EX-13 4 c01594exv13.htm PORTIONS OF THE ANNUAL REPORT TO SECURITY HOLDERS exv13
 

Exhibit 13
11-YEAR SELECTED FINANCIAL DATA (in thousands, except per share and per unit data)
The selected financial data presented below are qualified in their entirety by, and should be read in conjunction with, the Consolidated Financial Statements and Notes thereto and other financial and statistical information, including the information referenced under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” located in the Form 10-K included in this report.
                                     
For the Years Ended December 31,     2005       2004     2003     2002  
             
Statement of Operations Data
                                    
Sales data:
                                    
Total sales from continuing operations
     $ 1,869,819       $ 1,773,206     $ 1,552,351     $ 1,468,170  
             
Percent change from prior year
       5 %       14 %     6 %     3 %
             
Sales mix by product:
                                    
All-terrain vehicles
       66 %       66 %     67 %     64 %
             
Snowmobiles
       14 %       16 %     15 %     20 %
             
Motorcycles
       5 %       4 %     4 %     2 %
             
PG&A
       15 %       14 %     14 %     14 %
             
Gross profit data:
                                    
Total gross profit from continuing operations
     $ 417,892       $ 424,263     $ 362,876     $ 332,432  
             
Percent of sales
       22 %       24 %     23 %     23 %
             
Operating expense data from continuing operations:
                                    
Amortization of intangibles and noncash compensation
     $ 12,492       $ 16,643     $ 14,472     $ 16,437  
             
Other operating expenses
       229,254         228,018       192,093       166,188  
             
Percent of sales
       12 %       13 %     12 %     11 %
             
Total operating expenses
       241,746         244,661       206,565       182,625  
             
Net income data:
                                    
Net income from continuing operations
     $ 144,285       $ 136,813     $ 119,823     $ 111,330  
             
Diluted net income per share from continuing operations
     $ 3.29       $ 3.04     $ 2.66     $ 2.36  
             
Net income
     $ 143,278       $ 104,504     $ 110,929     $ 103,592  
             
Diluted net income per share
     $ 3.27       $ 2.32     $ 2.46     $ 2.19  
             
 
                                    
Cash Flow Data
                                    
Cash flow from continuing operating activities
     $ 177,629       $ 245,356     $ 167,793     $ 200,601  
             
Purchase of property and equipment for continuing operations
       89,770         88,836       59,209       52,313  
             
Repurchase and retirement of common stock
       132,280         66,830       73,125       76,389  
             
Cash dividends to shareholders
       46,956         38,856       26,657       25,273  
             
Cash dividends per share
     $ 1.12       $ 0.92     $ 0.62     $ 0.56  
             
 
                                    
Balance Sheet Data
                                    
(at end of year)
                                    
Cash and cash equivalents
     $ 19,675       $ 138,469     $ 82,761     $ 81,193  
             
Current assets
       373,988         465,655       387,716       343,659  
             
Total assets
       768,956         792,925       671,352       608,646  
             
Current liabilities
       375,614         405,193       330,478       313,513  
             
Borrowings under credit agreement
       18,000         18,000       18,008       18,027  
             
Shareholders’ equity / partners’ capital
       369,657         361,732       319,378       277,106  
             
 
(1)   In 1998, Polaris entered into a settlement agreement related to a trade secret infringement claim brought by Injection Research Specialists, Inc. The one-time provision for litigation loss amounted to $61.4 million, or $0.77 per diluted share in 1998. The settlement had no effect on the future operations of the Company. Excluding this charge, other operating expenses, net income and diluted net income per share from continuing operations for 1998 would have been $101.2 million, $78.4 million and $1.52 per share, respectively.
18       POLARIS INDUSTRIES INC.

 

 

                                                         
    2001     2000     1999     1998     1997     1996     1995  
 
 
   $ 1,427,400     $ 1,327,030     $ 1,244,782     $ 1,105,685     $ 947,775     $ 985,472     $ 908,988  
 
 
     8 %     7 %     13 %     17 %     (4 %)     8 %     31 %
 
 
                                                        
 
     58 %     62 %     59 %     58 %     48 %     44 %     39 %
 
 
     26 %     23 %     25 %     28 %     37 %     42 %     47 %
 
 
     1 %     1 %     3 %     1 %     —       —       —  
 
 
     15 %     14 %     13 %     13 %     15 %     14 %     14 %
 
 
                                                        
 
   $ 306,307     $ 287,969     $ 256,611     $ 213,381     $ 195,027     $ 192,131     $ 180,913  
 
 
     21 %     22 %     21 %     19 %     21 %     19 %     20 %
 
 
                                                        
 
   $ 16,482     $ 12,702     $ 10,472     $ 8,703     $ 5,887     $ 5,325     $ 5,616  
 
 
     150,386       143,152       119,600       153,903       79,505       76,240       67,163  
 
 
     11 %     11 %     10 %     14 %(1)     8 %     8 %     7 %
 
 
     166,868       155,854       130,072       162,606       85,392       81,565       72,779  
 
 
                                                        
 
   $ 97,716     $ 89,466     $ 84,642     $ 38,761 (1)   $ 75,964     $ 70,708     $ 64,759  
 
 
   $ 2.07     $ 1.89     $ 1.70     $ 0.75 (1)   $ 1.42     $ 1.27     $ 1.17  
 
 
   $ 91,414     $ 82,809     $ 76,326     $ 31,015 (1)   $ 65,383     $ 62,293     $ 60,776  
 
 
   $ 1.94     $ 1.75     $ 1.53     $ 0.60 (1)   $ 1.22     $ 1.12     $ 1.09  
 
 
                                                        
 
   $ 192,034     $ 105,055     $ 134,469     $ 124,701     $ 97,655     $ 88,872     $ 81,215  
 
 
     52,856       61,590       60,659       56,796       32,389       37,128       38,964  
 
 
     49,207       39,622       52,375       37,728       39,903       13,587       —  
 
 
     22,846       20,648       19,732       18,582       16,958       16,390       116,639  
 
 
   $ 0.50     $ 0.44     $ 0.40     $ 0.36     $ 0.32     $ 0.30     $ 2.13  
 
 
                                                        
 
   $ 40,530     $ 2,369     $ 6,184     $ 1,466     $ 1,233     $ 5,812     $ 3,501  
 
 
     305,317       240,912       214,714       183,840       217,458       193,405       175,271  
 
 
     565,163       490,186       442,027       378,697       384,746       351,717       314,436  
 
 
     308,337       238,384       233,800       204,964       191,111       161,387       155,722  
 
 
     18,043       47,068       40,000       20,500       24,400       35,000       40,200  
 
 
     238,783       204,734       168,227       153,233       169,235       155,330       118,514  
 
Cash Flow Provided to Net Cash Provided by Operating Activities from Continuing Operations
(dollars in millions)
                                         
    Cash Flow     Deferred     Changes in Current     One-time Provision for     Net Cash Provided by  
Year   Provided     Income Taxes     Operating Items     Litigation Loss, Net (1)     Operating Activities  
 
1996
   $ 96.4     $ —     $ (7.5 )     —     $ 88.9  
1997
     100.0       —       (2.3 )     —       97.7  
1998
     108.9       5.0       50.4     $ (39.6 )     124.7  
1999
     119.6       3.0       11.9       —       134.5  
2000
     129.3       1.6       (25.9 )     —       105.1  
2001
     150.0       (9.7 )     51.8       —       192.0  
2002
     174.1       7.2       19.3       —       200.6  
2003
     177.5       (8.1 )     (1.6 )     —       167.8  
2004
     201.1       (1.5 )     45.7       —       245.4  
2005
     208.1       2.7       (33.2 )     —       177.6  
2005 ANNUAL REPORT       19

 

 

OTHER INVESTOR INFORMATION
(PII LOGO)
STOCK EXCHANGES
Shares of common stock of Polaris Industries Inc. trade on the New York Stock Exchange and on the Pacific Stock Exchange under the symbol PII.
INDEPENDENT AUDITORS
Ernst & Young LLP
Minneapolis, MN
TRANSFER AGENT AND REGISTRAR
Communications concerning transfer requirements, address changes, dividends and lost certificates, as well as requests for Dividend Reinvestment Plan enrollment information, should be addressed to:
Wells Fargo Bank Minnesota, N.A.
Shareowner Services
161 North Concord Exchange
South St. Paul, MN 55075-1139
1-800-468-9716
www.wellsfargo.com/com/shareowner_services
ANNUAL SHAREHOLDERS’ MEETING
The meeting will be held at 9 a.m. CST, Thursday, April 20, 2006, at the Polaris Industries Inc. corporate headquarters, 2100 Highway 55, Medina, Minnesota. A proxy statement will be mailed on or about March 1, 2006, to each shareholder of record on February 21, 2006.
SUMMARY OF TRADING
                                 
    For the Years Ended December 31,  
    2005     2004  
Quarter   High     Low     High     Low  
 
First
   $ 74.18     $ 62.22     $ 45.73     $ 39.30  
Second
     71.19       51.60       48.15       41.10  
Third
     60.23       46.53       56.44       44.25  
Fourth
     53.95       43.75       69.41       51.83  
 
CASH DIVIDENDS DECLARED
Cash dividends are declared quarterly and have been paid since 1995. As of January 19, 2006, the quarterly dividend was increased to $0.31 per share.
                 
Quarter   2005     2004  
 
First
   $ 0.28     $ 0.23  
Second
     0.28       0.23  
Third
     0.28       0.23  
Fourth
     0.28       0.23  
 
Total
   $ 1.12     $ 0.92  
 
SHAREHOLDERS OF RECORD
Shareholders of record of the Company’s common stock on February 21, 2006 were 2,972.
       
SHAREHOLDER COMPOSITION
(Pie Chart)		    
 
Institutions
   75%
Individuals and Others
   16%
Officers, Directors and Employees
   9%
DIVIDEND REINVESTMENT PLAN
Shareholders may automatically reinvest their dividends in additional Polaris common stock through the Dividend Reinvestment Plan, which also provides for purchase of common stock by voluntary cash contributions. For additional information, please contact Wells Fargo Shareowner Services at 1-800-468-9716 or visit the Wells Fargo Bank Web site at www.wellsfargo.com.
PRODUCT BROCHURES
For product brochures and dealer locations, write or call:
Polaris Industries Inc.
2100 Highway 55
Medina, MN 55340
1-800-Polaris (1-800-765-2747)
INTERNET ACCESS
To view the Company’s annual report and financial information, products and specifications, press releases and dealer locations, access Polaris on the Internet at:
www.polarisindustries.com
www.victory-usa.com
INVESTOR RELATIONS
Security analysts and investment professionals should direct their business-related inquiries to:
Richard Edwards
Director of Investor Relations
Polaris Industries Inc.
2100 Highway 55
Medina, MN 55340
763-513-3477
richard.edwards@polarisind.com
RESEARCH COVERAGE AS OF FEBRUARY 2006
A.G. Edwards
Bank of America Securities
BB&T Capital Markets
Citigroup (Smith Barney)
Craig-Hallum Partners
JPMorgan
Merrill Lynch
FTN Midwest Securities
Raymond James & Associates
RBC Capital Markets
Robert W. Baird & Co.
SBK Brooks Investment Corp.
STOCK-SPLIT HISTORY
August 1993            2 for 1
October 1995           3 for 2
March 2004             2 for 1
CEO CERTIFICATION
The Company’s Chief Executive Officer submitted the annual CEO certification to the New York Stock Exchange certifying that he is not aware of any violation by the Company of the New York Stock Exchange’s corporate governance listing standards.