May 4, 2009 – Finance Digest
May 4, 2009
Filed under Features
BRP secures retail-financing options
BRP is offering its customers competitive retail financing options thanks to agreements with U.S. Bank and Sheffield Financial in the United States and TD Canada Trust in Canada, the company reported in a press release.
The financing is available to BRP’s North American dealers currently carrying Ski-Doo, Sea-Doo, sport boats, Evinrude outboard engines, Can-Am ATVs and Spyder roadsters.
BRP recognized the demand for retail financing that its dealers needed, says Roch Lambert, vice president and general manager of North American sales and marketing for Ski-Doo, Sea-Doo and Evinrude.
“The need for retail financing and providing our dealers with the best resources in obtaining retail credit has been our No. 1 priority,” Lambert said in the release. “We have been able to leverage our relationships with key lending institutions in order to negotiate favorable rates and services for our dealers.”
Fox Racing Shox grows its revenue in its final quarter
Fox Racing Shox saw revenue and net income increases in its most recent quarter and expects more growth in the coming year, according to a financial report.
Fox Racing reported revenues of $30.6 million for its fourth quarter compared to a pro forma $30 million in the prior-year period.
Compass Diversified Holdings, which purchased Fox Racing last year, said the increase in revenue is due to an increase in sales in the company’s OEM bicycle and powersports divisions, as well as growth in its aftermarket sales.
“We are very pleased with Fox’s growth during the quarter and year,” Jim Bottiglieri, Compass Diversified Holdings’ CFO, said in a press release on the company’s fiscal year. “A number of opportunities outside the company’s non-biking sector, including military and well-publicized partnership with Ford on the F150 Raptor, also should continue to materialize over the course of 2009. We believe these opportunities will mostly offset potential declines in sales as a result of the slowing economy in 2009.
“In addition, we expect many of the operational initiatives that we’ve been working on to improve cash flow margins to begin to materialize in 2009.”
Fox Racing’s income was $1.3 million compared to a loss of $300,00 for the prior-year quarter.
Viper Motorcycle announces dealer flooring program
Viper Powersports Finance, a newly created division of Viper Powersports Inc., announced it has secured funds necessary to offer floor plan financing for proprietary motorcycles to qualified dealers.
John Silseth II, Viper Powersports CEO stated, “Providing in-house financing is an exciting powerful tool for us and our dealers. We’re all aware of the current economic conditions and the need for financing sources. Viper Powersports Finance will enable us to compete on a national level and offer a service for our dealers in order to move forward and grow together based on our mutual needs.”
Silseth also said the company has received CARB certification so it can sell its products in California.
“This is a major step in our evolution and after eight years into the project, we are ready to take our place as an OEM,” he said.
Terry Nesbitt, Viper Motorcycle Co. president, said, “We look forward to introducing our next model, the 2010 Mamba Super Cruiser later this summer.”
Sparta continues to grow its dealer network
Sparta Commercial Services signed up 500 new powersports dealers in 2008, an increase over the 300 dealers who signed up in 2007, the company reported in a recent release.
The powersports financial services provider said 100 new dealers have already signed up during the first quarter of 2009, bringing the total number of dealers in Sparta’s nationwide network close to 2,500.
“For nearly a year, a number of our major competitors have been gradually scaling back their lending activities, with some leaving the indirect financing sector entirely,” Sparta’s CEO Anthony Havens said in the release. “This has resulted in more dealers turning to Sparta as their preferred source for indirect consumer financing.”
The company also said a recent agreement between a Sparta subsidiary, Autobahn Funding Company LLC and DZ Bank AG Deutsche Zentral-Genossenchaftsbank, will produce an extendable one-year $25 million revolving credit facility.
The agreement, which requires Sparta to meet certain financial covenants prior to initial drawdown, may be increased subject to performance.
“The new credit facility with DZ Bank shows that even at a time when other lenders are scaling back,” Havens said in the release, “a financial services company like Sparta, with a highly focused and effective business model, can generate the kind of institutional confidence and support that this transaction demonstrates.”
Extended service contract available to Johnny Pag dealers
Custom bike manufacturer Johnny Pag Motorcycles and Dimension Service Corp., a service contract administer based out of Dublin, Ohio, are offering a new program available to the manufacturer’s dealers, according to a press release.
The Johnny Pag Platinum Protection extended service contracts are 100 percent insured.
“Many ownership studies have shown that customer satisfaction and repeat business is higher with owners who purchase extended service contracts,” stated the release. “Dimension Service Corporation is excited to partner with both Johnny Pag and the dealers in this exclusive program.”