Aftermarket Moto Design 293 December 2023 AMD 293 December 2023 | Page 10

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basis points to 22.6 % for the third quarter . Adjusted gross profit margin of 22.6 % decreased 127 basis points , primarily driven by foreign exchange headwinds , higher finance interest and unfavorable mix . Operating expenses were $ 328m in the third quarter of 2023 compared to $ 317m in the third quarter of 2022 due to higher selling and marketing expenses . Operating expenses , as a percentage of sales , of 14.6 % were up 105 basis points in the third quarter of 2023 compared to the third quarter of 2022 . Off Road segment sales were driven by higher snowmobile volume partially offset by higher finance interest . Parts , Garments and Accessories ( PG & A ) sales increased 15 %. Gross segment profit margin performance was driven by unfavorable product mix . Polaris North America ORV unit retail sales were up 5 %. Estimated

Polaris has announced that seven of its U . S . based sites have achieved ' 50001 Ready ' designation from the U . S . Department of Energy ( DOE ). " This recognition is a milestone in the company ' s focus on implementing an energy standard in its facilities and achieving a 50 % reduction in absolute greenhouse gas emissions ( GHG ) ( scope 1 and 2 ) across its global footprint by 2035 ."

Polaris says it leveraged the DOE ' 50001 Ready ' program ' s no-cost tools to identify areas of opportunity and implement systems and processes that help lower energy use , cost and emissions , and , ultimately , to meet the necessary criteria to be recognized as being ' 50001 Ready '. " As a company that is passionate

10 AFTERMARKET MOTO DESIGN - DECEMBER 2023

Diluted Net income per share : $ 2.62 $ 3.10 $ 6.90 $ 4.15

North America industry ORV unit retail sales were up low-single digits percent . Marine segment sales results were driven by lower volumes . Gross profit margin performance was largely driven by a decrease in sales volumes resulting in decreased leverage of manufacturing costs , partially offset by higher net pricing .

about helping people enjoy the outdoors , we recognize the importance of doing our part to be stewards of the environment , both in our facilities and through responsible riding practices ," said Deborah Briggs , Vice President EHSS and Facilities for Polaris . " Becoming DOE ' 50001 Ready ' plays a large role in an individual site ' s contributions toward our goal of a

The Polaris facility at Wyoming , Minn ., north of Minneapolis .

50 % reduction in absolute greenhouse gas emissions , while also helping us put the right infrastructure in place to measure and monitor continued improvements ." Polaris says that Greenhouse Gas ( GHG ) emissions is just one area of focus for the company when it comes to reducing its environmental impact .

The company updated its 2023 sales outlook to up 3 % to 5 % versus its previous outlook of up 3 % to up 6 % versus 2022 . The company now expects adjusted diluted EPS from continuing operations attributed to Polaris Inc . common shareholders to be down 8 % to down 4 % versus 2022 , versus the prior outlook of down 2 % to up 3 %.

In 2023 , the company announced it had achieved all three of its 2022 environmental stewardship goals , including surpassing its goal of a -5 % reduction in GHG and reporting a cumulative 12.7 % reduction . Additionally , Polaris introduced a new set of ' Geared For Good ' environmental goals ( see AMD November 2023 ) focused on the areas of GHG emissions , renewable energy ,

water and waste management . The seven Polaris sites that have so far been designated as ' 50001 Ready ' include : Huntsville , Ala .; Monticello , Minn .; Osceola , Wis .; Roseau , Minn .; Spirit Lake , Iowa ; Vermillion , S . D . and Wyoming , Minn . The Huntsville , Alabama facility renewed its certification for a fourth year in 2023 .

There was a surprise in Polaris ' most recent and usually routine quarterly cash dividend announcement . For the record , it is paying $ 0.65 per share payable on December 15 , 2023 to shareholders of record at the close of business on December 1 , 2023 . What stood out , however , was a share repurchase authorization announcement - of itself that isn ' t unusual these days , it has become an increasingly common tool that corporations with a cash pile use to " return value " to shareholders , and Polaris already has an active program authorization in play that hasn ' t yet been fully utilized . What is unusual about this new authorization was the scale of the repurchase authorization - Polaris are going to invest $ 1bn in repurchasing its stock ; also

Robert P . Mack became Polaris Inc . CFO ( as well as being Executive Vice President of Finance and Corporate Development ) in the spring of 2021 - when Mike Speetzen stepped up from the CFO role to take the CEO position vacated by Scott Wine .

not unusual , it has indicated that it may use debt as well as cash to execute the program . It ' s not unprecedented , but it is rare , and for a corporation with a market capitalization of under $ 5bn , it is HUGE . Polaris has seen its share price tumble from a 12- month high of $ 138.40 at around the end of June this year to the $ 85.00 region at the end of October 2023 . That is a near 40 % drop in the value the stock market is placing on the business in just four months .

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