Polaris Reports Record Annual Sales for 2011

Polaris Industries

Polaris Industries Inc. (NYSE:PII) today reported record net income of $0.90 per diluted share for the fourth quarter of 2011, up 15 percent over the 2010 fourth quarter. Net income for the fourth quarter 2011 was a record $63.9 million, an increase of 17 percent over the same period in 2010. Record sales of $782.0 million for the fourth quarter 2011 increased 26 percent over 2010 fourth quarter sales of $618.4 million.

Full Year Results
For the full year ended December 31, 2011, Polaris reported record net income of $227.6 million, or a record $3.20 per diluted share, compared to $147.1 million, or $2.14 per diluted share for the year ended December 31, 2010. This represents a 50 percent increase on a diluted share basis and a 55 percent increase in net income. Sales for the full year 2011 totaled a record $2,656.9 million, an increase of 33 percent compared to sales of $1,991.1 million for the full year 2010.

Polaris RZR 570

“Our record fourth quarter results were a fitting ending to a year in which we generated record annual sales and earnings and significantly exceeded our initial expectations. Our top and bottom-line expansion, and the momentum we are sustaining throughout our business, directly results from our focus on driving innovation, enhancing our product offering, reducing costs, and growth through new global markets and adjacencies,” stated Scott Wine, Polaris' Chief Executive Officer. “Specifically, during the year we furthered our leading market share position in off-road vehicles while continuing to gain market share in motorcycles and snowmobiles. Moreover, we introduced over 20 new vehicles, including award-winning products like the RANGER RZR 570 value recreational off-road vehicle, the 800 Pro-RMK snowmobile, and the Victory Cross Country Tour motorcycle. Our operations team managed to meet the increased demand for these vehicles while bringing our new Monterrey manufacturing facility online on time and on budget, driving initial 2011 savings on plan with future projections in line with stated expectations. Building on our surging core businesses, our military and Bobcat adjacencies continue to gain momentum, and we have made considerable progress in expanding our international presence with increased sales in Europe, China, and India. Lastly, we added to our small electric vehicle portfolio with the acquisition of Global Electric Motorcars (GEM) and Goupil Industrie SA, which expands our ability to compete in this fragmented, fast-growing $4 billion market.”

2012 Business Outlook
Wine continued, “The implementation of our strategic initiatives and continued focus on innovation positions us well to realize continued success in 2012. We anticipate further growth and market share gains in our core businesses, while maintaining our focus on expanding our gross and net margins while expanding our investments for future growth and profitability. This motivated and disciplined Polaris team is committed to executing on our strategy in an effort to deliver what we expect to be another excellent year for our shareholders.”
Full year 2012 earnings are expected to be in the range of $3.65 to $3.80 per diluted share, which represents an increase of 14 to 19 percent when compared to full year 2011 earnings. Net income for full year 2012 is also expected to increase in the range of 14 to 19 percent over full year 2011. Sales for full year 2012 are expected to increase five to eight percent over full year 2011 sales, with sales increases projected in each product line and geographic region with the exception of snowmobiles.

Summary of Operations

RANGER RZR XP4 900

Off-road Vehicles (“ORV’) sales increased 18 percent during the fourth quarter 2011 from the fourth quarter 2010. This increase reflects continued market share gains for both ATVs and side-by-side vehicles driven by industry leading product offerings and the continued success of the MVP retail go-to-market process. Polaris’ North American ORV unit retail sales to consumers increased mid-teens percent for the 2011 fourth quarter compared to the 2010 fourth quarter, with ATV unit retail sales growing upper single digits percent and side-by-side vehicle unit retail sales increasing about 20 percent over the prior year. North American dealer inventories of ATVs continued to decline, decreasing eight percent from the 2010 fourth quarter and sequentially decreasing six percent from the third quarter of 2011. Side-by-side North American dealer inventories for both the 2011 fourth quarter and sequentially from the 2011 third quarter were up to accommodate the continued strong retail demand. ORV sales outside of North America increased 42 percent in the fourth quarter of 2011 compared to a year ago. The Company continued to be an innovation leader in 2011 with several new ATV and side-by-side vehicles introduced during the year, including the most recent introduction in January 2012 of the high performance RANGER RZR XP4 900 to Polaris’ family of recreational vehicles. The RANGER RZR XP4 900 has all the features of the two seated version of the RZR XP 900 including an 88 horsepower electronic fuel injected twin cylinder engine and 3-link trailing arm independent rear suspension with 12.5 inches of travel, but with the ability to deliver razor-sharp performance and agility for 4 passengers. For the full year 2011, Polaris ORV sales increased 32 percent compared to the prior year.

Snowmobile sales increased 63 percent during the 2011 fourth quarter compared to the prior year’s fourth quarter. The fourth quarter 2011 increase in sales reflects significantly reduced snowmobile dealer inventory levels entering the 2011 - 2012 selling season compared to the prior year resulting in increased orders from dealers, as well as the impact of a shift in shipments of snowmobiles later in the year as the Company chose to ship its snowmobiles closer to expected consumer demand compared to last year. Polaris’ North American snowmobile retail sales to consumers in the 2011 season-to-date period were up high single digits percent over the 2010 season-to-date period despite the lack of snowfall in many parts of the snowbelt regions of the United States. North American dealer inventories of snowmobiles at December 2011 were seven percent higher than the very low levels a year ago. Sales of snowmobiles outside of North America, principally the Scandinavian region, increased 52 percent in the fourth quarter of 2011 compared to a year ago. For the full year 2011, sales of Polaris snowmobiles increased 48 percent compared to the prior year.
Sales of On-Road Vehicles increased 69 percent during the fourth quarter of 2011 when compared to the same period in 2010. On-Road Vehicle sales are comprised of Victory and Indian brand motorcycles, as well as the Company’s small electric vehicles sales of GEM and Goupil. Victory motorcycle North American unit retail sales to consumers increased about 20 percent during the 2011 fourth quarter when compared to a strong 2010 fourth quarter, resulting in continued market share gains. North American dealer inventory of Victory motorcycles increased five percent at December 2011 compared to last year levels as the Company added Victory dealers in 2011. Sales of On-Road Vehicles to customers outside of North America increased 111 percent compared to the prior year’s fourth quarter. The increase in On-Road Vehicle sales outside North America is primarily due to increased sales from Victory motorcycles and the addition of sales from the acquisition of Goupil in the 2011 fourth quarter. For the full year 2011, Polaris On-Road Vehicle sales increased 79 percent compared to the prior year.

Parts, Garments, and Accessories (“PG&A”) sales increased 13 percent during the fourth quarter 2011 compared to the same period last year primarily due to increased ORV, Victory motorcycle and international related PG&A sales. For the full year 2011, Polaris PG&A sales increased 19 percent compared to the prior year.

Gross profit dollars increased 19 percent to $204.3 million for the fourth quarter 2011 compared to $171.5 million for the fourth quarter of 2010 primarily due to higher volume. Gross profit as a percentage of sales was 26.1 percent for the fourth quarter of 2011, a decrease of 160 basis points from 27.7 percent for the fourth quarter of 2010. The decrease in gross profit margin percentage for the 2011 fourth quarter was primarily due to higher commodity prices, as anticipated, unfavorable product mix and negative currency impacts, partially offset by manufacturing realignment savings and continued product cost reduction efforts during the quarter. For the 2011 full year, gross profit as a percentage of sales increased 130 basis points to 27.9 percent.

Operating expenses for the fourth quarter 2011 increased 21 percent to $118.1 million compared to $97.6 million for the fourth quarter of 2010. As a percent of sales, operating expenses decreased 70 basis points to 15.1 percent compared to 15.8 percent for the same period last year. Operating expenses in absolute dollars for the fourth quarter 2011 increased primarily due to incremental investments made in global market expansion and new product development initiatives along with the added operating expenses of the acquisitions made in 2011. Operating expenses, as a percent of sales, decreased due to leverage achieved from the increased sales volume during the quarter. For the 2011 full year, operating expenses, as a percent of sales, decreased 80 basis points to 15.6 percent.

Income from financial services increased 65 percent to $7.0 million during fourth quarter 2011 from $4.2 million in the fourth quarter of 2010 primarily due to increased profitability generated from the retail credit portfolios with Sheffield, GE and HSBC. For the 2011 full year, income from financial services was $24.1 million, a 43 percent increase compared to $16.9 million for the full year 2010.
Interest expense increased to $1.2 million for the fourth quarter 2011 from $0.5 million for the fourth quarter 2010 due to higher interest rates on the long-term senior notes issued in May 2011. For the 2011 full year, interest expense was $4.0 million compared to $2.7 million for the full year 2010.
Non-operating other income was $4.6 million in the fourth quarter of 2011 as compared to $0.7 million in the fourth quarter of 2010. The increase in other income is the result of foreign currency exchange rate movements and the resulting effects on foreign currency transactions and balance sheet positions related to the Company’s foreign subsidiaries. For the 2011 full year, non-operating other income (expense) was $0.7 million income compared to $0.3 million expense for the full year 2010.

The Income tax provision for the fourth quarter 2011 was recorded at a rate of 33.8 percent of pretax income compared to 30.4 percent of pretax income for the fourth quarter 2010. The higher income tax provision rate in the 2011 fourth quarter is primarily due to last year’s fourth quarter rate reflecting the cumulative benefit to adjust for the extension of the research and development credit by the U.S. Congress late in the fourth quarter of 2010. For the 2011 full year, the income tax provision was recorded at a rate of 34.3 percent of pretax income compared to 32.7 percent for the full year 2010.

Financial Position and Cash Flow
Net cash provided by operating activities was $302.5 million for the year ended December 31, 2011 compared to $297.6 million for the full year 2010. The increase in net income was mostly offset by an increased investment in working capital, particularly increased accounts receivables related to the Company’s continued international expansion, a short-term income tax receivable and higher factory inventory levels supporting business growth. Total long-term debt at December 31, 2011 was unchanged from a year ago at $100.0 million. The Company’s debt-to-total capital ratio was 17 percent at December 31, 2011, compared to 35 percent for the same period in 2010. Cash and cash equivalents were $325.3 million at December 31, 2011 compared to $393.9 million for the same period in 2010. During 2011 Polaris used cash for investment activities totaling $141.1 million primarily for capital investments to remain competitive and to acquire several businesses. The Company used $227.5 million of cash for financing activities including debt reduction, the repurchase of Polaris stock and the payment of dividends to shareholders.

Polaris’ Board of Directors moves dividend pay date
Due to the scheduling timetable of the Company’s 2012 Board of Directors’ meetings, each of the quarterly dividend declarations by the Board of Directors in 2012 are anticipated to be approximately two weeks later than historically declared. As a result, the anticipated quarterly dividend pay dates will be approximately one month later in 2012 than in prior years. Polaris has increased dividends for 16 consecutive years through 2011 and management will recommend to the Board of Directors to once again increase the dividend for 2012. The Board of Directors expects to declare the first quarter 2012 dividend amount sometime in the first week of February 2012.

About Polaris
Polaris is a recognized leader in the powersports industry with annual 2011 sales of $2.7 billion. Polaris designs, engineers, manufactures and markets innovative, high quality off-road vehicles (ORVs), including all-terrain vehicles (ATVs) and the Polaris RANGER® side-by-side vehicles, snowmobiles, motorcycles and on-road electric/hybrid powered vehicles.
Polaris is among the global sales leaders for both snowmobiles and off-road vehicles and has established a presence in the heavyweight cruiser and touring motorcycle market with the Victory and Indian motorcycle brands. Additionally, Polaris continues to invest in the global on-road small electric/hybrid vehicle industry with Global Electric Motorcars (GEM) and Goupil Industrie SA, and internally developed vehicles. Polaris enhances the riding experience with a complete line of Pure Polaris apparel, accessories and parts, available at Polaris dealerships.

Polaris Industries Inc. trades on the New York Stock Exchange under the symbol “PII”, and the Company is included in the S&P Mid-Cap 400 stock price index.
Information about the complete line of Polaris products, apparel and vehicles accessories are available from authorized Polaris dealers or anytime at www.polarisindustries.com.

BLM Seeks Nominees for California Desert Advisory Council

The Bureau of Land Management's (BLM) California Desert District is soliciting nominations from the public for six members of its California Desert District Advisory Council to serve a three-year term. The council’s 15 members provide advice and recommendations to the BLM on the management of 11 million acres (17 thousand square miles) of public lands in eight counties of Southern California.
The council meets in formal session three to four times each year in various locations throughout the California Desert District. Council members serve without compensation. Members serve three-year terms and may be nominated for reappointment for an additional three-year term. The secretary selects council nominees consistent with the requirements of Federal Land Policy and Management Act and the Federal Advisory Committee Act (FACA), which require nominees appointed to the council be balanced in terms of points of view and representative of the various interests concerned with the management of the public lands within the area for which the council is established.
Nominations will be accepted through March 5, 2012. The three-year term would begin immediately upon confirmation by the secretary. The six positions to be filled include one representative of transportation/rights-of-way groups or organizations, one elected official, one representative of renewable energy groups or organizations, one representative of non-renewable resources groups or organizations, one representative of environmental protection groups or organizations, and one representative of the public-at-large.
Any group or individual may nominate a qualified person based upon education, training, and knowledge of the BLM, the California Desert, and the issues involving BLM-administered public lands throughout Southern California. Qualified individuals also may nominate themselves. The nomination form is on the Desert Advisory Council webpage: http://www.blm.gov/ca/st/en/info/rac/dac.html. Nominations must include letters of support.
Advisory Council members are appointed by the secretary, and will be evaluated based on their education, training, and knowledge of the BLM, the California Desert District, and the issues involving BLM-administered public lands. The Obama Administration prohibits individuals who are currently federally registered lobbyists to serve on any FACA and non-FACA boards, committees, or councils.
Nominations should be sent to Teresa A. Raml, District Manager, BLM California Desert District, 22835 Calle San Juan De Los Lagos, Moreno Valley, CA 92553. For further information, please contact David Briery, BLM California Desert District External Affairs, (951) 697-5220 or dbriery@blm.gov.

Volunteers Help Clean the Imperial Sand Dunes

Hundreds of volunteers gathered in the Imperial Sand Dunes Recreation Area over the Martin Luther King Jr. Holiday weekend for the 15th Annual Dunes Clean Up. This event is coordinated by the Bureau of Land Management’s El Centro Field Office and the United Desert Gateway, along with help from many other organizations helping promote stewardship and care for the recreation area.

Volunteers gather at the Glamis Flats event location for the 15th annual Dunes Clean Up. These volunteers, along with more from other sites across the recreation area, picked up trash and debris from across the Imperial Sand Dunes Recreation Area.

Volunteers scoured the sand collecting trash throughout the recreation area and were then given a raffle ticket for every bag of trash collected. The raffle was held after the cleanup with prizes donated from numerous sponsors from around the community. Lunch and an event t-shirt were also provided to all who volunteered.

“This event helps exemplify the America’s Great Outdoor initiative by partnering with local communities and organizations to help connect people with their public lands.” said Tom Zale, Associate Field Manager of the BLM’s El Centro Field Office.

This year’s event had an increased emphasis on public safety and injury prevention, with many agencies and organizations represented – including the BLM, US Border Patrol, Reach Air Medical Services, and De Anza Search and Rescue. BLM park rangers handed out safety material which highlighted wearing seatbelts on and off the road and driving 15 miles per hour within 50 feet of campsites or other people. ATV safety classes, which promote safe riding practices, were also held in conjunction with the event.

Since the inception of this event, the Imperial Sand Dunes Recreation Area has become a cleaner, and safer place to recreate.

For further information on the Imperial Sand Dunes Recreation Area, visit www.blm.gov/ca/isdra.

Bureau of Land Management EMS Park Rangers and Law Enforcement Rangers, along with US Border Patrol Agents spread the word about responsible and safe off-highway vehicle recreation at the 15th annual Dunes Clean Up.

- Michelle Puckett, BLM El Centro Field Office (January 17, 2012)

Lawsuits aim to get Oceano Dunes dust rule thrown out

Two lawsuits recently filed against the San Luis Obispo County Air Pollution Control District aim to persuade a judge to throw out a dust rule proposed for implementation at the Oceano Dunes.
Friends of Oceano Dunes, which boasts more than 28,000 members, filed the first lawsuit in county Superior Court earlier this month, citing numerous reasons the group believes a judge should throw out the dust rule.
Dunes enthusiast Kevin P. Rice filed his own lawsuit against the APCD on Tuesday, alleging Rule 1001: Coastal Dunes Dust Control Requirements, adopted by the Air Pollution Control District last November, is a violation of the board’s “clear and present ministerial duties.”
The goal of the rule is to protect the health of downwind residents by reducing the amount of dust particles 10 microns in diameter — known as PM10 — blowing out of the Oceano Dunes State Vehicular Recreation Area, according to the APCD.
The new rule requires that State Parks, which has operated and maintained the Oceano Dunes SVRA for more than 25 years, meet California particulate matter standards by mid-2015 or face $1,000-per-day fines for exceeding state standards at the park.

Read more: Lawsuits aim to get dunes dust rule thrown out

Ron Wood Arctic Cat Wildcat FreeFlow intake and Dual Exhaust

Ron Wood has developed an intake and exhaust for the new Arctic Cat Wildcat. The  intake system  does away with the stock airbox which is situated between the seats at floor board level and the air enters from underneath the chassis, allowing dirty air kicked up from the front tires to get into the airbox.

The new system does away with the airbox altogether. A large three inch diameter stainless steel tube connects to the throttle body via a tapered velocity stack and goes up through the cargo bed, utilizing an oversize K&N filter. Filter covers are also available. Placing the filter in this location, it is less likely to be contaminated with dirty air, and it’s easily accessible for maintenance.

Designed to complement our complete race oriented competition designed dual exhaust system. Using a tapered megaphone with reverse cone configuration prior to entering the muffler canister, along with larger headpipes. This design creates more power through the complete horsepower range, especially mid to top end power over the commonly designed straight through muffler types. The exhaust is fabricated of 304 stainless steel, tig welded, complimented with a satin brushed finish for durability and easy maintenance. Superior “endless strand” packing material is installed for durability and high heat resistance. Three optional endcaps are available; Open, turn down, and forestry approved spark arrestor. Double mounting brackets are on the mufflers for durability under harsh operating conditions and the system is 6 ½ lbs lighter than stock.

Intake introductory price retail $271.00
Exhaust introductory price retail $895.00
Made in USA

See our GoPro video for sound bytes and more information soon at www.rotax.net.
Ron Wood Racing has been developing new performance products for your ATV and UTV customers. Below is a list of the vehicles we have developed exhausts, intakes and other performance parts around. Most have been race tested in offroad, flat track and ice racing. Some have been proven in races as varied as the Dakar Rally and AMA Grand National competition.

Newer exhausts are constructed of brushed finish 304 stainless steel for durability and good looks. All are constructed using our reverse cone megaphone system and use long lasting endless strand material in our re-packable mufflers.

Please feel free to call or e-mail for more information. Phone (949) 645-0393

Polaris RZR XP ECU Reflash now available from Muzzys

New from Muzzys - reflashed ECUs for the Polaris RZR XP 900. The internal programming has been modified to extend the rev. limit and raise the speed limit. The fuel and ignition maps have been optimized to take full advantage of the Muzzy RZR XP-900 exhaust. This is a must have performance upgrade for all RZR XP-900 owners.

Send in your ECU for a quick turnaround time or pay the refundable core charge for immediate delivery.

*refundable core charge of $425.00 applies for immediate delivery

 Polaris RZR XP 900 Reflashed ECUs

3rd Annual Sand Sports Super SWAP - March 18, 2012

Be Apart Of The 3rd Annual Sand Sports Super SWAP

March 18th, 2012

At The OC Fair & Event Center In Costa Mesa, CA

More info: Sand Sports Super Swap