Fourth Quarter Highlights:
Net income increased 23% to $108.7 million, or $1.56 per diluted share, with sales increasing 20% to $1,083.7 million, both fourth quarter records.
Off-Road Vehicle sales increased 16%; Motorcycle sales increased 94%; PG&A sales increased 33%; and International sales increased 46% in the 2013 fourth quarter.
Gross profit margins expanded 110 basis points to 29.3% in the fourth quarter due to higher selling prices and lower product costs.
Full Year Highlights:
Full year 2013 net income from continuing operations increased 22% to a record $381.1 million, or $5.40 per diluted share, with record sales of $3,777.1 million, an increase of 18% from full year 2012.
Full year 2013 gross profit margins improved 90 basis points compared to full year 2012.
North American retail sales increased 10% for 2013.
All product lines increased sales for the full year 2013.
MINNEAPOLIS--(BUSINESS WIRE)--Jan. 28, 2014-- Polaris Industries Inc. (NYSE: PII) reported record fourth quarter net income of $1.56 per diluted share for the quarter ended December 31, 2013, an increase of 26 percent compared to the prior year’s fourth quarter net income of $1.24 per diluted share. Net income was $108.7 million for the fourth quarter of 2013, up 23 percent from the previous fourth quarter’s net income of $88.1 million. Sales for the fourth quarter of 2013 totaled a record $1,083.7 million, an increase of 20 percent over last year’s fourth quarter sales of $900.6 million.
For the full year ended December 31, 2013, Polaris reported record net income from continuing operations of $5.40 per diluted share, a 23 percent increase compared to $4.40 per diluted share for the year ended December 31, 2012. Net income from continuing operations was $381.1 million for the full year 2013, up 22 percent from the previous year’s net income from continuing operations of $312.3 million. Reported net income for the full year 2013, including both continuing and discontinued operations was $377.3 million, or $5.35 per diluted share. Sales for the full year 2013 totaled a record $3,777.1 million, an increase of 18 percent compared to sales of $3,209.8 million for the full year 2012.
“2013 marked Polaris’ fourth consecutive year of greater than 15 percent growth in both revenue and earnings. Sales and net income have more than doubled since 2009, testifying to the strength of our strategic plan that has served as a roadmap over the past five years as well as our relentless execution of its core principles. The plan keeps us focused on investing for organic growth in our principal Powersports businesses, expanding our global footprint, diversifying into market adjacencies and enhancing operational efficiencies,” commented Scott Wine, Polaris’ Chairman and Chief Executive Officer.
“The past year was one of the most transformative in the Company’s history, as we introduced more new products than ever before, concluded a strategic acquisition, and continued the development of our global operational footprint. These and other milestones helped us attain our first $1.0 billion dollar sales quarter, and we enter 2014 poised to extend our established record of innovation and success.”
2013 Product and Operations Highlights
Product
- Introduced eleven new MY ’14 and ’14.5 ORV models in 2013, including the all-new RZR XP 1000 and RZR XP4 1000, the RANGER Crew 900, and several new value models equipped with the Company’s internally developed Prostar 570 engine including the Sportsman 570 which replaces the legendary Sportsman 500
- Introduced eight new MY ’14 snowmobiles; seven in the legendary Polaris INDY brand
- Re-launched the iconic Indian Motorcycle brand, headlined by three all-new MY ’14 models: Chief Classic, Chief Vintage and Chieftain, which have already garnered numerous awards and accolades since their launch in August
- Introduced over 800 new PG&A accessories contributing to a 33 percent increase in sales in 2013
- Acquired Aixam Mega S.A.S. (“Aixam”), the leading quadricycle company in Europe, complementing the Company’s existing small vehicle businesses
- Acquired apparel company Klim in December 2012, which performed exceptionally well its first full year in the Polaris family
- Announced a strategic partnership with Ariens Company, maker of outdoor power equipment
Operations –
- Broke ground on a new manufacturing plant in India as part of the Company’s Eicher/Polaris joint venture and in Poland for the Company’s International ORV business, both expected to begin production late 2014
- Expanded production capacity and capabilities at all manufacturing facilities in the U.S. and Mexico
- Doubled the size of the Company’s Wyoming, Minnesota research and development facility
- Hired over 400 new employees, including the addition of a VP of Global Customer Excellence, to ensure we stay ahead of our consumers’ rapidly changing expectations
2014 Business Outlook
Full year 2014 net income from continuing operations is expected to be in the range of $6.17 to $6.37 per diluted share, an increase of 14 to 18 percent over the full year 2013 net income per share from continuing operations. Net income from continuing operations for full year 2014 is expected to increase in the range of 12 to 16 percent over full year 2013. Sales for full year 2014 are expected to increase 11 to 14 percent over full year 2013 sales, with sales increases projected in all businesses.
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