Dec. 24, 2007 – Finance Digest

Triumph sales up 10 percent
Triumph Motorcycles’ revenue rose 10 percent for its 2007 financial year, the company statted in a Dec. 4 press release.
Net sales increased to $440 million in 2007. Also for fiscal year 2007, motorcycle sales rose 10 percent to 41,125 for the company. Operating profit, before interest and tax, grew 22 percent to $25.2 million.
The launch of the Triumph Tiger in late 2006 and continued success with machines such as the Daytona 675, Speed Triple and Rocket III, along with demand for Triumph’s retro classics, contributed to sales upswing, the company said.
“Triumph has grown steadily year on year for the last few years, which has given us a very solid business platform,” said Tue Mantoni, commercial director. “This year’s figures continue the trend, despite tougher conditions in the U.S. market.”

Giant increase in net income for dealership corporation
Giant Motorsports, the owner of two large powersports dealerships, is profiting from its decision to cutback on expenses and increase profit margins.
The owner of Chicago Cycle and Andrews Cycles, Salem, Ohio, has seen its net sales decrease in its third quarter and its fiscal year but is increasing its net income due partially to a reduction of operating costs, the company said in its recent financial report.
Giant Motorsports reported a 224 percent rise in net income for its third quarter, which ended Sept. 30. The company’s net income of $690,000 came despite a 7.1 percent decline in net revenue (more than $23 million).
The company’s results through its fiscal year’s first nine months showed a similar pattern. Its net income of $2.8 million was nearly an 80 percent improvement over last year, even as its net revenue of $79 million decreased 4 percent.
The company said most of the reductions in its operating costs came from marketing, which was decreased by more than $800,000.

UTI reports 43 percent decrease in net income
Universal Technical Institute posted a slight revenue increase, but a sharp drop in net income for its fiscal year, according to a Nov. 27 release from the company.
Revenues for the year, which ended Sept. 30, were $353.4 million, a 1.8 percent increase. The increase primarily relates to higher tuition prices combined with a previously disclosed change in the company’s retake policy as compared to the prior year. These were partially offset with a decrease in average undergraduate student enrollment and an increase in need-based tuition scholarships, higher military and veteran discounts and other reductions to net income.
Net income for the year declined 43.2 percent to $15.6 million.
Operating income in the year was $23.8 million, a decrease of 41.7 percent, and includes costs associated with a reduction in force for both years. The decrease reflects higher operating costs primarily related to increases in employee compensation and benefits, advertising, depreciation, occupancy costs and contract services expense, which were partially offset with a decrease in bad debt expense. The just-ended fiscal year included approximately $4.5 million in costs associated with a reduction in force and reorganization of the sales team, compared to $1.1 million in costs related to a reduction in force in the fourth quarter of fiscal 2006.
The operating loss associated with expanding the company’s facilities in Sacramento, Calif., was $4.7 million during the fiscal year. Operating losses associated with expanding the facilities in Sacramento and Norwood totaled $9 million in the prior year.
Average undergraduate enrollment for the fiscal year was 15,856 students, a 2.7 percent decrease compared with the prior year period. Student starts for full year were down 3.6 percent compared to the same period a year ago.

Adly Motor reports leap in sales for third quarter
Adly Moto LLC, a Taiwanese motorcycle, scooter and ATV manufacturer, has achieved a 20 percent increase in overall sales for the third quarter of 2007, the company reported in a statement Nov. 28.
“With the increase in staff, expansion of our dealer network and product line, OEM quality and support, we are on target to experience double digit growth in 2008,” said Terry Nesbitt, vice president of sales and marketing.

LoJack reports growing motorcycle segment sales
Thanks in part to its growing motorcycle industry business, LoJack Corp. grew its overall sales in its third quarter, the company reported.
LoJack’s quarterly revenue rose 2 percent to $55.7 million in its quarter, which ended Sept. 30.
CEO Richard Riley said the company’s “motorcycle business continued to deliver increased unit and revenue growth during the quarter.”
However, Riley said the company did not meet its overall sales expectations primarily because of a decline in auto sales in California, its largest single market.
The company’s net income increased 26 percent to $6.5 million.
For the first nine months of its fiscal year, LoJack’s revenue has increased 4 percent to $168 million and its net income is up 42 percent to $19.4 million.

Former HSBC employees join specialty brand gift card firm
SVM, a company that offers specialty brand gift cards among other services, recently hired two former HSBC Retail Services staff.
John Dagnon has joined SVM as its chief marketing officer, reporting to SVM Managing Director Marshall Reavis.
SVM also hired John Marlin as its director of business development. He was most recently manager of strategic partnerships with HSBC Retail Services.
Marlin brings 20 years of sales and account management experience to SVM. He directed the Rev Charger, American IronHorse and United Motors private label finance programs at HSBC and has held similar positions with Bank of America and Bombardier Capital.
Dagnon brings 18 years of experience to his new role. While at HSBC, he launched and then directed the Suzuki Finance private label finance program. Dagnon also has held key positions with Harley-Davidson Financial Services and Transamerica.
SVM’s main line of business is prepaid gasoline cards and retail gift cards. Over the past 10 years, SVM’s portfolio has grown to include more than 90 popular gift cards offered, including large oil companies and nationally recognized retail, restaurant and travel brands, the company said in a press release.
“John Dagnon and John Marlin have both demonstrated throughout their careers an ability to work closely with partners to help them achieve their goals,” Reavis explained. “SVM looks forward to expanding utilization of prepaid gasoline cards and retail gift cards in the powersports industry.”
SVM is headquartered in the metropolitan Chicago area. Call 800/972-7481 or visit www.svmcards.com for more information.

Fairchild apparel business grows, fiscal report shows
Fairchild Corp. reported increased sales from both of its motorcycle apparel segments in its most recent quarterly report.
PoloExpress sales rose more than 19 percent compared to the year-ago period and Hein Gericke product revenue increased nearly 8 percent. The two segments design and sell motorcycle apparel, helmets and a number of accessories out of retail shops in Europe, including Germany, Italy and France.
Overall, Fairchild reported a nearly 12 percent rise in overall sales to $118 million for its third quarter, which ended June 30.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button