EX-13 7 c22501exv13.htm PORTIONS OF 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 is qualified in its 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 Operation,” located in the Form 10-K included in this report.
Prior years’ results have been adjusted to reflect the adoption in 2006 of SFAS 123(R) under the modified retrospective method.
                                 
For the Years Ended December 31,   2007   2006   2005   2004
 
STATEMENT OF OPERATIONS DATA
                                
Sales data:
                                
Total sales
   $ 1,780,009     $ 1,656,518     $ 1,869,819     $ 1,773,206  
Percent change from prior year
     7 %     (11 %)     5 %     14 %
Sales mix by product:
                                
All-terrain vehicles
     67 %     67 %     66 %     66 %
Snowmobiles
     10 %     10 %     14 %     16 %
Motorcycles
     6 %     7 %     5 %     4 %
Parts, garments & accessories
     17 %     16 %     15 %     14 %
Gross profit data:
                                
Total gross profit
   $ 393,020     $ 359,359     $ 411,032     $ 416,600  
Percent of sales
     22 %     22 %     22 %     23 %
Operating expense data:
                                
Total operating expenses
   $ 262,269     $ 238,363     $ 244,660     $ 242,690  
Percent of sales
     15 %     14 %     13 %     14 %
Net income data:
                                
Net income from continuing operations
   $ 112,598     $ 112,791     $ 137,721     $ 132,257  
Diluted net income per share from continuing operations
   $ 3.10     $ 2.72     $ 3.15     $ 2.97  
Net income
   $ 111,650     $ 106,985     $ 136,714     $ 99,948  
Diluted net income per share
   $ 3.07     $ 2.58     $ 3.12     $ 2.25  
CASH FLOW DATA
                                
Cash flow from continuing operating activities
   $ 213,166     $ 152,754     $ 162,463     $ 237,061  
Purchase of property and equipment for continuing operations
     63,747       52,636       89,770       88,836  
Repurchase and retirement of common stock
     103,100       307,621       132,280       66,830  
Cash dividends to shareholders
     47,739       50,234       46,956       38,856  
Cash dividends per share
   $ 1.36     $ 1.24     $ 1.12     $ 0.92  
BALANCE SHEET DATA (at end of year)
                                
Cash and cash equivalents
   $ 63,281     $ 19,566     $ 19,675     $ 138,469  
Current assets
     447,556       392,961       373,988       465,655  
Total assets
     769,881       778,791       770,633       792,925  
Current liabilities
     388,246       361,420       375,614       405,193  
Borrowings under credit agreements
     200,000       250,000       18,000       18,000  
Shareholders’ equity
     172,982       167,371       377,019       368,058  
 
NOTE: All periods presented reflect the classification of the marine products division’s financial results, including the loss from discontinued operations and the loss on disposal of the division, as discontinued operations.
 
(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 pretax, 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 $98.0 million, $76.7 million and $1.48 per share, respectively.
TEN    POLARIS INDUSTRIES INC.

 

 

                                                         
    2003   2002   2001   2000   1999   1998   1997
 
   $ 1,552,351     $ 1,468,170     $ 1,427,400     $ 1,327,030     $ 1,244,782     $ 1,105,685     $ 947,775  
 
     6 %     3 %     8 %     7 %     13 %     17 %     (4 %)
 
     67 %     64 %     58 %     62 %     59 %     58 %     48 %
 
     15 %     20 %     26 %     23 %     25 %     28 %     37 %
 
     4 %     2 %     1 %     1 %     3 %     1 %     —  
 
     14 %     14 %     15 %     14 %     13 %     13 %     15 %
 
                                                        
 
   $ 355,961     $ 324,618     $ 299,194     $ 281,264     $ 250,528     $ 207,807     $ 190,853  
 
     23 %     22 %     21 %     21 %     20 %     19 %     20 %
 
                                                        
 
   $ 206,013     $ 181,764     $ 164,532     $ 153,193     $ 127,079     $ 159,354     $ 82,767  
 
     13 %     12 %     12 %     12 %     10 %     14 %(1)     9 %
 
                                                        
 
   $ 115,178     $ 107,143     $ 93,773     $ 85,733     $ 81,816     $ 37,082 (1)   $ 74,927  
 
   $ 2.58     $ 2.28     $ 1.99     $ 1.81     $ 1.64     $ 0.71 (1)   $ 1.40  
 
   $ 106,284     $ 99,405     $ 87,471     $ 79,076     $ 73,500     $ 29,336 (1)   $ 64,346  
 
   $ 2.38     $ 2.12     $ 1.86     $ 1.67     $ 1.48     $ 0.56 (1)   $ 1.20  
 
                                                        
 
   $ 162,540     $ 195,803     $ 192,023     $ 105,055     $ 134,469     $ 124,701     $ 97,655  
 
     59,209       52,313       52,856       61,590       60,659       56,796       32,389  
 
     73,125       76,389       49,207       39,622       52,412       37,728       39,903  
 
     26,657       25,273       22,846       20,648       19,732       18,582       16,958  
 
   $ 0.62     $ 0.56     $ 0.50     $ 0.44     $ 0.40     $ 0.36     $ 0.32  
 
                                                        
 
   $ 82,761     $ 81,193     $ 40,530     $ 2,369     $ 6,184     $ 1,466     $ 1,233  
 
     387,716       343,659       305,317       240,912       214,714       183,840       217,458  
 
     674,178       614,378       567,979       492,156       443,686       380,093       385,498  
 
     330,478       313,513       308,337       238,384       233,800       204,964       191,111  
 
     18,008       18,027       18,043       47,068       40,000       20,500       24,400  
 
     325,692       282,838       241,599       206,704       169,886       154,629       169,987  
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
 
1998
   $ 109.5     $ 4.4     $ 50.4     $ (39.6 )   $ 124.7  
1999
     119.8       2.8       11.9       —       134.5  
2000
     129.7       1.3       (25.9 )     —       105.1  
2001
     150.8       (10.6 )     51.8       —       192.0  
2002
     176.9       4.3       14.6       —       195.8  
2003
     179.1       (8.7 )     (7.9 )     —       162.5  
2004
     202.3       (1.5 )     36.3       —       237.1  
2005
     211.4       1.6       (50.5 )     —       162.5  
2006
     177.8       1.3       (26.3 )     —       152.8  
2007
     189.1       (10.3 )     34.4       —       213.2  
2007 ANNUAL REPORT   ELEVEN

 ;

 

OTHER INVESTOR INFORMATION
(LOGO)
STOCK EXCHANGE
Shares of common stock of Polaris Industries Inc. trade on the New York 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 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, May 1, 2008, at the Polaris Industries Inc. corporate headquarters, 2100 Highway 55, Medina, Minnesota. A proxy statement will be mailed on or about March 10, 2008, to each shareholder of record as of March 3, 2008.
SUMMARY OF TRADING
For the Years Ended December 31,
                                 
    2007   2006
Quarter   High   Low   High   Low
 
First
   $ 52.20     $ 42.38     $ 54.90     $ 46.65  
Second
     55.80       47.25       53.62       42.33  
Third
     58.78       42.91       45.17       34.24  
Fourth
     54.66       43.41       47.61       39.00  
CASH DIVIDENDS DECLARED
Cash dividends are declared quarterly and have been paid since 1995. On January 24, 2008, the quarterly dividend was increased to $0.38 per share.
                 
Quarter   2007   2006
 
First
   $ 0.34     $ 0.31  
Second
     0.34       0.31  
Third
     0.34       0.31  
Fourth
     0.34       0.31  
Total
   $ 1.36     $ 1.24  
SHAREHOLDERS OF RECORD
Shareholders of record of the Company’s common stock on February 21, 2008, were 2,810.
SHAREHOLDER COMPOSITION
(PIE CHART)
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 with voluntary cash contributions. For additional information, please contact Wells Fargo Shareowner Services at 1-800-468-9716 or visit the Wells Fargo Bank website 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 2008
Avondale Partners
Bank of America Securities
BMO Capital Markets Corp.
Citigroup
Craig-Hallum
Partners
FTN Midwest Securities Corp.
KeyBanc Capital Markets (McDonald)
Merrill Lynch
Raymond James & Associates
RBC Capital Markets
Robert W. Baird & Co.
Rochdale Securities
Wachovia Capital Markets
Wedbush Morgan Securities
STOCK-SPLIT HISTORY
     
August 1993
  2 for 1
October 1995
  3 for 2
March 2004
  2 for 1
CERTIFICATIONS
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.
The chief executive officer and chief financial officer certifications required by section 302 of the Sarbanes-Oxley Act of 2002 have been filed as exhibits to the Form 10-K included with this report.