Post Earnings Coverage as Polaris Sales Up 10%

Upcoming AWS Coverage on Thor Industries

LONDON, UK / ACCESSWIRE / February 1, 2017 / Active Wall St. announces its post-earnings coverage on Polaris Industries Inc. (NYSE: PII). The Company released its fourth quarter fiscal 2016 results on January 24, 2017. The snowmobile and ATV maker’s top- and bottom-line numbers outperformed market expectations. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of Polaris Industries’ competitors within the Recreational Vehicles space, Thor Industries, Inc. (NYSE: THO), is estimated to report earnings on March 06, 2017. AWS will be initiating a research report on Thor Industries following the release of its next earnings results.

Today, AWS is promoting its earnings coverage on PII; touching on THO. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=PII

http://www.activewallst.com/registration-3/?symbol=THO

Earnings Reviewed

Polaris reported sales of $1.22 billion, up 10% from sales of $1.11 billion for Q4 2015. The Company’s revenue number topped analysts’ forecasts of $1.09 billion. For the full year ended December 31, 2016, the Company reported sales of $4.52 billion, a decrease of 4% versus $4.72 billion in FY15.

During Q4 2016, Polaris reported net income of $62.6 million, or $0.97 per diluted share, compared to $110.7 million, or $1.66 per diluted share, for Q4 2015. The Company’s adjusted net income for the reported quarter, excluding purchase accounting adjustments and certain costs related to the acquisition of TAP, was $76.1 million, or $1.18 per diluted share. The Q4 2016 earnings numbers exceeded Wall Street’s expectations of $1.15 per share.

For FY16, Polaris’ reported net income of $212.9 million, or $3.27 per diluted share, compared to $455.4 million, or $6.75 per diluted share, for FY15. Adjusted net income for FY16 excluding purchase accounting adjustments and certain costs related to the acquisition of TAP was $226.5 million, or $3.48 per diluted share, for FY16.

Segment Results

During Q4 2016, Polaris’ Off-Road Vehicle (“ORV”) and Snowmobile segment’s sales, including their respective PG&A related sales, were $905.0 million compared to $862.0 million for Q4 2015. The segment’s gross profit dropped 1% to $259.2 million, or 28.6% of sales, in Q4 2016 compared to $262.8 million, or 30.5% sales, in Q4 2015. The decline in gross profit was attributed to higher promotional spending and increased warranty expense.

Polaris’ ORV wholegood sales for Q4 2016 increased 3% as the Company’s model year 2017 vehicle revalidations were completed and shipments resumed, including the RZR Turbo vehicles which have higher average selling prices. Polaris North American ORV unit retail sales for the reported quarter were down mid-single digits from Q4 2015, which included consumer purchases for side-by-side vehicles down low-single digits, and ATV retail sales were down approximately 10%. The division’s ORV dealer inventory dropped 11% in Q4 2016 compared to the same period last year.

During Q4 2016, Polaris’ Snowmobile wholegood sales grew 13% due to the timing of shipments, y-o-y and a favorable mix of higher priced snowmobiles shipped during the quarter. Polaris’s Motorcycle segment’s sales, including its PG&A related sales, decreased 35% y-o-y to $105.7 million in Q4 2016. Both the Company’s brand Indian and Victory reported lower sales in the reported quarter due to difficult comparables as product availability for all brands improved significantly in Q4 2015, and as the Company reduced motorcycle production in Q4 2016 to complete the final paint system upgrade in Spirit Lake, IA. The segment’s gross profit for Q4 2016 slumped 94% to $1.6 million compared to $24.0 million in Q4 2015 due to lower production rates and higher warranty expense.

During Q4 2016, Polaris’ Global Adjacent Markets segment’s sales along with its PG&A related sales, increased 21% to $98.4 million compared $81.0 in Q4 2015. The segment’s gross profit increased 30% to $29.0 million, or 29.5% of sales, in Q4 2016 compared to $22.2 million, or 27.4% of sales, in Q4 2015. Sales and gross profit were up primarily due to increased sales in the Company’s Defense business for Q4 2016.

Financial Position and Cash Flow

Polaris reported that net cash provided by operating activities was $571.8 million for FY16 compared to $440.2 million for FY15 due to lower working capital requirements. The Company’s total debt at the end of FY16, including capital lease obligations and notes payable, was $1.14 billion. The Company’s debt-to-total capital ratio was 57% at December 31, 2016, compared to 32% a year ago. Cash and cash equivalents were $127.3 million at December 31, 2016, compared to $155.3 million at December 31, 2015.

Share Buyback Activity

During Q4 2016, the Company repurchased and retired 1,105,500 shares of its common stock for $91.4 million, bringing total share repurchases to 2,908,000 shares or $245.8 million for FY16. As of December 31, 2016, the Company currently has authorization from its Board of Directors to repurchase up to an additional 7.5 million shares of Polaris’ stock.

Dividend Payment

On January 26, 2017, Polaris announced that its Board of Directors approved a 5% increase in the regular quarterly cash dividend, raising the pay-out to $0.58 per share. This increase represents the 22nd consecutive year of Polaris increasing its dividend effective with Q1 2017 dividend. The Company stated the dividend will be payable on March 15, 2017, to shareholders of record at the close of business on March 01, 2017.

2017 Business Outlook

The Company expects FY17 adjusted net income to be in the range of $4.25 to $4.50 per diluted share compared to adjusted net income of $3.48 per diluted share for FY16. FY17 sales are anticipated to increase in the range of 10% to 13% over FY16 sales of $4.52 billion.

Stock Performance

On Tuesday, the stock closed the trading session at $84.07, slightly up by 0.62% from its previous closing price of $83.55. A total volume of 1.27 million shares have exchanged hands, which was higher than the 3-month average volume of 1.01 million shares. Polaris Industries’ stock price advanced 3.32% in the last month, 12.40% in the past three months, and 14.68% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 2.04%. The stock is trading at a PE ratio of 25.71 and has a dividend yield of 2.62%.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 454041