Polaris Industries Inc. (PII, Financial) filed Quarterly Report for the period ended 2010-03-31.
Polaris Industries Inc. has a market cap of $1.89 billion; its shares were traded at around $57.5 with a P/E ratio of 17.1 and P/S ratio of 1.2. The dividend yield of Polaris Industries Inc. stocks is 2.7%. Polaris Industries Inc. had an annual average earning growth of 6.8% over the past 10 years. GuruFocus rated Polaris Industries Inc. the business predictability rank of 3.5-star.PII is in the portfolios of Richard Aster Jr of Meridian Fund, Jim Simons of Renaissance Technologies LLC, Kenneth Fisher of Fisher Asset Management, LLC, Steven Cohen of SAC Capital Advisors, Chuck Royce of Royce& Associates.
Reported net income for the first quarter 2010 was $19.8 million, or $0.59 per diluted share, compared to $8.5 million or $0.26 per diluted share for the first quarter 2009. The increase is primarily due to the higher sales volume and higher gross margins during the 2010 first quarter. The 2009 first quarter net income included an $0.18 per diluted share non-cash impairment charge on the Companys investment in KTM.
Net cash provided by operating activities totaled $3.8 million for the first quarter 2010, an increase from $33.1 million net cash used in the first quarter of 2009. The $36.9 million increase in net cash provided by operating activities for the 2010 first quarter period compared to the same period in 2009 is primarily due to a $11.3 million increase in net income offset by the non cash impairment charge of $9.0 million in 2009 and the following changes in working capital:
Net cash used for investing activities was $5.5 million for the first quarter 2010 compared to cash used of $8.7 million for the same period in 2009. The primary use of cash for the first three months of 2010 and 2009 was the investment of $8.1 million and $13.7 million, respectively, for the purchase of property and equipment, including new product development tooling. During first quarter 2010, the Company invested $2.5 million (net of cash acquired) to acquire Swissauto Powersports Ltd., a developer of high performance and high efficiency engines and innovative vehicles.
Net cash used for financing activities was $14.1 million for the first quarter 2010 compared to cash provided of $32.6 million for financing activities in the same period in 2009. The Company borrowed under the credit agreement net cash of $0.0 million and $44.0 million for the quarters ended March 31, 2010 and 2009, respectively, to fund ongoing operations. The Company paid cash dividends of $13.1 million and $12.4 million in the first quarter of 2010 and 2009, respectively. Common stock repurchased during the first quarter 2010 and 2009 totaled $27.2 million and $0.3 million, respectively. Proceeds from the issuances of stock under employee plans was $22.1 million and $1.7 million for the first quarter 2010 and 2009, respectively.
The seasonality of production and shipments causes working capital requirements to fluctuate during the year. Polaris is party to an unsecured variable interest rate bank lending agreement that matures on December 2, 2011, comprised of a $250 million revolving loan facility for working capital needs and a $200 million term loan. The $200 million term loan was utilized in its entirety in December 2006 principally to fund an accelerated share repurchase transaction. Borrowings under the agreement bear interest based on LIBOR or prime rates (effective rate was 0.76 percent at March 31, 2010). At March 31, 2010, Polaris had total outstanding borrowings under the agreement of $200.0 million. The Companys debt to total capital ratio was 48 percent and 64 percent at March 31, 2010 and 2009, respectively.
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Polaris Industries Inc. has a market cap of $1.89 billion; its shares were traded at around $57.5 with a P/E ratio of 17.1 and P/S ratio of 1.2. The dividend yield of Polaris Industries Inc. stocks is 2.7%. Polaris Industries Inc. had an annual average earning growth of 6.8% over the past 10 years. GuruFocus rated Polaris Industries Inc. the business predictability rank of 3.5-star.PII is in the portfolios of Richard Aster Jr of Meridian Fund, Jim Simons of Renaissance Technologies LLC, Kenneth Fisher of Fisher Asset Management, LLC, Steven Cohen of SAC Capital Advisors, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
For the first quarter ended March 31, 2010, Polaris reported net income of $19.8 million, or $0.59 per diluted share, driven by an 170 basis point increase in its gross profit margin percentage. By comparison, 2009 first quarter net income was $8.5 million, or $0.26 per diluted share, which included an $0.18 per diluted share non-cash impairment charge on the Companys investment in KTM. Sales for the first quarter 2010 totaled $361.7 million, an increase of 16 percent from last years first quarter sales of $312.0 million.Reported net income for the first quarter 2010 was $19.8 million, or $0.59 per diluted share, compared to $8.5 million or $0.26 per diluted share for the first quarter 2009. The increase is primarily due to the higher sales volume and higher gross margins during the 2010 first quarter. The 2009 first quarter net income included an $0.18 per diluted share non-cash impairment charge on the Companys investment in KTM.
Net cash provided by operating activities totaled $3.8 million for the first quarter 2010, an increase from $33.1 million net cash used in the first quarter of 2009. The $36.9 million increase in net cash provided by operating activities for the 2010 first quarter period compared to the same period in 2009 is primarily due to a $11.3 million increase in net income offset by the non cash impairment charge of $9.0 million in 2009 and the following changes in working capital:
Net cash used for investing activities was $5.5 million for the first quarter 2010 compared to cash used of $8.7 million for the same period in 2009. The primary use of cash for the first three months of 2010 and 2009 was the investment of $8.1 million and $13.7 million, respectively, for the purchase of property and equipment, including new product development tooling. During first quarter 2010, the Company invested $2.5 million (net of cash acquired) to acquire Swissauto Powersports Ltd., a developer of high performance and high efficiency engines and innovative vehicles.
Net cash used for financing activities was $14.1 million for the first quarter 2010 compared to cash provided of $32.6 million for financing activities in the same period in 2009. The Company borrowed under the credit agreement net cash of $0.0 million and $44.0 million for the quarters ended March 31, 2010 and 2009, respectively, to fund ongoing operations. The Company paid cash dividends of $13.1 million and $12.4 million in the first quarter of 2010 and 2009, respectively. Common stock repurchased during the first quarter 2010 and 2009 totaled $27.2 million and $0.3 million, respectively. Proceeds from the issuances of stock under employee plans was $22.1 million and $1.7 million for the first quarter 2010 and 2009, respectively.
The seasonality of production and shipments causes working capital requirements to fluctuate during the year. Polaris is party to an unsecured variable interest rate bank lending agreement that matures on December 2, 2011, comprised of a $250 million revolving loan facility for working capital needs and a $200 million term loan. The $200 million term loan was utilized in its entirety in December 2006 principally to fund an accelerated share repurchase transaction. Borrowings under the agreement bear interest based on LIBOR or prime rates (effective rate was 0.76 percent at March 31, 2010). At March 31, 2010, Polaris had total outstanding borrowings under the agreement of $200.0 million. The Companys debt to total capital ratio was 48 percent and 64 percent at March 31, 2010 and 2009, respectively.
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