Third Quarter Highlights:
-
Sales increased 12% year-over-year to a record $1,456.0 million (up
16% in constant currency)
-
North American retail sales increased 7% year-over-year
-
Net income increased 10% to $155.2 million year-over-year
-
Motorcycle consumer retail demand remained strong in the third
quarter, up over 60%; motorcycle production rate improved sequentially
from the 2015 second quarter
-
Maintaining and narrowing full-year 2015 sales and earnings
guidance range to $7.37 to $7.42 per diluted share, an increase of 11%
to 12% year-over-year based on full-year 2015 sales growth guidance of
10% to 11%
MINNEAPOLIS--(BUSINESS WIRE)--
Polaris Industries Inc. (NYSE: PII) today reported record third quarter
net income of $155.2 million for the quarter ended September 30, 2015,
an increase of ten percent from the prior year’s third quarter net
income of $140.8 million. Earnings per share were a record $2.30 per
diluted share for the third quarter of 2015 compared to $2.06 per
diluted share for the same period in 2014. Sales for the third quarter
2015 totaled a record $1,456.0 million, an increase of 12 percent over
last year’s third quarter sales of $1,302.3 million.
“Our record third quarter results continue to reflect the efficacy of
our long-term strategy and the resiliency of the Polaris organization,
as motorcycle growth accelerated, ORV share gains continued and our
developing adjacencies built momentum. We accomplished this in a
difficult environment, with the combination of weakening currencies and
softening economies adding to the pressure we face from the sluggish oil
and agriculture markets, all in the midst of the most competitive
powersports landscape we have seen in nearly a decade. It is encouraging
to see our Polaris team use these challenging times to get better and
stronger, while displaying renewed determination to win across all our
markets,” stated Scott Wine, Polaris’ Chairman and Chief Executive
Officer. “After our people, arguably our strongest asset is our
innovative culture, which spurred the delivery of 15 new vehicles to our
unsurpassed ORV armada and drove the introduction of hundreds of new
PG&A items. We remain committed to being the leading innovator in our
space.”
Wine continued, “Successful innovation requires agility, in order to
react quickly to ever-changing market conditions. This applies not only
to product design but also to our internal organization, which we
demonstrated in the third quarter by realigning our international
business structure to become more efficient and effective in response to
challenging markets outside North America. Quick reactions demand
excellent execution, and Ken Pucel and his Global Operations and
Engineering teams continue to build momentum and gain traction in our
efforts to improve throughput, quality and cost. Throughout the third
quarter we made consistent enhancements to our Spirit Lake paint system,
which helped us stabilize our operations and, by improving production
output each week of September, outpace shipment goals for the first time
this year. We have a clear plan to further optimize and upgrade that
system over the next six months, and with the recently acquired paint
facility in Spearfish, South Dakota, we will further augment paint
capacity in the latter part of the fourth quarter.”
“Polaris has delivered solid financial performance in the first nine
months of 2015, and despite facing stiff headwinds that show little sign
of abating in the near term, our financial position remains robust and
our growth opportunities plentiful.”
2015 Business Outlook
For the full year 2015, the Company is
narrowing its earnings guidance range to $7.37 to $7.42 per diluted
share, an increase of 11 to 12 percent over full year 2014 earnings of
$6.65 per diluted share. Full year 2015 sales are now expected to grow
in the range of 10 to 11 percent when compared to 2014.
|
|
|
Third Quarter Performance Summary
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
Three Months ended September 30,
|
|
|
Nine Months ended September 30,
|
|
Sales Components
|
|
2015
|
|
2014
|
|
Change
|
|
|
2015
|
|
2014
|
|
Change
|
|
Off-Road Vehicles
|
|
$
|
822,894
|
|
$
|
801,919
|
|
3%
|
|
|
$
|
2,157,068
|
|
$
|
2,058,673
|
|
5%
|
|
Snowmobiles
|
|
|
185,477
|
|
|
162,652
|
|
14%
|
|
|
|
219,317
|
|
|
184,379
|
|
19%
|
|
Motorcycles
|
|
|
160,437
|
|
|
63,263
|
|
154%
|
|
|
|
459,976
|
|
|
245,258
|
|
88%
|
|
Global Adjacent Markets
|
|
|
60,845
|
|
|
55,453
|
|
10%
|
|
|
|
192,801
|
|
|
185,013
|
|
4%
|
|
Parts, Garments & Accessories
|
|
|
226,347
|
|
|
219,056
|
|
3%
|
|
|
|
584,510
|
|
|
531,325
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Sales
|
|
$
|
1,456,000
|
|
$
|
1,302,343
|
|
12%
|
|
|
$
|
3,613,672
|
|
$
|
3,204,648
|
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
$
|
415,623
|
|
$
|
388,274
|
|
7%
|
|
|
$
|
1,028,768
|
|
$
|
951,605
|
|
8%
|
|
Gross profit as a % of sales
|
|
|
28.5%
|
|
|
29.8%
|
|
-126 bps
|
|
|
|
28.5%
|
|
|
29.7%
|
|
-122 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
$
|
192,012
|
|
$
|
182,749
|
|
5%
|
|
|
$
|
523,134
|
|
$
|
489,228
|
|
7%
|
|
Operating expenses as a % of sales
|
|
|
13.2%
|
|
|
14.0%
|
|
-84 bps
|
|
|
|
14.5%
|
|
|
15.3%
|
|
-79 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
|
|
$
|
242,676
|
|
$
|
222,573
|
|
9%
|
|
|
$
|
556,979
|
|
$
|
504,690
|
|
10%
|
|
Operating Income as a % of sales
|
|
|
16.7%
|
|
|
17.1%
|
|
-42 bps
|
|
|
|
15.4%
|
|
|
15.7%
|
|
-34 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
155,173
|
|
$
|
140,826
|
|
10%
|
|
|
$
|
344,679
|
|
$
|
318,632
|
|
8%
|
|
Net income as a % of sales
|
|
|
10.7%
|
|
|
10.8%
|
|
-15 bps
|
|
|
|
9.5%
|
|
|
9.9%
|
|
-40 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Net Income per share
|
|
$
|
2.30
|
|
$
|
2.06
|
|
12%
|
|
|
$
|
5.09
|
|
$
|
4.68
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Off-Road Vehicle (“ORV”) sales increased three percent to $822.9
million in the third quarter of 2015 compared to the third quarter of
2014. Polaris North American ORV unit retail sales increased low-single
digits percent during the 2015 third quarter compared to strong prior
year third quarter retail sales growth of high-single digits percent.
Consumer purchases of both side-by-side vehicles and ATVs increased at
similar rates during the 2015 third quarter. The Company estimates North
American industry ORV retail sales in the third quarter of 2015
increased low-single digits percent year-over-year, resulting in Polaris
market share gains for both ATVs and side-by-side vehicles. During the
2015 third quarter, the Company introduced new ORV models in the value
and premium segments including the Company’s first full-sized value RANGER®
priced below $10,000 and the clear leader in the high-performance
segment, the RZR® XP Turbo, delivering more horsepower and
torque than any other high-performance side-by-side on the market today.
Polaris North American ORV dealer inventories during the third quarter
of 2015 increased about ten percent year-over-year, in line with Company
expectations, as the Company began shipping the new 2016 model-year
products.
Snowmobile sales increased 14 percent to $185.5 million for the
third quarter of 2015 compared to $162.7 million for the third quarter
of 2014. The increase is due to an increased quantity and richer mix of
snowmobiles being shipped in the 2015 third quarter compared to the same
period a year ago. While the snowmobile retail selling season is just
beginning, Polaris’ market share performance season-to-date through the
2015 third quarter is pacing with the Company’s expectations, led by the
award-winning model year 2016 PRO-RMK, the lightest mountain sled on the
market. As planned, Polaris North American snowmobile dealer inventories
during the third quarter of 2015 increased significantly year-over-year
in preparation for the upcoming snowmobile retail selling season.
Motorcycle sales increased 154 percent to $160.4 million for the
third quarter of 2015 compared to same period last year due to continued
strong demand for Indian motorcycles and the new Slingshot®
roadster. Victory, Indian Motorcycle and Slingshot North American retail
sales, combined, increased over 60 percent during the third quarter of
2015 driven by Indian Motorcycle and Slingshot, while North American
industry midsize and heavyweight motorcycle retail sales were up low
single digits compared to the third quarter of 2014. Indian Motorcycles
retail sales were up significantly in the third quarter with ongoing
strong demand for all models. Product availability for Indian
motorcycles improved during the 2015 third quarter as the Company
continued to increase throughput at its Spirit Lake, Iowa, motorcycle
factory. Victory retail sales in the third quarter of 2015 were lower
than the prior year partly due to low product availability. Retail sales
for the new Slingshot three-wheeled roadster continued to outpace
Company expectations during the third quarter. Polaris North American
motorcycle dealer inventories, including Slingshot, during the 2015
third quarter increased about 30 percent compared to the same period in
the prior year but remain below levels needed to meet current and
backlogged retail demand.
Global Adjacent Markets sales increased ten percent to $60.8
million in the third quarter of 2015 compared to the same period last
year. Work and Transportation group sales were up one percent during the
third quarter of 2015 with higher unit shipments largely offset by
negative currency impacts. Sales for the Company’s defense business were
up more than 50 percent during the 2015 third quarter as the Company
began delivering its militarized RZR and ATV vehicles under a new U.S.
defense contract awarded in July of this year.
Parts, Garments, and Accessories (“PG&A”) sales increased
three percent to $226.3 million during the third quarter of 2015 as
compared to the same period last year. All product lines generated sales
growth during the 2015 third quarter, with the exception of snowmobiles,
which was down more than 20 percent due to the timing of snowmobile
related PG&A dealer shipments year-over-year. The 2015 third quarter was
also impacted by lower sales outside the United States. Canadian PG&A
sales were down significantly and international PG&A-related sales were
up one percent compared to last year, both regions were negatively
impacted by currency translations and weak economies. PG&A-related sales
in the United States were up nine percent during the 2015 third quarter.
The Company introduced more than 500 new model-year 2016 accessories
during the third quarter, which have been well received in the
marketplace to date.
International sales to customers outside of North America totaled
$153.6 million for the third quarter of 2015, up one percent from the
same period in 2014, though held back by weak currencies (up 18 percent
on a constant currency basis). EMEA reported sales declined four percent
in the 2015 third quarter and Asia Pacific reported sales were down one
percent while Latin American reported sales were up 50 percent.
International reported sales by component in the third quarter compared
to last year were as follows: Motorcycles sales were up 115 percent; ORV
sales were down two percent; Global Adjacent Markets declined seven
percent; snowmobile sales were down 52 percent, primarily due to Russia;
and PG&A related sales increased one percent.
Gross profit increased seven percent to $415.6 million in the
third quarter of 2015, compared to $388.3 million in the third quarter
of 2014. As a percentage of sales, gross profit margin declined 126
basis points to 28.5 percent of sales for the third quarter of 2015,
compared to 29.8 percent of sales for the same period last year. While
currency movements from a year ago, primarily the Canadian dollar, were
expected to negatively impact gross margins during the third quarter of
2015, the amount of impact was higher than originally anticipated as the
Canadian dollar continued to weaken sequentially from the 2015 second
quarter. The negative currency impact during the quarter along with
higher promotional costs and negative product mix, were partially offset
by lower commodity costs, cost savings from product cost reduction
efforts and higher selling prices.
Operating expenses grew five percent to $192.0 million or 13.2
percent of sales for the third quarter of 2015, compared to $182.7
million or 14.0 percent of sales for the third quarter of 2014. The
increase was driven largely by ongoing investments in research and
development, which were partially offset by operating expense leverage
from prior year’s infrastructure investments and operating expense
control measures.
Income from financial services was $19.1 million during the third
quarter 2015, an increase of 12 percent compared to $17.0 million in the
third quarter of 2014 due to increased income from the retail credit
portfolio and Polaris Acceptance’s dealer inventory financing.
Equity in loss of affiliates was $1.3 million for the third
quarter of 2015 compared to $1.0 million last year, which represents the
Company’s portion of the operating results related to the Polaris/Eicher
joint venture in India. In the third quarter of 2015, the Company began
production and consumer sales of the new jointly developed Multix
personal vehicle, specifically designed to satisfy the varied
transportation needs of consumers in India.
Non-operating other expense (income), net, which primarily
relates to foreign currency exchange-rate movements and the
corresponding effects on foreign currency transactions related to the
Company’s foreign subsidiaries, was $1.3 million of income in the
third quarter of 2015 compared to $0.3 million of expense in the third
quarter of 2014.
The provision for income taxes for the third quarter of 2015 was
$84.5 million or 35.3 percent of pretax income compared to $77.6 million
or 35.5 percent of pretax income for the third quarter of 2014.
Financial Position and Cash Flow
Net cash provided by
operating activities was $464.0 million for the year-to-date period
ended September 30, 2015, compared to $380.4 million for the same period
in 2014. The 22 percent increase in net cash provided by operating
activities for the 2015 period was due to increased net income, and
improved working capital. The Company repurchased approximately 1.8
million shares of Polaris stock for $247.8 million during the first nine
months of 2015. Total debt at the end of the third quarter of 2015,
including capital lease obligations and notes payable, was $316.6
million. The Company’s debt-to-total capital ratio was 25 percent at
September 30, 2015, compared to 22 percent a year ago. Cash and cash
equivalents were $225.3 million at September 30, 2015, up from $169.0
million for the same period in 2014.
Non-GAAP Measure - Constant Currency Reporting
This release
and our related earnings call include a discussion of sales growth on a
constant currency basis, which is a non-GAAP measure, as well as sales
growth on a GAAP basis. For purpose of comparison, sales growth on a
constant currency basis uses 2014 exchange rates for the comparative
period to enhance the visibility of the underlying business trends,
excluding the impact of translation arising from foreign currency
exchange rate fluctuations.
Conference Call and Webcast Presentation
Today at 8:00 AM
(CDT) Polaris Industries Inc. will host a conference call and webcast to
discuss Polaris’ 2015 third quarter earnings results released this
morning. The call will be hosted by Scott Wine, Chairman and CEO;
Bennett Morgan, President and COO; Ken Pucel, Executive Vice President –
Operations, Engineering and LEAN; and Mike Speetzen, Executive Vice
President – Finance and CFO. A slide presentation and link to the
webcast will be posted on the Polaris Investor Relations website at http://ir.polaris.com.
To listen to the conference call by phone, dial 877-706-7543 in the U.S.
and Canada, or 973-200-3967 internationally. The Conference ID is #
62000527.
A replay of the conference call will be available approximately two
hours after the call for a one-week period by accessing the same link on
our website, or by dialing 855-859-2056 in the U.S. and Canada, or
404-537-3406 internationally.
About Polaris
Polaris is a recognized leader in the
powersports industry with annual 2014 sales of $4.5 billion. Polaris
designs, engineers, manufactures and markets innovative, high quality
off-road consumer and military vehicles, including all-terrain vehicles
(ATVs) and the Polaris RANGER® and RZR®
side-by-side vehicles, snowmobiles, motorcycles and on-road
electric/hybrid powered vehicles.
Polaris is among the global sales leaders for both snowmobiles and
off-road vehicles and has established a presence in the heavyweight
cruiser and touring motorcycle market with the Victory®
and Indian Motorcycle® and Slingshot®
brands. Additionally, Polaris continues to invest in the global Work and
Transportation vehicle industry with Global Electric Motorcars (GEM),
Goupil Industrie SA, Aixam Mega S.A.S., and internally developed
vehicles. Polaris enhances the riding experience with a complete line of
Polaris Engineered Parts, Accessories and Apparel, Klim branded apparel
and ORV accessories under the Kolpin®, Cycle Country®
and Pro Armor® brands.
Polaris Industries Inc. trades on the New York Stock Exchange under the
symbol “PII”, and the Company is included in the S&P Mid-Cap 400 stock
price index.
Information about the complete line of Polaris products, apparel and
vehicle accessories are available from authorized Polaris dealers or
anytime at www.polaris.com.
Except for historical information contained herein, the matters set
forth in this news release, including management’s expectations
regarding 2015 sales, shipments, net income, and net income per share
are forward-looking statements that involve certain risks and
uncertainties that could cause actual results to differ materially from
those forward-looking statements. Potential risks and
uncertainties include such factors as the Company’s ability to
successfully implement its manufacturing operations expansion
initiatives, product offerings, promotional activities and pricing
strategies by competitors; acquisition integration costs; warranty
expenses; impact of changes in Polaris stock price on incentive
compensation plan costs; foreign currency exchange rate fluctuations;
environmental and product safety regulatory activity; effects of
weather; commodity costs; uninsured product liability claims;
uncertainty in the retail and wholesale credit markets; performance of
affiliate partners; changes in tax policy and overall economic
conditions, including inflation, consumer confidence and spending and
relationships with dealers and suppliers. Investors are also
directed to consider other risks and uncertainties discussed in
documents filed by the Company with the Securities and Exchange
Commission. The Company does not undertake any duty to any person
to provide updates to its forward-looking statements.
(summarized financial data follows)
|
|
|
POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF
INCOME
(In Thousands, Except Per Share Data)
(Unaudited)
|
|
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Sales
|
|
$
|
1,456,000
|
|
|
$
|
1,302,343
|
|
|
$
|
3,613,672
|
|
|
$
|
3,204,648
|
|
|
Cost of sales
|
|
|
1,040,377
|
|
|
|
914,069
|
|
|
|
2,584,904
|
|
|
|
2,253,043
|
|
|
Gross profit
|
|
|
415,623
|
|
|
|
388,274
|
|
|
|
1,028,768
|
|
|
|
951,605
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
|
|
|
91,169
|
|
|
|
87,567
|
|
|
|
240,510
|
|
|
|
227,315
|
|
|
Research and development
|
|
|
44,432
|
|
|
|
38,586
|
|
|
|
124,726
|
|
|
|
111,083
|
|
|
General and administrative
|
|
|
56,411
|
|
|
|
56,596
|
|
|
|
157,898
|
|
|
|
150,830
|
|
|
Total operating expenses
|
|
|
192,012
|
|
|
|
182,749
|
|
|
|
523,134
|
|
|
|
489,228
|
|
|
Income from financial services
|
|
|
19,065
|
|
|
|
17,048
|
|
|
|
51,345
|
|
|
|
42,313
|
|
|
Operating income
|
|
|
242,676
|
|
|
|
222,573
|
|
|
|
556,979
|
|
|
|
504,690
|
|
|
Non-operating expense (income):
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
2,966
|
|
|
|
2,835
|
|
|
|
8,848
|
|
|
|
8,686
|
|
|
Equity in loss of other affiliates
|
|
|
1,345
|
|
|
|
1,036
|
|
|
|
4,716
|
|
|
|
2,899
|
|
|
Other expense (income), net
|
|
|
(1,345
|
)
|
|
|
252
|
|
|
|
8,776
|
|
|
|
(3,736
|
)
|
|
Income before income taxes
|
|
|
239,710
|
|
|
|
218,450
|
|
|
|
534,639
|
|
|
|
496,841
|
|
|
Provision for income taxes
|
|
|
84,537
|
|
|
|
77,624
|
|
|
|
189,960
|
|
|
|
178,209
|
|
|
Net income
|
|
$
|
155,173
|
|
|
$
|
140,826
|
|
|
$
|
344,679
|
|
|
$
|
318,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share
|
|
$
|
2.35
|
|
|
$
|
2.13
|
|
|
$
|
5.20
|
|
|
$
|
4.82
|
|
|
Diluted net income per share
|
|
$
|
2.30
|
|
|
$
|
2.06
|
|
|
$
|
5.09
|
|
|
$
|
4.68
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
65,912
|
|
|
|
66,261
|
|
|
|
66,222
|
|
|
|
66,051
|
|
|
Diluted
|
|
|
67,368
|
|
|
|
68,328
|
|
|
|
67,781
|
|
|
|
68,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POLARIS INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
(In
Thousands)
(Unaudited)
|
|
|
|
|
|
September 30, 2015
|
|
September 30, 2014
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
225,264
|
|
$
|
169,018
|
|
Trade receivables, net
|
|
|
176,221
|
|
|
153,839
|
|
Inventories, net
|
|
|
674,612
|
|
|
582,193
|
|
Prepaid expenses and other
|
|
|
74,166
|
|
|
61,780
|
|
Income taxes receivable
|
|
|
10,052
|
|
|
20,423
|
|
Deferred tax assets
|
|
|
111,251
|
|
|
93,312
|
|
Total current assets
|
|
|
1,271,566
|
|
|
1,080,565
|
|
Property and equipment, net
|
|
|
587,935
|
|
|
538,031
|
|
Investment in finance affiliate
|
|
|
88,690
|
|
|
71,515
|
|
Deferred tax assets
|
|
|
46,271
|
|
|
25,096
|
|
Goodwill and other intangible assets, net
|
|
|
232,142
|
|
|
224,443
|
|
Other long-term assets
|
|
|
83,467
|
|
|
69,182
|
|
Total assets
|
|
$
|
2,310,071
|
|
$
|
2,008,832
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
Current portion of debt, capital lease obligations and notes payable
|
|
$
|
4,839
|
|
$
|
2,809
|
|
Accounts payable
|
|
|
381,174
|
|
|
340,606
|
|
Accrued expenses:
|
|
|
|
|
|
Compensation
|
|
|
104,336
|
|
|
96,055
|
|
Warranties
|
|
|
55,097
|
|
|
51,394
|
|
Sales promotions and incentives
|
|
|
145,091
|
|
|
142,195
|
|
Dealer holdback
|
|
|
101,261
|
|
|
111,259
|
|
Other
|
|
|
83,553
|
|
|
77,765
|
|
Income taxes payable
|
|
|
34,269
|
|
|
3,219
|
|
Total current liabilities
|
|
|
909,620
|
|
|
825,302
|
|
Long term income taxes payable
|
|
|
15,201
|
|
|
12,928
|
|
Capital lease obligations and notes payable
|
|
|
34,955
|
|
|
25,214
|
|
Long-term debt
|
|
|
276,819
|
|
|
200,000
|
|
Deferred tax liabilities
|
|
|
15,913
|
|
|
21,100
|
|
Other long-term liabilities
|
|
|
105,280
|
|
|
85,246
|
|
Total liabilities
|
|
$
|
1,357,788
|
|
$
|
1,169,790
|
|
Deferred compensation
|
|
|
14,923
|
|
|
16,340
|
|
Shareholders’ equity:
|
|
|
|
|
|
Total shareholders’ equity
|
|
|
937,360
|
|
|
822,702
|
|
Total liabilities and shareholders’ equity
|
|
$
|
2,310,071
|
|
$
|
2,008,832
|
|
|
|
|
|
|
|
|
|
|
|
POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(In Thousands)
(Unaudited)
|
|
|
|
|
|
Nine months ended September 30,
|
|
|
|
2015
|
|
2014
|
|
Operating Activities:
|
|
|
|
|
|
Net income
|
|
$
|
344,679
|
|
|
$
|
318,632
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
|
112,902
|
|
|
|
91,041
|
|
|
Noncash compensation
|
|
|
53,642
|
|
|
|
47,207
|
|
|
Noncash income from financial services
|
|
|
(21,810
|
)
|
|
|
(10,778
|
)
|
|
Deferred income taxes
|
|
|
(5,280
|
)
|
|
|
(10,915
|
)
|
|
Tax effect of share-based compensation exercises
|
|
|
(34,301
|
)
|
|
|
(26,169
|
)
|
|
Other, net
|
|
|
4,716
|
|
|
|
2,899
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Trade receivables
|
|
|
22,700
|
|
|
|
30,479
|
|
|
Inventories
|
|
|
(112,776
|
)
|
|
|
(168,727
|
)
|
|
Accounts payable
|
|
|
35,002
|
|
|
|
102,216
|
|
|
Accrued expenses
|
|
|
13,621
|
|
|
|
139
|
|
|
Income taxes payable/receivable
|
|
|
54,389
|
|
|
|
11,110
|
|
|
Prepaid expenses and others, net
|
|
|
(3,482
|
)
|
|
|
(6,699
|
)
|
|
Net cash provided by operating activities
|
|
|
464,002
|
|
|
|
380,435
|
|
|
Investing Activities:
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(148,998
|
)
|
|
|
(146,473
|
)
|
|
Investment in finance affiliate, net
|
|
|
22,227
|
|
|
|
8,480
|
|
|
Investment in other affiliates
|
|
|
(15,337
|
)
|
|
|
(8,316
|
)
|
|
Acquisition of businesses, net of cash acquired
|
|
|
(27,019
|
)
|
|
|
(17,199
|
)
|
|
Net cash used for investing activities
|
|
|
(169,127
|
)
|
|
|
(163,508
|
)
|
|
Financing Activities:
|
|
|
|
|
|
Borrowings under debt arrangements / capital lease obligations
|
|
|
2,155,310
|
|
|
|
1,921,386
|
|
|
Repayments under debt arrangements / capital lease obligations
|
|
|
(2,059,711
|
)
|
|
|
(2,003,422
|
)
|
|
Repurchase and retirement of common shares
|
|
|
(247,795
|
)
|
|
|
(3,970
|
)
|
|
Cash dividends to shareholders
|
|
|
(104,808
|
)
|
|
|
(95,004
|
)
|
|
Proceeds from stock issuances under employee plans
|
|
|
26,672
|
|
|
|
22,970
|
|
|
Tax effect of proceeds from share-based compensation exercises
|
|
|
34,301
|
|
|
|
26,169
|
|
|
Net cash used for financing activities
|
|
|
(196,031
|
)
|
|
|
(131,871
|
)
|
|
Impact of currency exchange rates on cash balances
|
|
|
(11,180
|
)
|
|
|
(8,286
|
)
|
|
Net increase in cash and cash equivalents
|
|
|
87,664
|
|
|
|
76,770
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
137,600
|
|
|
|
92,248
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
225,264
|
|
|
$
|
169,018
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151021005322/en/
Source: Polaris Industries Inc.