Polaris(US:PII)2025-04-30 15:33Financial Performance - Total sales for Q1 2025 were $1,535.8 million, a decrease of 11.5% compared to $1,736.4 million in Q1 2024[12] - Gross profit for Q1 2025 was $245.0 million, down 25.8% from $330.3 million in Q1 2024[12] - Net loss attributable to Polaris Inc. for Q1 2025 was $66.8 million, compared to a net income of $3.8 million in Q1 2024[12] - Basic and diluted net loss per share for Q1 2025 was $(1.17), compared to earnings of $0.07 per share in Q1 2024[12] - Operating loss for Q1 2025 was $(36.1) million, compared to an operating income of $39.0 million in Q1 2024[12] - Comprehensive loss for Q1 2025 was $(39.5) million, compared to a comprehensive loss of $(2.3) million in Q1 2024[15] - Total operating expenses for the three months ended March 31, 2025, were $303.2 million, slightly lower than $313.2 million in the same period of 2024[12] - The net loss attributable to Polaris Inc. for the three months ended March 31, 2025, was $66.8 million, compared to a net income of $3.8 million in the prior year[12] Assets and Liabilities - Total current assets decreased to $2,593.7 million as of March 31, 2025, from $2,632.4 million at the end of 2024[10] - Total liabilities decreased slightly to $4,215.3 million as of March 31, 2025, from $4,224.7 million at the end of 2024[10] - Shareholders' equity decreased to $1,230.6 million as of March 31, 2025, down from $1,294.1 million at the end of 2024[10] - As of March 31, 2025, total assets were $5,450.4 million, a decrease from $5,525.2 million as of December 31, 2024[10] - Current liabilities increased to $2,311.5 million as of March 31, 2025, compared to $2,293.2 million at the end of 2024[10] Cash Flow and Investments - Cash and cash equivalents increased to $291.7 million as of March 31, 2025, from $287.8 million at the end of 2024[10] - Net cash provided by operating activities was $83.2 million for the three months ended March 31, 2025, compared to a net cash used of $105.4 million in the same period of 2024[20] - The company reported a net cash used for investing activities of $28.3 million in Q1 2025, compared to $56.7 million in Q1 2024[20] - Financing activities resulted in a net cash outflow of $56.9 million in Q1 2025, compared to a net cash inflow of $115.7 million in Q1 2024[20] Revenue Breakdown - Revenue from Wholegoods was $1,125.4 million in Q1 2025, down from $1,325.3 million in Q1 2024, representing a decline of 15.1%[34] - The United States accounted for $1,192.7 million of total revenue in Q1 2025, compared to $1,342.8 million in Q1 2024, reflecting a decrease of 11.2%[34] - The Off Road segment generated sales of $1,198.6 million, while the On Road and Marine segments contributed $221.8 million and $115.4 million, respectively[75] Depreciation and Amortization - Depreciation and amortization increased to $73.4 million in Q1 2025 from $62.9 million in Q1 2024, reflecting a year-over-year increase of approximately 16.0%[20] - The company recorded $67.4 million in depreciation expense for the three months ended March 31, 2025, compared to $58.4 million in the same period of 2024[27] - The amortization expense for other intangible assets was $6.0 million for the three months ended March 31, 2025, compared to $4.5 million for the same period in 2024, representing a year-over-year increase of 33.3%[51] Shareholder Information - Cash dividends declared and paid per common share increased to $0.67 for the three months ended March 31, 2025, compared to $0.66 for the same period in 2024, marking a 1.5% increase[52] - The Company did not repurchase any shares under its share repurchase program during the three months ended March 31, 2025, but has authorization to repurchase up to an additional $1,109.3 million of common stock[52] Regulatory and Compliance - The Company is subject to extensive laws and regulations, and failure to comply could result in fines or penalties, impacting financial performance[66] Other Financial Metrics - The fair value of financing obligations was approximately $2,097.2 million as of March 31, 2025, compared to $2,103.5 million at the end of 2024[26] - The Company had an accrual of $290.3 million for probable payments related to product liability claims as of March 31, 2025, with $155.9 million recorded for probable insurance recoveries[63] - The notional value of the Company's derivative financial instruments designated as cash flow hedges was $683.4 million as of March 31, 2025, with total fair value assets of $5.1 million and liabilities of $2.5 million[70]