Challenger Lifts Introduces New ATV/UTV Lift

Challenger Lifts, a manufacturer of car lifts for auto repair and servicing, has introduced a new lift for use with ATVs and UTVs.  The CL1750A ATV lift has a capacity of 1,750 lbs.  Other features include:

• Seamless lift and lower functions
• Heavy-duty scissor style motorcycle lift with formed platforms
• Integrated base
• Multiple safety locking positions allows the lift to be locked at multiple heights
• Double Air Cylinders provide efficient provide efficient and stable lifting power

Learn more:  PR.com

Artic Cat Reports Strong Quarterly Results

Last week Arctic Cat reported the results for their third quarter which ended December 31, 2011.  Management reported net sales of $207.0 million  compared to $152.0 million for the the prior-year third quarter.  Net earnings for the same time periods was $17.0 million and $9.3 million respectively.  The sales increase was driven by increased snowmobile sales and international all-terrain vehicle (ATV) sales, as well as the first shipments of their new Wildcat sport side-by-side vehicle.  Arctic Cat’s ATV sales include ATVs and side-by-side vehicles.  “ATV sales increased 12 percent to $54.4 million in the fiscal 2012 third quarter versus $48.6 million in the same period last year, with strong contributions from Arctic Cat’s Prowler line of side-by-sides.”  The company expects to increase production of the Wildcat in the fourth quarter.  Learn more:  Arcticcat.com

Earnings Call Highlights:

• ATV sales increased 14% to $151.1 million from $133 million for the first three quarters of the fiscal year
• Management reports a decline of 7% in the quarter for industry ATV sales in North America.  Side-by-side sales continue to grow however and Prowler sales were up for the quarter and first three quarters.
• Management expects ATV division sales to increase 19% to 22% for the full year, driven by Q4 shipments of the new Wildcat sport side-by-side
• Arctic Cat has shipped 200 Wildcat side-by-sides to date and estimates based on Q&A comments indicate orders in the range of 6,000 to 10,000 vehicles. Sales are meeting expectations according to management.
• Arctic Cat has switched to a monthly ordering system for dealers compared to what was more of a quarterly program.  Comment: This will likely be a continuing trend with manufacturers in the industry as Polaris has also already made this transition to shorter ordering time frames.  The shorter time frame has reportedly allowed for lower inventories and costs, better matching of vehicles to customer needs and faster response to changing market conditions.

Learn more:  Seekingalpha.com (call transcript)

Polaris Reports Record Financial Results Again

Showing strength across all product lines Polaris Industries reported record fourth quarter and full year profits on Wednesday.  For the fourth quarter sales increased 26% from 4Q 2010 to $782.0 million and for the full year sales increased 33% from 2010 to $2,656.9 million. Other full year highlights include:

• Increased market share for all product lines
• 39% increase in international sales
• Net income of $227.6 million – 55% more than 2010.

Their Off-Road Vehicle (ORV) segment increased sales 32% over 2010 to $1.82 billion.  The segment includes ATVs and side-by-sides.  Management reports ATV unit retail sales growing upper single digits percent and side-by-side vehicle unit retail sales increasing about 20 percent over the prior year.  Polaris continues to gain market share in each segment.  Learn more:  Marketwatch.com

Earnings Call highlights:

• The overall ATV market declined low double digits for 2011 while side-by-sides increased low double digits.
• Polaris sales through their partnership with Bobcat increased 60% in 2011.
• Polaris has discontinued their Breeze LSV in light of their GEM acquisition and production of GEMs in their Spirit Lake facility has begun.
• Asia Pacific and Latin America are the key global markets
• Expectations for a slower level of growth for the company and ORV sales for the coming year.
• New products with Bobcat likely in end of 2012 or early 2013
• Strong growth in military segment expected with sales to special forces and in unmanned technology products

Learn more:  Seekingalpha.com (call transcript)

 

NY Times Runs Side-by-Side Safety Story

Today the New York Times published a front page story on side-by-sides, focusing mainly on their safety. The title, “An A.T.V. With Extra Room, and Maybe More Risks, Too“, is a little misleading given that the statistics they present in the story imply that they are less dangerous than ATVs. The story also covers the decline of ATVs, some of the factors driving consumers to switch to side-by-sides and the current efforts by federal regulators to create new mandatory safety standards.  These standards may push vehicles to be wider and lower which could negatively effect their trail-riding ability.  Learn more:  NYTimes.com

Road Use Regulations Roundup – November, 2011

Some trends in this latest regulation roundup:

• A lot of action the past few months on ordinances allowing ATVs, UTVs, mini-trucks and modified and sometimes un-modified golf cars on public roads.  While some concerns about safety still persist, we may be looking at an expansion of the type of small, task-oriented vehicles that are allowed on public roads.
• With Nebraska passing a LSV law and Pennsylvania in the process of passing one, only Connecticut, Mississippi and Montana (no LSV but an MSV law) have not passed an LSV law.
• Higher ordinance activity areas:  Minnesota which is usually active and Ohio which is a relative newcomer
• Some more activity at the county level in the past few months

State Level Regulations

Pennsylvania - State House of Representatives unanimously passed a bill that

“…authorizes travel in NEVs on roadways with a posted speed limit of no more than 25 mph and allows NEVs to cross roadways posted with a higher maximum speed. They can only be operated during daylight hours. NEVs will be required to be equipped with most basic safety equipment, such as brakes, mirrors, seatbelts, windshield and wipers, speedometer, odometer, headlamps, stop lamps, turn signals and reflectors, and a slow-moving vehicle emblem. In addition, NEV drivers must possess a valid license certificate of title, registration and insurance.”

The state is one of only a few that have not passed a LSV law yet.

Nebraska - The governor signed a law allowing NEVs/LSVs on low speed roads.  LSV owners will be required to have a valid operator’s license and liability insurance coverage. The vehicles will be subject to titling requirements, a registration fee of $15 and a new alternative fuel fee of $75 for vehicles using a source of energy not taxed under the motor fuel laws. The alternative fuel fee will replace the alternative fuel tax.

Louisiana - State legislature is debating allowing mini-trucks on public roads.

 Municipality Level Regulations

Wapello, IA – City council is discussing allowing golf cars and utility vehicles on city streets and receiving a mixed reaction from residents.

Sunman, IN – City council will allow golf cars on city streets. Vehicles need to be inspected and have safety features like turn signals, safety belts, reflectors and slow moving vehicle emblems.

Marathon, FL – City allows modified golf cars on low speed streets.  Under the auspicies of the state statue, any golf car meeting the safety and speed requirements will be able to use streets with a speed limit of 35 mph or less.  A city ordinance with different requirements would of required the city to do their own licensing and other onerous administrative duties regarding the vehicles.

Dundee, IL – Village Trustee is pushing the town to revisit the idea of allowing NEVs and LSVs on low speed village roads.

Lauderdale-by-the-sea, FL – The town is creating four parking spaces in their commercial area specifically for use by NEVs.

Augusta County, VA – Supervisors passed an ordinance allowing golf cars and utility vehicles on country roads with speed limits of 25 mph or less.

Bryan City, OH – Initiated ordinance that allows “neighborhood electric vehicles, urban electric vehicles and golf cars/carts” which have been modified to meet certain criteria to use roads with speed limits up to 25 mph.   Driving hours on public roads for the vehicles is limited to daylight hours.

Findlay, OH – City is considering allowing modified golf cars on low speed city streets.

Tecumseh, NE - Town council allows the use of ATVs and UTVs on city streets.  The ordinance allows ATVs and utility vehicles during daylight hours for licensed drivers with liability insurance. Vehicles must be equipped with a bicycle safety flag and not exceed 30 mph.

Riverside County, CA – The governor of California signed legislation that lets Riverside County open up more low speed roads for low speed vehicles.

Mankato, MN – City passed an ordinance that allowed UTVs and mini-trucks on city streets.  Lower speed golf cars were removed from the ordinance.

Canyon Lake, CA – LSVs/NEVs will not be allowed to use Railroad Canyon Road because of safety concerns related to the vehicles mixing with faster traffic.

Polk County, MN – County commissioners passed an ordinance that authorizes the use of four-wheel ATVs, mini trucks and golf carts on county roads.

Morris, MN – City council is considering an ordinance that allows ATVs, UTVs, mini-trucks and golf cars on city streets.

Reedsburg, WI – City council amended an ordinance to now allow gas as well as electric LSVs on public roads.

Polaris Reports Record 2Q Earnings

Polaris reported record 2Q earnings driven by growth across product lines and geographic areas with North American sales increasing 43% and International sales increasing 35%.  Management now expects full year sales growth to be in the 25% to 28% range.

Off-road vehicle sales which includes ATVs and UTVs were $482 million for the quarter and $870 million for the first six months of 2011 compared to $342 and $592 million for 2010 respectively.  These figures represent 41% year to year quarterly growth and 47% year to year six month growth.  Management reports gaining market share in both the ATV and side-by-side market segments in North America with ATV sales up less than 10% for the quarter.  Side-by-side sales were not specified but likely increased by over 20% for the quarter.  Off-road military, Bobcat related sales and international sales all increased for the quarter, the latter by 35%.  Learn more:  Marketwatch.com

Polaris Reported Record Earnings

Polaris Industries recently reported record earnings for the first quarter of 2011.  Management reported sales of $537.2 million  and net income of $47.3 million for the quarter compared to $361.7 million and $19.8 million in the first quarter of 2010.  For the full year 2011 management expects sales to increase 17%-20% compared to 2010.

I listened to the earnings conference call and here are some of the highlights as it relates to the STOV markets.

• Off-road vehicles which includes UTVs and ATVs exceeded expectations
• International sales were up 21% in part do to side by side sales increasing 50% in Europe where these vehicles are supplanting ATVs as they have been in North America
• Polaris is gaining market share in UTVs and ATVs as they outperform the market domestically and internationally.
• Management reports side by side sales increasing more than double the overall market rate
• RZR XP 900 launched in January is selling well
• Bobcat branded vehicles they supply “ramped up nicely” and is gaining retail momentum
• Military sales which includes some STOV products doubled in the first quarter
• Diesel product started nicely and is expected to slowly but steadily develop with good opportunities in the UK, military and single fuel use segments such as farming and construction
• Off-road parts, garments and accessories sales increased 22% in Q1

Learn more:  Polarisindustries.com

JCB Launches New Workmax UTV

JCB Workmax 800 D

UK based JCB has added a new 4×4 utility vehicle to their Workmax product line, the Workmax 800 D.  Targeting the UK and European markets, the 800 D features a 600 kg payload and a 784cc Yanmar diesel engine.  The 4×4 drive plus locking differential is electronic.  Management believes that the utility vehicle market in Europe is still developing and offers plenty of opportunity for growth.  Accordingly, this year JCB has put more emphasis on UTVs rather than ATVs as the former is becoming the preferred work vehicle in many applications.  They have also expanded their dealer network beyond their traditional construction equipment dealers to include specialist ATV and agricultural equipment dealers.  Learn more:  MHWMaagazine.co.uk

STOV Manufacturers Report Earnings

In the past few weeks a number of publicly traded STOV manufacturers have reported earnings. While the economic downturn has significantly impacted the market, both Polaris and Arctic Cat report gaining market share in ATVs and UTVs during this time. Both companies have also embarked on programs to develop more frequent dealer ordering cycles to reduce dealer inventories and better react to market demands by creating a more desirable model mix at the retail point of sale.

Arctic Cat reported that through the first half of the year the ATV sales declined 20% but in the side by side market some segments have actually shown growth. Artic Cat reports gaining market share in both the ATV and UTV markets.

Learn more: Seekingalpha.com

Polaris reported in their earnings call with analysts that the ATV market was down more than 15% while the side by side market was making some gains. Management expects the economic recovery to be choppy. Polaris reports taking market share in the ATV and UTV markets while Honda and Yamaha are struggling. The LSV market has been smaller than expected in the short term, but management expects it to be a growing niche market that they are taking the time to learn before developing growth strategies.

Polaris is also starting to roll out vehicles for their partnership with Bobcat. The initial dealer reception to the vehicles has been positive. An offshoot of that development program was the addition of diesel powered vehicles in the Polaris line-up targeting work customers in North America and global markets as well as the military market where diesel is the fuel of choice. Yanmar is providing Polaris with diesel engines. The electric Ranger LSV serves the military market as well. During the call management also noted that some production had been moved to Mexico since much of their growth in the US is occurring in the southern part of the country.

Learn more: Polaris Industries

Wisconsin Launches UTV Trail Program

Wisconsin recently enacted a two year pilot program for use of utility vehicles on ATV trails that will run through June 30, 2012.  The legislation requires counties to pass resolutions to opt into the program so many trails are probably not open to utility vehicles as of yet.  Towns within counties may opt out of the program.  Key differences compared to the previous pilot program which ended in 2009 include:

• Different vehicle specifications, including requirements for factory equipped seatbelts and a roll bar, type device.
• ATV trails on state and national forest lands may not be participating.
• UTVs participating in the program will require Public Use – ATV registration, including for non-residents.
• All ATV laws will apply, except that operators age 16 and born on or after Jan. 1, 1988 must complete a DNR ATV Safety Education Course. Operators under age 16 are not allowed to operate a UTV.
• Driver’s licenses are not required

The program is being administered by the state’s Department of Natural Resources. Learn more:  DNR.wi.gov