(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Exhibit No. | Exhibit | |||||||
Press Release dated April 23, 2024 of Polaris Inc. | ||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL) |
Date: | April 23, 2024 | |||||||
POLARIS INC. | ||||||||
/s/ Robert P. Mack | ||||||||
Robert P. Mack | ||||||||
Chief Financial Officer |
First Quarter 2024 Earnings Results April 23, 2024 |
(in millions, except per share data) | ||||||||||||||||||||||||||
Quarter ended March 31, 2024 | Reported | YOY % Chg. | Adjusted* | YOY % Chg. | ||||||||||||||||||||||
Sales | $ | 1,736.4 | (20)% | $ | 1,736.4 | (20)% | ||||||||||||||||||||
Gross profit margin | 19.0 | % | -250 bps | 19.0 | % | -248 bps | ||||||||||||||||||||
Total operating expenses | $ | 313.2 | (4)% | |||||||||||||||||||||||
Net income attributable to Polaris | $ | 3.8 | (97)% | $ | 13.0 | (89)% | ||||||||||||||||||||
Net income attributable to Polaris margin | 0.2 | % | -499 bps | |||||||||||||||||||||||
Adjusted EBITDA Margin* | 6.3 | % | -459 bps | |||||||||||||||||||||||
Diluted EPS attributable to Polaris | $ | 0.07 | (96)% | $ | 0.23 | (89)% | ||||||||||||||||||||
*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. |
Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 1 |
First Quarter 2024 Earnings Results |
Sales (in millions) | Gross Profit Margin | ||||||||||||||||||||||||||||||||||
Q1 2024 | Q1 2023 | Change | Q1 2024 | Q1 2023 | Change | ||||||||||||||||||||||||||||||
Off Road | $ | 1,335.7 | $ | 1,591.8 | (16) | % | 17.4 | % | 20.8 | % | -339 bps | ||||||||||||||||||||||||
On Road | $ | 277.2 | $ | 323.5 | (14) | % | 21.8 | % | 21.4 | % | +41 bps | ||||||||||||||||||||||||
Marine | $ | 123.5 | $ | 264.4 | (53) | % | 15.5 | % | 23.3 | % | -776 bps | ||||||||||||||||||||||||
Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 2 |
First Quarter 2024 Earnings Results |
Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 3 |
First Quarter 2024 Earnings Results |
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
(In Millions, Except Per Share Data), (Unaudited) | |||||||||||
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Sales | $ | 1,736.4 | $ | 2,179.7 | |||||||
Cost of sales | 1,406.1 | 1,710.5 | |||||||||
Gross profit | 330.3 | 469.2 | |||||||||
Operating expenses: | |||||||||||
Selling and marketing | 126.4 | 137.6 | |||||||||
Research and development | 87.8 | 96.5 | |||||||||
General and administrative | 99.0 | 90.8 | |||||||||
Total operating expenses | 313.2 | 324.9 | |||||||||
Income from financial services | 21.9 | 16.8 | |||||||||
Operating income | 39.0 | 161.1 | |||||||||
Non-operating expense: | |||||||||||
Interest expense | 31.9 | 28.3 | |||||||||
Other income, net | (0.6) | (12.4) | |||||||||
Income before income taxes | 7.7 | 145.2 | |||||||||
Provision for income taxes | 3.8 | 31.6 | |||||||||
Net income | 3.9 | 113.6 | |||||||||
Net income attributable to noncontrolling interest | (0.1) | (0.2) | |||||||||
Net income attributable to Polaris Inc. | $ | 3.8 | $ | 113.4 | |||||||
Net income per share attributable to Polaris Inc. common shareholders: | |||||||||||
Basic | $ | 0.07 | $ | 1.98 | |||||||
Diluted | $ | 0.07 | $ | 1.95 | |||||||
Weighted average shares outstanding: | |||||||||||
Basic | 56.9 | 57.4 | |||||||||
Diluted | 57.2 | 58.1 |
Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 4 |
First Quarter 2024 Earnings Results |
CONSOLIDATED BALANCE SHEETS | |||||||||||
(In Millions), (Unaudited) | |||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 318.8 | $ | 322.9 | |||||||
Trade receivables, net | 254.1 | 324.6 | |||||||||
Inventories, net | 1,952.8 | 1,947.2 | |||||||||
Prepaid expenses and other | 195.8 | 190.1 | |||||||||
Income taxes receivable | 11.1 | 2.5 | |||||||||
Total current assets | 2,732.6 | 2,787.3 | |||||||||
Property and equipment, net | 1,214.9 | 1,058.4 | |||||||||
Investment in finance affiliate | 139.6 | 96.5 | |||||||||
Deferred tax assets | 300.0 | 221.2 | |||||||||
Goodwill and other intangible assets, net | 899.7 | 907.7 | |||||||||
Operating lease assets | 143.8 | 111.6 | |||||||||
Other long-term assets | 136.8 | 107.2 | |||||||||
Total assets | $ | 5,567.4 | $ | 5,289.9 | |||||||
Liabilities and Equity | |||||||||||
Current liabilities: | |||||||||||
Current financing obligations | $ | 54.0 | $ | 553.6 | |||||||
Accounts payable | 779.0 | 870.1 | |||||||||
Accrued expenses | 988.1 | 832.0 | |||||||||
Other current liabilities | 39.5 | 42.7 | |||||||||
Total current liabilities | 1,860.6 | 2,298.4 | |||||||||
Long-term financing obligations | 2,014.2 | 1,549.3 | |||||||||
Other long-term liabilities | 300.8 | 273.6 | |||||||||
Total liabilities | $ | 4,175.6 | $ | 4,121.3 | |||||||
Deferred compensation | 11.2 | 13.8 | |||||||||
Equity: | |||||||||||
Total shareholders’ equity | 1,378.1 | 1,152.1 | |||||||||
Noncontrolling interest | 2.5 | 2.7 | |||||||||
Total equity | 1,380.6 | 1,154.8 | |||||||||
Total liabilities and equity | $ | 5,567.4 | $ | 5,289.9 |
Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 5 |
First Quarter 2024 Earnings Results |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(In Millions), (Unaudited) | |||||||||||
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Operating Activities: | |||||||||||
Net income | $ | 3.9 | $ | 113.6 | |||||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | |||||||||||
Depreciation and amortization | 62.9 | 61.8 | |||||||||
Noncash compensation | 12.5 | 14.7 | |||||||||
Noncash income from financial services | (13.8) | (8.7) | |||||||||
Deferred income taxes | (4.3) | (10.5) | |||||||||
Other, net | (0.6) | (0.7) | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Trade receivables | 46.4 | 19.1 | |||||||||
Inventories | (161.0) | (47.6) | |||||||||
Accounts payable | 68.6 | 20.3 | |||||||||
Accrued expenses | (128.0) | (65.2) | |||||||||
Income taxes payable/receivable | (5.9) | 29.5 | |||||||||
Prepaid expenses and other, net | 13.9 | (2.1) | |||||||||
Net cash provided by (used for) operating activities | (105.4) | 124.2 | |||||||||
Investing Activities: | |||||||||||
Purchase of property and equipment | (72.1) | (94.4) | |||||||||
Distributions from (investment in) finance affiliate, net | 15.4 | 5.3 | |||||||||
Net cash used for investing activities | (56.7) | (89.1) | |||||||||
Financing Activities: | |||||||||||
Borrowings under financing obligations | 842.0 | 573.4 | |||||||||
Repayments under financing obligations | (676.7) | (528.4) | |||||||||
Repurchase and retirement of common shares | (16.0) | (62.8) | |||||||||
Cash dividends to shareholders | (37.3) | (37.0) | |||||||||
Proceeds from stock issuances under employee plans | 3.7 | 13.2 | |||||||||
Net cash provided by (used for) financing activities | 115.7 | (41.6) | |||||||||
Impact of currency exchange rates on cash balances | (2.8) | 4.9 | |||||||||
Net decrease in cash, cash equivalents and restricted cash | (49.2) | (1.6) | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 382.9 | 339.7 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 333.7 | $ | 338.1 | |||||||
The following presents the classification of cash, cash equivalents and restricted cash within the consolidated balance sheets: | |||||||||||
Cash and cash equivalents | $ | 318.8 | $ | 322.9 | |||||||
Other long-term assets | 14.9 | 15.2 | |||||||||
Total | $ | 333.7 | $ | 338.1 |
Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 6 |
First Quarter 2024 Earnings Results |
NON-GAAP RECONCILIATION OF RESULTS | |||||||||||
(In Millions, Except Per Share Data), (Unaudited) | |||||||||||
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Gross profit | 330.3 | 469.2 | |||||||||
Restructuring (2) | 0.4 | — | |||||||||
Adjusted gross profit | 330.7 | 469.2 | |||||||||
Income before income taxes | 7.7 | 145.2 | |||||||||
Acquisition-related costs (1) | 0.3 | — | |||||||||
Restructuring (2) | 5.4 | 0.7 | |||||||||
Intangible amortization (3) | 4.5 | 4.4 | |||||||||
Class action litigation expenses (4) | 1.8 | 2.1 | |||||||||
Adjusted income before income taxes | 19.7 | 152.4 | |||||||||
Net income attributable to Polaris Inc. | 3.8 | 113.4 | |||||||||
Acquisition-related costs (1) | 0.3 | — | |||||||||
Restructuring (2) | 4.1 | 0.6 | |||||||||
Intangible amortization (3) | 3.4 | 3.4 | |||||||||
Class action litigation expenses (4) | 1.4 | 1.6 | |||||||||
Adjusted net income attributable to Polaris Inc.(5) | 13.0 | 119.0 | |||||||||
Diluted EPS attributable to Polaris Inc. | $ | 0.07 | $ | 1.95 | |||||||
Acquisition-related costs (1) | 0.01 | — | |||||||||
Restructuring (2) | 0.07 | 0.01 | |||||||||
Intangible amortization (3) | 0.06 | 0.06 | |||||||||
Class action litigation expenses (4) | 0.02 | 0.03 | |||||||||
Adjusted EPS attributable to Polaris Inc. (5) | $ | 0.23 | $ | 2.05 | |||||||
Sales | $ | 1,736.4 | $ | 2,179.7 | |||||||
Net income | $ | 3.9 | $ | 113.6 | |||||||
Provision for income taxes | 3.8 | 31.6 | |||||||||
Interest expense | 31.9 | 28.3 | |||||||||
Depreciation | 58.4 | 57.4 | |||||||||
Intangible amortization (3) | 4.5 | 4.4 | |||||||||
Acquisition-related costs (1) | 0.3 | — | |||||||||
Restructuring (2) | 5.4 | 0.7 | |||||||||
Class action litigation expenses (4) | 1.8 | 2.1 | |||||||||
Adjusted EBITDA | $ | 110.0 | $ | 238.1 | |||||||
Adjusted EBITDA Margin | 6.3 | % | 10.9 | % | |||||||
(1) Represents adjustments for integration and acquisition-related expenses | |||||||||||
(2) Represents adjustments for corporate restructuring | |||||||||||
(3) Represents amortization expense for acquisition-related intangible assets | |||||||||||
(4) Represents adjustments for certain class action litigation-related expenses | |||||||||||
(5) The Company used its estimated statutory tax rate of 23.8% for the non-GAAP adjustments in 2024 and 2023, except for non-deductible items |
Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 7 |
First Quarter 2024 Earnings Results |
RECONCILIATION OF GAAP OPERATING CASH FLOW TO NON-GAAP FREE CASH FLOW | ||||||||||||||
(In Millions), (Unaudited) | ||||||||||||||
Three months ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Net cash provided by (used for) operating activities | $ | (105.4) | $ | 124.2 | ||||||||||
Purchase of property and equipment | (72.1) | (94.4) | ||||||||||||
Distributions from (investment in) finance affiliate, net | 15.4 | 5.3 | ||||||||||||
Adjusted free cash flow | $ | (162.1) | $ | 35.1 | ||||||||||
NON-GAAP RECONCILIATION OF SEGMENT RESULTS | ||||||||||||||
(In Millions), (Unaudited) | ||||||||||||||
Three months ended March 31, | ||||||||||||||
SEGMENT GROSS PROFIT | 2024 | 2023 | ||||||||||||
Off Road segment gross profit | $ | 233.0 | $ | 331.6 | ||||||||||
No adjustment | — | — | ||||||||||||
Adjusted Off Road segment gross profit | 233.0 | 331.6 | ||||||||||||
On Road segment gross profit | 60.4 | 69.2 | ||||||||||||
No adjustment | — | — | ||||||||||||
Adjusted On Road segment gross profit | 60.4 | 69.2 | ||||||||||||
Marine segment gross profit | 19.2 | 61.5 | ||||||||||||
No adjustment | — | — | ||||||||||||
Adjusted Marine segment gross profit | 19.2 | 61.5 | ||||||||||||
Corporate segment gross profit | 17.7 | 6.9 | ||||||||||||
Restructuring (1) | 0.4 | — | ||||||||||||
Adjusted Corporate segment gross profit | 18.1 | 6.9 | ||||||||||||
Total gross profit | 330.3 | 469.2 | ||||||||||||
Total adjustments | 0.4 | — | ||||||||||||
Adjusted total gross profit | $ | 330.7 | $ | 469.2 | ||||||||||
(1) Represents adjustments for corporate restructuring |
Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 8 |
First Quarter 2024 Earnings Results |
NON-GAAP ADJUSTMENTS | ||
First Quarter 2024 Results & 2024 Full Year Guidance |
Investor Contact: J.C. Weigelt 763-542-0525 | Media Contact: Jess Rogers 763-513-3445 | Page 9 |
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Cover Page |
Apr. 23, 2024 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Apr. 23, 2024 |
Entity Registrant Name | POLARIS INC. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 1-11411 |
Entity Tax Identification Number | 41-1790959 |
Entity Address, Address Line One | 2100 Highway 55 |
Entity Address, City or Town | Medina |
Entity Address, State or Province | MN |
Entity Address, Postal Zip Code | 55340 |
City Area Code | 763 |
Local Phone Number | 542-0500 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $.01 par value per share |
Trading Symbol | PII |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000931015 |
Amendment Flag | false |
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