-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FcLl289OIbe8mSPU6jGCPJ/4RZdOSjYKzQR9qEwP1Gr0/ydO41xt5vaNfQBySVzD 6SBCpeFgXWhsaVKuegOHTQ== 0000912057-97-017842.txt : 19970520 0000912057-97-017842.hdr.sgml : 19970520 ACCESSION NUMBER: 0000912057-97-017842 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970515 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: POLARIS INDUSTRIES INC/MN CENTRAL INDEX KEY: 0000931015 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS TRANSPORTATION EQUIPMENT [3790] IRS NUMBER: 411790959 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-11411 FILM NUMBER: 97606601 BUSINESS ADDRESS: STREET 1: 1225 HIGHWAY 169 N CITY: MINNEAPOLIS STATE: MN ZIP: 55441 BUSINESS PHONE: 6125420500 MAIL ADDRESS: STREET 1: 1225 HIGHWAY 169 N STREET 2: 425 LEXINGTON AVE CITY: MINNESOTA STATE: MN ZIP: 55441 10-Q 1 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1997 -------------------------------------------------- OR / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ----------------------- ----------------- Commission File Number 1-11411 ---------------------------------------------------------- Polaris Industries Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Minnesota 41-1790959 - -------------------------------------------------------------------------------- (State or other jurisdiction (IRS Employer of incorporation or organization) Identification No.) 1225 Highway 169 North, Minneapolis, MN 55441 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (612) 542-0500 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes X No ------- ------ APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. As of May 8, 1997, 26,649,254 shares of Common Stock of the issuer were outstanding. POLARIS INDUSTRIES INC. TABLE OF CONTENTS Part I. FINANCIAL INFORMATION Item 1 - Consolidated Financial Statements Consolidated Balance Sheets Pg. 3 Consolidated Statements of Operations Pg. 4 Consolidated Statements of Cash Flows Pg. 5 Consolidated Statement of Shareholders' Equity Pg. 6 Notes to Consolidated Financial Statements Pg. 7 Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Pg. 10 Cash Dividends Pg. 11 Liquidity and Capital Resources Pg. 11 Inflation and Exchange Rates Pg. 12 Part II OTHER INFORMATION Pg. 14 Item 1 - Legal Proceedings Item 2 - Changes in Securities Item 3 - Defaults upon Senior Securities Item 4 - Submission of Matters to a Vote of Security Holders Item 5 - Other Information Item 6 - Exhibits and Reports on Form 8-K SIGNATURE PAGE Pg. 15 -2- POLARIS INDUSTRIES INC. CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) March 31, 1997 December 31, 1996 -------------- ----------------- (Unaudited) ASSETS Current Assets: Cash and cash equivalents $ 8,460 $ 5,812 Trade receivables 24,875 36,158 Inventories 115,926 122,911 Prepaid expenses and other 2,696 3,524 Deferred tax assets 24,000 25,000 -------- -------- Total current assets 175,957 193,405 -------- -------- Deferred Tax Assets 29,000 30,000 Property and Equipment, net 89,474 93,513 Investments in Affiliates 20,530 10,421 Intangible Assets, net 24,160 24,378 -------- -------- Total Assets $339,121 $351,717 -------- -------- -------- -------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 47,617 $ 50,514 Accrued expenses 72,933 102,316 Income taxes payable 12,183 8,557 -------- -------- Total current liabilities 132,733 161,387 Borrowings under credit agreement 55,000 35,000 -------- -------- Total Liabilities 187,733 196,387 -------- -------- Shareholders' Equity: Common stock 269 270 Additional paid-in capital 99,469 102,946 Deferred compensation (2,789) (978) Compensation payable in common stock 3,372 9,710 Retained earnings 51,067 43,382 -------- -------- Total shareholders' equity 151,388 155,330 -------- -------- Total Liabilities and Shareholder $339,121 $351,717 -------- -------- -------- -------- See Notes to Consolidated Financial Statements -3- POLARIS INDUSTRIES INC. CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) UNAUDITED For the Three Months Ended March 31, ----------------------- 1997 1996 ---- ---- Sales $224,634 $278,041 Cost of Sales 180,741 227,383 -------- -------- Gross profit 43,893 50,658 Operating Expenses Selling and marketing 19,688 21,581 General and administrative 6,560 7,342 -------- -------- Total operating expenses 26,248 28,923 -------- -------- Operating income 17,645 21,735 Nonoperating Expense (Income) Interest expense 744 823 Equity in income of affiliates (1,386) - Other expense (income), net (492) (536) -------- -------- Income before income taxes 18,779 21,448 Provision for Income Taxes 6,760 8,150 -------- -------- Net income $ 12,019 $ 13,298 -------- -------- -------- -------- Net Income Per Share $ 0.44 $ 0.48 -------- -------- -------- -------- Weighted Average Number of Common and Common Equivalent Shares Outstanding 27,450 27,982 -------- -------- -------- -------- See Notes to Consolidated Financial Statements -4- POLARIS INDUSTRIES INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) UNAUDITED For the Three Months Ended March 31, ----------------------- 1997 1996 ---- ---- Cash Flows From Operating Activities Net Income $ 12,019 $ 13,298 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 8,868 6,988 Noncash compensation 1,198 1,496 Equity in income of affiliates (1,386) - Deferred income taxes 2,000 2,000 Changes in current operating items - Trade receivables 11,283 9,549 Inventories 6,985 (31,952) Accounts payable (2,897) 19,364 Accrued expenses (29,383) (30,946) Income taxes payable 3,626 5,647 Others, net 830 2,569 -------- -------- Net cash provided by operating activities 13,143 (1,987) -------- -------- Cash Flows From Investing Activities: Purchase of property and equipment (4,611) (10,059) Investments in affiliates, net (8,723) (7,943) -------- -------- Net cash used for investing activities (13,334) (18,002) Cash Flows From Financing Activities: Borrowings under credit agreement 90,300 103,900 Repayments under credit agreement (70,300) (82,100) Repurchase and retirement of common shares (12,827) - Cash dividends to shareholders (4,334) (4,107) -------- -------- Net cash provided by financing activities 2,839 17,693 -------- -------- Increase (Decrease) in cash and cash equivalents 2,648 (2,296) Cash and Cash Equivalents, Beginning 5,812 3,501 -------- -------- Cash and Cash Equivalents, Ending $ 8,460 $ 1,205 -------- -------- -------- -------- See Notes to Consolidated Financial Statements -5- POLARIS INDUSTRIES INC. CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (IN THOUSANDS) UNAUDITED
Retained Additional Compensation Earnings Common Paid-In Deferred Payable in (Accumulated Stock Capital Compensation Stock Deficit) Total ----- ------- ------------ ----- -------- ----- Balance, December 31, 1996 $270 $102,946 ($978) $9,710 $43,382 $155,330 First Rights conversion to stock 3 7,164 - (7,210) - (43) Employee stock compensation 1 2,181 (1,811) 872 - 1,243 Cash dividends declared - - - - (4,334) (4,334) Repurchase and retirement of common shares (5) (12,822) - - - (12,827) Net income - - - - 12,019 12,019 ------- -------- Balance, March 31, 1997 $269 $ 99,469 ($2,789) $3,372 $51,067 $151,388 ---- -------- ------- ------ ------- -------- ---- -------- ------- ------ ------- --------
See Notes to Consolidated Financial Statements -6- POLARIS INDUSTRIES INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements and, therefore, do not include all information and disclosures of results of operations, financial position and changes in cash flow in conformity with generally accepted accounting principles for complete financial statements. Accordingly, such statements should be read in conjunction with the previously filed Form 10-K. In the opinion of management, such statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. Due to the seasonality of the snowmobile, all terrain vehicle (ATV) and personal watercraft (PWC) business, and to certain changes in production and shipping cycles, results of such periods are not necessarily indicative of the results to be expected for the complete year. NOTE 2. INVENTORIES The major components of inventories are as follows (in thousands): March 31, 1997 December 31, 1996 -------------- ----------------- Raw Materials $ 17,598 $ 24,469 Service Parts 42,186 45,809 Finished Goods 56,142 52,633 -------- -------- $115,926 $122,911 -------- -------- -------- -------- NOTE 3. FINANCING AGREEMENT Polaris has an unsecured bank line of credit arrangement with maximum available borrowings of $150.0 million. Interest is charged at rates based on LIBOR or "prime" (5.88% at March 31, 1997) and the agreement expires on March 31, 2000, at which time the balance is due. As of March 31, 1997, total borrowings under this credit agreement were $55.0 million and have been classified as long-term in the accompanying consolidated balance sheets. NOTE 4. INVESTMENTS IN AFFILIATES In February, 1996 a wholly-owned subsidiary of Polaris entered into a -7- partnership agreement with Transamerica Commercial Finance Corporation (TCFC) to form Polaris Acceptance. Polaris Acceptance provides floor plan financing to dealer and distributor customers of Polaris, and may in the future provide other financial services to dealers, distributors and retail customers of Polaris. In January 1997, Polaris exercised its option to increase its equity interest in Polaris Acceptance to 50 percent. Polaris has guaranteed 50 percent of the outstanding indebtedness of Polaris Acceptance under a credit agreement between Polaris Acceptance and TCFC. At March 31, 1997, Polaris' contingent liability with respect to the guarantee was approximately $110.0 million. In February, 1995, Polaris entered into an agreement with Fuji Heavy Industries Ltd. to form Robin Manufacturing, U.S.A. ("Robin"). Under the agreement, Polaris has a 40 percent ownership interest in Robin, which builds engines in the United States for recreational and industrial products. Polaris' investments in affiliates are accounted for under the equity method. Polaris' allocable share of the income of Polaris Acceptance and Robin has been included as a component of nonoperating expense (income) in the accompanying consolidated statements of operations. NOTE 5. SHAREHOLDERS' EQUITY Polaris has a continuing authorization from its Board of Directors to repurchase up to 3,000,000 shares of the Company's outstanding common stock. During the first quarter of 1997, Polaris paid $12.8 million to repurchase and retire 515,000 shares of its common stock with cash on hand and borrowings under its line of credit. As a result of repurchases prior to and in the first quarter, Polaris has 1,964,000 shares available to repurchase under this authorization. On January 23, 1997, the Polaris Board of Directors declared a regular cash dividend of $0.16 per share payable on February 17, 1997, to holders of record on February 6, 1997. On April 17, 1997, the Polaris Board of Directors declared a regular cash dividend of $0.16 per share payable on May 15, 1997, to holders of record on April 30, 1997. NOTE 6. COMMITMENTS AND CONTINGENCIES Polaris is subject to product liability claims in the normal course of -8- business. Effective June 1996, Polaris purchased excess insurance coverage for catastrophic product liability claims for incidents occurring subsequent to the policy date that exceed a self insured retention. The estimated costs resulting from any losses are charged to expense when it is probable a loss has been incurred and the amount of the loss is reasonably determinable. Injection Research Specialists commenced an action in 1990 against Polaris in Colorado Federal Court alleging various claims relating to electronic fuel injection systems for snowmobiles. On April 25, 1997, a trial jury returned a verdict awarding the plaintiffs $24.0 million in compensatory damages and $10.0 million in punitive damages against Polaris, before interest. Polaris believes this award is unjustified and intends to appeal. Polaris has been advised by outside legal counsel that it has substantial grounds available for appeal and it will vigorously pursue available avenues in the post-trial and appellate review processes. Management and legal counsel are currently analyzing the verdict and the Company's related financial exposure and developing post-trial and appellate strategy. As a result of this process, the Company may record additional reserves associated with this litigation on its financial statements. In addition to the aforementioned matter, Polaris is a defendant in lawsuits and subject to claims arising in the normal course of business. In the opinion of management, these legal proceedings pending against or involving Polaris will not have a material adverse effect on Polaris' financial position or results of operations. NOTE 7. NEW ACCOUNTING PRONOUNCEMENTS In March 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128, "Earnings per Share", (SFAS128), which changes the way companies calculate their earnings per share (EPS). SFAS 128 replaces primary EPS with basic EPS. Basic EPS is computed by dividing reported earnings by weighted average shares outstanding, excluding potentially dilutive securities. Fully diluted EPS, termed diluted EPS under SFAS 128, is also to be disclosed. Polaris is required to adopt SFAS 128 in the first quarter of 1998 at which time all prior year EPS are to be restated in accordance with SFAS 128. -9- ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion pertains to the results of operations and financial position of Polaris Industries Inc., a Minnesota corporation ("Polaris" or the "Company"), for the quarters ended March 31, 1997 and 1996. Due to the seasonality of the snowmobile, all terrain vehicle (ATV) and personal watercraft (PWC) business, and to certain changes in production and shipping cycles, results of such periods are not necessarily indicative of the results to be expected for the complete year. RESULTS OF OPERATIONS Sales were $224.6 million in the first quarter of 1997, representing a 19 percent decrease from $278.0 million in sales for the same period in 1996. Sales of parts, garments and accessories ("PG & A") which were separately reported in prior years are now being included within reported North American sales for each of the related product lines. In addition, international sales are now being separately reported. North American sales of snowmobiles and related PG & A of $21.6 million for first quarter 1997 were seven percent lower than $23.1 million for the comparable period in 1996. Historically, unit shipments of snowmobiles are minimal in the first quarter of the year. North American sales of ATVs and related PG & A of $143.5 million for first quarter 1997 were eight percent lower than the comparable period in 1996 of $155.9 million. The decline is driven by Polaris' focused efforts to reduce days supply of inventory at dealers. North American sales of PWC and related PG & A of $46.0 million for the first quarter 1997 were 48 percent lower than the comparable period in 1996 of $88.4 million. The decline is due to significantly lower planned production levels of PWC in 1997 to compensate for the increased dealer inventory remaining from last season. Partially offsetting the reduced production level was a nine percent increase in the average per unit sales price reflecting a shift to more sales of higher priced 3-passenger PWC models. International sales of snowmobiles, ATVs, PWC and PG & A of $13.5 million were 27 percent higher than the comparable period in 1996 of $10.6 million. The increase is due primarily to increased effort to pursue international opportunities. -10- Polaris Industries Inc. Management's Discussion and Analysis of Financial Condition and Results of Operations (cont'd) Gross profit of $43.9 million in the first quarter of 1997 represents a 13 percent decrease from gross profit of $50.7 million for the same period in 1996 primarily as a result of the lower sales volume. The gross profit margin percentage increased to 19.5% for the first quarter of 1997 from 18.2% for the same period in 1996. This increase in gross profit margin percentage is primarily attributable to a) continued cost reduction efforts, including expanded domestic engine production, b) a continuing shift in sales mix to higher margin products, and c) decreases in costs of certain purchased components because of the continued strengthening of the U.S. dollar in relation to the Japanese yen when compared to the comparable 1996 period. Operating expenses in the first quarter of 1997 decreased nine percent to $26.2 million from $28.9 million for the comparable period in 1996 primarily as a result of the lower sales volume. As a percentage of sales, operating expenses increased to 11.7 percent for the first quarter of 1997 compared to 10.4 percent for the same period in 1996. The percentage increase was primarily due to an increased level of advertising and promotional costs related to efforts to assist dealers in retailing remaining snowmobile and PWC inventory. The improvement in net nonoperating expense (income) in the first quarter of 1997 from the comparable period in 1996 primarily reflects the positive financial impact of the Company's equity in the income of Polaris Acceptance which was formed late in the first quarter of 1996. CASH DIVIDENDS On January 23, 1997, the Polaris Board of Directors declared a regular cash dividend of $0.16 per share payable on February 17, 1997, to holders of record on February 6, 1997. On April 17, 1997, the Polaris Board of Directors declared a regular cash dividend of $0.16 per share payable on May 15, 1997, to holders of record on April 30, 1997. LIQUIDITY AND CAPITAL RESOURCES The seasonality of production and shipments causes working capital requirements to fluctuate during the year. Polaris maintains an unsecured bank line of credit arrangement with maximum available borrowings of $150.0 million. Interest is charged at rates based on LIBOR or "prime" and the agreement expires March 31, 2000. At March 31, 1997, Polaris had borrowings under its bank line of credit arrangement of -11- Polaris Industries Inc. Management's Discussion and Analysis of Financial Condition and Results of Operations (cont'd) $55.0 million and cash and cash equivalents of $8.5 million, compared to $35.0 million in borrowings and cash and cash equivalents of $5.8 million at December 31, 1996. Polaris has a continuing authorization from its Board of Directors to repurchase up to 3,000,000 shares of the Company's outstanding common stock. During the first quarter of 1997, Polaris paid $12.8 million to repurchase and retire 515,000 shares of its common stock with cash on hand and borrowings under its line of credit. As a result of repurchases prior to and in the first quarter, Polaris has 1,964,000 shares available to repurchase under this authorization. Injection Research Specialists commenced an action in 1990 against Polaris in Colorado Federal Court alleging various claims relating to electronic fuel injection systems for snowmobiles. On April 25, 1997, a trial jury returned a verdict awarding the plaintiffs $24.0 million in compensatory damages and $10.0 million in punitive damages against Polaris, before interest and awarding $15.0 million in compensatory damages and $8.0 million in punitive damages against Fuji Heavy Industries, Ltd., one of Polaris' sources of supply of engines. Polaris believes this award is unjustified and intends to appeal. Polaris has been advised by outside legal counsel that it has substantial grounds available for appeal and it will vigorously pursue available avenues in the post-trial and appellate review processes. Management and legal counsel are currently analyzing the verdict and the Company's related financial exposure and developing post-trial and appellate strategy. As a result of this process, the Company may record additional reserves associated with this litigation on its financial statements. Management believes that existing cash balances and bank borrowings, cash flow to be generated from operating activities and available borrowing capacity under the line of credit arrangement will be sufficient to fund operations, regular dividends, share repurchases, potential outcomes of litigation matters and capital requirements for 1997. INFLATION AND EXCHANGE RATES Polaris does not believe that inflation has had a material impact on the results of its recent operations. However, the changing relationships of the U.S. dollar to the Japanese yen and Canadian dollar has a material impact from time to time. Over the past several years, weakening of the U.S. dollar in relation to the yen has resulted in higher raw material purchase prices. In 1996, purchases totaling 22 percent of Polaris' cost of sales were from yen-denominated suppliers. Management -12- Polaris Industries Inc. Management's Discussion and Analysis of Financial Condition and Results of Operations (cont'd) believes that such cost increases also affect its principal competitors in ATVs and, to varying degrees, some of its snowmobile and PWC competitors. The strengthening of the U.S. dollar in relation to the yen over the past 18 months has reversed this trend. Polaris' cost of sales in the first quarter of 1997 was favorably impacted by the yen-dollar exchange rate fluctuation when compared to the first quarter of 1996. In view of the foreign exchange hedging contracts currently in place, Polaris anticipates that the yen-dollar exchange rate will continue to have a favorable impact on cost of sales during the remaining three quarters of 1997 when compared to the same periods in 1996. Polaris operates in Canada through a wholly-owned subsidiary. Over the past several years, strengthening of the U.S. dollar in relation to the Canadian dollar has resulted in lower gross margin levels on a comparable basis. However, the fluctuation of the Canadian dollar exchange rate did not have a significant impact on the gross margin achieved in the first quarter of 1997 when compared to the same period in 1996. In the past, Polaris has been a party to, and in the future may enter into, foreign exchange hedging contracts for both the Japanese yen and the Canadian dollar to minimize the impact of exchange rate fluctuations within each year. At March 31, 1997, Polaris had open Japanese yen and Canadian dollar foreign exchange hedging contracts which mature throughout 1997. Certain matters discussed in this report are "forward-looking statements" intended to qualify for the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These "forward-looking statements" can generally be identified as such because the context of the statement will include words such as the Company or management "believes", "anticipates", "expects", "estimates" or words of similar import. Similarly, statements that describe the Company's future plans, objectives or goals are also forward-looking. Shareholders, potential investors and others are cautioned that all forward-looking statements involve risks and uncertainty that could cause results to differ materially from those anticipated by some of the statements made herein. In addition to the factors discussed above, among the other factors that could cause actual results to differ materially are the following: product offerings and pricing strategies by competitors; future conduct of litigation and the judicial appeals processes; warranty expenses; foreign currency exchange rate fluctuations; environmental and product safety regulatory activity; effects of weather; uninsured product liability claims; and overall economic conditions, including inflation and consumer confidence and spending. -13- POLARIS INDUSTRIES INC. PART II. OTHER INFORMATION ITEM 1 - LEGAL PROCEEDINGS None. ITEM 2 - CHANGES IN SECURITIES None. ITEM 3 - DEFAULTS UPON SENIOR SECURITIES None. ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None. ITEM 5 - OTHER INFORMATION None. ITEM 6 - EXHIBITS AND REPORTS ON FORM 8 - K (a) EXHIBITS Exhibit No. 11 - Computation of Per Share Earnings. Exhibit No. 27 - Financial Data Schedule. (b) REPORTS ON FORM 8 - K On February 21, 1997, the Company filed a current report on Form 8-K announcing that it is adding motorcycles to its line of businesses with the introduction of a made-in-the-U.S.A. model under the brand name "Victory", to be available in limited quantities in the spring of 1998. -14- POLARIS INDUSTRIES INC. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. POLARIS INDUSTRIES INC. (Registrant) Date: May 8, 1997 /s/ W. Hall Wendel, Jr. ------------------------------ W. Hall Wendel, Jr. Chairman of the Board and Chief Executive Officer Date: May 8, 1997 /s/ Michael W. Malone ------------------------------ Michael W. Malone Vice President Finance, Chief Financial Officer, Treasurer and Secretary (Principal Financial and Chief Accounting Officer) -15- EX-11 2 EXHIBIT 11 EXHIBIT 11 POLARIS INDUSTRIES INC. COMPUTATION OF NET INCOME PER SHARE (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) QUARTER ENDED ------------- MARCH 31, 1997 MARCH 31, 1996 -------------- -------------- Net Income for the Period $12,019 $13,298 ------- ------- ------- ------- Weighted Average Number of Outstanding: Common Shares 27,007 27,428 Rights 264 536 Deferred compensation plan for directors 9 4 Stock option plan - 14 Employee stock ownership plan 170 - ------- ------- Total common and common equivalent shares 27,450 27,982 ------- ------- ------- ------- Net Income Per Share $ 0.44 $ 0.48 ------- ------- ------- ------- EX-27 3 EXHIBIT 27
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEET OF POLARIS INDUSTRIES INC. AS OF MARCH 31, 1997, AND THE RELATED CONSOLIDATED STATEMENTS OF OPERATIONS, SHAREHOLDERS EQUITY, AND CASH FLOWS FOR THE QUARTER ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-1997 JAN-01-1997 MAR-31-1997 8,460 0 24,875 0 115,926 175,957 167,464 77,990 339,121 132,733 55,000 0 0 269 151,119 339,121 224,634 224,634 180,741 180,741 26,248 0 744 18,779 6,760 12,019 0 0 0 12,019 .44 .44
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