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Investor Contact: Richard Edwards 763-513-3477
Media Contact: Jess Rogers 763-513-3445
Q3 2019 Highlights
Reported and adjusted sales for the third quarter of 2019 increased 7% to $1,772 million
Reported net income was $1.42 per diluted share; adjusted net income for the same period was $1.68 per diluted share
North American side-by-side retail sales were up low-single digits compared to last year with both RANGER and RZR retail sales up during the quarter
Gross profit margin for the third quarter was 24.6%, up 30 basis points over prior year. Adjusted gross profit margin was 24.9%, up 10 basis points versus last year due to positive product mix, despite the absorption of approximately 140 basis points of tariff costs and negative foreign exchange impact
Polaris narrowed its full year 2019 earnings guidance by maintaining the upper end of the net income range and increasing the lower end of the range and now expects earnings to be in the $6.20 to $6.30 per diluted share range. Full year 2019 adjusted sales growth guidance is expected to be up approximately 12% over the prior year.
MINNEAPOLIS--(BUSINESS WIRE)--October 22, 2019--Polaris Industries Inc. (NYSE: PII):
Key Financial Data |
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(in thousands, except per share data) |
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INCOME STATEMENT - Q3 September 30, 2019 |
Reported |
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YOY % Chg. |
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Adjusted* |
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YOY % Chg. |
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Sales |
$ |
1,771,647 |
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7% |
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$ |
1,771,647 |
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7% |
Net income attributable to Polaris |
$ |
88,388 |
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(7)% |
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$ |
104,466 |
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(11)% |
Diluted EPS |
$ |
1.42 |
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(5)% |
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$ |
1.68 |
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(10)% |
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BALANCE SHEET - Q3 September 30, 2019 |
Reported |
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YOY % Chg. |
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Cash and cash equivalents |
$ |
122,216 |
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(33)% |
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Inventories, net |
$ |
1,270,110 |
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25% |
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Total debt, finance lease obligations and notes payable |
$ |
1,783,623 |
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(4)% |
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Shareholders' equity |
$ |
1,013,043 |
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13% |
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CASH FLOW - YTD September 30, 2019 |
Reported |
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YOY % Chg. |
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Net cash provided by operating activities |
$ |
436,131 |
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23% |
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Purchase of property & equipment |
$ |
189,336 |
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20% |
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Repurchase and retirement of common shares |
$ |
6,997 |
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(97)% |
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Cash dividends to shareholders |
$ |
111,722 |
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(1)% |
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*Note: the results and guidance in this release, including the highlights above, include references to non-GAAP operating measures, which are identified by the word “adjusted” preceding the measure. A reconciliation of GAAP / non-GAAP measures can be found at the end of this release. |
CEO Commentary
"Through the strength of our brand portfolio and solid execution from our team, Polaris delivered 7 percent revenue growth and modest margin expansion amid mounting macroeconomic ambiguity. We augmented our industry-leading Off-Road Vehicle lineup with the introduction of our Model Year ’20 products, and continued to improve dealer satisfaction and engagement. We also launched our evolved Polaris brand and Think Outside tagline. This more modern compass appeals to broader demographics - as seen in Polaris Adventures bringing 90 percent new customers to the brand or the uptick in millennial purchases of the RZR and RANGER. Indeed, our RANGER/GENERAL and RZR brands continue to perform well, driving growth in side-by-sides despite an increasingly competitive market. We converted this growth into increased profitability, as our strategic supply chain investments, which are driving organization-wide value enhancement, began realizing cost savings in the quarter. Our commitment to being a customer-centric, highly efficient growth company remains steadfast, and coupled with industry-leading innovation, it will further solidify our position as the global leader in Powersports.”
-- Scott Wine, Chairman and Chief Executive Officer of Polaris Inc.
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Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were removed , added and changed by Polaris Industries Incmn.
Polaris Industries Incmn's Definitive Proxy Statement (Form DEF 14A) filed after their 2019 10-K Annual Report includes:
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Gross profit, as a percentage of sales, increased for the quarter and year-to-date periods, primarily due to favorable product mix.
Operating expenses, in absolute dollars, for the quarter and year-to-date period increased primarily due to the addition of the new multi-brand distribution center in Nevada, the costs associated with the 65th anniversary celebration and summer dealer meeting, and ongoing investment in research and development.
The increase in gross profit margin was primarily due to favorable mix partially offset by tariff costs.
Consolidated gross profit, as a percentage of sales, increased quarter-to-date primarily due to favorable mix and higher average selling prices, partially offset by tariff costs.
For the third quarter of 2019, the average ORV per unit sales price increased high-single digits percent compared to the third quarter of 2018's per unit sales price, driven by favorable mix and price increases.
At September 30, 2019, the...Read more
We have agreed to repurchase...Read more
Interest expense: Year-to-date interest expense...Read more
We have agreed to repurchase...Read more
Motorcycles Quarter-to-date motorcycle sales, inclusive...Read more
We generally buy these commodities...Read more
Equity in loss of other...Read more
Polaris' North American dealer unit...Read more
Polaris' North American dealer unit...Read more
Our Board of Directors has...Read more
Gross profit, as a percentage...Read more
The following table is an...Read more
We have authorization from our...Read more
Acquisitions contributed an eight percent...Read more
We are subject to market...Read more
Polaris North American ORV unit...Read more
Certain assets and liabilities related...Read more
Global Adjacent Markets Quarter and...Read more
Our third quarter sales to...Read more
Our sales to customers outside...Read more
Our sales by reporting segment,...Read more
Shareholders, potential investors and others...Read more
Financing activities: Cash used for...Read more
Sales by Geography Sales by...Read more
The Company estimates that North...Read more
The original discounted payable was...Read more
The original mortgage note payable...Read more
While such materials are typically...Read more
Other foreign countries: Sales in...Read more
Aftermarket Quarter and year-to-date Aftermarket...Read more
In addition, the prior year...Read more
In addition, the prior year...Read more
The partnership agreement is effective...Read more
Currency rate movements had an...Read more
Boats Quarter-to-date Boat segment sales...Read more
Canada: Sales in Canada increased...Read more
Third quarter sales totaled $1,771.6...Read more
Quarter sales were $1,771.6 million,...Read more
Polaris Acceptance, a joint venture...Read more
We believe that existing cash...Read more
These "forward-looking statements," including but...Read more
Year-to-date sales in the United...Read more
Provision for income taxes: The...Read more
Year-to-date motorcycle sales, inclusive of...Read more
Year-to-date sales were $5,046.7 million,...Read more
Our gross profit of $436.5...Read more
Based on our current outlook...Read more
Polaris Acceptance is not responsible...Read more
Our financial exposure under this...Read more
Financial Statements, Disclosures and Schedules
Inside this 10-Q Quarterly Report
Material Contracts, Statements, Certifications & more
Polaris Industries Incmn provided additional information to their SEC Filing as exhibits
Ticker: PII
CIK: 931015
Form Type: 10-Q Quarterly Report
Accession Number: 0001628280-19-012462
Submitted to the SEC: Tue Oct 22 2019 12:06:05 PM EST
Accepted by the SEC: Tue Oct 22 2019
Period: Monday, September 30, 2019
Industry: Miscellaneous Transportation Equipment