Third quarter surpasses $1.1 billion in sales; Company increases full year 2013 Sales and EPS from continuing operations guidance
Third Quarter Highlights:
Net income from continuing operations increased 24% to $116.9 million, or $1.64 per diluted share, with sales increasing 25% to $1,102.6 million, setting records for third quarter sales and earnings and exceeding $1 billion in quarterly sales for the first time in the Company’s history.
North American retail sales increased 12% year-over-year in the third quarter.
Gross profit margin percentage increased 90 basis points to 30.4% primarily due to higher selling prices and lower product costs.
The Company is raising and narrowing full year 2013 earnings guidance from continuing operations to a range of $5.30 to $5.37 per diluted share, up 20% to 22% over 2012 based on expected full year 2013 sales growth of 15% to 16%.
MINNEAPOLIS--(BUSINESS WIRE)--Oct. 22, 2013-- Polaris Industries Inc. (NYSE: PII) today reported record third quarter net income from continuing operations of $116.9 million, or $1.64 per diluted share, for the quarter ended September 30, 2013, up 24 percent and 23 percent, respectively, from the prior year’s third quarter net income of $94.3 million, or $1.33 per diluted share. Reported net income for the third quarter 2013, including both continuing and discontinued operations was $113.1 million, or $1.59 per diluted share. Sales for the third quarter 2013 totaled a record $1,102.6 million, which represents an increase of 25 percent over last year’s third quarter sales of $879.9 million.
Scott Wine, Polaris’ Chairman and Chief Executive Officer, stated, “Our record third quarter results reflect both the ongoing demand for our existing products and the potential contained within the initial shipments of our model year 2014 vehicles, the largest new product introduction in the Company’s history. In the third quarter, we launched more new vehicles than in any previous model year, led by the much anticipated debut of Indian Motorcycles along with several innovative variants of RANGERS, RZRs and Victory motorcycles. Additionally, to complement and enhance our consumers’ experience with these vehicles our PG&A business introduced over 300 new model year 2014 accessories plus an expanded apparel line-up. While the new model year 2014 vehicles and accessories are just now arriving at dealers in meaningful quantities, the initial feedback has been extremely positive from consumers to the trade magazines. To receive such accolades is always gratifying, but we realize that we must remain focused on achieving the full market potential of these recently released new products while continuing to develop the next wave of industry leading products.”
Wine added, “Though much of our effort was focused on successful product launches, we also achieved a number of financial milestones during the 2013 third quarter, including eclipsing the quarterly $1 billion sales mark for the first time in Polaris’ history. We continued to solidify our market share lead in off-road vehicles during the quarter and our relentless drive to enhance profitability paid dividends as gross profit margins climbed 90 basis points. Our international business performed exceptionally well, up 38 percent during the quarter despite a weak economic environment. Part of the international growth came from our most recent acquisition, Aixam Mega, an important addition to our expanding Small Vehicles portfolio.”
Wine continued, “Our success over the past four years derives from our focused strategy – being the Best in Powersports PLUS, delivering growth through adjacencies, maintaining global market leadership and demonstrating operational excellence and strong financial performance. Thanks to our execution of that strategy, our sales growth continues to outpace our long-term projections and we now expect to achieve greater than $8.0 billion in sales by 2020, while our net income target remains at an industry leading greater than 10 percent of sales by 2020. While we are obviously very bullish about Polaris’ future, we remain focused on near-term execution and are confident in raising our sales and earnings expectations for 2013.”
2013 Business Outlook
For the full year 2013, the Company is increasing and narrowing its earnings guidance and now expects earnings from continuing operations to be in the range of $5.30 to $5.37 per diluted share, an increase of 20 to 22 percent over full year 2012 earnings of $4.40 per diluted share. Full year 2013 sales are now expected to grow in the range of 15 percent to 16 percent as compared to full year 2012.
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