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 www.AMDchampionship.com