Management

  • Polaris: Takeaways from the second-quarter earnings report

    Friday, July 21, 2017 | Mary Green

    DN listened in on the Polaris second-quarter 2017 financial analyst call, held July 20 with Chairman and CEO Scott Wine and CFO Michael Speetzen. Here are our takeaways on the ORV market, Indian and Slingshot, and improvements the company must make with its Dealer network:


    POSITIVE OUTLOOK
    “The global powersports industry outlook is improving for the first time in several years.” (Scott Wine)

    “It’s the first time in, I don’t know – several years – that we have commented that we feel better about the industry.” (Mike Speetzen)

     

    We are at a point where we’re trying to ship at the same cadence as retail.”

    DEALERS: Inventory and RFM
    Dealer inventory is down due to RFM [retail flow management] implemented on ATVs and motorcycles, and soon on side-by-sides: “We are at a point where we’re trying to ship at the same cadence as retail. It puts a lot of strain on the manufacturing environment until we go completely live with RFM, but we’ve essentially already put our inventory at the right level, give or take.” (Scott Wine)

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  • Polaris: Takeaways from the Jan. 24 financials report, earnings call

    Wednesday, January 25, 2017 | Mary Green

    From the Polaris 2016 fourth-quarter and full-year earnings call, held on Jan. 24 with financial analysts: CEO Scott Wine and CFO Michael Speetzen on dealer margins, inventory, prospects for Indian and Slingshot…and politics.

    MARGINS
    Polaris Chairman and CEO Scott Wine said he anticipated dealer margins in 2017 to increase from 2016 levels. “The warranty cost alone gives you the benefit, but… [the] promo cost is elevated in the first half [of 2017] relative to where we were in the first half of 2016. As we get into the back half [of 2017], two things happen: one, we start to lap the high promo cost, so that stops being a headwind, and then we also start to see volumes improving slightly.

    We’re going to have to rely a little bit more on promotions than we have previously.”

    In the short-term, as Polaris focuses on quality and safety issues, “we’re going to have to rely a little bit more on promotions than we have previously,” Wine said. “We do believe that’s transitory.”

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