Polaris 2014 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 2014 Polaris annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

inclusion of Aixam in our consolidated financial statements for the full year in 2014, versus eight months in
2013, since it was acquired in April 2013. Also, GEM experienced an increase in sales during 2014 compared
to 2013.
Small Vehicles sales of $122.8 million in 2013 represents an increase of 177 percent compared to 2012. The
increase in sales over the comparable prior year periods is primarily due to the inclusion of Aixam in our
consolidated financial statements since it was acquired in April 2013. Also, both GEM and Goupil
experienced an increase in sales during 2013 compared to 2012.
PG&A sales increased 21 percent to $742.1 million for 2014 compared to 2013. The sales increase in 2014 was
driven by double digit percent increases in ORV, Motorcycles, and Small Vehicles related PG&A, which was
primarily driven by the addition of over 400 new model year 2015 accessories, including additions to the
family of Lock & Ride↧ attachments that add comfort, style and utility to ORVs and motorcycles. PG&A
sales also increased due to the inclusion of Kolpin and Pro Armor in our consolidated financial statements,
which were both acquired in 2014. Sales of PG&A to customers outside of North America increased
13 percent during 2014 compared to 2013.
PG&A sales increased 33 percent to $611.3 million for 2013 compared to 2012. The sales increase in 2013 was
driven by double digit percent increases in all product lines and categories, which was primarily driven by the
addition of over 300 new model year 2014 accessories, including additions to the family of Lock & Ride
attachments that add comfort, style and utility to ORVs and motorcycles. Sales of PG&A to customers outside
of North America increased 26 percent during 2013 compared to 2012. PG&A sales also increased over the
prior year periods due to the inclusion of Klim in our consolidated financial statements since it was acquired
in December 2012, and Aixam related PG&A since it was acquired in April 2013.
Sales by geographic region were as follows:
For the Years Ended December 31,
Percent of Percent of Percent Change Percent of Percent Change
($ in millions) 2014 Total Sales 2013 Total Sales 2014 vs. 2013 2012 Total Sales 2013 vs. 2012
United States .... $3,339.9 75% $2,721.3 72% 23% $2,311.0 72% 18%
Canada ......... 454.6 10% 463.3 12% (2)% 438.2 14% 6%
Other foreign
countries ...... 685.1 15% 592.5 16% 16% 460.6 14% 29%
Total sales . . . $4,479.6 100% $3,777.1 100% 19% $3,209.8 100% 18%
Significant regional trends were as follows:
United States:
Sales in the United States for 2014 increased 23 percent compared to 2013, primarily resulting from higher
shipments in all product lines and related PG&A, improved pricing and more sales of higher priced
side-by-side vehicles. The United States represented 75 percent, 72 percent and 72 percent of total company
sales in 2014, 2013 and 2012, respectively. Sales in the United States for 2013 increased 18 percent compared
to 2012, primarily resulting from higher shipments in all product lines and related PG&A, improved pricing
and more sales of higher priced side-by-side vehicles.
Canada:
Canadian sales decreased two percent in 2014 compared to 2013. Negative currency rate movements was the
primary contributor for the decrease in 2014, which had an unfavorable seven percent impact on sales for
2014 compared to 2013, partially offset by sales of higher priced side-by-side vehicles and motorcycles. Sales in
Canada represented 10 percent, 12 percent and 14 percent of total company sales in 2014, 2013, and 2012,
respectively. Canadian sales increased 6 percent in 2013 compared to 2012 due to increased shipments of
30