American Motorcycle Dealer AMD 205 August 2016 | Page 13

SECOND QUARTER PERFORMANCE SUMMARY (in thousands US $)

THREE MONTHS ENDED JUNE 30
Sales

2016

2015

Change

Off-Road Vehicles/Snowmobiles 808,494

857,146

(6%)

Motorcycles

187,541

23%

231,324

Global Adjacent Markets

90,959

79,640

14%

Total Sales

1,130,777

1,124,327

1%

Gross profit
Off-Road Vehicles/Snowmobiles 230,554

278,938

(17%)

% of sales

28.5%

32.5%

-478 bps

Motorcycles

39,837

24,505

63%

% of sales

17.2%

13.1%

+415 bps

Global Adjacent Markets

23,952

22,639

6%

% of sales

26.3%

28.4%

-210 bps

Corporate

(9,840)

(6,668)

Total gross profit

284,503

319,414

$6.00 to $6.30 per diluted share with
sales expected in the range of down 2
percent to flat compared to 2015.
Sales expectations by segment for the
full year 2016 are as follows:
ORV/Snowmobile sales expected
down mid-single digits percent;
Motorcycle sales up double-digits
percent; and Global Adjacent Market
sales up mid-teens percent.
“Our team’s diligent and methodical
execution drove a modest increase in
second quarter sales despite a strong
year-over-year sales comparison, a
weaker retail sales environment and
product recalls. Our all-out assault on
costs continued to make progress
during the quarter, generating
earnings that finished in-line with our
updated guidance. As we move into
the second half of the year, we are
redoubling our commitment to
providing our consumers with the
safest and most reliable vehicles in the
industry while building a platform to
return to profitable growth,”
commented Scott Wine, Polaris’
Chairman and Chief Executive Officer.
“I am proud of how our employees
and dealers have dedicated
themselves to working through the
current difficult environment, from the
recall announcements to weaker
industry trends. Dealer inventories are
in-line with expectations. Our new
Huntsville, Alabama plant began
producing Rangers at the beginning of
June and Slingshots in early July, and
our growing lean capabilities are
driving factory inventory reductions
and increased cash flow, while our
customer excellence initiatives are
enhancing our capabilities to deliver
world-class sales and service to our

(11%)

consumers,” continued Wine.
“Commensurate
with
our
commitment to industry-leading
innovation, we have a number of
model year 2017 products that will be
introduced next week at our annual
dealer meeting, which include vehicles
that will significantly strengthen our
line-up in areas where the competition
has been the most intense.”
Off-Road Vehicle (“ORV”) and
Snowmobile segment sales, including
its respective PG&A sales, decreased
six percent from the second quarter of
2015 to $808.5 million. Gross profit
decreased 17 percent to $230.6
million or 28.5 percent of sales in the
second quarter of 2016, compared to
$278.9 million or 32.5 percent of sales
in the second quarter of 2015.

Polaris Chairman and CEO Scott
Wine: “Our team’s diligent and
methodical execution drove a
modest increase in second quarter
sales despite a strong year-over-year
sales comparison…I am proud of
how our employees and dealers
have dedicated themselves to
working through the current
difficult environment”

“652,000 shares repurchased
for $58.9 million”
AMERICAN MOTORCYCLE DEALER - AUGUST 2013

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