of $0.375 per share in the fourth quarter, and a cumulative total of $1.50 per share on a full-year basis. On a discretionary basis, Harley-Davidson repurchased 2.2 million shares of its common stock during the quarter for $78.7 million, and 8.2 million shares for $286.7 million on a full-year basis. During the quarter, there were 154.9 million weighted-average diluted common shares outstanding. At the end of the quarter, 8.2 million shares remained on a board-approved share repurchase authorization.

Harley-Davidson's full-year effective tax rate was 24.0 percent. 

2020 Outlook 

For the full-year 2020, the company expects the following:

  • Motorcycles segment revenue of approximately $4.53 to $4.66 billion. In the first quarter, the company expects Motorcycles segment revenue of approximately 1.09 to 1.17 billion
  • Motorcycles segment operating margin as a percent of revenue of approximately 7 to 8 percent
  • Financial Services segment operating income approximately flat year-over-year
  • Effective tax rate of approximately 24 to 25 percent
  • Capital expenditures of approximately $215 million to $235 million

1 Data and analysis based on IHS Markit Motorcycles in Operation (MIO) data for On-highway and Dual purpose bikes in the U.S. Snapshot based on data as of Dec. 31, 2019 compared to Dec. 31, 2018.

Company Background

Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. Since 1903, Harley-Davidson has fulfilled dreams of personal freedom with an expanding range of leading-edge, distinctive and customizable motorcycles in addition to riding experiences and exceptional motorcycle accessories, riding gear and apparel. Harley-Davidson Financial Services provides financing, insurance and other programs to help get Harley-Davidson riders on the road. Learn more about how Harley-Davidson is Building the Next Generation of Riders at www.harley-davidson.com.

Webcast Presentation

Harley-Davidson will discuss fourth quarter and full-year 2019 results and its outlook on an audio webcast at 8:00 a.m. CT 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. CT.

Non-GAAP Measures

This press release includes financial measures that have not been calculated in accordance with U.S. generally accepted accounting principles (GAAP) and are therefore referred to as non-GAAP financial measures. The non-GAAP measures described below are intended to be considered by users as supplemental information to the equivalent GAAP measures, to aid investors in better understanding the company's financial results. The company believes that these non-GAAP measures provide useful perspective on underlying business results and trends, and a means to assess period-over-period results. These non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP measures may not be the same as similarly titled measures used by other companies due to possible differences in method and in items or events being adjusted.

The non-GAAP measures included in this press release are adjusted net income and adjusted diluted EPS excluding restructuring plan costs and the impact of recent EU and China tariffs. Restructuring plan costs include restructuring expenses as presented in the consolidated statements of income and costs associated with temporary inefficiencies incurred in connection with the manufacturing optimization initiative included in Motorcycles and Related Products cost of goods sold. The impact of recent EU and China tariffs includes incremental European Union and China tariffs imposed beginning in 2018 on the company's products shipped from the U.S., as well as incremental U.S. tariffs imposed beginning in 2018 on certain items imported from China. The impact of recent EU and China tariffs excludes higher metals cost resulting from the U.S. steel and aluminum tariffs. These adjustments are consistent with the approach used for 2018 to determine performance relative to financial objectives under the company's incentive compensation plans. A reconciliation of these non-GAAP measures from the comparable GAAP measure is included later in this press release.

Forward-Looking Statements

The company intends that certain matters discussed in this 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 because the context of the statement will include words such as the company "believes," "anticipates," "expects," "plans," "may," "will," "estimates," "is on-track" 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 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 cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are only made as of the date of this release, and the company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

The company's ability to meet the targets and expectations noted above depends upon, among other factors, the company's ability to (i) execute its business plans and strategies, including the elements of the More Roads to Harley-Davidson accelerated plan for growth that the company disclosed on July 30, 2018 and updated September 24, 2019, and strengthen its existing business while enabling growth, (ii) manage and predict the impact that new or adjusted tariffs may have on the company's ability to sell product internationally, and the cost of raw materials and components, (iii) execute its strategy of growing ridership, globally, (iv) successfully carry out its global manufacturing and assembly operations, (v) accurately analyze, predict and react to changing market conditions and successfully adjust to shifting global consumer needs and interests, (vi) successfully launch a smaller displacement motorcycle in India, (vii) 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, (viii) perform in a manner that enables the company to benefit from market opportunities while competing against existing and new competitors, (ix) realize expectations concerning market demand for electric models, which will depend in part on the building of necessary infrastructure, (x) 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, (xi) manage supply chain issues, including quality issues and any unexpected interruptions or price increases caused by raw material shortages or natural disasters, (xii) manage the impact that prices for and supply of used motorcycles may have on its business, including on retail sales of new motorcycles, (xiii) reduce other costs to offset costs of the More Roads to Harley-Davidson plan and redirect capital without adversely affecting its existing business, (xiv) balance production volumes for its new motorcycles with consumer demand, (xv) manage risks that arise through expanding international manufacturing, operations and sales, (xvi) manage through changes in general economic and business conditions, including changing capital, credit and retail markets, and the changing political environment, (xvii) successfully determine, implement on a timely basis, and maintain a manner in which to sell motorcycles in the European Union, China, and ASEAN countries that does not subject its motorcycles to incremental tariffs, (xviii) accurately estimate and adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices, (xix) 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 independent dealers may have difficulty obtaining capital and managing through changing economic conditions and consumer demand, (xx) retain and attract talented employees, (xxi) prevent a cybersecurity breach involving consumer, employee, dealer, supplier, or company data and respond to evolving regulatory requirements regarding data security, (xxii) manage the credit quality, the loan servicing and collection activities, and the recovery rates of HDFS' loan portfolio, (xxiii) 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, (xxiv) manage through the effects inconsistent and unpredictable weather patterns may have on retail sales of motorcycles, (xxv) implement and manage enterprise-wide information technology systems, including systems at its manufacturing facilities, (xxvi) manage changes and prepare for requirements in legislative and regulatory environments for its products, services and operations, (xxvii) manage its exposure to product liability claims and commercial or contractual disputes, (xxviii) successfully access the capital and/or credit markets on terms (including interest rates) that are acceptable to the company and within its expectations, (xxix) 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, (xxx) continue to manage the relationships and agreements that the company has with its labor unions to help drive long-term competitiveness, (xxxi) accurately predict the margins of its Motorcycles & Related Products segment in light of, among other things, tariffs, the cost associated with the More Roads to Harley-Davidson plan, the company's manufacturing optimization plan, and the company's complex global supply chain, and (xxxii) develop and maintain a productive relationship with Zhejiang Qianjiang Motorcycle Co., Ltd. and launch related products in a timely manner.

The company could experience delays or disruptions in its operations as a result of work stoppages, strikes, natural causes, terrorism, or other factors. Other factors are described in risk factors that the company has disclosed in documents previously filed with the Securities and Exchange Commission. Many of these risk factors are impacted by the current changing capital, credit and retail markets and the company's ability to manage through inconsistent economic conditions.

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 independent dealers to sell its motorcycles and related products and services to retail customers. The company depends on the capability and financial capacity of its independent 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 independent 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, HDFS has experienced historically low levels of retail credit losses, but there is no assurance that this will continue. The company believes that HDFS' retail credit losses may increase over time due to changing consumer credit behavior and HDFS' efforts to increase prudently structured loan approvals to sub-prime borrowers, as well as actions that the company has taken and could take that impact motorcycle values. Refer to "Risk Factors" under Item 1A of the company's Annual Report on Form 10-K for the year ended December 31, 2018, for a discussion of additional risk factors and a more complete discussion of some of the cautionary statements noted above.

### (HOG-F)

Harley-Davidson, Inc.

Condensed Consolidated Statements of Income

(In thousands, except per share amounts)

 
   

(Unaudited)

 

(Unaudited)

 

(Unaudited)

   
   

Three months ended

 

Twelve months ended

   

December 31,

 

December 31,

 

December 31,

 

December 31,

   

2019

 

2018

 

2019

 

2018

                 

Motorcycles and Related Products revenue

 

$  874,095

 

$  955,633

 

$ 4,572,678

 

$ 4,968,646

Gross profit

 

220,639

 

263,577

 

1,342,880

 

1,616,850

Selling, administrative and engineering expense

 

266,428

 

303,763

 

1,020,907

 

1,101,086

Restructuring expense 

 

671

 

19,357

 

32,353

 

93,401

  Operating (loss) income from Motorcycles and Related Products

(46,460)

 

(59,543)

 

289,620

 

422,363

                 

Financial Services revenue

 

198,176

 

190,229

 

789,111

 

748,229

Financial Services expense

 

139,321

 

126,943

 

523,123

 

457,069

  Operating income from Financial Services

 

58,855

 

63,286

 

265,988

 

291,160

                 

Operating income

 

12,395

 

3,743

 

555,608

 

713,523

Other income (expense), net

 

4,657

 

1,530

 

16,514

 

3,039

Investment income (loss)

 

4,401

 

(1,679)

 

16,371

 

951

Interest expense

 

7,774

 

7,704

 

31,078

 

30,884

Income (loss) before income taxes

 

13,679

 

(4,110)

 

557,415

 

686,629

Income tax provision (benefit)

 

183

 

(4,605)

 

133,780

 

155,178

Net income

 

$   13,496

 

$      495

 

$   423,635

 

$   531,451

                 

Earnings per share:

               

  Basic

 

$     0.09

 

$      -

 

$      2.70

 

$      3.21

  Diluted

 

$     0.09

 

$      -

 

$      2.68

 

$      3.19

                 

Weighted-average shares:

               

  Basic

 

153,947

 

162,073

 

157,054

 

165,672

  Diluted

 

154,913

 

163,014

 

157,804

 

166,504

                 

Cash dividends per share:

 

$    0.375

 

$    0.370

 

$     1.500

 

$     1.480

 

Harley-Davidson, Inc.

Reconciliation of GAAP Amounts to Non-GAAP Amounts

(In thousands, except per share amounts) 

                 
   

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

   

Three months ended

 

Twelve months ended

   

December 31,

 

December 31,

 

December 31,

 

December 31,

   

2019

 

2018

 

2019

 

2018

Net income excluding restructuring plan costs and the impact of recent EU and China tariffs

               

Net income (GAAP)

 

$   13,496

 

$      495

 

$   423,635

 

$   531,451

Restructuring plan costs

 

973

 

22,944

 

42,688

 

106,314

Impact of recent EU and China tariffs

 

20,881

 

13,363

 

97,852

 

23,675

Tax effect of adjustments(1)

 

(4,568)

 

(8,804)

 

(33,729)

 

(31,522)

Adjustments, net of tax

 

17,286

 

27,503

 

106,811

 

98,467

Adjusted net income (non-GAAP)

 

$   30,782

 

$   27,998

 

$   530,446

 

$   629,918

                 

Diluted EPS excluding restructuring plan costs and the impact of recent EU and China tariffs

               

Diluted EPS (GAAP)

 

$     0.09

 

$      -

 

$      2.68

 

$      3.19

Adjustments net of tax, per share

 

0.11

 

0.17

 

0.68

 

0.59

Adjusted diluted EPS (non-GAAP)

 

$     0.20

 

$     0.17

 

$      3.36

 

$      3.78

                 
 

(1) The income tax effect of adjustments has been computed using the company's effective income tax rate

 

Harley-Davidson, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

                 
           

(Unaudited)

   
           

December 31,

 

December 31,

           

2019

 

2018

ASSETS

               

Current assets:

               

    Cash and cash equivalents

         

$   833,868

 

$ 1,203,766

    Marketable securities

         

-

 

10,007

    Accounts receivable, net

         

259,334

 

306,474

    Finance receivables, net

         

2,272,522

 

2,214,424

    Inventories, net

         

603,571

 

556,128

    Restricted cash

         

64,554

 

49,275

    Other current assets

         

168,974

 

144,368

           

4,202,823

 

4,484,442

                 

Finance receivables, net

         

5,101,844

 

5,007,507

Other long-term assets

         

1,223,492

 

1,173,715

           

$10,528,159

 

$10,665,664

                 

LIABILITIES AND SHAREHOLDERS' EQUITY

               

Current liabilities:

               

    Accounts payable and accrued liabilities

         

$   876,668

 

$   885,991

    Short-term debt

         

571,995

 

1,135,810

    Current portion of long-term debt, net

         

1,748,109

 

1,575,799

           

3,196,772

 

3,597,600

                 

Long-term debt, net

         

5,124,826

 

4,887,667

Pension and postretirement healthcare liabilities

       

128,651

 

202,229

Other long-term liabilities

         

273,911

 

204,219

                 

Shareholders' equity

         

1,803,999

 

1,773,949

           

$10,528,159

 

$10,665,664

                 

 

Harley-Davidson, Inc.

Condensed Consolidated Statements of Cash Flows

 (In thousands)

 
           

(Unaudited)

   
           

Twelve months ended

           

December 31,

 

December 31,

           

2019

 

2018

                 

Net cash provided by operating activities

         

$   868,272

 

$ 1,205,921

                 

Cash flows from investing activities:

               

  Capital expenditures

         

(181,440)

 

(213,516)

  Finance receivables, net

         

(347,605)

 

(427,148)

  Acquisition of business

         

(7,000)

 

-

  Other investing activities

         

27,919

 

(21,605)

Net cash used by investing activities

         

(508,126)

 

(662,269)

                 

Cash flows from financing activities:

               

  Proceeds from issuance of medium-term notes

         

1,203,236

 

1,591,828

  Repayments of medium-term notes

         

(1,350,000)

 

(877,488)

  Proceeds from securitization debt

         

1,021,453

 

-

  Repayments of securitization debt

         

(353,251)

 

(257,869)

  Net decrease in credit facilities and unsecured commercial paper

 

(563,453)

 

(135,356)

  Borrowings of asset-backed commercial paper

         

177,950

 

509,742

  Repayments of asset-backed commercial paper

         

(318,006)

 

(212,729)

  Dividends paid

         

(237,221)

 

(245,810)

  Repurchase of common stock

         

(296,520)

 

(390,606)

  Issuance of common stock under employee stock option plans

     

3,589

 

3,525

Net cash used by financing activities

         

(712,223)

 

(14,763)

                 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(2,305)

 

(15,351)

                 

Net (decrease) increase in cash, cash equivalents and restricted cash

 

$  (354,382)

 

$   513,538

                 

Cash, cash equivalents and restricted cash:

               

  Cash, cash equivalents and restricted cash, beginning of period

 

$ 1,259,748

 

$   746,210

  Net (decrease) increase in cash, cash equivalents and restricted cash

 

(354,382)

 

513,538

  Cash, cash equivalents and restricted cash, end of period

     

$   905,366

 

$ 1,259,748

                 

Reconciliation of cash, cash equivalents and restricted cash on the Consolidated balance sheets to the Consolidated statements of cash flows: 

               

  Cash and cash equivalents

         

$   833,868

 

$ 1,203,766

  Restricted cash

         

64,554

 

49,275

  Restricted cash included in Other long-term assets

     

6,944

 

6,707

  Cash, cash equivalents and restricted cash per the Consolidated statements of cash flows

$   905,366

 

$ 1,259,748

                 
 

Adoption of New Accounting Standards

On January 1, 2019, the company adopted Accounting Standards Update 2016-02 Leases using the modified retrospective method. As a result, the company recorded a right-of-use lease asset of approximately $60 million and a corresponding lease liability. 

 

Motorcycles and Related Products Revenue

 and Motorcycle Shipment Data

(Revenue in thousands) 

                 
   

Three months ended

 

Twelve months ended

   

December 31,

 

December 31,

 

December 31,

 

December 31,

   

2019

 

2018

 

2019

 

2018

MOTORCYCLES AND RELATED PRODUCTS REVENUE

               

  Motorcycles

 

$  666,287

 

$  738,167

 

$ 3,538,269

 

$ 3,882,963

  Parts & Accessories

 

129,266

 

142,168

 

713,400

 

754,663

  General Merchandise

 

57,187

 

58,444

 

237,566

 

241,964

  Licensing

 

8,818

 

9,231

 

35,917

 

38,676

  Other

 

12,537

 

7,623

 

47,526

 

50,380

   

$  874,095

 

$  955,633

 

$ 4,572,678

 

$ 4,968,646

                 

MOTORCYCLE SHIPMENTS

               

    United States

 

22,845

 

24,376

 

124,326

 

132,433

    International

 

17,609

 

19,113

 

89,613

 

96,232

   

40,454

 

43,489

 

213,939

 

228,665

                 

MOTORCYCLE PRODUCT MIX

               

    Touring

 

15,147

 

17,817

 

91,018

 

101,942

    Cruiser(1)

 

16,685

 

16,578

 

76,052

 

78,529

    Sportster®/ Street

 

8,622

 

9,094

 

46,869

 

48,194

   

40,454

 

43,489

 

213,939

 

228,665

                 

(1) Includes Softail®, CVOTM, and LiveWireTM

                 
                 

Worldwide Retail Sales of Harley-Davidson Motorcycles(1)

                 
   

Three months ended

 

Twelve months ended

   

December 31,

 

December 31,

 

December 31,

 

December 31,

   

2019

 

2018

 

2019

 

2018

                 

United States

 

20,204

 

20,849

 

125,960

 

132,868

                 

Europe(2)

 

6,115

 

6,212

 

38,441

 

41,179

EMEA - Other

 

1,072

 

1,141

 

5,645

 

5,423

Total EMEA

 

7,187

 

7,353

 

44,086

 

46,602

                 

Asia Pacific(3)

 

4,534

 

4,303

 

17,753

 

18,429

Asia Pacific - Other

 

3,157

 

2,941

 

11,760

 

10,295

Total Asia Pacific

 

7,691

 

7,244

 

29,513

 

28,724

                 

Latin America

 

2,513

 

2,515

 

9,768

 

10,167

Canada

 

1,159

 

1,350

 

8,946

 

9,690

  Total international retail sales

 

18,550

 

18,462

 

92,313

 

95,183

      Total worldwide retail sales

 

38,754

 

39,311

 

218,273

 

228,051

                 
 

(1) Data source for retail sales figures shown above is new sales warranty and registration information provided by Harley-Davidson 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.

 

(2) Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom

 

(3) Asia Pacific data includes Japan, Australia, New Zealand and Korea

 

Motorcycle Registration Data(1)

                 
           

Twelve months ended

           

December 31,

 

December 31,

           

2019

 

2018

United States(2) 

         

252,842

 

263,750

Europe(3)

         

425,998

 

397,669

                 
 

(1 ) Data includes on-road models with internal combustion engines with displacements greater than 600cc's and in the United States electric motorcycles with kilowatt peak power equivalents greater than 600cc's (601+cc). On-road 601+cc models include dual purpose models, three-wheeled motorcycles and autocycles. Registration data for Harley-Davidson Street®500 motorcycles is not included in this table.

 

(2) United States industry data is derived from information provided by Motorcycle Industry Council. This third-party data is subject to revision and update.

 

(3) Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. Industry retail motorcycle registration data includes 601+cc models derived from information provided by Association des Constructeurs Europeens de Motocycles, an independent agency. This third-party data is subject to revision and update.

 

Harley-Davidson Motor Company (PRNewsfoto/Harley-Davidson, Inc.)

 

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/harley-davidson-announces-fourth-quarter-full-year-2019-results-300994151.html

SOURCE Harley-Davidson, Inc.

Jenni Coats, jenni.coats@Harley-Davidson.com, 414.343.7902, Financial Contact: Shannon Burns, shannon.burns@Harley-Davidson.com, 414.343.8002