American Motorcycle Dealer AMD 239 June 2019 | Page 28

Polaris 2019 1Q Sales +15%
Polaris reported adjusted sales for the
first quarter of 2019 of +15% to
$1,496 million, with net income at
$0.78 per diluted share, down -8% over
the prior year; adjusted net income for
the same period was $1.08 per diluted
share, down -4% over the prior year, but
ahead of company expectations.
Overall North American retail sales
decreased -3% for the quarter
compared to last year; ORV N.A. retail
sales were down mid-single digits
percent and motorcycle sales were
down high-single digits percent, both
negatively impacted by weather.
The company gained market share in
snowmobiles for the season ending
March 2019 and maintained market
share in Indian motorcycles "in a
challenging industry environment."
Motorcycles segment sales, including
PG&A, totaled $118 million, down -
10% compared to the first quarter of
2018, driven largely by declines in
Slingshot sales, and, to less of an extent,
Indian Motorcycle sales, partly due to
an ongoing challenging motorcycle
market. Gross profit for the first quarter
of 2019 was down at $7 million
compared to $17 million in the first
quarter of 2018. The decrease in gross
profit was primarily the result of lower
volume and tariff costs.
North American consumer retail sales
for the Polaris motorcycle segment,
including both Indian Motorcycle and
Slingshot, decreased high-single digits
percent during the first quarter of 2019.
Indian Motorcycle retail sales
decreased mid-single digits percent.
Slingshot's retail sales were down low-
double digits percent during the
quarter. Motorcycle industry retail sales,
900 cc and above, were down mid-
single digits percent in the first quarter
of 2019.
Scott Wine, Chairman and Chief
Executive Officer of Polaris Industries
Inc., is quoted as saying: "Polaris’ 65th
anniversary year is off to a solid start, as
we delivered sound results and finished
the quarter with strong momentum. The
team executed well, providing quality
products to our customers while
navigating a dynamic trade
environment. Retail sales results were
somewhat mixed, with greater than 20
percent snowmobile growth helping to
offset modest weather-related declines
in ORV, motorcycles and boats,
although all three of these segments
came on strong at the end of March.
The company reported first quarter
2019 net income of $48 million,
compared with $56 million for the 2018
first quarter. Adjusted net income for
the quarter ended March 31, 2019 was
$67 million compared to $74 million.
Gross profit increased +9 percent to
$352 million for the first quarter of
2019 from $323 million in the first
quarter of 2018.
Off-Road Vehicles (“ORV”) and
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(in thousands US $)
Sales
Cost of sales
Gross profit
Operating expenses:
Selling and marketing
Research and development
General and administrative
Total operating expenses
Income from financial services
Operating income
Net income
Diluted Net income per share:
Three months ended March 31
2019 2018
1,495,690
1,143,242
352,448 1,297,473
973,992
323,481
129,259
67,120
92,938
289,317
18,805
81,936
48,378 117,707
65,230
78,693
261,630
21,425
83,276
55,714
$0.78 $0.85
Scott Wine, Chairman and Chief
Executive Officer of Polaris
Industries Inc: "We finished the
Quarter with strong momentum. The
team executed well, providing
quality products to our customers
while navigating a dynamic trade
environment. Retail sales results
were somewhat mixed, with greater
than 20 percent snowmobile growth
helping to offset modest weather-
related declines in ORV, motorcycles
and boats"
snowmobiles segment sales, including
PG&A, totaled $867 million for the first
quarter of 2019, up four percent over
$833 million for the first quarter of
2018, driven by growth in side-by-side
sales.
International sales to customers
outside of North America, including
PG&A, totaled $203 million for the first
quarter of 2019, down four percent,
from the same period in 2018.
Increased Indian Motorcycle and PG&A
sales were more than offset by negative
foreign exchange movements, which
reduced sales by seven percent for the
quarter.
Given the 2019 first quarter results, the
company is increasing its full year
earnings guidance.
Pro Pad Inc. Celebrates
20th Anniversary
Mooresville, North Carolina
based Pro Pad is marking
"twenty successful years
manufacturing motorcycle
accessories, focusing on comfort,
quality and customer service,"
with its success attributed to
customer loyalty.
A family's search for a
comfortable riding solution has
grown into a successful
manufacturing company.
Dissatisfied with the motorcycle
seat pads available for their
Harleys, the Enzwiler family
resolved to create their own seat
pad and Pro Pad Inc. was
established in 1999. The mission
28
was to "provide a high-
quality product worthy
to be put on a Harley."
Since its foundation in 1999, Pro
Pad Inc. has added other
motorcycle accessories, including
floorboard extension kits,
detachable luggage racks and
tour pack systems. "Each
product is designed with the
rider in mind and intended to
add comfort and convenience to
the riding experience without
diminishing the aesthetics of the
motorcycle.
"As part of our mission to
present the finest products, we
source our materials as locally as
AMERICAN MOTORCYCLE DEALER - JUNE 2019
huge 'thank you' goes out to
we can and manufacture most of
everyone who has supported us
our products in-house. This
through the years."
allows us to oversee production
www.thepropad.com
and, more importantly, allows us
to proudly stamp each product
with the words 'Made in the
USA'."
"It's hard to believe 20 years
have passed since we opened,"
says Mike Enzwiler, President of
Pro Pad Inc. "It's been an
amazing ride with plenty of ups
and downs, but throughout the
Tour Paxx, a
"complete tour
years our incredible customers
pack system"
have kept us striving to be
better than the year before. A
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