-- Completes 3.55 million share repurchase announced in December with
final $13.0 million payment.
-- Resumes open market and privately negotiated share repurchase
-- Reaffirms guidance for full year 2007 earnings from continuing
operations of $2.95 to $3.05 per diluted share.
MINNEAPOLIS, August 14 /CNW/ - Polaris Industries Inc. (NYSE: PII)
announced today that it has paid the purchase price adjustment that was
contemplated under its accelerated share repurchase agreement with Goldman,
Sachs & Co. On December 8, 2006, Polaris announced that it had repurchased
3.55 million shares of Polaris common stock at an initial purchase price of
approximately $165.6 million, or $46.64 per share. Goldman borrowed shares in
connection with the delivery of the 3.55 million repurchased shares to Polaris
in December 2006 and then purchased sufficient shares in the open market to
return to lenders. The accelerated share repurchase program was subject to a
purchase price adjustment at completion of the program based on an adjusted
weighted average price of Polaris common stock calculated in accordance with
the Company's agreement with Goldman that was payable by the Company in cash
or shares of its common stock. Polaris has paid the $13.0 million price
adjustment to Goldman in cash.
Polaris currently has approximately 4.75 million shares remaining in its
previously announced share repurchase authorization. The Company intends to
immediately resume repurchasing its shares through open market or privately
negotiated transactions in accordance with applicable federal securities laws.
All of the repurchased shares will be retired. Shares repurchased may be
funded from available cash, cash flow from operations and borrowings under the
Company's existing credit facility.
"I am very pleased with the success of this accelerated share repurchase
transaction. Repurchasing shares, particularly with the recent market
volatility, is consistent with our confidence in Polaris' long-term growth
prospects," commented Tom Tiller, Polaris' CEO. "The new Polaris products
unveiled in January 2007, the RANGER RZR(TM) and the Victory Vision(TM), have
been extremely well received by our dealers and customers. Additionally, the
reaction we received from our dealers to several new models recently
introduced at our dealer meeting in Nashville, including two new sport ATVs
and a six passenger side-by-side vehicle, was very promising. Although we are
still in the process of taking dealer orders, initial indications for model
year 2008 ATV, RANGER and motorcycle orders have been positive. We remain
confident in our current guidance that our full year 2007 earnings from
continuing operations will be in the range of $2.95 to $3.05 per diluted share
and we are making good progress towards our longer-term 2009 goals."
Information about the complete line of Polaris products is available from
authorized Polaris dealers or from the Polaris homepage at
With annual 2006 sales of $1.7 billion, Polaris designs, engineers,
manufactures and markets snowmobiles, all-terrain vehicles (ATVs), Victory
motorcycles and the Polaris RANGER(TM) for recreational and utility use.
Polaris is a recognized leader in the snowmobile industry and one of the
largest manufacturers of ATVs in the world. Victory motorcycles, established
in 1998 and representing the first all-new American-made motorcycle from a
major company in nearly 60 years, are rapidly making impressive in-roads into
the motorcycle cruiser and touring marketplace. Polaris also enhances the
riding experience with a complete line of Pure Polaris apparel, accessories
and parts, available at Polaris dealerships. Consumers can also purchase
apparel and vehicle accessories anytime at www.polarisindustries.com.
Polaris Industries Inc. trades on the New York Stock Exchange under the
symbol "PII," and the Company is included in the S&P Small-Cap 600 stock price
Except for historical information contained herein, the matters set forth
in this news release, including management's expectations regarding 2007
earnings per share from continuing operations and attainment of its 2009
goals, are forward-looking statements that involve certain risks and
uncertainties that could cause actual results to differ materially from those
forward-looking statements. Potential risks and uncertainties include such
factors as product offerings, promotional activities and pricing strategies by
competitors; warranty expenses; foreign currency exchange rate fluctuations;
effects of the KTM relationship; environmental and product safety regulatory
activity; effects of weather; commodity costs; uninsured product liability
claims; and overall economic conditions, including inflation and consumer
confidence and spending. Investors are also directed to consider other risks
and uncertainties discussed in documents filed by the Company with the
Securities and Exchange Commission.
For further information:
For further information: Polaris Industries Inc. Richard Edwards,