Polaris 2008 Annual Report Download - page 36

The table below sets forth the information with respect to purchases made by or on behalf of Polaris during the
fourth quarter of the fiscal year ended December 31, 2008.
Issuer Purchases of Equity Securities
Period
Total Number of
Shares Purchased
Average Price Paid
per Share
Total Number of
Shares Purchased as
Part of Publicly
Announced Program
Maximum Number
of Shares That May
Yet Be Purchased
Under the
Program(1)
October 1 - 31, 2008......... 0 — 0 3,981,000
November 1 - 30, 2008 ....... 1,000 $32.51 1,000 3,980,000
December 1 - 31, 2008 ....... 150,000 28.47 150,000 3,830,000
Total .................. 151,000 $28.49 151,000 3,830,000
(1) The Board of Directors previously authorized a share repurchase program to repurchase up to an aggregate of
37.5 million shares of the Company’s common stock (the “Program”) as of December 31, 2008. Of that total,
approximately 33.7 million shares have been repurchased cumulatively from 1996 through December 31, 2008.
Item 6. Selected Financial Data
The information under the caption “11-Year Selected Financial Data” appearing on pages 10 and 11 of the
Company’s 2008 Annual Report is incorporated herein by reference.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion pertains to the results of operations and financial position of the Company for each of
the three years in the period ended December 31, 2008, and should be read in conjunction with the Consolidated
Financial Statements and the Notes thereto included elsewhere in this report. On September 2, 2004, the Company
announced its decision to discontinue the manufacture of marine products effective immediately. The marine
products division’s financial results are reported separately as discontinued operations for all periods presented.
Executive-Level Overview
The Company delivered record sales and earnings per share in 2008. The Company’s innovative product
portfolio, led by the Ranger and RZR side-by-side products, enabled Polaris to deliver six percent sales growth in
the United States as well as the Canadian and International businesses each delivering 18 percent sales growth for
2008. Polaris’ side-by-side products performed well, providing a positive sales mix and more than offsetting the
steep declines in the core ATV business. The Company experienced sales growth in most product lines in 2008, with
the exception of Victory and core ATVs, although even they managed to gain share in a difficult retail environment.
Polaris did not entirely escape the weakness in the powersports industry markets in 2008, as noted by a two percent
decline in volume for the year. However, Polaris did benefit from a mix shift due to higher sales of side-by-side
products, higher PG&A sales and increased pricing, which combined to drive total Company sales up nine percent
in 2008 over 2007. In 2008, the Company’s largest division, the off-road vehicle (“ORV”) business, which combines
the core ATV and side-by-side businesses into a single division, achieved the #1 market share position in both
North America and Europe for the first time.
For the full year ended December 31, 2008, Polaris reported net income from continuing operations of
$117.4 million, or $3.50 per diluted share, compared to $112.6 million, or $3.10 per diluted share for the year ended
December 31, 2007, representing a 13 percent increase on a per diluted share basis. Sales for the full year 2008
totaled $1,948.3 million, an increase of nine percent compared to sales of $1,780.0 million for the full year 2007.
The Company’s product lines consist of ORVs, snowmobiles, motorcycles and their related parts, garments
and accessories (PG&A). ORVs is the largest product line representing 67 percent of Polaris’ sales in 2008,
snowmobiles accounted for ten percent of 2008 total sales, Victory motorcycles was five percent and PG&A
represented 18 percent of 2008 total Company sales. The Company sells its products through a network of 1,500
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