EX-13 3 c08921exv13.htm POERTIONS OF THE ANNUAL REPORT 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 Operation,” located in the Form 10-K included in this report.
Prior years’ results have been adjusted to reflect the adoption of SFAS 123(R) under the modified retrospective method.
                                     
For the Years Ended December 31,     2006     2005   2004   2003
             
 
                                    
STATEMENT OF OPERATIONS DATA
                                    
Sales data:
                                    
Total sales
     $ 1,656,518       $ 1,869,819     $ 1,773,206     $ 1,552,351  
             
Percent change from prior year
       (11 %)       5 %     14 %     6 %
             
Sales mix by product:
                                    
All-terrain vehicles
       67 %       66 %     66 %     67 %
             
Snowmobiles
       10 %       14 %     16 %     15 %
             
Motorcycles
       7 %       5 %     4 %     4 %
             
Parts, garments & accessories
       16 %       15 %     14 %     14 %
             
Gross profit data:
                                    
Total gross profit
     $ 359,359       $ 411,032     $ 416,600     $ 355,961  
             
Percent of sales
       22 %       22 %     23 %     23 %
             
Operating expense data:
                                    
Total operating expenses
     $ 238,363       $ 244,660     $ 242,690     $ 206,013  
             
Percent of sales
       14 %       13 %     14 %     13 %
             
Net income data:
                                    
Net income from continuing operations
     $ 112,791       $ 137,721     $ 132,257     $ 115,178  
             
Diluted net income per share from continuing operations
     $ 2.72       $ 3.15     $ 2.97     $ 2.58  
             
Net income
     $ 106,985       $ 136,714     $ 99,948     $ 106,284  
             
Diluted net income per share
     $ 2.58       $ 3.12     $ 2.25     $ 2.38  
             
 
                                    
CASH FLOW DATA
                                    
 
                                    
Cash flow from continuing operating activities
     $ 152,754       $ 162,463     $ 237,061     $ 162,540  
             
Purchase of property and equipment for continuing operations
       52,636         89,770       88,836       59,209  
             
Repurchase and retirement of common stock
       307,621         132,280       66,830       73,125  
             
Cash dividends to shareholders
       50,234         46,956       38,856       26,657  
             
Cash dividends per share
     $ 1.24       $ 1.12     $ 0.92     $ 0.62  
             
 
                                    
BALANCE SHEET DATA
(at end of year)
                                    
Cash and cash equivalents
     $ 19,566       $ 19,675     $ 138,469     $ 82,761  
             
Current assets
       392,961         373,988       465,655       387,716  
             
Total assets
       778,791         770,633       792,925       674,178  
             
Current liabilities
       361,420         375,614       405,193       330,478  
             
Borrowings under credit agreements
       250,000         18,000       18,000       18,008  
             
Shareholders’ equity
       167,371         377,019       368,058       325,692  
             
(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 pretax, 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 $98.0 million, $76.7 million and $1.48 per share, respectively.
NOTE: All periods presented reflect the classification of the marine products division’s financial results, including the loss from discontinued operations and the loss on disposal of the division, as discontinued operations.
PAGE 10 2006 POLARIS INDUSTRIES INC. ANNUAL REPORT

 

 

                                                         
    2002   2001   2000   1999   1998   1997   1996
 
 
                                                        
 
   $ 1,468,170     $ 1,427,400     $ 1,327,030     $ 1,244,782     $ 1,105,685     $ 947,775     $ 985,472  
 
 
     3 %     8 %     7 %     13 %     17 %     (4 %)     8 %
 
 
                                                        
 
     64 %     58 %     62 %     59 %     58 %     48 %     44 %
 
 
     20 %     26 %     23 %     25 %     28 %     37 %     42 %
 
 
     2 %     1 %     1 %     3 %     1 %     —       —  
 
 
     14 %     15 %     14 %     13 %     13 %     15 %     14 %
 
 
   $ 324,618     $ 299,194     $ 281,264     $ 250,528     $ 207,807     $ 190,853     $ 191,680  
 
 
     22 %     21 %     21 %     20 %     19 %     20 %     19 %
 
 
   $ 181,764     $ 164,532     $ 153,193     $ 127,079     $ 159,354     $ 82,767     $ 82,087  
 
 
     12 %     12 %     12 %     10 %     14 %(1)     9 %     8 %
 
 
   $ 107,143     $ 93,773     $ 85,733     $ 81,816     $ 37,082 (1)   $ 74,927     $ 69,890  
 
 
   $ 2.28     $ 1.99     $ 1.81     $ 1.64     $ 0.71 (1)   $ 1.40     $ 1.26  
 
 
   $ 99,405     $ 87,471     $ 79,076     $ 73,500     $ 29,336 (1)   $ 64,346     $ 61,475  
 
 
   $ 2.12     $ 1.86     $ 1.67     $ 1.48     $ 0.56 (1)   $ 1.20     $ 1.11  
 
 
                                                        
 
   $ 195,803     $ 192,023     $ 105,055     $ 134,469     $ 124,701     $ 97,655     $ 88,872  
 
 
     52,313       52,856       61,590       60,659       56,796       32,389       37,128  
 
 
     76,389       49,207       39,622       52,412       37,728       39,903       13,587  
 
 
     25,273       22,846       20,648       19,732       18,582       16,958       16,390  
 
 
   $ 0.56     $ 0.50     $ 0.44     $ 0.40     $ 0.36     $ 0.32     $ 0.30  
 
 
                                                        
 
   $ 81,193     $ 40,530     $ 2,369     $ 6,184     $ 1,466     $ 1,233     $ 5,812  
 
 
     343,659       305,317       240,912       214,714       183,840       217,458       193,405  
 
 
     614,378       567,979       492,156       443,686       380,093       385,498       351,958  
 
 
     313,513       308,337       238,384       233,800       204,964       191,111       161,387  
 
 
     18,027       18,043       47,068       40,000       20,500       24,400       35,000  
 
 
     282,838       241,599       206,704       169,886       154,629       169,987       155,571  
 
Cash Flow Provided to Net Cash Provided by Operating Activities from Continuing Operations (dollars in millions)
                                         
    Cash Flow   Deferred   Changes in Current   One-time Provision for   Net Cash Provided by
Year   Provided   Income Taxes   Operating Items   Litigation Loss, Net(1)   Operating Activities
 
1997
   $ 100.5     $ (0.5 )   $ (2.3 )     —     $ 97.7  
1998
     109.5       4.4       50.4     $ (39.6 )     124.7  
1999
     119.8       2.8       11.9       —       134.5  
2000
     129.7       1.3       (25.9 )     —       105.1  
2001
     150.8       (10.6 )     51.8       —       192.0  
2002
     176.9       4.3       14.6       —       195.8  
2003
     179.1       (8.7 )     (7.9 )     —       162.5  
2004
     202.3       (1.5 )     36.3       —       237.1  
2005
     211.4       1.6       (50.5 )     —       162.5  
2006
     177.8       1.3       (26.3 )     —       152.8  
2006 POLARIS INDUSTRIES INC. ANNUAL REPORT PAGE 11

 

 

OTHER INVESTOR INFORMATION
(POLARIS INDUSTRIES LOGO)
STOCK EXCHANGE
Shares of common stock of Polaris Industries Inc. trade on the New York 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 19, 2007, at the Polaris Industries Inc. corporate headquarters, 2100 Highway 55, Medina, Minnesota. A proxy statement will be mailed on or about March 1, 2007, to each shareholder of record on February 21, 2007.
SUMMARY OF TRADING
For the Years Ended December 31,
                                 
    2006   2005
 
Quarter   High   Low   High   Low
 
First
   $ 54.90     $ 46.65     $ 74.18     $ 62.22  
Second
     53.62       42.33       71.19       51.60  
Third
     45.17       34.24       60.23       46.53  
Fourth
     47.61       39.00       53.95       43.75  
CASH DIVIDENDS DECLARED
Cash dividends are declared quarterly and have been paid since 1995. As of January 18, 2007, the quarterly dividend was increased to $0.34 per share.
                 
Quarter   2006   2005
 
First
   $ 0.31     $ 0.28  
Second
     0.31       0.28  
Third
     0.31       0.28  
Fourth
     0.31       0.28  
 
Total
   $ 1.24     $ 1.12  
 
SHAREHOLDERS OF RECORD
Shareholders of record of the Company’s common stock on February 21, 2007, were 3,023.
SHAREHOLDER COMPOSITION
(PIE CHART)
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 of Investor Relations
     Polaris Industries Inc.
     2100 Highway 55
     Medina, MN 55340
     763-513-3477
     richard.edwards@polarisind.com
RESEARCH COVERAGE
AS OF FEBRUARY 2007
A.G. Edwards
Avondale Partners
Bank of America Securities
BMO Capital Markets Corp.
Citigroup
Craig-Hallum Partners
FTN Midwest Securities Corp.
Goldman Sachs
KeyBanc Capital Markets (McDonald)
Merrill Lynch
Raymond James & Associates
RBC Capital Markets
Robert W. Baird & Co.
Wedbush Morgan Securities
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.
PAGE 12 2006 POLARIS INDUSTRIES INC. ANNUAL REPORT