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    Polaris Reports Q4 Results

    Posted by Emily Hare
    on Wednesday, January 25, 2017

     Polaris Industries Inc. reported its fourth quarter 2016 sales of $1,217.8 million, up 10% from $1,105.6 million for the fourth quarter of 2015. Fourth quarter 2016 reported net income was $62.6 million, or $0.97 per diluted share, compared with $110.7 million, or $1.66 per diluted share, for the 2015 fourth quarter. Adjusted net income for the quarter ended Dec. 31, 2016, excluding purchase accounting adjustments and certain costs related to the acquisition of TAP, was $76.1 million, or $1.18 per diluted share.

    For the full year ended Dec. 31, 2016 the company reported sales of $4,516.6 million, a decrease of 4 percent versus $4,719.3 million in the prior year. Reported net income was $212.9 million, or $3.27 per diluted share, compared with $455.4 million, or $6.75 per diluted share, for the full year 2015. Adjusted net income, excluding purchase accounting adjustments and certain costs related to the acquisition of TAP was $226.5 million, or $3.48 per diluted share, for the year ended Dec. 31, 2016.

    Off-Road Vehicle (“ORV”) and Snowmobile segment sales, including their respective PG&A related sales, were $905.0 million for Q4, compared with $862.0 million for Q4 for the prior year. Gross profit decreased one percent to $259.2 million, or 28.6% of sales, in Q4 of 2016, compared to $262.8 million, or 30.5% of sales, in Q4 of 2015. Gross profit percentage declined primarily due to higher promotional spending and increased warranty expense.

    Snowmobile wholegood sales in Q4 increased 13% due to the timing of shipments, year-over-year and a favorable mix of higher priced snowmobiles shipped during the quarter.

    Parts, Garments, and Accessories (“PG&A”) sales, which are included in each of the three respective reporting segments, excluding TAP sales of $108.7 million, increased 9% for Q4 2016. All three reporting segments experienced higher PG&A sales during the quarter primarily due to higher parts sales during the quarter.

    “2016 was a difficult and challenging year for Polaris, but our culture is geared to deal head on with adversity and learn from it, and that’s what we did in 2016," said Scott Wine. "In response to a series of recalls, we took the necessary steps to ensure that Polaris vehicles deliver the quality, safety and performance that our customers expect. We are relying on these enhanced improvements, consistent execution, and aggressive innovation to regain our footing as the ‘Best in Powersports.'” 

    The Company expects the full year 2017 adjusted net income to be in the range of $4.25 to $4.50 per diluted share, compared with adjusted net income of $3.48 per diluted share for 2016. Full year 2017 sales are anticipated to increase in the range of 10-13% over 2016 sales of $4,516.6 million.

    For a full financial report, visit www.polaris.com.

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