EX-13 3 c91643exv13.htm PORTIONS OF THE ANNUAL REPORT TO SECURITY HOLDERS exv13
 

Exhibit 13

11 - YEAR SELECTED FINANCIAL DATA in thousands, except per share and per unit data

The selected financial data presented below are qualified in their entirety by, and should be read in conjunction with, the Consolidated Financial Statements and Notes thereto and other financial and statistical information, including the information referenced under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” located in the Form 10-K included in this report.

                                     
For the Years Ended December 31,     2004       2003     2002     2001  
             
Statement of Operations Data from Continuing Operations
                                    
Sales data:
                                    
Total sales from continuing operations
     $ 1,773,206       $ 1,552,351     $ 1,468,170     $ 1,427,400  
             
% change from prior year
       14 %       6 %     3 %     8 %
             
Sales mix by product:
                                 
All-terrain vehicles
       66 %       67 %     64 %     58 %
             
Snowmobiles
       16 %       15 %     20 %     26 %
             
Motorcycles
       4 %       4 %     2 %     1 %
             
PG&A
       14 %       14 %     14 %     15 %
             
Gross profit data:
                                 
Total gross profit from continuing operations
     $ 424,263      $ 362,876     $ 332,432     $ 306,307  
             
% of sales
       24 %       23 %     23 %     21 %
             
Operating expense data from continuing operations:
                                 
Amortization of intangibles and noncash compensation
     $ 16,643      $ 14,472     $ 16,437     $ 16,482  
             
Conversion costs
      —        —       —       —  
             
Other operating expenses
      228,018        192,093       166,188       150,386  
             
% of sales
       13 %       12 %     11 %     11 %
             
Actual and pro forma data:(2)
                                 
Net income from continuing operations
     $ 136,813      $ 119,823     $ 111,330     $ 97,716  
             
Diluted net income per share from continuing operations
     $ 3.04      $ 2.66     $ 2.36     $ 2.07  
             
Net income
     $ 104,504      $ 110,929     $ 103,592     $ 91,414  
             
Diluted net income per share
     $ 2.32      $ 2.46     $ 2.19     $ 1.94  
             
 
                                 
Cash Flow Data
                                 
Cash flow from continuing operating activities
     $ 245,356      $ 167,793     $ 200,601     $ 192,034  
             
Purchase of property and equipment for continuing operations
      88,836        59,209       52,313       52,856  
             
Repurchase and retirement of common stock
      66,830        73,125       76,389       49,207  
             
Cash dividends to shareholders
      38,856        26,657       25,273       22,846  
             
Cash dividends per share
     $ 0.92      $ 0.62     $ 0.56     $ 0.50  
             
Cash distributions declared to partners
      —        —       —       —  
             
Cash distributions declared per unit
      —        —       —       —  
             
 
                                 
Balance Sheet Data
                                 
(at end of year)
                                 
Cash and cash equivalents
     $ 138,469      $ 82,761     $ 81,193     $ 40,530  
             
Current assets
      465,655        387,716       343,659       305,317  
             
Total assets
      792,925         671,352       608,646       565,163  
             
Current liabilities
      405,193         330,478       313,513       308,337  
             
Borrowings under credit agreement
      18,000         18,008       18,027       18,043  
             
Shareholders’ equity
      361,732         319,378       277,106       238,783  
             

(1) In 1998, Polaris entered into a settlement agreement related to a trade secret infringement claim brought by Injection Research Specialists,
      Inc. The one-time provision for litigation loss amounted to $61.4 million, or $0.77 per diluted share in 1998. The settlement had no effect
      on the future operations of the Company. Excluding this charge, other operating expenses, net income and diluted net income per share
      from continuing operations for 1998 would have been $92.5 million, $78.4 million and $1.52 per share, respectively.

(2) The comparability of the information reflected in the Selected Financial data is materially affected by the conversion from a master limited
      partnership to a corporation on December 22, 1994, which resulted in the Company recording a net deferred tax asset of $65.0 million,
      conversion expenses of $12.3 million and a corresponding net increase in 1994 net income. Pro forma data is presented to assist in
      comparing the continuing results of operations of the Company exclusive of the conversion costs and as if the Company was a taxable
      corporation for each period presented.

 

 

                                                         
    2000     1999     1998     1997     1996     1995     1994  
 
 
   $ 1,327,030     $ 1,244,782     $ 1,105,685     $ 947,775     $ 985,472     $ 908,988     $ 692,526  
 
 
     7 %     13 %     17 %     (4 %)     8 %     31 %     49 %
 
 
                                                        
 
     62 %     59 %     58 %     48 %     44 %     39 %     35 %
 
 
     23 %     25 %     28 %     37 %     42 %     47 %     50 %
 
 
     1 %     3 %     1 %     —       —       —       —  
 
 
     14 %     13 %     13 %     15 %     14 %     14 %     15 %
 
 
                                                        
 
   $ 287,969     $ 256,611     $ 213,381     $ 195,027     $ 192,131     $ 180,913     $ 150,582  
 
 
     22 %     21 %     19 %     21 %     19 %     20 %     22 %
 
 
                                                        
 
   $ 12,702     $ 10,472     $ 8,703     $ 5,887     $ 5,325     $ 5,616     $ 14,321  
 
 
     —       —       —       —       —       —       12,315  
 
 
     143,152       119,600       153,903 (1)     79,505       76,240       67,163       48,056  
 
 
     11 %     10 %     14 %(1)     8 %     8 %     7 %     7 %
 
 
                                                        
 
   $ 89,466     $ 84,642     $ 38,761 (1)   $ 75,964     $ 70,708     $ 64,759     $ 54,895  
 
 
                                                        
 
   $ 1.89     $ 1.70     $ 0.75 (1)   $ 1.42     $ 1.27     $ 1.17     $ 0.99  
 
 
   $ 82,809     $ 76,326     $ 31,015 (1)   $ 65,383     $ 62,293     $ 60,776     $ 54,703  
 
 
   $ 1.75     $ 1.53     $ 0.60 (1)   $ 1.22     $ 1.12     $ 1.09     $ 0.99  
 
 
                                                        
 
   $ 105,055     $ 134,469     $ 124,701     $ 97,655     $ 88,872     $ 81,215     $ 115,773  
 
 
                                                        
 
     61,590       60,659       56,796       32,389       37,128       38,964       29,355  
 
 
     39,622       52,412       37,728       39,903       13,587       —       —  
 
 
     20,648       19,732       18,582       16,958       16,390       116,639       —  
 
 
   $ 0.44     $ 0.40     $ 0.36     $ 0.32     $ 0.30     $ 2.13       —  
 
 
     —       —       —       —       —       —       50,942  
 
 
     —       —       —       —       —       —     $ 0.84  
 
 
                                                        
 
   $ 2,369     $ 6,184     $ 1,466     $ 1,233     $ 5,812     $ 3,501     $ 62,881  
 
 
     240,912       214,714       183,840       217,458       193,405       175,271       206,489  
 
 
     490,186       442,027       378,697       384,746       351,717       314,436       331,166  
 
 
     238,384       233,800       204,964       191,111       161,387       155,722       161,457  
 
 
     47,068       40,000       20,500       24,400       35,000       40,200       —  
 
 
     204,734       168,227       153,233       169,235       155,330       118,514       169,709  
 

Regulation G Reconciliation —
Cash Flow Provided to Net Cash Provided by Operating Activities from Continuing Operations (dollars in millions)

                                         
    Cash Flow Provided     Deferred     Changes in Current     One-time Provision for     Net Cash Provided by  
Year (as shown on page 21)   Income Taxes     Operating Items     Litigation Loss, Net(1)     Operating Activities  
 
1995
   $ 91.4     $ 10.0     $ (20.2 )     —     $ 81.2  
1996
     96.4       —       (7.5 )     —       88.9  
1997
     100.0       —       (2.3 )     —       97.7  
1998
     108.9       5.0       50.4     $ (39.6 )     124.7  
1999
     119.6       3.0       11.9       —       134.5  
2000
     129.4       1.6       (25.9 )     —       105.1  
2001
     149.9       (9.7 )     51.8       —       192.0  
2002
     174.1       7.2       19.3       —       200.6  
2003
     177.5       (8.1 )     (1.6 )     —       167.8  
2004
     201.1       (1.5 )     45.8       —       245.4  

 

 

OTHER INVESTOR INFORMATION

(PII LISTED ON NYSE LOGO)

STOCK EXCHANGES

Shares of common stock of Polaris Industries Inc. trade on the New York Stock Exchange and on the Pacific Stock Exchange under the symbol PII.



INDEPENDENT AUDITORS

Ernst & Young LLP
Minneapolis, MN

TRANSFER AGENT AND REGISTRAR

Communications concerning transfer requirements, address changes, dividends and lost certificates, as well as requests for Dividend Reinvestment Plan enrollment information, should be addressed to:

Wells Fargo Bank, N.A.
Shareowner Services
161 North Concord Exchange
South St. Paul, MN 55075-1139
1-800-468-9716
www.wellsfargo.com/com/shareowner_services

ANNUAL SHAREHOLDERS’ MEETING

The meeting will be held at 9 a.m. CST, Thursday, April 21, 2005, at the Polaris Industries Inc. corporate headquarters, 2100 Highway 55, Medina, Minnesota. A proxy statement will be mailed on or about March 4, 2005, to each shareholder of record on February 22, 2005.

SUMMARY OF TRADING

                                 
    For the Years Ended December 31,
    2004
   2003
Quarter
   High
   Low
   High
   Low
First
   $ 45.73     $ 39.30     $ 30.05     $ 22.11  
Second
     48.15       41.10       33.03       24.38  
Third
     56.44       44.25       40.71       29.93  
Fourth
     69.41       51.83       46.15       37.00  
 
                                

CASH DIVIDENDS DECLARED

Cash dividends are declared quarterly and have been paid since 1995. As of January 20, 2005, the quarterly dividend was increased to $0.28 per share.

                 
Quarter
   2004
   2003
First
   $ 0.23     $ 0.155  
Second
     0.23       0.155  
Third
     0.23       0.155  
Fourth
     0.23       0.155  
 
    
 		      
 		  
Total
   $ 0.92     $ 0.62  
 
    
 		      
 		  

SHAREHOLDERS OF RECORD

Shareholders of record of the Company’s common stock on February 22, 2005 were 2,859.

SHAREHOLDER COMPOSITION
(Pie Chart)

         
Institutions
     65 %
Other
     27 %
Officers, Directors and Employees
     8 %

DIVIDEND REINVESTMENT PLAN

Shareholders may automatically reinvest their dividends in additional Polaris common stock through the Dividend Reinvestment Plan, which also provides for purchase of common stock by voluntary cash contributions. For additional information, please contact Wells Fargo Shareowner Services at 1-800-468-9716 or visit the Wells Fargo Bank Web site at www.wellsfargo.com.

PRODUCT BROCHURES

For product brochures and dealer locations, write or call:

Polaris Industries Inc.
2100 Highway 55
Medina, MN 55340
1-800-Polaris (1-800-765-2747)

INTERNET ACCESS

To view the Company’s annual report and financial information, products and specifications, press releases, and dealer locations, access Polaris on the Internet at:

www.polarisindustries.com
www.victory-usa.com

INVESTOR RELATIONS

Security analysts and investment professionals should direct their business-related inquiries to:

Richard Edwards
Director Investor Relations
Polaris Industries Inc.
2100 Highway 55
Medina, MN 55340
763-513-3477
richard.edwards@polarisind.com

RESEARCH COVERAGE AS OF FEBRUARY 2005

A.G. Edwards
Bank of America Securities
Craig-Hallum Partners
J.P. Morgan
Merrill Lynch
Midwest Research
Prudential Securities
Raymond James & Associates
RBC Capital Markets
Robert W. Baird & Co.
Ryan Beck & Co.
SBK Brooks Investment Corp.
Smith Barney Citigroup

STOCK-SPLIT HISTORY

August 1993      2 for 1
October 1995     3 for 2
March 2004        2 for 1

CEO CERTIFICATION

The Company’s Chief Executive Officer submitted the annual CEO certification to the New York Stock Exchange certifying that he is not aware of any violation by the Company of the New York Stock Exchange’s corporate governance listing standards.