Polaris(PII) - 2024 Q1 - Quarterly Report

Financial Performance - Polaris Inc. reported sales of $1,736.4 million for the three months ended March 31, 2024, a decrease of 20.2$2,179.7 million in the same period of 2023[12]. - The company's gross profit for Q1 2024 was $330.3 million, down 29.6$469.2 million in Q1 2023[12]. - Operating income fell to $39.0 million in Q1 2024, a decline of 75.8$161.1 million in the prior year[12]. - Net income attributable to Polaris Inc. was $3.8 million for Q1 2024, a significant drop of 96.7$113.4 million in Q1 2023[12]. - Adjusted EBITDA for the first quarter was $110.0 million, a decline of 54$238.1 million in the previous year[80]. - The effective income tax rate increased to 49.3% from 21.7% due to unfavorable share-based compensation adjustments[90]. - The company reported a comprehensive loss of $2.3 million for Q1 2024, contrasting with a comprehensive income of$126.2 million in Q1 2023[14]. Revenue Breakdown - Total revenue for the three months ended March 31, 2024, was $1,736.4 million, a decrease of 20.3$2,179.7 million for the same period in 2023[34]. - Wholegoods revenue decreased from $1,782.0 million in Q1 2023 to$1,325.3 million in Q1 2024, representing a decline of 25.5%[34]. - Revenue from the United States was $1,342.8 million in Q1 2024, down from$1,694.6 million in Q1 2023, a decrease of 20.8%[34]. - Off Road segment sales decreased by 16% to $1,335.7 million, while On Road sales fell 14$277.2 million, and Marine sales plummeted 53% to $123.5 million[95]. Assets and Liabilities - Total current assets increased to$2,732.6 million as of March 31, 2024, compared to $2,691.7 million at the end of 2023[10]. - Total liabilities rose to$4,175.6 million as of March 31, 2024, up from $4,085.2 million at the end of 2023[10]. - Cash and cash equivalents decreased to$318.8 million as of March 31, 2024, down from $367.8 million at the end of 2023[10]. - The company’s retained earnings decreased to$197.3 million as of March 31, 2024, from $243.5 million at the end of 2023[10]. - Total financing obligations as of March 31, 2024, were$2,068.2 million, an increase from $1,908.4 million as of December 31, 2023[43]. Shareholder Returns - The company declared a dividend of$0.66 per share for the three-month period ended March 31, 2024, compared to $0.65 per share for the same period in 2023[17]. - Cash dividends declared and paid per common share increased to$0.66 for the three months ended March 31, 2024, compared to $0.65 for the same period in 2023[53]. - The company repurchased approximately 0.2 million shares of its common stock for$16.0 million during the three months ended March 31, 2024, with an additional $1,175.1 million authorized for future repurchases[52]. Operating Expenses and Cash Flow - Operating expenses decreased by 4$313.2 million, but as a percentage of sales, they increased to 18.0% from 14.9%[80]. - Net cash provided by operating activities was $(105.4) million, compared to$124.2 million in the prior year[19]. - The company experienced a net cash used for operating activities of $105.4 million in Q1 2024, contrasting with a net cash provided of$124.2 million in Q1 2023[19]. Other Financial Metrics - The company recorded $62.9 million in depreciation and amortization for the three months ended March 31, 2024, compared to$61.8 million in 2023[19]. - Borrowings under financing obligations increased to $842.0 million in Q1 2024, up from$573.4 million in Q1 2023[19]. - The fair value of long-term financing obligations was approximately $2,099.2 million as of March 31, 2024, compared to$1,954.3 million at the end of 2023[25]. - The company had an accrual of $135.2 million for probable payments related to product liability litigation as of March 31, 2024[63].