Polaris 2004 Annual Report Download - page 4

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Polaris Industries Inc. is headquartered in Medina, Minnesota, and
designs, manufactures and markets innovative, high-quality, high-performance
motorized products for recreation and utility use. • Our product lines consist of all-
terrain recreational and utility vehicles (ATVs), snowmobiles, motorcycles and related
parts, garments and accessories (PG&A). Polaris engineering, manufacturing and
distribution facilities are located in Roseau, Minnesota; Osceola, Wisconsin; Spirit Lake,
Iowa; Vermillion, South Dakota; Passy, France; Ballarat, Victoria, Australia; Winnipeg,
Manitoba; Gloucester, United Kingdom; Askim, Norway; Östersund, Sweden; and
Hudson, Wisconsin (joint venture with Fuji Heavy Industries, Ltd.). • Our wholesale
finance company, Polaris Acceptance, is a 50/50 joint venture. Polaris products are
sold through a network of nearly 2,000 dealers in North America, five subsidiaries
and 40 distributors in 126 countries outside North America. • Polaris common stock
trades on the New York Stock Exchange and Pacific Stock Exchange under the
symbol PII, and the Company is included in the S&P SmallCap 600 stock price index.
Financial Highlights (dollars and shares in thousands, except per share data)
2004 2003 % Change
FOR THE YEAR
Sales from continuing operations $ 1,773,206 $ 1,552,351 14%
Operating income from continuing operations 211,637 179,898 18
Net income from continuing operations 136,813 119,823 14
Percent of sales 7.7% 7.7%
PER SHARE
Net income from continuing operations – diluted $ 3.04 $ 2.66 14%
Dividends paid 0.92 0.62 48
Net book value 8.03 7.09 13
FINANCIAL POSITION
Total assets $ 792,925 $ 671,352 18%
Stockholders’ equity 361,732 319,378 13
Average shares outstanding – diluted 45,035 45,056 —
OTHER INFORMATION
Property and equipment (net) $ 200,901 $ 171,744 17%
Capital expenditures 88,836 59,209 50
Depreciation and amortization 59,339 52,657 13
Borrowings under credit agreement 18,000 18,008 —
Return on average shareholder equity from continuing operations 40% 40%
Average dividend yield 1.6% 1.8%
Total return to shareholders 57% 54%
Number of employees – average 3,616 3,380 7
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.
Table of Contents
IFC Polaris Products
at a Glance
1Letter from the CEO
5Letter from the Chairman
6Operations Review
22 11-Year Selected
Financial Data
24 Directors, Officers
and Managers
25 Form 10-K
IBC Other Investor Information
$1.89
01
$1.70
00
$1.53
99
$1.42
98
$1.27
97
$1.17
96
$3.04
95 02 04
$2.07
$2.66
03
$2.36
$1,327
01
$1,245
00
$1,106
99
$948
98
$985
97
$909
96
$1,773
95 02 04
$1,427
$1,552
03
$1,468
Sales from Continuing Operations
(dollars in millions) Net Income from Continuing Operations Per Share*
(dollars)
* 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 of $61.4 million, or $0.77 per diluted share, has been excluded from the 1998 financial data presented.