Polaris 2019 Annual Report
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Think Outside is our challenge for people to uncover possibilities and connections outdoors, in work and play. It is a promise to go further, do more and challenge yesterday to make tomorrow even better. The pages Polaris Inc. 763-542-0500 2100 Highway 55 763-542-0599 fax 2019 ANNUAL REPORT that follow highlight just some examples of how Polaris Medina, MN 55340 www.polaris.com Think ingenuity and innovation delivered value in 2019 for our Outside customers, employees, dealers and investors. 2019 ANNUAL REPORT Think Outside 2019 AT A GLANCE SALES GROSS PROFIT NET INCOME EPS $6,783 $1,649 $324 $5.20 Million Million Million Earnings per Diluted Share Up Percentage of Sales Down Down % % % % ©2020 Polaris Inc. All rights reserved. 12 24.3 3 1 Printed in the USA on paper containing mixed post-consumer fiber. 2891_Cover.indd 1 2/21/20 2:57 AM Segment Overview STOCK EXCHANGE DIVIDEND REINVESTMENT PLAN Shares of common stock of Polaris Inc. trade on the Shareholders may automatically reinvest their dividends New York Stock Exchange under the symbol PII. in additional Polaris common stock through the Dividend Reinvestment Plan, which also provides for purchase of 2019 SALES OFF-ROAD VEHICLES/ MOTORCYCLES GLOBAL ADJACENT AFTERMARKET BOATS common stock with voluntary cash contributions. For BY SEGMENT SNOWMOBILES MARKETS INDEPENDENT AUDITORS additional information, please contact EQ Shareowner Ernst & Young LLP, Minneapolis, MN Services at 1‑800‑468‑9716 or visit the website at Work, Hunt, Farm and Ranch Cruising, Day Trips, Around Town Colleges, Universities, Municipalities, Accessory Applications Including: Cruising, Fishing, Skiing www.shareowneronline.com. % Pictured: and Commute Urban Deliveries, Material Handling Suspensions, Tires and Wheels, Bumpers, 7 Polaris Ranger® Polaris RANGER Crew® XP 1000 Pictured: Bennington 9% Indian Motorcycle® Indian Scout® Polaris Commercial® Sidesteps, Roof Racks, Cargo Solutions, Grill Guards, Winches, Gauges Godfrey TRANSFER AGENT AND REGISTRAR GEM® INTERNET ACCESS Play, Dunes and Trails Hurricane Communications concerning transfer requirements, address % Pro Comp To view the Company’s annual report and financial 9 Pictured: Goupil® Rinker changes, dividends and lost certificates, as well as requests for Polaris RZR® Polaris RZR XP‑4 Turbo S Cruising, Day Trips, Around Town Rubicon Express Dividend Reinvestment Plan enrollment information, should be information, products and specifications, press releases, and Commute Taylor-Dunn® Pictured: GEM e4 Larson % Smittybilt Pictured: addressed to: dealer locations and product brochures, access Polaris on 62 Slingshot® % Striper Bennington 25 GSBA EQ Shareowner Services the Internet at: 13 Work, Play, Hunt Military: Army, Navy, Marines, Air Force, Trailmaster 1110 Centre Point Curve, Suite 101 www.polaris.com Special Ops 4WP Polaris General® Mendota Heights, MN 55120 Polaris Sportsman® Polaris Government & Defense® G2 1‑800‑468‑9716 Pictured: INVESTOR RELATIONS Hammerhead Off-Road® Polaris Sportsman XP 1000 Poison Spyder www.shareowneronline.com Security analysts and investment professionals should Off-Road Vehicles/Snowmobiles LRG Rims Rural, License-Free Drivers direct their business‑related inquiries to: Aftermarket Aixam® Kolpin Outdoors ANNUAL SHAREHOLDERS’ MEETING R ichard Edwards Motorcycles Play, On/Off Trail, Mountains, Utility Pro Armor Vice President of Investor Relations Boats RMK® The virtual only meeting will be held at 9 a.m. Central Time, Pictured: Polaris Inc. Trail Tech Polaris RANGER Crew® XP 1000 April 30, 2020. The proxy statement will be available on or Global Adjacent Markets INDY® Recreation Outfitters, Resorts, Tourism about March 13, 2020. The shareholder‑of‑record date is 2100 Highway 55 Hubs Switchback® March 2, 2020. Medina, MN 55340‑9770 763‑513‑3477 RUSH® Polaris Adventures® Apparel, Ride Gear [email protected] Polaris TITAN® Klim® SUMMARY OF TRADING Voyageur® 509® Pictured: For the Years Ended December 31 RESEARCH COVERAGE AS OF FEBRUARY 2020 2019 SALES Timbersled® Polaris PRO‑RMK® BY GEOGRAPHY Quarter 2019 2018 BMO Capital Markets High Low High Low C.L. King Citigroup Investment Research % * 6 % First $92.37 $74.60 $137.66 $102.20 Edgewater Research 12% % % % % Second 103.19 79.01 131.25 103.45 KeyBanc Capital Markets Sales Change from 2018 Sales Change from 2018 Sales Change from 2018 Sales Change from 2018 122 Third 96.68 77.05 128.98 100.69 Lake Street Capital 7 7 4 2 Sales Change from 2018 Fourth 104.37 81.97 104.20 70.27 Longbow Research Morningstar, Inc. RBC Capital Markets Market Size Market Size Market Size Market Size Market Size CASH DIVIDENDS DECLARED Raymond James & Associates $ $ Billion $ $ $ Robert W. Baird & Company 82% ~ 10.0 Billion ~ 6.0 900 cc and Above ~ 9.0 Billion ~ 14.0 Billion ~ 11.0 Billion Cash dividends are declared quarterly and have been paid Stifel Nicolaus since 1995. On January 30, 2020, the quarterly dividend was SunTrust Robinson increased 2 percent to $0.62 per share. UBS Securities Sales Sales Sales Sales Sales Quarter 2019 2018 Wedbush Securities United States Wells Fargo Securities 2019 $4,209 2019 $584 2019 $461 2019 $907 2019 $621 First $0.61 $0.60 International Second 0.61 0.60 Canada 2018 $3,919 2018 $546 2018 $445 2018 $889 2018 $280* Third 0.61 0.60 STOCK-SPLIT HISTORY 2017 $3,571 2017 $576 2017 $397 2017 $885 Fourth 0.61 0.60 August 1993 2 for 1 Total $2.44 $2.40 October 1995 3 for 2 Gross Profit Margin Gross Profit Margin Gross Profit Margin Gross Profit Margin Gross Profit Margin March 2004 2 for 1 September 2011 2 for 1 2019 28.6% 2019 7.5% 2019 28.2% 2019 24.6% 2019 20.1% 2018 28.4% 2018 11.6% 2018 26.2% 2018 26.4% 2018 16.5%* 2017 29.5% 2017 2.9% 2017 23.9% 2017 25.5% *Acquired July 2018 2891_Cover.indd 2 2/25/20 7:26 PM Segment Overview STOCK EXCHANGE DIVIDEND REINVESTMENT PLAN Shares of common stock of Polaris Inc. trade on the Shareholders may automatically reinvest their dividends New York Stock Exchange under the symbol PII. in additional Polaris common stock through the Dividend Reinvestment Plan, which also provides for purchase of 2019 SALES OFF-ROAD VEHICLES/ MOTORCYCLES GLOBAL ADJACENT AFTERMARKET BOATS common stock with voluntary cash contributions. For BY SEGMENT SNOWMOBILES MARKETS INDEPENDENT AUDITORS additional information, please contact EQ Shareowner Ernst & Young LLP, Minneapolis, MN Services at 1‑800‑468‑9716 or visit the website at Work, Hunt, Farm and Ranch Cruising, Day Trips, Around Town Colleges, Universities, Municipalities, Accessory Applications Including: Cruising, Fishing, Skiing www.shareowneronline.com. % Pictured: and Commute Urban Deliveries, Material Handling Suspensions, Tires and Wheels, Bumpers, 7 Polaris Ranger® Polaris RANGER Crew® XP 1000 Pictured: Bennington 9% Indian Motorcycle® Indian Scout® Polaris Commercial® Sidesteps, Roof Racks, Cargo Solutions, Grill Guards, Winches, Gauges Godfrey TRANSFER AGENT AND REGISTRAR GEM® INTERNET ACCESS Play, Dunes and Trails Hurricane Communications concerning transfer requirements, address % Pro Comp To view the Company’s annual report and financial 9 Pictured: Cruising, Day Trips, Around Town Goupil® Rinker changes, dividends and lost certificates, as well as requests for Polaris RZR® Polaris RZR XP‑4 Turbo S Rubicon Express information, products and specifications, press releases, and Commute Taylor-Dunn® Pictured: GEM e4 Dividend Reinvestment Plan enrollment information, should be % Larson dealer locations and product brochures, access Polaris on Smittybilt Pictured: addressed to: 62 Slingshot® % Striper Bennington 25 GSBA EQ Shareowner Services the Internet at: 13 Work, Play, Hunt Military: Army, Navy, Marines, Air Force, Trailmaster 1110 Centre Point Curve, Suite 101 www.polaris.com Special Ops 4WP Polaris General® Mendota Heights, MN 55120 Polaris Sportsman® Polaris Government & Defense® G2 1‑800‑468‑9716 Pictured: INVESTOR RELATIONS Hammerhead Off-Road® Polaris Sportsman XP 1000 Poison Spyder www.shareowneronline.com Security analysts and investment professionals should Off-Road Vehicles/Snowmobiles LRG Rims Rural, License-Free Drivers direct their business‑related inquiries to: Aftermarket Aixam® Kolpin Outdoors ANNUAL SHAREHOLDERS’ MEETING R ichard Edwards Motorcycles Play, On/Off Trail, Mountains, Utility Pro Armor Vice President of Investor Relations Boats RMK® The virtual only meeting will be held at 9 a.m. Central Time, Pictured: Polaris Inc. Trail Tech Polaris RANGER Crew® XP 1000 April 30, 2020. The proxy statement will be available on or Global Adjacent Markets INDY® Recreation Outfitters, Resorts, Tourism about March 13, 2020. The shareholder‑of‑record date is 2100 Highway 55 Hubs Switchback® March 2, 2020. Medina, MN 55340‑9770 763‑513‑3477 RUSH® Polaris Adventures® Apparel, Ride Gear [email protected] Polaris TITAN® Klim® SUMMARY OF TRADING Voyageur® 509® Pictured: For the Years Ended December 31 RESEARCH COVERAGE AS OF FEBRUARY 2020 2019 SALES Timbersled® Polaris PRO‑RMK® BY GEOGRAPHY Quarter 2019 2018 BMO Capital Markets High Low High Low C.L. King Citigroup Investment Research % * 6 % First $92.37 $74.60 $137.66 $102.20 Edgewater Research 12% % % % % Second 103.19 79.01 131.25 103.45 KeyBanc Capital Markets Sales Change from 2018 Sales Change from 2018 Sales Change from 2018 Sales Change from 2018 122 Third 96.68 77.05 128.98 100.69 Lake Street Capital 7 7 4 2 Sales Change from 2018 Fourth 104.37 81.97 104.20 70.27 Longbow Research Morningstar, Inc. RBC Capital Markets Market Size Market Size Market Size Market Size Market Size CASH DIVIDENDS