Polaris 2007 Annual Report Download - page 3

POLARIS
AT A GLANCE
FINANCIAL HIGHLIGHTS %
(dollars and shares in thousands, except per-share data) 2007 2006 Change
FOR THE YEAR
Sales $1,780,009 $1,656,518 7%
Operating income 176,036 168,057 5
Net income from continuing operations 112,598 112,791 —
Percent of sales 6.3% 6.8%
PER SHARE
Net income from continuing operations (diluted) $ 3.10 $ 2.72 14%
Dividends paid 1.36 1.24 10
Average shares outstanding (diluted) 36,324 41,451 –12
FINANCIAL POSITION
Total assets $ 769,881 $ 778,791 –1%
Stockholders’ equity 172,982 167,371 3
OTHER INFORMATION
Property and equipment (net) $ 204,351 $ 204,001 —%
Capital expenditures 63,747 52,636 21
Depreciation and amortization 62,093 71,164 –13
Borrowings under credit agreement 200,000 250,000 –20
Return on average shareholder equity 66% 41%
Average dividend yield 2.9% 2.6%
Number of employees – average 3,200 3,400 –6
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.
(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 of $61.4 million pretax, or $0.77 per diluted share,
has been excluded from the 1998 financial data presented.
Sales
(dollars in millions)
$1,870
$1,657
$1,780
05
$1,773
04
$1,552
03
$1,468
02
$1,427
01
$1,327
00
$1,245
99
$1,106
98 06 07
Net Income
from Continuing Operations
Per Share(1)
(dollars)
$3.15
$2.72
$3.10
05
$2.97
04
$2.58
03
$2.28
02
$1.99
01
$1.81
00
$1.64
99
$1.48
98 06 07
DISTRIBUTION
Polaris products are sold through a network
of approximately 1,600 independent dealers
in North America, and through six subsidiaries
and 43 distributors in approximately 130
countries outside of North America.
North American Dealers
• ATVs – 1,600
• Side-by-Sides – 1,300
• Snowmobiles – 800
• Victory – 340
• PG&A – 1,600
PRODUCTS
Polaris designs, manufactures and markets
innovative, high-quality, high-performance
motorized products for recreation and utility
use. Our product lines consist of all-terrain
recreational, utility and side-by-side vehicles
(ATVs); snowmobiles; motorcycles; and
related parts, garments and accessories
(PG&A).
New products drive sales and profitability
at Polaris. During 2007, the Company
introduced some of the most successful
new products in the Company’s history.
MANUFACTURING/
RESEARCH & DEVELOPMENT
Polaris designs, tests and assembles its
products at its manufacturing and research
and development facilities in the upper
Midwest United States. The Company prides
itself in being close to the customer and
extremely flexible and efficient in designing,
testing and manufacturing Polaris products.
New product introductions are the lifeblood
of the Company. In 2005, the Company
opened a $35 million state-of-the-art
Product Development Center in Wyoming,
Minnesota, which will continue to drive new
product introductions and, more importantly,
help improve the success rate of those new
products introduced each year.
67% ATVs
10% Snowmobiles
6% Victory Motorcycles
17% PG&A
67%
10%
6%
17%
Percentage of Sales
by Product Line