IRVINE, CA – January 27, 2012 – (Motor Sports Newswire) – Küryakyn has been the industry leader in improving and beautifying motorcycles for more years than most dealerships have been around. However, this proud history doesn’t mean they are mired in tradition… far from it! In addition to bringing more than 300 new products to market every year, Kürykyn is also the latest leading brand to go live with an interactive online training program at PowersportsU™ (www.PowersportsU.com).

Both Küryakyn and PowersportsU™ operate under the belief that education is an ongoing process rather than a one-time event. “But be warned, you will really have to put your thinking caps to earn your diploma from Küryakyn,” says sales manager Dan Gorowsky. “Because Küryakyn literally brings a new product to market every business day of  the year, there are four full courses in the latest PowersportsU™ learning program.”

Depending on your focus, you can opt for the Metric module or the V-Twin version of the educational track. The good news is that you still only have to pass three of the classes to graduate, “but you might want to earn a little extra credit with your customers by taking the second product course,” suggests Gorowsky. Instead of a mortarboard, part of the swag used as incentives to Küryakyn graduates is a vintage baseball cap.

In addition to the four new Küryakyn modules, PSU’s current roster of training courses includes Mustang Seats, Performance Machine, Progressive Suspension, Renthal and Vance & Hines. These programs also dovetail with brand‑specific, technically-oriented field training, conducted by Küryakyn at major events and rallies across the country.

PowersportsU™ is free to any user. To find out more and register, visit www.PowersportsU.com or if you will be attending the Dealernews International Powersports Dealer Expo in Indianapolis, stop by Booth #1627 to learn what else is new at PowersportsU™.

About PowersportsU.com — Many aftermarket products manufacturers are posting sales courses on PowersportsU to enable wholesale and retail sales personnel to improve their skills and product knowledge. Initial courses cover the basics of “The Brand,” “Technical Features & Benefits” and “How to Display & Sell.” Knowledge is power and in these days of increasing competitive pressures, it has never been more important to become totally familiar with what you sell.  Powersports University is here to help with product knowledge and selling skills, tips and techniques delivered to you via the Internet 24 hours a day… at your convenience. Enroll now and be on your way to better success in the actively changing powersports industry.

About Küryakyn —Küryakyn has been in the business of improving and beautifying motorcycles since before many of today’s riders “ran‘er through the gears” for the first time. Unlike a large segment of the industry, we’ve learned that the bandwagon usually doesn’t lead the parade. Each Küryakyn accessory is intended to look fantastic by itself, but is usually a member of a group of parts that combine to create a “look”. This allows each rider to add accessories a couple at a time, or go for the full complement all at once, without the end result looking like an arbitrary hodgepodge of parts that can leave you wondering if they were all supposed to go on the same bike. If you desire additional information, or have questions, we welcome your call or letter. Our well trained sales staff and technical department will be glad to assist you. At Küryakyn, ideas are born from a passion for motorcycles that spans 145 years of combined experience and active participation in the sport. Our ideas are products of creative minds that realize a motorcycle isn’t simply a means of transportation, but rather a representation of a person’s very identity. At Küryakyn we believe innovation is manufactured at the intersection of Performance and Style.

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Chrome’s TestRide™ means customers can ride a Harley® motorcycle for two or three years with no further obligation. When the TestRide™ period comes to an end, the customer has options, not obligations. Chrome’s lease affords the customer all end-of-lease options available through a standard vehicle lease: purchase the bike, renew the lease, or return the bike to the dealer.

“The TestRide product represents an important component to help Harley dealers add incremental sales each month. Chrome has designed an authentic lease program that allows many of our customers to realize their dream of riding a Harley®. We really like that Chrome’s solution is applicable to all credit tiers for all of the right reasons. Being able to offer a lease on a Harley amplifies the effect on our monthly sales figures”, says Scott Fischer, principal at Scott Fischer Enterprises and owner of Naples Harley-Davidson and Ft. Myers Harley-Davidson.

“Beingable to offer a lease for a new or used Harley® is a distinct advantage that allows us to add customers who might otherwise not leave the store with a bike,” says Gil Gibson, General Manager of Ft Myers Harley-Davidson. “The TestRide™ lease product addresses many of our customers’ preference of trading/upgrading every three years, with no loan obligations at year threefound with the traditional finance products.” Mr. Gibson elaborates, “I really like offering the TestRide™ lease to our H-D Rider’s Edge® graduates. They are new riders, so offering a way to get them riding without a big capital outlay or long term commitment helps turn them into customers sooner than later.” Rider’s Edge® is Harley-Davidson’s training class for novice riders.

Chrome Capital’s dealer relationships currently stretch from New Jersey to Florida, and the company aims to sign on the top 200 U.S. Harley-Davidson dealerships by the end of 2012. Chrome Capital is led by a seasoned management team including Peter E. Wasmer, CEO; Stephen J Swain, CFO; and Brian Cramer, Vice President of Dealer Development and Marketing.

Media Contact: Peter Wasmer, President.
239.213.9922
peter.wasmer@chromecapital.com
www.chromecapital.com

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ROME, GA – January 26, 2012 – (Motor Sports Newswire) – The new Triumph Speed Triple R, recently presented to the international press during EICMA, will roll on Pirelli Diablo Supercorsa SP tires derived directly from the SC (Special Compound) version of the same tread pattern adopted in the Superstock 1000 FIM Cup. The front mounts a 120/70 ZR17 sized tire while the rear takes a 190/55 ZR17 and the combination delivers pure race performance with all the added advantage of road use.

Pirelli’s Diablo Supercorsa SP uses the same profile of the SC version, providing flat areas on the shoulders, increasing the tire’s contact patch at mid lean when the rider is still braking or opening the throttle and an optimal variation of this contact area linked to the lean angle to give the most progressive response. The advantages are high stability and cornering speed, more confidence-inspiring feedback, with a greater feeling of security on road and on racetrack and an incredible traction for opening the throttle earlier than ever. This tire is characterized by a front casing, which keeps the tire on ground even under a low load, and a rear casing designed to improve the pressure distribution on the road surface.

The tread pattern maintains the same design as “SC” or Special Compound racing tires. While the performance-oriented development of land/sea ratio distribution respects FIM Supersport regulations, most tread grooves are concentrated on mid-lean area, leaving the tire crown and shoulders slick-like to improve grip. This design is aimed to give stability avoiding any jelly effect, to improve the ability to hold a line and to reach the maximum consistency of performance, a key contributor in reducing the total race time.

The SP compound extends the mileage vs. racing specific compounds and withstands perfectly for extended periods of time the temperature variations typical of road duty, providing also higher performances on wet ground. The stiffness and friction coefficient compound has been studied to allow all riders to find a very high cornering precision supported by anoutstanding contact feeling without affecting the well-known high stability and absorption behavior of Pirelli Supersport tires. The most important element of the Diablo Supercorsa SP compound is the unique possibility to guarantee quick warm up compared to the SC version as well as typical road performances like durability and high speed stability in a straight line.

Pirelli Tire North America designs, develops, manufactures and markets tires for passenger vehicles in both the original equipment and replacement markets as well as markets and distributes tires for motorcycles and motorsports. Located in Rome, Georgia, Pirelli’s Modular Integrated Robotized System (MIRS) employs state-of-the-art technology to manufacture automobile and light truck tires for both export and domestic markets.  For more information please visit www.us.pirelli.com.

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MINNEAPOLIS, MN – January 26, 2012 – (Motor Sports Newswire) – Arctic Cat Inc. (NASDAQ: ACAT) today reported net earnings of $17.0 million, or $0.92 per diluted share, on net sales of $207.0 million for the fiscal third quarter ended December 31, 2011. In the prior-year third quarter, Arctic Cat reported net earnings of $9.3 million, or $0.50 per diluted share, on net sales of $152.0 million.

“We are very pleased with the company’s strong third-quarter and year-to-date performance. Arctic Cat continued to execute well during the quarter, producing double-digit sales and earnings gains,” said Claude Jordan, Arctic Cat’s president and chief executive officer. “Our focus on introducing innovative products and technologies, such as our extensive new snowmobile line-up and the Wildcat sport side-by-side, contributed to the strong third-quarter results and helped generate increased sales across all product lines.”

Among the highlights of Arctic Cat’s fiscal 2012 third quarter financial results versus the same quarter last year:

• Net sales grew 36 percent, chiefly driven by increased snowmobile sales and international all-terrain vehicle (ATV) sales;
• The company began to ship the new Wildcat sport side-by-side vehicle;
• Operating expenses as a percent of sales declined to 10.4 percent compared to 13.5 percent;
• Operating profit rose 114 percent;
• Cash and short-term investments totaled $76.3 million at quarter end; and
• The company had no short- or long-term debt.

Gross margins in the fiscal 2012 third quarter rose 154 basis points, primarily due to higher volumes, selling prices and improved product mix, coupled with lower sales incentives. The company continues to expect full-year gross margin improvement of 20 to 60 basis points.

Total cash and short-term investments at quarter end were $76.3 million compared to $107.1 million at the end of the prior-year quarter. Arctic Cat used $79.3 million in cash during the fiscal 2012 third quarter to purchase all of Suzuki Motor Corporation’s 6.1 million shares of Arctic Cat Class B common stock. The stock buyback was funded entirely with existing cash on the company’s balance sheet. The transaction reduced Arctic Cat’s outstanding shares from 18.4 million to 12.3 million, increasing non-Suzuki shareholders’ ownership of outstanding common shares by approximately 33 percent while leaving Arctic Cat’s public share float unchanged.

Commented Jordan: “We believe that this stock buyback provides immediate and long-term value to our remaining shareholders, who should see the benefit in improved earnings per diluted share from reduced shares over the next four quarters.”

Following the share purchase from Suzuki, Arctic Cat continues to have a strong balance sheet. Given the company’s current cash position and projected cash generation, Arctic Cat expects to end the current 2012 fiscal year with more than $60 million in cash.

As previously announced, Suzuki will continue to supply snowmobile engines to Arctic Cat through the 2014 model year, as well as engine parts to service existing engines. Arctic Cat will move snowmobile engine manufacturing to its St. Cloud, Minn., facility, where the company has manufactured ATV engines since 2007.

For the nine months ended December 31, 2011, Arctic Cat’s net earnings increased to $36.1 million, or $1.94 per diluted share, on net sales of $486.8 million. In the first nine months of last fiscal year, the company reported net earnings of $22.6 million, or $1.22 per diluted share, on net sales of $391.2 million.

Business Line Results

Snowmobile sales rose 61 percent to $125.2 million in the fiscal 2012 third quarter, up from $77.8 million in the prior-year quarter. Sales continued to be fueled by Arctic Cat’s extensive new 2012 model line-up, announced in March 2011, with 23 all-new snowmobiles representing 75 percent of the current offerings.

ATV sales increased 12 percent to $54.4 million in the fiscal 2012 third quarter versus $48.6 million in the same period last year, with strong contributions from Arctic Cat’s Prowler line of side-by-sides. During the third quarter, Arctic Cat began shipping limited quantities of its all-new Wildcat V-Twin 1000i H.O. sport recreational off-road vehicle (ROV) to dealers. The Wildcat ROV was introduced to the public through demonstrations and rides held throughout North America. Arctic Cat is ramping up production of the Wildcat in the fiscal fourth quarter in order to meet demand for this off-road sport vehicle.

Sales of parts, garments and accessories (PG&A) in the fiscal 2012 third quarter grew 7 percent to $27.4 million versus $25.6 million in the prior-year quarter. The growth was primarily due to snowmobile-related parts, garments and accessories sales. With the launch of its e-commerce site in Canada, Arctic Cat now offers online PG&A sales throughout North America. The company also launched a wide range of accessories for Wildcat vehicle customization.

Company Raises Fiscal 2012 Outlook

“With product innovation driving increased sales and our continued progress on operational excellence and execution, we are raising our fiscal 2012 sales and earnings guidance for the third consecutive quarter,” said Jordan. “We remain well-positioned for future sales growth across all product lines.”

Arctic Cat continues to expect higher snowmobile retail sales in fiscal 2012, due to its new model line-up. The company also anticipates continued gains in its ROV business, fueled by the competitive strength of the Prowler side-by-side offerings and the growth potential for the Wildcat pure-sport ROV model. Additionally, the company remains focused on further enhancing profitability through operational efficiencies.

Arctic Cat’s fiscal 2012 outlook now includes the following assumptions versus the prior fiscal year: ATV industry retail sales declining approximately 10 to 15 percent; snowmobile industry retail sales up approximately 3 to 5 percent; Arctic Cat dealer inventories decreasing 10 to 20 percent; achieving lower operating expense levels as a percent of sales; increasing cash flow from operations; and ending the year with more than $60 million in cash on its balance sheet and no debt. The company expects gross margins to improve between 20 to 60 basis points in fiscal 2012.

For the fiscal year ending March 31, 2012, Arctic Cat now anticipates sales in the range of $568 million to $575 million, an increase of 22 percent to 24 percent versus fiscal 2011. The company estimates that fiscal 2012 earnings per diluted share will be in the range of $1.60 to $1.70, an increase of 129 percent to 143 percent. Previously, the company expected fiscal 2012 sales in the range of $530 million to $545 million and earnings in the range of $1.10 to $1.15 per diluted share.

Conference Call

A conference call is scheduled for 11 a.m. CT (12 p.m. ET) today. To listen to the live call dial 1-800-762-8795. The webcast may be accessed through the investor relations section of www.arcticcat.com/corporate. In addition, a telephone replay will be available through February 2, 2012, by dialing 1-800-406-7325, passcode 4509174.

About Arctic Cat

Arctic Cat Inc. designs, engineers, manufactures and markets all-terrain vehicles (ATVs) and snowmobiles under the Arctic Cat® brand name, as well as related parts, garments and accessories. Its common stock is traded on the Nasdaq Global Select Market under the ticker symbol “ACAT.” More information about Arctic Cat and its products is available at www.arcticcat.com.

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain forward-looking statements. The Company’s Annual Report, as well as the Report on Form 10-K, its Quarterly Report on Form 8-K and other filings with the Securities and Exchange Commission, the Company’s press releases and oral statements made with the approval of an authorized executive officer, contain forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. The words “aim,” “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that indicate future events and trends identify forward-looking statements. Actual future results and trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to: product mix and volume; competitive pressure on sales, pricing and sales incentives; increase in material or production cost which cannot be recouped in product pricing; changes in the sourcing of engines; interruption of dealer floorplan financing; warranty expenses and product recalls; foreign currency exchange rate fluctuations; product liability claims and other legal proceedings in excess of reserves or insured amounts; environmental and product safety regulatory activity; effects of the weather; general economic conditions and political changes; interest rate changes; consumer demand and confidence; and those set forth in the Company’s Annual Report on Form 10-K for the year ended March 31, 2011, under heading “Item 1A. Risk Factors.” The Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

FINANCIAL TABLES FOLLOW

Source: Arctic Cat Inc.

Arctic Cat Inc.
Timothy C. Delmore, 763-354-1800
Chief Financial Officer
or
Padilla Speer Beardsley Inc.
Shawn Brumbaugh, 612-455-1754
sbrumbaugh@padillaspeer.com

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The deeply pocketed driver seat on the one-piece Wide Touring style with Driver Backrest is a full 16.5” wide and sits you at the ideal cruising angle.  The 13” wide passenger seat utilizes Mustang’s unique internal steel support wings.  The optional driver backrest provides superb back support for those longer rides and is fully adjustable and easily removable.

The Vintage style seat is sold as a three-piece set including solo, removable driver backrest and passenger seat with a backrest receiver for $739 retail; the optional passenger backrest (shown) is $200.  Also available with studs and conchos.

Mustang seats for Metric Cruisers and H-D^® models are proudly handcrafted in the USA.  For more info, visit MustangSeats.com or call 800-243-1392.

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IRVINE, CA – January 25, 2012 – (Motor Sports Newswire) – Raising awareness and revenue for the Right Rider Access Fund, the Motorcycle Industry Council (MIC) will host a star-studded breakfast auction at next month’s 2012 Dealer Expo in Indianapolis. The free breakfast will include racing legends Mark Blackwell and Kevin Schwantz, with more champions to be named later. The event will be emceed by MIC Board Director Eric Anderson and MIC member Tom White.

The event is set for 8:00 a.m. on Saturday, Feb. 18, in the Wabash Room of the Indiana Convention Center, and is open to any Dealer Expo attendee: dealers, manufacturers, aftermarket reps and all others are welcome. Breakfast and sign-in for the auction begins at 7:30 a.m., though space is limited to 250.  All proceeds will benefit the Right Rider Access Fund (RRAF).

Items slated for the RRAF auction block will appeal to off-road enthusiasts and street riders alike. So far, these items include a pristine, vintage Yamaha DT1, graciously donated by Tom White; a Schwantz School at your choice of Road Atlanta or Indianapolis Motor Speedway, courtesy of American Suzuki Motor Corp.; and a variety of Supercross jerseys autographed by your fan-favorite Supercross racers. Keep an eye out for future releases and a final list of auction items at www.riderfund.org.

“We’re all familiar with the live to ride slogan,” said MIC President and CEO Tim Buche. “Now, the MIC is encouraging riders to give to ride by donating their time to maintain trails or money to support the RRAF’s initiatives and fund the grants it gives to other partners that strive to preserve current riding areas and opportunities. That’s what this auction is all about: Giving to Ride. The BlueRibbon Coalition previously hosted The Breakfast of Champions fundraiser like this one, and our plan is for the MIC auction to be something of an homage to its event. We want to give our attendees valuable goods and experiences to bid on, but we also want to entertain them by having motorcycle industry luminaries on hand for interviews. Most importantly, we want to encourage everyone to Give to Ride by supporting the RRAF at what we hope will be an exciting and entertaining event.”

The Right Rider Access Fund is a charitable, community benefit organization created in 2011 to support off-highway vehicle enthusiasts directly, by supplementing the work of the Motorcycle Industry Council, the Specialty Vehicle Institute of America, and the Recreational Off-Highway Vehicle Association, and in other ways. The Fund’s charitable mission is to promote the safe and responsible use of off-highway vehicles and to preserve their access to appropriate lands. RRAF initiates its own initiatives and provides grants to others, like the NOHVCC. www.riderfund.org

The Motorcycle Industry Council exists to preserve, protect and promote motorcycling through government relations, communications and media relations, statistics and research, aftermarket programs, development of data communications standards, and activities surrounding technical and regulatory issues. As a not-for-profit, national industry association, the MIC seeks to support motorcyclists by representing manufacturers and distributors of motorcycles, scooters, motorcycle/ATV/ROV parts and accessories, and members of allied trades such as insurance, finance and investment companies, media companies and consultants.

The MIC is headquartered in Irvine, Calif., with a government relations office in metropolitan Washington, D.C. First called the MIC in 1970, the organization has been in operation since 1914. Visit the MIC at www.mic.org.

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Jeremy McWilliams (GB) on the new KTM 690 Duke:
Anti-hopping clutch, ride-by-wire & ABS are standard

Promising young riders from 14 to 19 years will experience KTM’s ‘Ready to Race’ feeling in the KTM European Junior Cup 2012! Like the Red Bull Rookies Cup, the series represents the entry-level class for the World Superbike Championship. Riders must have at least one year’s experience in a licensed FIM series to ensure the level of competition is high. Some 36 young riders from 10 nations will be on the start for a selection of eight races in Europe. Just like the Red Bull Rookies Cup, riders will be able to display their talents in prime time on the track, namely immediately before the second Superbike heat of the day.

Current KTM PowerParts version of the new 690 Duke
(Not the European Junior Cup competition bike!)

The Motorcycle World Championship (MotoGP) has already shown that this is a concept that works very well. Young Red Bull Rookies riders have gone into battle for five years now on identical KTM RC 125 two stroke bikes to fight for points, victories and attention. Former Red Bull Rookies Danny Kent (GB) and Arthur Sissis (AUS) are just two of many who have succeeded in advancing to professional level. Both these riders will race for the Red Bull KTM Ajo Team on KTM’s new Moto3 bike in the 2012 season.

Pit Beirer (KTM Motorsport Manager): “We have been successfully involved in the Motorcycle World Championship for some years, either in the Red Bull Rookies Cup or also from this season in the new Moto3 class. With the KTM European Junior Cup we will also be supporting new talent in the Superbike World Championship from 2012!”

Jeremy McWilliams (Ex-MotoGP-Pilot): “I had the chance to ride the 690 Duke in Spain when we were doing an amazing photo shoot for the factory. The bike felt  incredibly light and the motor is so flexible. The 690 Duke will make an ideal race bike for the European Junior Cup riders, coupled with PowerParts and adjustable suspension it’s ready to race!”

Gerry Bryce (Director EJC): “We are very pleased with the new partnership with KTM. The new 690 Duke has unbelievable performance data and is in a league of its own in this segment. We are confident that the 690 Duke is the perfect motorcycle for the young EJC riders in terms of both the action on the racing circuit and improvement of the youngsters’ riding ability!”

With around 70 hp and just 150 kg the KTM 690 Duke is the world’s most powerful series single cylinder! Also “Made in Austria”: frame, swing arm and suspension
elements from WP Suspensions

KTM 690 Duke Cup Motorcycle (approx. +10 hp, -10 kg):

Optics

• Standard mask with carbon headlight cover
• No lighting, mirrors or number plate holder
• Monoseat cover
• KTM PowerParts (PP) seat: somewhat more rigid and with a larger area suitable for active riding
• PP Foot Peg Kit for higher positioning or for positioning feet more to the rear of the bike: thus creating better racing ergonomics and enhancing the freedom to lean into the corners.
• Rigid foot pegs in international racing standard
• Lower handlebar and handlebar clamps
• PP Crash Bars
• PP Akrapovic titanium exhaust system with titanium/carbon silencer
• PP Camshaft
• PP Airbox

Akrapovic titanium exhaust system from the KTM PowerParts assortment.

Special parts

• Fully adjustable WP suspension
• Modified braking system
• International racing standard oil drip tray

Stripped down series model 690 Duke.

Racing Calendar for the KTM European Junior Cup 2012:

• April 22 – Assen (NL)
• May 6 – Monza (I)
• June 10 – Misano Adriatico (I)
• July 1 – Motorland Aragon (E)
• July 22 – Brno (CZ)
• August 5 – Silverstone (GB)
• September 9 – Nürburgring (D)
• October 7 – Magny Cours (F)

www.europeanjuniorcup.com
www.ktm.com
www.ktmimages.com

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“Every 16 seconds a snowmobile, ATV or personal watercraft part or accessory is sold on eBay Motors,” said ChannelAdvisor Vice President of Sales Ryan Walsh. “The powersports sector is booming online and retailers must understand how to capitalize on this e-commerce explosion. With such a vast amount of parts and accessories to sell, powersports sellers can really use a complete solution that streamlines and accelerates the e-commerce process.”

ChannelAdvisor’s e-commerce experts will be available at Dealer Expo to discuss the benefits of ChannelAdvisor’s platform for powersports retailers. ChannelAdvisor’s solutions include products for marketplaces like eBay and Amazon, as well as PPC management, comparison shopping database listing and more. These products simplify the sales process by automating product listings, generating profitable keywords and providing valuable reporting and analytics.

ChannelAdvisor powers more than 3,000 top e-commerce brands, and within the past year more than 150 automotive and powersports retailers selected ChannelAdvisor to help them be seen and sell more online. To learn more about how ChannelAdvisor can rev up sales for powersports retailers, download this ebook or request a meeting at Dealer Expo.

Friend us on Facebook
Follow us on Twitter @ChannelAdvisor
Connect on LinkedIn

About ChannelAdvisor

ChannelAdvisor is a global e-commerce platform provider that helps retailers be seen and sell more online through channels such as marketplaces, paid search and comparison shopping, and with webstores and rich media solutions. Widely respected as a trusted advisor for more than 3,000 top e-commerce brands, ChannelAdvisor calms the chaos of online selling by enabling retailers to submit one inventory feed to the ChannelAdvisor platform where it is translated to fit the specifications of hundreds of e-commerce channels and distributed accordingly. In 2011, ChannelAdvisor managed more than $3 billion in gross merchandise value (GMV) on behalf of retailers of all sizes including Dell, Brookstone, Under Armour and more than 30 percent of the Internet Retailer Top 500 online retailers. ChannelAdvisor is headquartered in Research Triangle Park, NC with offices in New York, Seattle, Australia, Ireland, Germany and the United Kingdom. For further information, visit www.channeladvisor.com.

Contacts
ChannelAdvisor
Sarah O‘Dea, 919-228-4784
sarah.odea@channeladvisor.com

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• Fourth quarter 2011 earnings per diluted share increased 15% to a record $0.90 with sales increasing 26% from the year earlier period to a record $782.0 million.
• All product lines experienced increased sales and market share for the full year 2011.
• International sales increased 43% in the fourth quarter 2011 and 39% for full year 2011 despite a volatile European economic environment.
• Full year 2011 earnings per diluted share increased 50% to a record $3.20 with record sales of $2,656.9 million, an increase of 33% from the 2010 full year.
• Full year 2011 gross profit margins improved 130 basis points over 2010.

MINNEAPOLIS, MN – January 25, 2012 – (Motor Sports Newswire) – Polaris Industries Inc. (NYSE:PII) today reported record net income of $0.90 per diluted share for the fourth quarter of 2011, up 15 percent over the 2010 fourth quarter. Net income for the fourth quarter 2011 was a record $63.9 million, an increase of 17 percent over the same period in 2010. Record sales of $782.0 million for the fourth quarter 2011 increased 26 percent over 2010 fourth quarter sales of $618.4 million.

Full Year Results

For the full year ended December 31, 2011, Polaris reported record net income of $227.6 million, or a record $3.20 per diluted share, compared to $147.1 million, or $2.14 per diluted share for the year ended December 31, 2010. This represents a 50 percent increase on a diluted share basis and a 55 percent increase in net income. Sales for the full year 2011 totaled a record $2,656.9 million, an increase of 33 percent compared to sales of $1,991.1 million for the full year 2010.

“Our record fourth quarter results were a fitting ending to a year in which we generated record annual sales and earnings and significantly exceeded our initial expectations. Our top and bottom-line expansion, and the momentum we are sustaining throughout our business, directly results from our focus on driving innovation, enhancing our product offering, reducing costs, and growth through new global markets and adjacencies,” stated Scott Wine, Polaris’ Chief Executive Officer. “Specifically, during the year we furthered our leading market share position in off-road vehicles while continuing to gain market share in motorcycles and snowmobiles. Moreover, we introduced over 20 new vehicles, including award-winning products like the RANGER RZR 570 value recreational off-road vehicle, the 800 Pro-RMK snowmobile, and the Victory Cross Country Tour motorcycle. Our operations team managed to meet the increased demand for these vehicles while bringing our new Monterrey manufacturing facility online on time and on budget, driving initial 2011 savings on plan with future projections in line with stated expectations. Building on our surging core businesses, our military and Bobcat adjacencies continue to gain momentum, and we have made considerable progress in expanding our international presence with increased sales in Europe, China, and India. Lastly, we added to our small electric vehicle portfolio with the acquisition of Global Electric Motorcars (GEM) and Goupil Industrie SA, which expands our ability to compete in this fragmented, fast-growing $4 billion market.”

2012 Business Outlook

Wine continued, “The implementation of our strategic initiatives and continued focus on innovation positions us well to realize continued success in 2012. We anticipate further growth and market share gains in our core businesses, while maintaining our focus on expanding our gross and net margins while expanding our investments for future growth and profitability. This motivated and disciplined Polaris team is committed to executing on our strategy in an effort to deliver what we expect to be another excellent year for our shareholders.”

Full year 2012 earnings are expected to be in the range of $3.65 to $3.80 per diluted share, which represents an increase of 14 to 19 percent when compared to full year 2011 earnings. Net income for full year 2012 is also expected to increase in the range of 14 to 19 percent over full year 2011. Sales for full year 2012 are expected to increase five to eight percent over full year 2011 sales, with sales increases projected in each product line and geographic region with the exception of snowmobiles.

Summary of Operations

Off-road Vehicles (“ORV’) sales increased 18 percent during the fourth quarter 2011 from the fourth quarter 2010. This increase reflects continued market share gains for both ATVs and side-by-side vehicles driven by industry leading product offerings and the continued success of the MVP retail go-to-market process. Polaris’ North American ORV unit retail sales to consumers increased mid-teens percent for the 2011 fourth quarter compared to the 2010 fourth quarter, with ATV unit retail sales growing upper single digits percent and side-by-side vehicle unit retail sales increasing about 20 percent over the prior year. North American dealer inventories of ATVs continued to decline, decreasing eight percent from the 2010 fourth quarter and sequentially decreasing six percent from the third quarter of 2011. Side-by-side North American dealer inventories for both the 2011 fourth quarter and sequentially from the 2011 third quarter were up to accommodate the continued strong retail demand. ORV sales outside of North America increased 42 percent in the fourth quarter of 2011 compared to a year ago. The Company continued to be an innovation leader in 2011 with several new ATV and side-by-side vehicles introduced during the year, including the most recent introduction in January 2012 of the high performance RANGER RZR XP4 900 to Polaris’ family of recreational vehicles. The RANGER RZR XP4 900 has all the features of the two seated version of the RZR XP 900 including an 88 horsepower electronic fuel injected twin cylinder engine and 3-link trailing arm independent rear suspension with 12.5 inches of travel, but with the ability to deliver razor-sharp performance and agility for 4 passengers. For the full year 2011, Polaris ORV sales increased 32 percent compared to the prior year.

Snowmobile sales increased 63 percent during the 2011 fourth quarter compared to the prior year’s fourth quarter. The fourth quarter 2011 increase in sales reflects significantly reduced snowmobile dealer inventory levels entering the 2011 – 2012 selling season compared to the prior year resulting in increased orders from dealers, as well as the impact of a shift in shipments of snowmobiles later in the year as the Company chose to ship its snowmobiles closer to expected consumer demand compared to last year. Polaris’ North American snowmobile retail sales to consumers in the 2011 season-to-date period were up high single digits percent over the 2010 season-to-date period despite the lack of snowfall in many parts of the snowbelt regions of the United States. North American dealer inventories of snowmobiles at December 2011 were seven percent higher than the very low levels a year ago. Sales of snowmobiles outside of North America, principally the Scandinavian region, increased 52 percent in the fourth quarter of 2011 compared to a year ago. For the full year 2011, sales of Polaris snowmobiles increased 48 percent compared to the prior year.

Sales of On-Road Vehicles increased 69 percent during the fourth quarter of 2011 when compared to the same period in 2010. On-Road Vehicle sales are comprised of Victory and Indian brand motorcycles, as well as the Company’s small electric vehicles sales of GEM and Goupil. Victory motorcycle North American unit retail sales to consumers increased about 20 percent during the 2011 fourth quarter when compared to a strong 2010 fourth quarter, resulting in continued market share gains. North American dealer inventory of Victory motorcycles increased five percent at December 2011 compared to last year levels as the Company added Victory dealers in 2011. Sales of On-Road Vehicles to customers outside of North America increased 111 percent compared to the prior year’s fourth quarter. The increase in On-Road Vehicle sales outside North America is primarily due to increased sales from Victory motorcycles and the addition of sales from the acquisition of Goupil in the 2011 fourth quarter. For the full year 2011, Polaris On-Road Vehicle sales increased 79 percent compared to the prior year.

Parts, Garments, and Accessories (“PG&A”) sales increased 13 percent during the fourth quarter 2011 compared to the same period last year primarily due to increased ORV, Victory motorcycle and international related PG&A sales. For the full year 2011, Polaris PG&A sales increased 19 percent compared to the prior year.

Gross profit dollars increased 19 percent to $204.3 million for the fourth quarter 2011 compared to $171.5 million for the fourth quarter of 2010 primarily due to higher volume. Gross profit as a percentage of sales was 26.1 percent for the fourth quarter of 2011, a decrease of 160 basis points from 27.7 percent for the fourth quarter of 2010. The decrease in gross profit margin percentage for the 2011 fourth quarter was primarily due to higher commodity prices, as anticipated, unfavorable product mix and negative currency impacts, partially offset by manufacturing realignment savings and continued product cost reduction efforts during the quarter. For the 2011 full year, gross profit as a percentage of sales increased 130 basis points to 27.9 percent.

Operating expenses for the fourth quarter 2011 increased 21 percent to $118.1 million compared to $97.6 million for the fourth quarter of 2010. As a percent of sales, operating expenses decreased 70 basis points to 15.1 percent compared to 15.8 percent for the same period last year. Operating expenses in absolute dollars for the fourth quarter 2011 increased primarily due to incremental investments made in global market expansion and new product development initiatives along with the added operating expenses of the acquisitions made in 2011. Operating expenses, as a percent of sales, decreased due to leverage achieved from the increased sales volume during the quarter. For the 2011 full year, operating expenses, as a percent of sales, decreased 80 basis points to 15.6 percent.

Income from financial services increased 65 percent to $7.0 million during fourth quarter 2011 from $4.2 million in the fourth quarter of 2010 primarily due to increased profitability generated from the retail credit portfolios with Sheffield, GE and HSBC. For the 2011 full year, income from financial services was $24.1 million, a 43 percent increase compared to $16.9 million for the full year 2010.

Interest expense increased to $1.2 million for the fourth quarter 2011 from $0.5 million for the fourth quarter 2010 due to higher interest rates on the long-term senior notes issued in May 2011. For the 2011 full year, interest expense was $4.0 million compared to $2.7 million for the full year 2010.

Non-operating other income was $4.6 million in the fourth quarter of 2011 as compared to $0.7 million in the fourth quarter of 2010. The increase in other income is the result of foreign currency exchange rate movements and the resulting effects on foreign currency transactions and balance sheet positions related to the Company’s foreign subsidiaries. For the 2011 full year, non-operating other income (expense) was $0.7 million income compared to $0.3 million expense for the full year 2010.

The Income tax provision for the fourth quarter 2011 was recorded at a rate of 33.8 percent of pretax income compared to 30.4 percent of pretax income for the fourth quarter 2010. The higher income tax provision rate in the 2011 fourth quarter is primarily due to last year’s fourth quarter rate reflecting the cumulative benefit to adjust for the extension of the research and development credit by the U.S. Congress late in the fourth quarter of 2010. For the 2011 full year, the income tax provision was recorded at a rate of 34.3 percent of pretax income compared to 32.7 percent for the full year 2010.

Financial Position and Cash Flow

Net cash provided by operating activities was $302.5 million for the year ended December 31, 2011 compared to $297.6 million for the full year 2010. The increase in net income was mostly offset by an increased investment in working capital, particularly increased accounts receivables related to the Company’s continued international expansion, a short-term income tax receivable and higher factory inventory levels supporting business growth. Total long-term debt at December 31, 2011 was unchanged from a year ago at $100.0 million. The Company’s debt-to-total capital ratio was 17 percent at December 31, 2011, compared to 35 percent for the same period in 2010. Cash and cash equivalents were $325.3 million at December 31, 2011 compared to $393.9 million for the same period in 2010. During 2011 Polaris used cash for investment activities totaling $141.1 million primarily for capital investments to remain competitive and to acquire several businesses. The Company used $227.5 million of cash for financing activities including debt reduction, the repurchase of Polaris stock and the payment of dividends to shareholders.

Polaris’ Board of Directors moves dividend pay date

Due to the scheduling timetable of the Company’s 2012 Board of Directors’ meetings, each of the quarterly dividend declarations by the Board of Directors in 2012 are anticipated to be approximately two weeks later than historically declared. As a result, the anticipated quarterly dividend pay dates will be approximately one month later in 2012 than in prior years. Polaris has increased dividends for 16 consecutive years through 2011 and management will recommend to the Board of Directors to once again increase the dividend for 2012. The Board of Directors expects to declare the first quarter 2012 dividend amount sometime in the first week of February 2012.

Conference Call and Webcast Presentation

Today at 9:00 AM (CT) Polaris Industries Inc. will host a conference call and webcast to discuss Polaris’ 2011 fourth quarter and full year earnings results released this morning. The call will be hosted by Scott Wine, CEO, Bennett Morgan, President and COO, and Mike Malone, Vice President Finance and CFO. A slide presentation and link to the audio webcast will be posted on the Investor Relations page of the Polaris web site at www.polarisindustries.com/irhome.

To listen to the conference call by phone, dial 800-374-6475 in the U.S. and Canada, or 973-200-3967 Internationally. The Conference ID is #75877934.

A replay of the conference call will be available approximately two hours after the call for a one-week period by accessing the same link on our website, or by dialing 855-859-2056 in the U.S. and Canada, or 404-537-3406 Internationally.

About Polaris

Polaris is a recognized leader in the powersports industry with annual 2011 sales of $2.7 billion. Polaris designs, engineers, manufactures and markets innovative, high quality off-road vehicles (ORVs), including all-terrain vehicles (ATVs) and the Polaris RANGER® side-by-side vehicles, snowmobiles, motorcycles and on-road electric/hybrid powered vehicles.

Polaris is among the global sales leaders for both snowmobiles and off-road vehicles and has established a presence in the heavyweight cruiser and touring motorcycle market with the Victory and Indian motorcycle brands. Additionally, Polaris continues to invest in the global on-road small electric/hybrid vehicle industry with Global Electric Motorcars (GEM) and Goupil Industrie SA, and internally developed vehicles. Polaris enhances the riding experience with a complete line of Pure Polaris apparel, accessories and parts, available at Polaris dealerships.

Polaris Industries Inc. trades on the New York Stock Exchange under the symbol “PII”, and the Company is included in the S&P Mid-Cap 400 stock price index.

Information about the complete line of Polaris products, apparel and vehicles accessories are available from authorized Polaris dealers or anytime at www.polarisindustries.com.

Except for historical information contained herein, the matters set forth in this news release, including management’s expectations regarding 2012 sales, shipments, net income, net income per share, manufacturing realignment transition costs and savings in logistical and production costs, 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 the Company’s ability to successfully implement its manufacturing operations realignment initiatives, product offerings, promotional activities and pricing strategies by competitors; warranty expenses; impact of changes in Polaris stock price on incentive compensation plan costs; foreign currency exchange rate fluctuations; environmental and product safety regulatory activity; effects of weather; commodity costs; uninsured product liability claims; uncertainty in the retail and wholesale credit markets; changes in tax policy and overall economic conditions, including inflation, consumer confidence and spending and relationships with dealers and suppliers. Investors are also directed to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. The Company does not undertake any duty to any person to provide updates to its forward-looking statements.

(summarized financial data follows)

Source: Polaris Industries Inc.

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Media day is Thursday, January 26 from Noon-2:00 p.m., featuring Team Honda Muscle Milk, TwoTwo Motorsports/Bel-Ray Honda, and Supercross.com Honda.

A red flag marred the start of the Supercross Class Main Event, after a hard crash involving Team Honda Muscle Milk’s Trey Canard, Star/Valli Rockstar Yamaha’s Ryan Morais, and R2MX Kawasaki’s Weston Peick, on the opening lap. Peick was able to walk away under his own power, but both Canard and Morais received medical attention.

Canard suffered fractures to his back, according to an official statement from American Honda, and although he has feelings in his extremities, further evaluation will determine if surgery is necessary.

Star Valli Yamaha rider Ryan Morais was involved in a crash during the first lap of the main event at the Los Angeles stop on Saturday night. The Rockstar Energy rider was transported to a local hospital and is being treated for a broken jaw, several fractured vertebrae and some broken ribs. There is no sign of spinal cord damage at this time and Morais is continuing to be evaluated. A full recovery is anticipated.

Once the Supercross Class Main Event restarted, Monster Energy Kawasaki’s Jake Weimer grabbed the Nuclear Cowboyz® Holeshot. Reed, who quickly moved into second, made short work of Weimer out front, moving into the lead on Lap 6.

A short time later, Toyota/Yamaha/JGRMX’s James Stewart made a pass on Weimer for second, making contact with the Kawasaki rider who subsequently fell to the ground, losing considerable positions. On Lap 12, Stewart encountered his own misfortune, losing his balance and dropping his bike, which allowed Dungey to assume the runner-up position.

Reed checked out on the field for his 41st Supercross Class victory, while Dungey maintained control of the points lead in second. Stewart held on for his first podium of the season in third, fighting off a late charge from Monster Energy Kawasaki’s Ryan Villopoto, who fought his way from an opening-lap mishap that left him at the tail end of the field, to finish fourth. Villopoto shared the points lead with Dungey heading into the race.

Dungey’s advantage in the Supercross Class standings over Reed and Villopoto, who currently sit in a tie for second, is four points. Dungey, the 2009 Monster Energy Supercross champion, is the only rider in the Supercross Class to finish on the podium through the first three races.

The Western Regional Supercross Lites Class championship received a shakeup on Saturday night as well, with GEICO Honda’s Eli Tomac becoming the third different winner in as many races. Tomac, who has set the fastest lap in each of he three Supercross Lites Class main events this season, grabbed his first strong start of 2012, and made quick work of Nuclear Cowboyz Holeshot winner Martin Davalos, who rides for Rockstar Energy Racing Suzuki.

Once out front, Tomac pulled away from the field while Monster Energy/Pro Circuit/Kawasaki’s Dean Wilson, winner the week prior in Phoenix, fought his way to a runner-up finish. Monster Energy/BikeIt/Cosworth Yamaha’s Zach Osborne claimed his first-career podium effort in third.

Tomac’s win helped vault him from fifth to first in the championship standings, holding a one-point lead over Wilson. Monster Energy/Pro Circuit/Kawasaki’s Tyla Rattray, the points leader coming into Dodger Stadium, sits an additional two points back in third. Tomac will be the third different rider to carry the red number plate this season.

Last year at Monster Energy Supercross’ return to Oakland, Stewart grabbed his second win of the 2011 season inside O.co Coliseum, with Reed and Dungey rounding out the podium. In the Supercross Lites Class, eventual Western Regional Supercross Lites Class Champion Broc Tickle secured his only win en route to the title.

The first race was held in Oakland on January 18, 1979, and Jimmy Weinert won on a Kawasaki. Last year was the first inaugural Supercross Lites class race at O.co Coliseum.

CBS will broadcast the Supercross Class race at 12:00pm EST on Sunday January 29, 2012.

Tickets are available at the O.co Coliseum Box Office, all Ticketmaster Outlets, charge by phone at (800) 745-3000, www.supercrossonline.com, or online at www.tickmaster.com. Practice and qualifying begin at 12:30 p.m., and the main event starts at 7:00 p.m. Club Level tickets are $75 Adult/Child; Trackside $45 Adult/Child; Lower View $35 Adult/Child; Upper View $25 Adult/Child; Extreme Value $10 Adult/Child. Fans can also get into the Pits for FREE from 12:30-6 p.m. Race Day when they recycle a Monster Energy Can at the stadium Pit Entrance (valid only with event ticket).

Past Winners in Oakland

Supercross Class

January 29, 2011:                                  James Stewart

Supercross Lites Class

January 29, 2011:                                  Broc Tickle

Tune into the enhanced exclusive weekly video content from Supercross LIVE! during the entire 2012 season on SupercrossOnline.com, the Official Website of Monster Energy Supercross. This week, Jim Holley talks to Bakari Howard of Falken Tires, the Official Truck Tire sponsor for Monster Energy Supercross, during the Toyota Tailgate Talk segment.

Weekly Supercross LIVE! Video Content Schedule

• The Official Supercross LIVE! Pre-Show  -  Race Days at 11 AM Local Race Time
• Behind the Scenes with Supercross LIVE!  -  All Day on Race Days
• 2 Minutes on the Track  -  Race Days at 3:30 & 5:30 PM Local Race Time
• And on the Podium Tonight  -  Following Each Round’s Main Events
• The Official Supercross LIVE! Post-Show  -  Saturday Nights at Each Round
• Toyota Tailgate Talk  -  Wednesdays at 5 PM ET
• After The Checkered Flag  -  Thursdays at 5PM ET

For more information on the Monster Energy AMA Supercross, an FIM World Championship, please log on to www.SupercrossOnline.com, the official website of Monster Energy Supercross. For all media requests, please contact Denny Hartwig dhartwig@feldinc.com or 630-566-6305. To follow Monster Energy Supercross on Facebook and Twitter, log on to http://www.facebook.com/supercrosslive and http://twitter.com/supercrosslive.

About Feld Motor Sports®
Feld Motor Sports®, Inc. is the world leader in specialized arena and stadium-based motor sports entertainment.  Feld Motor Sports, Inc. productions include Advance Auto Parts Monster Jam®, Monster Energy Supercross, AMA Arenacross Series, Nuclear Cowboyz®, and IHRA® Nitro Jam®.  Feld Motor Sports, Inc. is a division of Feld Entertainment, the world’s largest producer of live family entertainment.  For more information on Feld Entertainment, visit www.feldentertainment.com.

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