Jun. 30, 2008 – Finance Digest
June 30, 2008
Filed under Features
GE Capital Solutions signs agreement with BRP
GE Capital Solutions, Commercial Distribution Finance recently signed an exclusive agreement to provide inventory financing to BRP’s Ski-Doo, Sea-Doo and Can-Am dealers across the United States and Canada.
This agreement is a multi-year continuation of a strategic alliance that began in 2005, when GE Capital Solutions acquired certain assets of the former Bombardier Capital. This agreement enables dealers to stock a wide selection of BRP products, including snowmobiles, PWC, ATVs and roadsters.
“We have focused on strengthening our relationship with BRP, as we value the company’s commitment to accelerating its growth,” said Jeff Green, operations director for GE Capital Solutions. “GE is able to provide flexible solutions that are designed to grow with BRP and with this year’s 50th anniversary of its Ski-Doo snowmobile and recent launch of its innovative Can-Am Spyder roadster; it is evident that BRP is positioned well for growth.”
ADP Lightspeed, V-SEPT announce partnership
ADP Lightspeed, a provider of dealer management services (DMS), announced a joint venture with V-SEPT in developing an integrated Customer Relationship Management and DMS system.
This partnership will create a tool for powersports dealers to increase customer loyalty, track customer purchase habits and improve lead management.
“By combining the industry’s leading DMS with a versatile CRM, powersports dealers will have relevant, updated and individualized information on every one of their customers giving them the ability to personalize services and marketing,” said Laurn Rice, vice president of ADP Lightspeed. “ADP Lightspeed’s CRM helps dealers strengthen the most valuable asset they can own: customer loyalty.”
The new CRM integrates directly with the data contained within ADP Lightspeed’s DMS, giving dealers a unique view into individual customers’ purchasing preferences and habits, increasing the dealer’s ability to target specific customer segments with improved accuracy. Dealers will have the capability to identify sales opportunities based on customer activity, maximize lead management and personalize every dealer/customer contact.
“Our goal is to empower dealerships with the best, most innovative tools and technology to make them more successful,” said James Vaughn, president and CEO of V-SEPT. “This new strategic relationship will provide powersports dealers with state-of-the-art sales lead tracking and marketing tools, enabling the delivery of seamless, professional customer service throughout all areas of the dealership.”
Development has already begun on integrating the CRM system and is anticipated for general release this summer.
ARI posts revenue increase for its third quarter
ARI, a provider of technology-enabled business solutions that connect dealers, distributors and manufacturers, reported increased revenue for its third quarter and it’s first nine months of its fiscal year.
Revenue was up 1 percent in the third quarter and 12 percent to $12.6 million for its first nine months.
“The increase in third-quarter revenues was entirely organic. Year-to-date, our growth was half organic, with the other half coming from the acquisition of OC-Net in January 2007,” Roy Olivier, ARI’s newly appointed president and CEO, said in a press release. “In the first three quarters of the fiscal year, we lowered expenses, generated strong cash flow, reduced our leverage and increased profitability, as we had expected.”
The company’s net income was $427,000, compared to a net loss of $205,000 for the comparable prior period.
“Operating income and net income improvements were driven by continued cost control, as well the reduction in one-time expenses incurred last year in connection with the roll-out of PartSmart Version 8,” said?Brian Dearing, ARI’s chairman of the board. “Our marketing services continue to meet a need in the marketplace for dealers and manufacturers who want to leverage the Internet in building their businesses.”
LoJack Corp. Reports decreased quarterly revenue
LoJack Corp.’s first-quarter revenue declined 15 percent compared to the same period a year ago.
LoJack, a manufacturer of tracking and recovery equipment for the car and motorcycle industries, reported $46.1 million in revenue for its first quarter, off roughly $8 million from a year ago.
Net income was $1 million for the first quarter, compared to $6.1 million for the same period a year ago.
“Our financial performance in the first quarter was directly affected by the continued domestic economic challenges, which have severely impacted the automotive industry, and by the timing of orders from our international licensees,” Richard Riley, LoJack’s CEO, said in a press release.
Domestic revenue in the first quarter declined 19 percent to $31 million. International revenue in the first quarter declined 8 percent to $10.3 million.
Fairchild Corp. sales increases, eyes more 2008 improvements
Fairchild Corp. recently reported revenue increases for both its motorcycle apparel segments.
For the first six months of its fiscal year, Fairchild’s sales of Hein Gericke products are slightly over last year and PoloExpress is up nearly 18 percent.
PoloExpress and Hein Gericke offer protective clothing, helmets and technical accessories for motorcyclists in Europe. Hein Gericke apparel is also distributed in the United States.
The company says it continues to expect a rise in PoloExpress sales by opening new store locations and optimizing current store locations, maximizing inventory management opportunities and continuing to add product offerings.
Speedway Motorsports names president
Speedway Motorsports announced Marcus Smith as its chief operation officer and president, stated a Speedway press release. Smith also will be president and general manager of Lowe’s Motor Speedway.
Bruton Smith, chairman and CEO of Speedway Motorsports, says Marcus Smith has been training for the position throughout his career.