View all news

Harley-Davidson Delivers Strong Fourth Quarter Financial Results Successfully Completing Second Year of Hardwire Strategic Plan

02/02/2023

MILWAUKEE, Feb. 2, 2023 /PRNewswire/ -- Harley-Davidson, Inc. ("Harley-Davidson," "HDI," or the "Company"), (NYSE: HOG) today reported fourth quarter and full year 2022 results.

"As we conclude the second year of the Hardwire, Harley-Davidson delivered a strong finish to the year, with solid execution of our strategic pillars," said Jochen Zeitz, Chairman and CEO, Harley-Davidson. "Since 1903, Harley-Davidson has pioneered American motorcycle design, technology, and performance - this year we'll be marking our 120th Anniversary with a year-long celebration, at locations across the globe and our biggest event ever in our hometown, Milwaukee. We are excited about what is going to be an unforgettable milestone for the company, celebrating the history, culture and community of Harley-Davidson with our riders, families and fans, reaching new customers and bringing more people to the brand."

2022 Highlights and Results

  • Delivered full year diluted EPS of $4.96, up 18 percent versus prior year
  • Grew HDMC and LiveWire combined revenue by 9 percent behind higher wholesale shipments and global pricing realization
  • Achieved 12% combined operating margin for HDMC and LiveWire, an increase of 3 points versus prior year as pricing and productivity offset cost inflation
  • HDFS operating income finished down 23 percent and in-line with expectations as loss rates normalized throughout the year
  • Completed carve-out and stand-up of LiveWire as a separate public company

Fourth Quarter 2022 Summary of Results

  • Delivered diluted EPS of $0.28 – up 100 percent versus prior year
  • Grew HDMC global motorcycle shipments by 18 percent vs prior year as production levels rebounded from the Q2 production shutdown
  • Achieved HDMC revenue growth of 14 percent behind unit growth and global pricing
  • HDFS Operating Income declined 32 percent due primarily to expected loss rate normalization

2023 Financial Outlook

For the full year 2023, the Company expects:

  • HDMC: revenue growth of 4 to 7% and operating income margin of 14.1 to 14.6%
  • HDFS: operating income decline of 20 to 25%
  • LiveWire: motorcycle wholesale units 750–2,000 and operating income loss of $115 to $125 million
  • Harley-Davidson, Inc: capital investments of $225 to $250 million

New 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. Following the close, Harley-Davidson has an equity interest in LiveWire Group of approximately 89.4% and will continue to consolidate LiveWire Group results with adjustments for non-controlling shareholder interests. Consolidated Net Income attributable to Harley-Davidson, Inc. and EPS calculations will now reflect these adjustments.

Beginning with the fourth quarter of 2022, new business segment reporting will now include:

  • 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

Prior period HDMC segment results have been updated to exclude LiveWire results. In addition, the consolidated results will continue to be reflected by:

  • Harley-Davidson, Inc. (HDI): Corporate entity for the overall Company, under which HDMC, HDFS and LiveWire operate

Fourth Quarter and Full Year 2022 Results

Harley-Davidson, Inc. Consolidated Financial Results 

$ in millions (except EPS)

4th quarter

Full Year

2022

2021

Change

2022

2021

Change

Revenue

$1,142

$1,016

12 %

$5,755

$5,336

8 %

Operating Income (Loss)

$4

($7)

nm

$909

$823

10 %

Net Income attributable to
Harley-Davidson, Inc.

$42

$22

94 %

$741

$ 650

14 %

Diluted EPS

$0.28

$0.14

100 %

$4.96

$4.19

18 %

  nm - not meaningful


Consolidated revenue was up 12 percent in the fourth quarter with growth across HDMC and HDFS and up 8 percent for the full year behind wholesale unit growth and global pricing actions.

Consolidated operating income in the fourth quarter includes an improvement in HDMC operating losses ($50 million lower) in the seasonally smaller quarter and reflects a 32 percent decline in HDFS operating income driven by the combination of loss rate normalization and a higher cost of funding.

Consolidated operating income for the full year was driven by significant operating income improvement at HDMC, planned operating losses at the new LiveWire segment, and a 23 percent decline in HDFS operating income as loss rates normalized.

Harley-Davidson Motor Company (HDMC) – Results

$ in millions (except units)

4th quarter

Full Year

2022

2021

Change

2022

2021

Change

Motorcycle Shipments (thousands)

34.0

28.9

18 %

193.5

188.0

3 %

Revenue

$919

$803

14 %

$4,888

$4,504

9 %

   Motorcycles

$666

$542

23 %

$3,787

$3,469

9 %

   Parts & Accessories

$151

$164

(8 %)

$732

$741

(1 %)

   Apparel

$73

$73

0 %

$271

$228

19 %

   Licensing

$10

$15

(30 %)

$39

$38

4 %

   Other

$18

$9

106 %

$58

$29

100 %

Gross Margin

26.5 %

19.7 %

6.8 pts.

31.3 %

28.8 %

2.4 pts.

Operating Income (Loss)

($32)

($82)

nm

$677

$477

42 %

Operating Margin

(3.5 %)

(10.3 %)

6.8 pts.

13.9 %

10.6 %

3.3 pts.

  nm - not meaningful


Fourth quarter global motorcycle shipments increased 18 percent behind the continued recovery from the Q2 production suspension. Revenue was up 14 percent driven by the increase in wholesale shipments and continued global pricing, partially offset by unfavorable foreign exchange. Parts & Accessories revenue was down 8 percent driven by unfavorable product mix and lower volumes, while Apparel revenue was flat.

Fourth quarter gross margin was up 6.8 points behind favorable units and pricing. Additionally, flat supply chain cost inflation and lapping of the additional EU tariffs in 2021 contributed to offsetting foreign exchange headwinds. Fourth quarter operating margin improved by 6.8 points due to the factors above.

Harley-Davidson Retail Motorcycle Sales  
(excludes LiveWire units)

Motorcycles (thousands)

4th quarter

Full Year

2022

2021

Change

2022

2021

Change

North America

19.2

19.5

(2 %)

117.1

133.7

(12 %)

EMEA

6.6

6.5

1 %

30.5

30.9

(1 %)

Asia Pacific

7.5

6.8

11 %

27.9

25.0

12 %

Latin America

0.6

1.0

(46 %)

2.9

3.7

(20 %)

Worldwide Total

33.8

33.8

flat

178.5

193.3

(8 %)


Global retail motorcycle sales in the fourth quarter were flat versus prior year. North America retail performance was down 2 percent in the seasonally smaller quarter. Growth in Asia Pacific was driven by continued strong demand across key markets, including Japan and China. Annual global retail sales decline of 8% was adversely impacted by the Q2 production suspension and the inability to replenish dealer inventories in peak riding season.

Harley-Davidson Financial Services (HDFS) – Results

$ in millions

4th quarter

Full Year

2022

2021

Change

2022

2021

Change

Revenue

$214

$200

7 %

$821

$796

3 %

Operating Income

$64

$95

(32 %)

$318

$415

(23 %)


HDFS' operating income decline of $31 million in the fourth quarter was driven by a higher provision for credit losses and higher interest expense. The increase in the provision for credit losses was due to actual retail credit losses returning to normalized levels and an unfavorable allowance change. Total quarter ending financing receivables were $7.5 billion, which was up 8% versus prior year.

LiveWire - Results

$ in millions

4th quarter

Full Year

2022

2021

Change

2022

2021

Change

Electric Motorcycle Shipments (units)

69

186

(63 %)

597

461

30 %

Revenue

$9

$13

(28 %)

$47

$36

31 %

Operating Loss

($29)

($20)

nm

($85)

($68)

nm

  nm - not meaningful


LiveWire revenue for the fourth quarter 2022 decreased by 28% and full year revenue increased 31% driven by higher LiveWire units and STACYC electric balance bike sales. LiveWire operating losses in both comparable periods were driven by increased product development costs and investments in talent & capabilities to support the new company.

Other 2022 Harley-Davidson, Inc. Results

  • Generated $548 million of cash from operating activities
  • Cash and cash equivalents of $1.4 billion at year end, down $442 million vs. prior year
  • Effective tax rate was 21 percent in 2022
  • Paid cash dividends of $0.63 per share in 2022
  • Repurchased $324 million of shares (8.4 million shares)

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. 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.

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," "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 presentation. 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 presentation, 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 following: (i) the COVID-19 pandemic, including the length and severity of the pandemic across the globe and the pace of recovery following the pandemic and (ii) the company's ability to: (A) execute its business plans and strategies, including The Hardwire, including 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, availability of semiconductor chip components and the ability to find alternative sources of those components in a timely manner, unexpected interruptions or price increases caused by supplier volatility, raw material shortages, inflation, war or other hostilities, including the conflict in Ukraine, or natural disasters, and longer shipping times and increased logistics costs, including by successfully implementing pricing surcharges; (C) realize the expected business benefits from the combination of LiveWire with AEA Bridges Impact Corp. (ABIC), which may be affected by, among other things: (i) the ability of LiveWire to: (1) execute its plans to develop, produce, market, and sell its electric vehicles; (2) achieve profitability, which is dependent on the successful development and commercial introduction and acceptance of its electric vehicles, and its services, which may not occur; (3) adequately control the costs of its operations as a new entrant into a new space; (4) develop, maintain, and strengthen its brand; (5) execute its plans to develop, produce, market, and sell its electric vehicles; and (6) effectively establish and maintain cooperation from its retail partners, largely drawn from the company's traditional motorcycle dealer network, to be able to effectively establish or maintain relationships with customers for electric vehicles; (ii) competition; and (iii) other risks and uncertainties indicated in the final prospectus of ABIC, including those under "Risk Factors" in that prospectus, and other documents filed with the SEC by the company, LiveWire Group, Inc. or ABIC; (D) accurately analyze, predict and react to changing market conditions and successfully adjust to shifting global consumer needs and interests; (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 regulatory compliance matter relating to a third-party supplier's component part in a manner that avoids additional costs or recall expenses that are material; (J) 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; (K) 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 Section 232 steel and aluminum tariffs and incremental tariffs on motorcycles imported into the EU from the U.S., between the U.S. and EU, which expires on December 31, 2023; (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) manage the impact that prices for and supply of used motorcycles may have on its business, including on retail sales of new motorcycles; (N) successfully manage and reduce costs throughout the business; (O) 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; (P) 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; (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) 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; (T) 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; (U) accurately estimate and adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices; (V) retain and attract talented employees, and eliminate personnel duplication, inefficiencies and complexity throughout the organization; (W) prevent a cybersecurity breach involving consumer, employee, dealer, supplier, or company data and respond to evolving regulatory requirements regarding data security; (X) manage the credit quality, the loan servicing and collection activities, and the recovery rates of Harley-Davidson Financial Services Inc.'s loan portfolio; (Y) 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; (Z) manage through the effects inconsistent and unpredictable weather patterns may have on retail sales of motorcycles; (AA) implement and manage enterprise-wide information technology systems, including systems at its manufacturing facilities; (BB) manage changes and prepare for requirements in legislative and regulatory environments for its products, services and operations; (CC) manage its exposure to product liability claims and commercial or contractual disputes; (DD) continue to manage the relationships and agreements that the company has with its labor unions to help drive long-term competitiveness; (EE) achieve anticipated results with respect to the company's pre-owned motorcycle program, Harley-Davidson Certified, and the company's H-D1 Marketplace; (FF) accurately predict the margins of its Harley-Davidson Motor Company segment 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; and (GG) 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, the impact of the COVID-19 pandemic, or other factors.

In recent years, HDFS experienced historically low levels of retail credit losses, but credit losses have been normalizing in recent quarters. The company believes that HDFS' retail credit losses could change over time due to changing consumer credit behavior, macroeconomic conditions including the impact of inflation, and HDFS' efforts to adjust underwriting criteria based on market and economic conditions, as well as actions that the company has taken and could take that impact motorcycle values. 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, 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, 2021, and Part II, Item 1.A of any subsequently filed Quarterly Report on Form 10-Q, 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,

   

2022

 

2021

 

2022

 

2021

                 

HDMC revenue(a)

 

$       918,683

 

$        803,142

 

$     4,887,672

 

$     4,504,434

Gross profit

 

243,810

 

158,449

 

1,527,873

 

1,299,527

Selling, administrative and engineering expense

 

275,966

 

238,896

 

851,330

 

819,979

Restructuring (benefit) expense

 

(155)

 

2,010

 

(544)

 

2,741

  Operating (loss) income from HDMC

 

(32,001)

 

(82,457)

 

677,087

 

476,807

                 

LiveWire revenue(a)

 

9,218

 

12,873

 

46,833

 

35,806

Gross profit (loss)

 

2,276

 

543

 

2,904

 

(2,574)

Selling, administrative and engineering expense

 

30,827

 

20,480

 

88,219

 

65,608

  Operating loss from Livewire

 

(28,551)

 

(19,937)

 

(85,315)

 

(68,182)

                 

HDFS revenue

 

214,381

 

200,418

 

820,625

 

796,068

HDFS expense

 

150,116

 

105,093

 

503,119

 

380,580

Restructuring expense 

 

-

 

238

 

-

 

674

  Operating income from HDFS

 

64,265

 

95,087

 

317,506

 

414,814

                 

Operating income (loss)

 

3,713

 

(7,307)

 

909,278

 

823,439

Non-operating income (expense), net

 

18,853

 

12,851

 

21,955

 

(4,202)

Income before income taxes

 

22,566

 

5,544

 

931,233

 

819,237

Income tax (benefit) provision

 

(17,111)

 

(16,023)

 

192,019

 

169,213

Net income

 

$         39,677

 

$           21,567

 

$        739,214

 

$        650,024

Less: Loss attributable to noncontrolling interests

 

$           2,194

 

$                    -

 

$             2,194

 

$                    -

Net Income attributable to Harley-Davidson, Inc. 

 

$         41,871

 

$           21,567

 

$        741,408

 

$        650,024

                 

Earnings per share:

               

  Basic

 

$              0.29

 

$               0.14

 

$               5.01

 

$               4.23

  Diluted

 

$              0.28

 

$               0.14

 

$               4.96

 

$               4.19

                 

Weighted-average shares:

               

  Basic

 

146,187

 

153,879

 

148,012

 

153,747

  Diluted

 

148,956

 

155,200

 

149,351

 

154,980

                 

Cash dividends per share:

 

$         0.1575

 

$           0.1500

 

$           0.6300

 

$           0.6000

                 
 

(a) Historically, the Company has operated with two segments: Motorcycles and Related Products (Motorcycles) and Financial Services. In connection with the LiveWire transaction that closed on September 26, 2022 (discussed in Note 20 of the Notes to Consolidated financial statements included in the Company's Quarterly Report on Form 10-Q filed on November 3, 2022), the Company reorganized its business into three segments: Harley-Davidson Motor Company (HDMC), LiveWire, and Harley-Davidson Financial Services (HDFS) during the fourth quarter. HDMC includes the Company's Harley-Davidson motorcycle, parts, accessories, apparel and licensing business. LiveWire includes the Company's LiveWire electric motorcycle business. The Financial Services segment was renamed the HDFS segment but remains unchanged from periods prior to the reorganization. The change has been retrospectively reflected in the periods presented above.

                 

Harley-Davidson, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

                 
           

(Unaudited)

   
           

December 31,

 

December 31,

           

2022

 

2021

ASSETS

               

Current assets:

               

    Cash and cash equivalents

         

$     1,433,175

 

$     1,874,745

    Accounts receivable, net

         

252,225

 

182,148

    Finance receivables, net

         

1,782,631

 

1,465,544

    Inventories, net

         

950,960

 

712,942

    Restricted cash

         

135,424

 

128,935

    Other current assets

         

196,238

 

185,777

           

4,750,653

 

4,550,091

                 

Finance receivables, net

         

5,355,807

 

5,106,377

Other long-term assets

         

1,386,016

 

1,394,587

           

$   11,492,476

 

$   11,051,055

                 

LIABILITIES AND SHAREHOLDERS' EQUITY

               

Current liabilities:

               

    Accounts payable and accrued liabilities

         

$        998,947

 

$        976,959

    Short-term deposits, net

         

79,710

 

72,146

    Short-term debt

         

770,468

 

751,286

    Current portion of long-term debt, net

         

1,684,782

 

1,542,496

           

3,533,907

 

3,342,887

                 

Long-term debt, net

         

4,457,052

 

4,595,617

Other long-term liabilities

         

594,709

 

559,307

                 

Shareholders' equity

         

2,906,808

 

2,553,244

           

$   11,492,476

 

$   11,051,055

                 
                 

Harley-Davidson, Inc.

Condensed Consolidated Statements of Cash Flows

 (In thousands)

 
           

(Unaudited

   
           

Twelve months ended

           

December 31,

 

December 31,

           

2022

 

2021

                 

Net cash provided by operating activities

         

$        548,461

 

$        975,701

                 

Cash flows from investing activities:

               

  Capital expenditures

         

(151,669)

 

(120,181)

  Finance receivables, net

         

(623,833)

 

(341,406)

  Other investing activities

         

2,491

 

2,140

Net cash used by investing activities

         

(773,011)

 

(459,447)

                 

Cash flows from financing activities:

               

  Proceeds from issuance of medium-term notes

         

495,785

 

-

  Repayments of medium-term notes

         

(950,000)

 

(1,400,000)

  Proceeds from securitization debt

         

1,826,891

 

1,169,910

  Repayments of securitization debt

         

(1,442,860)

 

(1,340,638)

  Net increase (decrease) in unsecured commercial paper

         

16,003

 

(260,250)

  Borrowings of asset-backed commercial paper

         

448,255

 

98,863

  Repayments of asset-backed commercial paper

         

(302,922)

 

(261,367)

  Net increase in deposits

         

26,605

 

210,112

  Cash received from business combination(a)

         

114,068

 

-

  Dividends paid

         

(93,180)

 

(92,426)

  Repurchase of common stock

         

(338,627)

 

(11,623)

  Other financing activities

         

(1,985)

 

2,488

Net cash used by financing activities

         

(201,967)

 

(1,884,931)

                 

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

       

(19,525)

 

(15,272)

                 

Net decrease in cash, cash equivalents and restricted cash

         

$     (446,042)

 

$  (1,383,949)

                 

Cash, cash equivalents and restricted cash:

               

Cash, cash equivalents and restricted cash, beginning of period

         

$     2,025,219

 

$     3,409,168

Net decrease in cash, cash equivalents and restricted cash

         

(446,042)

 

(1,383,949)

Cash, cash equivalents and restricted cash, end of period

         

$     1,579,177

 

$     2,025,219

                 

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

         

  Cash and cash equivalents

         

$     1,433,175

 

$     1,874,745

  Restricted cash

         

135,424

 

128,935

  Restricted cash included in Other long-term assets

         

10,578

 

21,539

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

     

$     1,579,177

 

$     2,025,219

                 
   
 

(a) During the period ended December 31, 2022, the Company received $100 million from an independent strategic investor, Kwang Yang Motor Co., Ltd. (KYMCO), and $14 million from LiveWire's merger partner, AEA-Bridges Impact Corp. (ABIC), related to the LiveWire transaction (discussed in Note 20 of the Notes to Consolidated financial statements included in the Company's Quarterly Report on Form 10-Q filed on November 3, 2022). The LiveWire transaction closed on September 26, 2022 as discussed in the Company's Form 8-K filed on September 30, 2022.

                 

HDMC Revenue and Motorcycle Shipment Data

                 
   

(Unaudited)

 

(Unaudited)

 

(Unaudited)

   
   

Three months ended

 

Twelve months ended

   

December 31,

 

December 31,

 

December 31,

 

December 31,

   

2022

 

2021

 

2022

 

2021

HDMC REVENUE (in thousands)

               

  Motorcycles

 

$       666,387

 

$        542,377

 

$     3,787,484

 

$     3,468,689

  Parts and accessories

 

151,350

 

164,433

 

731,645

 

740,893

  Apparel

 

72,547

 

72,720

 

271,107

 

228,011

  Licensing

 

10,483

 

14,925

 

39,423

 

37,790

  Other

 

17,916

 

8,687

 

58,013

 

29,051

   

$       918,683

 

$        803,142

 

$     4,887,672

 

$     4,504,434

                 

HDMC U.S. MOTORCYCLE SHIPMENTS

 

17,839

 

15,686

 

118,836

 

119,761

                 

HDMC WORLDWIDE MOTORCYCLE SHIPMENTS

               

    Grand American Touring(a)

 

14,558

 

14,476

 

89,849

 

93,961

    Cruiser

 

11,685

 

7,191

 

59,010

 

59,033

    Sportster® / Street

 

5,709

 

5,861

 

33,894

 

25,123

    Adventure Touring

 

2,031

 

1,361

 

10,774

 

9,916

   

33,983

 

28,889

 

193,527

 

188,033

                 

LiveWire Motorcycle Shipment Data

 

69

 

186

 

597

 

461

                 

(a) CVO™ and Trike

               
                 

HDMC Gross Profit

(Unaudited)

                 

The estimated impact of significant factors affecting the comparability of gross profit from 2021 to 2022 were as follows (in millions):

   

Three months
ended

     

Twelve months
ended

   

2021 gross profit

 

$               158

     

$             1,300

   

Volume

 

15

     

58

   

Price and sales incentives

 

72

     

330

   

Foreign currency exchange rates and hedging

 

(22)

     

(66)

   

Shipment mix

 

(4)

     

1

   

Raw material prices

 

(5)

     

(30)

   

Manufacturing and other costs

 

30

     

(65)

   
   

86

     

228

   

2022 gross profit

 

$               244

     

$             1,528

   
                 
                 

HDFS Finance Receivables Allowance for Credit Losses

                 
   

(Unaudited)

 

(Unaudited)

 

(Unaudited)

   
   

Three months ended

 

Twelve months ended

   

December 31,

 

December 31,

 

December 31,

 

December 31,

   

2022

 

2021

 

2022

 

2021

Balance, beginning of period

 

$       360,096

 

$        355,834

 

$        339,379

 

$        390,936

Provision for credit losses

 

50,561

 

20,114

 

145,133

 

25,049

Charge-offs, net of recoveries

 

(51,946)

 

(36,569)

 

(125,801)

 

(76,606)

Balance, end of period

 

$       358,711

 

$        339,379

 

$        358,711

 

$        339,379

                 
                 

Worldwide Retail Sales of Harley-Davidson Motorcycles(a)

                 
   

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

   

Three months ended

 

Twelve months ended

   

December 31,

 

December 31,

 

December 31,

 

December 31,

   

2022

 

2021

 

2022

 

2021

                 

United States

 

18,367

 

18,761

 

109,190

 

125,713

Canada

 

816

 

733

 

7,924

 

8,005

Total North America

 

19,183

 

19,494

 

117,114

 

133,718

EMEA

 

6,562

 

6,466

 

30,510

 

30,907

Asia Pacific

 

7,532

 

6,794

 

27,905

 

25,020

Latin America

 

557

 

1,032

 

2,922

 

3,652

      Total worldwide retail sales

 

33,834

 

33,786

 

178,451

 

193,297

                 
 

(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.

 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/harley-davidson-delivers-strong-fourth-quarter-financial-results-successfully-completing-second-year-of-hardwire-strategic-plan-301737018.html

SOURCE Harley-Davidson, Inc.

Multimedia Files:

Categories: Press Releases
View all news