Harley-Davidson Delivers Strong Growth for Fourth Quarter and Full Year

 

• EPS Rises 29.2% in Fourth Quarter, 16.7% for Full Year on Continuing Operations
• Full-Year New Harley-Davidson Motorcycle Retail Sales Grow 6.2% Worldwide

MILWAUKEE, WI – January 29, 2013 – (Motor Sports Newswire) – A strong fourth-quarter 2012 capped a year of gains for Harley-Davidson, Inc. (NYSE: HOG), marked by solid growth in earnings and retail new motorcycle sales.

Fourth-quarter income from continuing operations was $70.6 million on consolidated revenue of $1.17 billion, compared to income from continuing operations in the year-ago period of $54.6 million on consolidated revenue of $1.18 billion. Fourth-quarter 2012 earnings per share were $0.31, up 29.2% compared to EPS of $0.24 in the year-ago quarter.

For the full year, Harley-Davidson income from continuing operations was $623.9 million on consolidated revenue of $5.58 billion, compared to full-year 2011 income from continuing operations of $548.1 million on consolidated revenue of $5.31 billion. Full-year 2012 EPS was $2.72, up 16.7% from EPS of $2.33 in 2011.

Worldwide retail sales of new Harley-Davidson motorcycles grew 7.5% in the quarter and 6.2% for the full year, compared to the year-ago periods.

“Thanks to the outstanding efforts of our employees, dealers and suppliers, Harley-Davidson achieved its growth and restructuring goals in 2012,” said Keith Wandell, Chairman, President and Chief Executive Officer.

“The ambitious restructuring of our manufacturing operations, aimed at delivering better responsiveness for customers and greater operating efficiency, is now largely behind us,” Wandell said. “Motorcycle sales grew in 2012, fueled by exceptional products and retail experiences. Together with our dealers, we grew sales to U.S. outreach customers faster than to core customers, grew U.S. market share and continued to expand internationally.

“Harley-Davidson’s purpose is to fulfill the dreams of personal freedom for people around the world. Through our strategy, we believe the company is poised to deliver on that purpose like never before,” Wandell said.

Retail Harley-Davidson Motorcycle Sales
For the full year 2012, retail unit sales of new Harley-Davidson motorcycles grew 6.2% worldwide, with increases of 6.6% in the U.S. and 5.6% internationally compared to 2011. Dealers sold 249,849 new Harley-Davidson motorcycles worldwide in 2012, with retail unit sales up 39.2% in the Latin America region, 14.3% in the Asia Pacific region and 6.2% in the North America region (U.S. and Canada) and down 3.0% in the EMEA region compared to 2011.

In the fourth quarter, retail sales of new Harley-Davidson motorcycles increased 7.5% worldwide, compared to the prior-year period, with unit sales up 8.4% in the U.S. and up 6.3% in international markets. Dealers sold 43,405 new Harley-Davidson motorcycles worldwide in the quarter, with retail unit sales up 23.5% in the Latin America region, 14.8% in the Asia Pacific region and 7.3% in the North America region and down 3.3% in the EMEA region compared to last year’s fourth quarter.

Industry-wide U.S. heavyweight new motorcycle (651cc-plus) retail unit sales increased 4.0% in 2012 compared to 2011.

Fourth-quarter and full-year data are listed in the accompanying tables.

Harley-Davidson Motorcycles and Related Products Segment Results
Fourth-Quarter Results: Fourth-quarter operating income from motorcycles and related products was $53.1 million, a 49.4% increase compared to operating income of $35.6 million in the year-ago period. Operating income in the quarter benefited from lower restructuring costs and higher gross margin compared to the prior-year period.

Revenue from motorcycles during the fourth quarter of 2012 of $771.1 million was down 2.6% compared to the year-ago period. The Company shipped 47,067 motorcycles to dealers and distributors worldwide during the quarter. In the year-ago period, the Company shipped 50,730 motorcycles. Fourth-quarter shipments were in line with guidance and consistent with the Company’s previously announced plans for lower shipments in the quarter related to the implementation of seasonal surge production at York in the first half of 2013. The Company believes surge production will provide the flexibility to produce more motorcycles closer to customer demand during the prime selling season.

Revenue from motorcycle parts and accessories totaled $161.6 million during the quarter, up 0.2%, and revenue from general merchandise, which includes MotorClothes® apparel and accessories, was $74.0 million, up 6.8%, compared to the year-ago period.

Gross margin was 31.8% in the fourth quarter of 2012, compared to 31.2% in the fourth quarter of 2011. Fourth-quarter operating margin from motorcycles and related products was 5.3%, compared to operating margin of 3.5% in last year’s fourth quarter.

Twelve-Month Results: For the full year 2012 the Company shipped 247,625 motorcycles to dealers and distributors, a 6.2% increase compared to 2011. Full-year revenue from motorcycles grew 5.9% to $3.76 billion, revenue from parts and accessories grew 5.3% to $859.9 million and revenue from general merchandise grew 9.2% to $299.4 million, compared to 2011. Gross margin for the full year was 34.8% and operating margin was 14.5%, compared to 33.4% and 12.0% respectively in 2011.

Financial Services Segment Results
Operating income from financial services was $63.0 million in the fourth quarter of 2012, a 10.9% increase compared to operating income of $56.8 million in last year’s fourth quarter. Full-year 2012 operating income from financial services was $284.7 million, a 5.9% increase compared to operating income of $268.8 million in 2011. Results for the fourth quarter and full year reflect continued improvement in credit loss performance year over year and lower interest expense.

Guidance
Harley-Davidson expects to ship 259,000 to 264,000 motorcycles to dealers and distributors worldwide in 2013, an approximate 4-1/2% to 6-1/2% increase from 2012. In the first quarter of 2013, the Company expects to ship 71,000 to 76,000 motorcycles, an approximate increase of 10% to 18% from the year-ago period. The Company’s first-quarter shipment plan reflects the implementation of surge production at York in the first half of 2013. The Company expects full-year 2013 gross margin of 35.25% to 36.25 %.  The Company expects capital expenditures of $200 million to $220 million in 2013.

Restructuring Update
In 2012, Harley-Davidson realized savings of $280 million from restructuring activities initiated since early 2009. Restructuring charges were $1.6 million in the fourth quarter of 2012 and $28.5 million for the full year. Upon the completion of restructuring in 2013, Harley-Davidson expects restructuring activities initiated since 2009 to result in one-time overall costs of approximately $495 million, including approximately $13 million in 2013. The Company expects savings of approximately $305 million in 2013 from restructuring activities initiated since 2009, rising to annual ongoing savings of approximately $320 million beginning in 2014.

Income Tax Rate
For the full year 2012, Harley-Davidson’s effective tax rate was 35.1% compared to 30.9% in 2011. The 2011 effective tax rate benefited from a change in Wisconsin tax law associated with certain net operating losses, the favorable settlement of an IRS audit and the benefit of the federal Research and Development Tax Credit. In 2013, the Company expects its full-year effective tax rate from continuing operations will be approximately 34.8%.

Cash Flow
Cash and marketable securities totaled $1.20 billion at year-end 2012, compared to $1.68 billion at year-end 2011. In 2012, Harley-Davidson generated $793.1 million of cash provided by operating activities of continuing operations, compared to $885.3 million in 2011. On a discretionary basis, the Company repurchased 1.2 million shares of Harley-Davidson, Inc. common stock during the fourth quarter of 2012 at a cost of $53.4 million. For the full year 2012, Harley-Davidson repurchased 6.5 million shares of its common stock at a cost of $299.6 million. At the end of 2012, there were approximately 226 million shares of Harley-Davidson common stock outstanding and 14.5 million shares remaining on board-approved share repurchase authorizations. In January 2013, Harley-Davidson made a $175 million voluntary contribution to its pension plans.

Company Background
Harley-Davidson, Inc. is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. Harley-Davidson Motor Company produces heavyweight custom, cruiser and touring motorcycles and offers a complete line of Harley-Davidson motorcycle parts, accessories, riding gear and apparel, and general merchandise. Harley-Davidson Financial Services provides wholesale and retail financing, insurance, extended service and other protection plans and credit card programs to Harley-Davidson dealers and riders in the U.S., Canada and other select international markets. For more information, visit Harley-Davidson’s Web site at www.harley-davidson.com.

Conference Call and Webcast Presentation
Harley-Davidson will discuss fourth-quarter results on a Webcast at 8:00 a.m. CT today. The Webcast presentation will be posted prior to the call and can be accessed at http://investor.harley-davidson.com/. Click “Events and Presentations” under “Resources.” The audio portion of today’s call will also be posted at harley-davidson.com beginning approximately two hours after the conclusion of the call for one year. The audio may also be accessed until Feb. 12, 2013 by calling 404-537-3406 or 855-859-2056 in the US, pin number 8342-2435#.

Forward-Looking Statements
The Company intends that certain matters discussed in this release are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company “believes,” “anticipates,” “expects,” “plans,” or “estimates” or words of similar meaning. Similarly, statements that describe future plans, objectives, outlooks, targets, guidance or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this release. Certain of such risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are only made as of the date of this release, and the Company disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

The Company’s ability to meet the targets and expectations noted depends upon, among other factors, the Company’s ability to (i) execute its business strategy, (ii) adjust to fluctuations in foreign currency exchange rates, interest rates and commodity prices,  (iii) manage through inconsistent economic conditions, including changing capital, credit and retail markets, (iv) implement and manage enterprise-wide information technology solutions, including solutions at its manufacturing facilities, and secure data contained in those systems, (v) anticipate the level of consumer confidence in the economy, (vi) continue to realize production efficiencies at its production facilities and manage operating costs including materials, labor and overhead, (vii) manage production capacity and production changes, (viii) manage changes and prepare for requirements in legislative and regulatory environments for its products, services and operations, (ix) provide products, services and experiences that are successful in the marketplace, (x) manage risks that arise through expanding international operations and sales, (xi) manage the credit quality, the loan servicing and collection activities, and the recovery rates of HDFS’ loan portfolio, (xii) successfully implement with its labor unions the agreements that it has executed with them that it believes will provide flexibility and cost-effectiveness to accomplish restructuring goals and long-term competitiveness, (xiii) effectively execute the Company’s restructuring plans within expected costs and timing, (xiv) manage supply chain issues, including any unexpected interruptions or price increases caused by raw material shortages or natural disasters,(xv) develop and implement sales and marketing plans that retain existing retail customers and attract new retail customers in an increasingly competitive marketplace, (xvi) adjust to healthcare inflation and reform, pension reform and tax changes, (xvii) retain and attract talented employees, (xviii) manage the risks that our independent dealers may have difficulty obtaining capital and managing through changing economic conditions and consumer demand, (xix) continue to have access to reliable sources of capital funding and adjust to fluctuations in the cost of capital, (xx) continue to develop the capabilities of its distributor and dealer network, and (xxi) detect any issues with our motorcycles or manufacturing processes to avoid delays in new model launches, recall campaigns, increased warranty costs or litigation.

In addition, the Company could experience delays or disruptions in its operations as a result of work stoppages, strikes, natural causes, terrorism or other factors. Other factors are described in risk factors that the Company has disclosed in documents previously filed with the Securities and Exchange Commission.

The Company’s ability to sell its motorcycles and related products and services and to meet its financial expectations also depends on the ability of the Company’s independent dealers to sell its motorcycles and related products and services to retail customers. The Company depends on the capability and financial capacity of its independent dealers and distributors to develop and implement effective retail sales plans to create demand for the motorcycles and related products and services they purchase from the Company. In addition, the Company’s independent dealers and distributors may experience difficulties in operating their businesses and selling Harley-Davidson motorcycles and related products and services as a result of weather, economic conditions or other factors.

TABLES FOLLOW

Harley-Davidson, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
		(Unaudited)		(Unaudited)		(Unaudited)
		Three months ended				Twelve months ended
		December 31,		December 31,		December 31,		December 31,
		2012		2011		2012		2011
Motorcycles and related products revenue		$   1,010,898		$   1,026,777		$   4,942,582		$   4,662,264
Gross profit		321,957		320,451		1,720,188		1,555,976
Selling, administrative and engineering expense		267,209		265,918		976,224		926,808
Restructuring expense		1,634		18,970		28,475		67,992
Operating income from motorcycles & related products		53,114		35,563		715,489		561,176
Financial services revenue		159,962		157,153		637,924		649,449
Financial services expense		96,973		100,336		353,237		380,658
Operating income from financial services		62,989		56,817		284,687		268,791
Operating income		116,103		92,380		1,000,176		829,967
Investment income		1,758		2,338		7,369		7,963
Interest expense		11,505		11,165		46,033		45,266
Income before income taxes		106,356		83,553		961,512		792,664
Provision for income taxes		35,717		28,909		337,587		244,586
Income from continuing operations		70,639		54,644		623,925		548,078
Earnings from discontinued operations, net of tax		-		51,036		-		51,036
Net income		$        70,639		$      105,680		$      623,925		$      599,114
Earnings per common share from continuing operations:
Basic		$           0.31		$           0.24		$           2.75		$           2.35
Diluted		$           0.31		$           0.24		$           2.72		$           2.33
Earnings per common share from discontinued operations:
Basic		$              -		$           0.22		$              -		$           0.22
Diluted		$              -		$           0.22		$              -		$           0.22
Earnings per common share:
Basic		$           0.31		$           0.46		$           2.75		$           2.57
Diluted		$           0.31		$           0.46		$           2.72		$           2.55
Weighted-average common shares:
Basic		224,635		229,827		227,119		232,889
Diluted		226,726		231,968		229,229		234,918
Cash dividends per common share		$         0.155		$         0.125		$         0.620		$         0.475

Harley-Davidson, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
		(Unaudited)
		December 31,		December 31,
		2012		2011
ASSETS
Current assets:
Cash and cash equivalents		$   1,068,138		$   1,526,950
Marketable securities		135,634		153,380
Accounts receivable, net		230,079		219,039
Finance receivables, net(1)		1,743,045		1,760,467
Inventories		393,524		418,006
Restricted cash(1)		188,008		229,655
Other current assets		292,508		234,709
Total current assets		4,050,936		4,542,206
Finance receivables, net(1)		4,038,807		4,026,214
Other long-term assets		1,081,030		1,105,744
		$   9,170,773		$   9,674,164
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable & accrued liabilities		$      770,977		$      819,885
Short-term debt		294,943		838,486
Current portion of long-term debt(1)		437,162		1,040,247
Total current liabilities		1,503,082		2,698,618
Long-term debt(1)		4,370,544		3,843,886
Pension and postretirement healthcare liabilities		608,356		571,065
Other long-term liabilities		131,167		140,339
Total shareholders’ equity		2,557,624		2,420,256
		$   9,170,773		$   9,674,164
(1) Includes amounts held by variable interest entities.

Harley-Davidson, Inc
Condensed Consolidated Statements of Cash Flows
(In thousands)
		(Unaudited)
		Twelve months ended
		December 31,		December 31,
		2012		2011
Net cash provided by operating activities
of continuing operations		$      793,076		$      885,291
Cash flows from investing activities of continuing operations:
Capital expenditures		(189,002)		(189,035)
Finance receivables, net		(90,612)		138,025
Net change in marketable securities		18,303		(12,532)
Net cash used by by investing activities of continuing operations		(261,311)		(63,542)
Cash flows from financing activities of continuing operations:
Proceeds from issuance of medium-term notes		993,737		387,865
Repayments of medium-term notes		(420,870)		-
Proceeds from securitization debt		763,895		1,082,599
Repayments of securitization debt		(1,405,599)		(1,754,568)
Net (decrease) increase in credit facilities and unsecured commercial paper		(744,724)		237,827
Net borrowings of asset-backed commercial paper		200,417		-
Net repayments of asset-backed commercial paper		(24,301)		(483)
Net change in restricted cash		41,647		59,232
Dividends		(141,681)		(111,011)
Purchase of common stock for treasury		(311,632)		(224,548)
Excess tax benefits from share-based payments		21,447		6,303
Issuance of common stock under employee stock option plans		45,973		7,840
Net cash used by financing activities of continuing operations		(981,691)		(308,944)
Effect of exchange rate changes on cash and cash equivalents
of continuing operations		(8,886)		(7,788)
Net (decrease) increase in cash and cash equivalents of continuing operations		(458,812)		505,017
Cash flows from operating activities of discontinued operations		-		-
Net (decrease) increase in cash and cash equivalents		$    (458,812)		$      505,017
Cash and cash equivalents:
Cash and cash equivalents – beginning of period		$   1,526,950		$   1,021,933
Cash and cash equivalents of discontinued operations – beginning of period		-		-
Net (decrease) increase in cash and cash equivalents		(458,812)		505,017
Less: Cash and cash equivalents of discontinued operations – end of period		-		-
Cash and cash equivalents – end of period		$   1,068,138		$   1,526,950

Motorcycles and Related Products Revenue and
Motorcycle Shipment Data
(Unaudited)
		(Unaudited)		(Unaudited)		(Unaudited)
		Three months ended				Twelve months ended
		December 31,		December 31,		December 31,		December 31,
		2012		2011		2012		2011
MOTORCYCLES AND RELATED PRODUCTS REVENUE (in thousands)
Motorcycles		$      771,137		$      791,984		$   3,764,794		$   3,554,547
Parts & Accessories		161,564		161,182		859,945		816,569
General Merchandise		74,028		69,315		299,403		274,124
Other		4,169		4,296		18,440		17,024
		$   1,010,898		$   1,026,777		$   4,942,582		$   4,662,264
MOTORCYCLE SHIPMENTS:
United States		29,358		33,625		160,477		152,180
International		17,709		17,105		87,148		80,937
Total		47,067		50,730		247,625		233,117
MOTORCYCLE PRODUCT MIX:
Touring		21,637		21,592		99,496		92,002
Custom		17,995		19,933		96,425		91,459
Sportster®		7,435		9,205		51,704		49,656
Total		47,067		50,730		247,625		233,117

Worldwide Retail Sales of Harley-Davidson Motorcycles
		Three months ended				Twelve months ended
		December 31,		December 31,		December 31,		December 31,
		2012		2011		2012		2011
North America Region
United States		25,753		23,753		161,678		151,683
Canada		1,047		1,214		10,573		10,502
Total North America Region		26,800		24,967		172,251		162,185
Europe, Middle East and Africa  Region (EMEA)
Europe*		5,360		5,997		37,027		39,334
Other		1,461		1,059		6,000		5,006
Total EMEA Region		6,821		7,056		43,027		44,340
Asia Pacific Region
Japan		2,727		2,574		10,642		10,401
Other		3,980		3,270		13,839		11,015
Total Asia Pacific Region		6,707		5,844		24,481		21,416
Latin America Region		3,077		2,492		10,090		7,247
Total Worldwide Retail Sales		43,405		40,359		249,849		235,188

Data Source

Data source for retail sales figures shown above is new sales warranty and registration information provided by Harley-Davidson dealers and compiled by the Company.  The Company must rely on information that its dealers supply concerning new retail sales, and this information is subject to revision.

* Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

Heavyweight Motorcycle Registration Data(1)
		Twelve months ended
		December 31,		December 31,
		2012		2011
United States2		281,974		271,029
		Eleven months ended
		November 30,		November 30,
		2012		2011
Europe3		262,194		284,394

1 – Heavyweight data includes street legal 651+cc models.  Street legal 651+cc models include on-highway, dual purpose models and three-wheeled vehicles.
2 – United States data is derived from information provided by Motorcycle Industry Council (MIC).  This third party data is subject to revision and update.
3 – Europe data includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.  Industry retail motorcycle registration data includes 651+cc models derived from information provided by Association des Constructeurs Europeens de Motocycles (ACEM), an independent agency.  Europe market data is reported on a one-month lag.  This third-party data is subject to revision and update.

SOURCE: Harley-Davidson, Inc.

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Polaris Schedules Fourth Quarter and Full Year 2012 Earnings Release and Conference Call

MINNEAPOLIS, MN – January 7, 2013 – (Motor Sports Newswire) – Polaris Industries Inc. (NYSE: PII) announced today that it will release its fourth quarter and full year 2012 financial results on Tuesday, January 29, 2013, and will hold a conference call and webcast at 9:00 a.m. Central Time on the same day to discuss the release.

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 webcast will be posted on the Polaris Investor Relations web site at www.polarisindustries.com/irhome. To listen to the conference call by phone, dial 877-706-7543 in the U.S. and Canada, or 973-200-3967 Internationally. The Conference ID is # 48223930.

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.

Source: Polaris Industries Inc.

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CORRECTING and REPLACING Arctic Cat to Webcast Fiscal 2012 Fourth Quarter Conference Call

MINNEAPOLIS, MN – May. 1, 2012- (Motor Sports Newswire) – First graph, first sentence of release should read: Arctic Cat Inc. (NASDAQ: ACAT) announced today that it will webcast its fiscal 2012 fourth quarter conference call on Tuesday, May 15, 2012, at 10:30 a.m. CT (11:30 a.m. ET) (sted Arctic Cat Inc. (NASDAQ: ACAT) announced today that it will webcast its fiscal 2012 fourth quarter conference call on Tuesday, May 15, 2012, at 10:30 a.m. CT (12 p.m. ET)).

The corrected release reads:

ARCTIC CAT TO WEBCAST FISCAL 2012 FOURTH QUARTER CONFERENCE CALL

Arctic Cat Inc. (NASDAQ: ACAT) announced today that it will webcast its fiscal 2012 fourth quarter conference call on Tuesday, May 15, 2012, at 10:30 a.m. CT (11:30 a.m. ET). The company will release results for its fourth quarter ended March 31, 2012, before the stock market opens that day.

To access the live webcast or webcast replay, go to the corporate portion of the company’s website at www.arcticcat.com. To listen to a telephone replay of the conference call, dial 800-406-7325 and enter conference call passcode 4536051. The telephone replay will be available through Tuesday, May 22, 2012.

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.

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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Polaris Reports Record 2011 Fourth Quarter and Full Year Results

Fourth Quarter and Full Year Highlights:

• 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.

Fourth Quarter and Full Year Performance Summary (in thousands except per share data)
		Three Months ended December 31,											Twelve Months ended December 31,
Product line Sales		2011				2010				Change			2011				2010				Change
Off-Road Vehicles		$	465,768			$	394,550			18	%		$	1,822,334			$	1,376,373			32	%
Snowmobiles			169,181				104,073			63	%			280,046				188,877			48	%
On-Road/Victory Motorcycles			34,879				20,640			69	%			146,328				81,624			79	%
Parts, Garments & Accessories			112,141				99,179			13	%			408,241				344,265			19	%
Total Sales		$	781,969			$	618,442			26	%		$	2,656,949			$	1,991,139			33	%
Gross profit		$	204,308			$	171,516			19	%		$	740,583			$	530,213			40	%
Gross profit as a % of sales			26.1	%			27.7	%		-160 bpts				27.9	%			26.6	%		+130 bpts
Operating expenses		$	118,131			$	97,589			21	%		$	414,751			$	326,348			27	%
Operating expenses as a % of sales			15.1	%			15.8	%		-70 bpts				15.6	%			16.4	%		-80 bpts
Operating Income		$	93,130			$	78,146			19	%		$	349,924			$	220,721			59	%
Operating Income as a % of sales			11.9	%			12.6	%		-70 bpts				13.2	%			11.1	%		+210 bpts
Net income		$	63,899			$	54,522			17	%		$	227,575			$	147,138			55	%
Net income as a % of sales			8.2	%			8.8	%		-60 bpts				8.6	%			7.4	%		+120 bpts
Diluted net income per share		$	0.90			$	0.78			15	%		$	3.20			$	2.14			50	%

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)

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Data)
(Unaudited)
		For Three Months Ended December 31,								For the Year Ended December 31,
		2011				2010				2011				2010
Sales		$	781,969			$	618,442			$	2,656,949			$	1,991,139
Cost of Sales			577,661				446,926				1,916,366				1,460,926
Gross profit			204,308				171,516				740,583				530,213
Operating expenses
Selling and marketing			48,985				39,973				178,725				142,353
Research and development			31,383				25,433				105,631				84,940
General and administrative			37,763				32,183				130,395				99,055
Total operating expenses			118,131				97,589				414,751				326,348
Income from financial services			6,953				4,219				24,092				16,856
Operating Income			93,130				78,146				349,924				220,721
Non-operating expense (Income):
Interest expense			1,221				531				3,987				2,680
Gain on securities held for sale, net			-				-				-				(825	)
Other expense (income), net			(4,610	)			(691	)			(689	)			325
Income before income taxes			96,519				78,306				346,626				218,541
Provision for Income Taxes			32,620				23,784				119,051				71,403
Net Income		$	63,899			$	54,522			$	227,575			$	147,138
Basic Net Income per share		$	0.93			$	0.80			$	3.31			$	2.20
Diluted Net Income per share		$	0.90			$	0.78			$	3.20			$	2.14
Weighted average shares outstanding:
Basic			68,885				68,140				68,792				66,900
Diluted			71,062				70,309				71,057				68,765
Note: Shares outstanding and per share data have been adjusted to give effect to the two-for-one stock split declared on July 20, 2011 and paid on September 12, 2011 to shareholders of record on September 2, 2011.

 

POLARIS INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
Subject to Reclassification
(In Thousands)		December 31, 2011					December 31, 2010
		(Unaudited)
Assets
Current Assets:
Cash and cash equivalents		$	325,336				$	393,927
Trade receivables, net			115,302					89,294
Inventories, net			298,042					235,927
Prepaid expenses and other			37,608					21,628
Income taxes receivable			24,723					-
Deferred tax assets			77,665					67,369
Total current assets			878,676					808,145
Property and equipment, net			213,778					184,011
Investments in finance affiliate			42,251					37,169
Investments in other affiliates			5,000					1,009
Deferred tax assets			10,601					-
Goodwill and Intangible assets, net			77,718					31,313
Total Assets		$	1,228,024				$	1,061,647
Liabilities and Shareholders’ Equity
Current Liabilities:
Borrowings under credit agreement			-				$	100,000
Current portion of capitalized lease debt		$	2,653					-
Accounts payable			146,743					113,248
Accrued expenses:
Compensation			187,671					126,781
Warranties			44,355					32,651
Sales promotions and incentives			81,228					75,494
Dealer holdback			76,512					79,688
Other			74,180					52,194
Income taxes payable			639					2,604
Current liabilities of discontinued operations			1,550					1,550
Total current liabilities			615,531					584,210
Long term income taxes payable			7,837					5,509
Deferred income taxes			-					937
Capitalized lease debt			4,600					-
Long-term debt			100,000					100,000
Total liabilities		$	727,968				$	690,656
Shareholders’ Equity:
Total shareholders’ equity		$	500,056				$	370,991
Total Liabilities and Shareholders’ Equity		$	1,228,024				$	1,061,647

 

POLARIS INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
Subject to Reclassification		For the Years Ended December 31,
		2011			2010
Operating Activities:
Net income		$227,575			$	147,138
Adjustments to reconcile net income to net cash provided by operating activities:
(Gain) loss on securities held for sale		-				(825	)
Depreciation and amortization		66,390				66,519
Noncash compensation		20,548				18,050
Noncash income from financial services		(4,444	)			(4,574	)
Noncash expense from manufacturing affiliates		133				1,376
Deferred income taxes		(16,946	)			(16,888	)
Changes in current operating items:
Trade receivables		(23,115	)			1,111
Inventories		(49,973	)			(56,612	)
Accounts payable		27,232				37,580
Accrued expenses		80,668				107,663
Income taxes payable/receivable		(24,463	)			(3,577	)
Prepaid expenses and others, net		(1,075	)			958
Net cash provided by continuing operations		302,530				297,919
Net cash flow used for discontinued operations		-				(300	)
Net cash provided by operating activities		302,530				297,619
Investing Activities:
Purchase of property and equipment		(84,484	)			(55,718	)
Investments in finance affiliate, net		(638	)			8,737
Investment in other affiliates, net		(4,124	)			9,601
Acquisition of businesses, net of cash acquired		(51,899	)			(4,738	)
Net cash used for investing activities		(141,145	)			(42,118	)
Financing Activities:
Borrowings under senior notes		100,000				-
Repayments under credit agreement		(202,333	)			-
Repurchase and retirement of common shares		(132,372	)			(27,486	)
Cash dividends to shareholders		(61,585	)			(53,043	)
Tax effect of proceeds from stock based compensation exercises		23,120				10,610
Proceeds from stock issuances under employee plans		45,654				68,105
Net cash used for financing activities		(227,516	)			(1,814	)
Impact of currency exchange rates on cash balances		(2,460	)			-
Net (decrease) increase in cash and cash equivalents		(68,591	)			253,687
Cash and cash equivalents at beginning of period		393,927				140,240
Cash and cash equivalents at end of period		$325,336			$	393,927

Source: Polaris Industries Inc.

####

Cycle Country Announces Preliminary, Unaudited Fiscal 2011 Fourth Quarter and Full Year Results

Fourth quarter 2011 net loss of ($2,272,682), compared to net loss in the fourth quarter of fiscal year 2010 of ($1,379,171)

SPENCER, IA – January 17, 2012 – (Motor Sports Newswire) – Fourth quarter 2011 net sales of $2,268,651 compared to net sales in the fourth quarter of fiscal year 2010 of $3,429,231.

• Full-year net loss for the fiscal year 2011 of ($4,200,422), compared to full-year net loss in fiscal year 2010 of ($2,023,903).
• Full-year net sales for the fiscal year 2011 of $10,588,190, compared to full-year net sales in fiscal year 2010 of $11,944,460.
• Non-recurring charges for fiscal year 2011 exceeded $3,000,000.

Cycle Country Accessories Corp. ATC -9.53% , announced its preliminary, unaudited financial results today for the quarter and year ended September 30, 2011.

For the full year, the Company announced a net loss of ($4,200,422) compared to a net loss in the prior fiscal year of ($2,023,903). Included in this year’s losses are non-recurring expenses of $2,554,245, made up significantly of non-cash charges to impair inventory and fixed assets as a result of the Company’s divestiture of its ATV Accessories and Perf-Form Oil Filter Product Lines.

As previously discussed in the Company’s SEC filings, the Company has undergone a substantial restructuring of its business since January 1, 2011. The Company sold two of its reportable business segments, and mitigated its losses in one other by selling its plastic injection molding operations which were inefficient to operate. The Company now outsources the production of that business line. However, the company will continue to operate its metal manufacturing plant for all of its OEM and other contract metal fabrication clients.

The Company incurred a substantial impairment charge against inventory, fixed assets, and other intangible assets for the full year and for the fourth quarter, resulting primarily from the sale of the company’s ATV Accessories Product Line to Kolpin Outdoors Inc. (“Kolpin”). This transaction was announced September 1, 2011, and closed on December 30, 2011. Because the Company will no longer control the production of that Product Line beyond March 31, 2012, the termination date of the current Master Supply Agreement between the Company and Kolpin, the Company felt it necessary to take a substantial charge against the inventories on hand that would be deemed to be excess or obsolete once the Kolpin transaction closes and the Company no longer controls the manufacturing of the Product Line. A portion of this charge of approximately$2,000,000 for inventory impairment and approximately $500,000 for fixed asset and other intangible asset impairment could potentially be recaptured in subsequent periods if the Company is able to successfully negotiate a continuation of the Master Supply Agreement with Kolpin.

The Company has also sold its Perf-Form segment that manufactured and marketed oil filters. Further, it discontinued manufacturing of its PlazCo segment and has outsourced the manufacturing of that segment’s wheel covers and other products for the aftermarket and OEM golf industry. In doing so, the Company incurred charges of approximately $250,000 in inventory, goodwill and other intangible asset impairment for the full year of fiscal 2011 for these segments, in addition to the charges noted above for the ATV Accessories segment.

The Company also announced that it has discovered an error in the way it accounted for certain equity compensation grants, which will require it to amend its previously-filed Annual Report on Form 10-K for the fiscal year ended September 30, 2010, and its Quarterly Reports on Form 10-Q for the first, second and third quarters of fiscal 2011. The error, which related to a non-cash compensation expense, caused the Company to understate the number of shares that were to have been issued and outstanding, having the effect of inaccurately reporting the basic and fully-diluted earnings per share for those periods.

Amending these previously-filed SEC reports will cause a delay in filing the Company’s Annual Report on Form 10-K for the year ended September 30, 2011. The Company expects to file its 2011 Form 10-K by February 14, 2012.

Preliminary, Unaudited Results for the Quarter and Year ended September 30, 2011.

                                                   For the three months ended                    For the year ended
                                                          September 30,                             September 30,
                                                   2011                 2010                  2011               2010
        STATEMENT OF OPERATIONS
          Sales                               $  2,268,651         $  3,429,231          $ 10,588,190       $ 11,944,460
          Cost of goods sold                     1,777,745            3,118,106             8,838,851          9,353,775
          Inventory adjustments                  1,514,461              592,784             1,995,379            592,784
                                                ----------           ----------            ----------         ----------
          Gross profit                          (1,023,555)           (281,659)            (246,040)        1,997,901
          Sales, general & admin                 1,321,827            1,715,855             4,997,010          4,759,661
          Goodwill impairment                            -                    -               110,186                  -
          Fraud expense                                  -                    -                     -            134,774
          Loss on sale of assets                   107,390              (11,230)             127,452             94,556
                                                ----------           ---------- ----       ----------         ----------
          Operating expense                      1,429,217            1,704,625             5,234,648          4,988,991
          Other expense                            (56,010)           (132,925)            (128,785)         (142,813)
                                                ---------- ----      ---------- ----       ---------- ---     ---------- ---
          Net loss pre tax                    $ (2,508,782)       $ (2,119,209)        $ (5,609,473)     $ (3,133,903)
          Net loss                            $ (2,272,682)       $ (1,379,171)        $ (4,200,422)     $ (2,023,903)
        BALANCE SHEET
          Total current assets                                                           $  3,335,774       $  6,528,444
          Net fixed and intangible assets                                                   9,238,648         10,190,581
          Other assets                                                                          1,521              7,413
                                                                                           ----------         ----------
          Total assets                                                                   $ 12,575,943       $ 16,726,438
          Total current liabilities                                                      $  7,261,525       $  5,565,895
          Long term liabilities                                                             2,426,545          4,065,279
                                                                                           ----------         ----------
          Total liabilities                                                              $  9,688,070       $  9,631,174
          Net worth                                                                      $  2,887,873       $  7,095,264
                                                                                       --- ----------     --- ----------

SOURCE: Cycle Country Accessories Corp.

####

ARI to Announce Fourth Quarter and Fiscal Year 2011 Financial Results on Monday, October 31, 2011

MILWAUKEE, WI – October 31, 2011 – (Motor Sports Newswire) -  ARI Network Services (OTCBB: ARIS), a leading provider of SaaS business solutions that enable dealers, distributors and manufacturers in selected vertical markets increase revenue and reduce costs, will report financial results on Monday, October 31, 2011 for the fourth quarter and fiscal year ended July 31, 2011 after the market closes. The Company has scheduled a conference call that same day, Monday, October 31, 2011 at 4:30 pm ET to review the results.

Interested parties can access the conference call by dialing (877) 317-6789 or (412) 317-6789 or can listen via a live Internet web cast, which is available in the Investor Relations section of the Company’s website at http://www.arinet.com.

A teleconference replay of the call will be available for three days at (877) 344-7529 or (412) 317-0088, confirmation #10005509. A web cast replay will be available in the Investor Relations section of the Company’s website at http://www.arinet.com for 30 days.

About ARI

ARI Network Services (OTCBB: ARIS) is a leading innovator of SaaS solutions that serve several vertical markets with a focus on the outdoor power, powersports, marine, RV, and appliance segments. Solutions include eCommerce-enabled websites, lead generation/lead management services, search engine marketing, and electronic catalogs (parts, garments, and accessories). ARI markets its products and services through multiple sales channels and geographic markets and currently serves approximately 18,000 equipment dealers, 125 manufacturers, and 150 distributors worldwide. ARI has customers in more than 100 countries with the primary market being the Americas served by multiple U.S. offices. The company also maintains sales and service operations in the Netherlands serving the EMEA and APAC markets. For more information on ARI, please visit our website at www.arinet.com.

Company Contact:	Investor Contact:
Darin Janecek	Joe Dorame, Robert Blum, Joe Diaz
Chief Financial Officer	Lytham Partners, LLC
ARI Network Services	602-889-9700
414-973-4300	aris@lythampartners.com
janecek@arinet.com	www.lythampartners.com
www.arinet.com

SOURCE: ARI Network Services

####

Arctic Cat to Webcast Fiscal 2011 Fourth Quarter Conference Call

MINNEAPOLIS, MN – May 06, 2011 – (Motor Sports Newswire) -

Arctic Cat Inc. (NASDAQ: ACAT) announced today that it will webcast its fiscal 2011 fourth quarter conference call on Thursday, May 12, 2011, at 10:30 a.m. CT (11:30 a.m. ET). The company will release its results for the fourth quarter ended March 31, 2011, before the stock market opens that day.

To access the live webcast or webcast replay, go to the corporate portion of the company’s website at www.arcticcat.com, and click on the webcast icon.

To listen to a telephone replay of the conference call, dial 800-406-7325 and enter conference call passcode 4438591. The telephone replay will be available through Thursday, May 19, 2011.

Arctic Cat Inc. designs, engineers, manufactures and markets all-terrain vehicles (ATVs) and snowmobiles under the Arctic Cat(R) 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.

SOURCE: Arctic Cat Inc.

####

San West Inc. Reports Fourth Quarter and Record Full-Year 2010 Results

Full-Year Revenue Increases 160.6% to $2.7 Million

SANTEE, CA – April 7, 2011 – (Motor Sports Newswire) – San West, Inc. (OTCBB: SNWT), provider of online sales of on and off-road vehicles and supplies at www.CountyImports.com and an emerging leader in sales and repairs of on and off-road vehicles, today reported financial results for its fourth quarter and full year ended December 31, 2010 and provided guidance for expected first quarter 2011 results.

Operational and Corporate Highlights

• The Company continued to deploy strategies to improve the efficiency and effectiveness of its marketing programs for its online properties, including www.CountyImports.com. Management implemented an aggressive keyword marketing overhaul which is expected to significantly reduce online advertising costs. In addition, The Company’s YouTube channel at http://www.youtube.com/user/CountyImportsdotCom continues to grow, as total video views are closing in at 120,000 views and 17,000 channel views. Thus far, 69 instructional and promotional videos have been created and uploaded.
• As a result of these efforts, CountyImports.com and related properties benefited from an 8% increase in traffic and a 56% increase in static visit time (time spent shopping on the website) for November 2010 compared to October 2010. The conversion rate for the quarter increased 59% to the highest levels in company history. Sales thus far in the first quarter exceed sales for all of last year’s first quarter by more than 10% with additional sales being tabulated.
• San West, Inc. hired two full-time, permanent employees, both with experience in the off-road vehicle (ORV) industry and unique skills tailored to their specific areas of expertise.
• In addition, Buggy World significantly reduced Internet advertising costs and boosted exposure to its target demographic by migrating away from traditional paid advertising mediums towards free online services such as Craigslist.com, eBay.com, and YouTube.com.
• The Company also largely completed the successful liquidation of old inventory at Buggy World to make space for new, more popular products. These efforts have driven a drastic reduction in floor costs from between $5,000 to $6,000 per month to approximately $750 and provide more space for consignment vehicles and our higher margin repair services. Buggy World’s increased focus on consignment sales is already resulting in a dramatic increase in customer traffic and is also having a very positive impact on both revenue and profitability as the store is able to capture between 10% and 20% of each sale at nearly zero cost to the company.
• San West, Inc. formed a strategic partnership with RND, a local ATV and Dirt-Bike service and accessory retailer, under which RND will pay rent to utilize Buggy World’s service area for its primary business, which is repairing and servicing ATVs and Dirt Bikes, and will also be selling soft goods, apparel and accessories in Buggy World’s showroom, including products from Oakley, Fox, Shift, No Fear, O’Neill, Troy Lee Designs, Thor, Answer, Renthal, Spy and many others.
• San West elected prominent Bay Area businessman/marketer Vladimir Robert Cood to the board of directors and appointed him Director of Communications.

Fourth Quarter Gross Profit Results

The Company reported revenues for the fourth quarter of $408,698, a decrease of 18.4% compared to the $500,553 for the fourth quarter last year. Gross profit for the quarter was $167,698, or 41.0% gross profit margin, compared to gross profit of $130,021, or 26.0% gross profit margin for the fourth quarter of 2009 with the improvement in the gross margin largely due to the change in our product mix to higher margin products in 2010 compared to 2009.

“Our efforts during the last five months of 2010 have positioned us for a strong first quarter and a record peak season,” commented Frank Drechsler, President and CEO of San West Inc. “Approximately 15% of our total revenue was from the retail, brick and mortar store, and we expect to increase those sales significantly during 2011 as we target returning to pre-recession revenue levels of more than $1.5 million annually. The most important initiative involved recruiting industry icon Jim Jordan as our general manager. Jim immediately implemented a series of ‘yard sales’ and other programs designed to liquidate older inventory to free up floor space.”

Full Year Financial Results

For the year ended December 31, 2010, the Company reported record revenues of $2,728,937, an increase of 160.6% compared to $1.0 million in revenue during 2009. Gross profit for 2010 was $638,582, or 23.4% of revenue, compared to gross profit of $257,977 or 24.6% of revenue during 2009. Total operating expenses during 2010 were $2,060,749, an increase of 49.9% compared to $1,375,186 during 2009. Net loss for the year was $(1,763,315), or $(0.00) per share, compared to a net loss of $(605,784) or $(0.01) per share last year.

Outlook

“For the first quarter ended March 31, 2011, management expects revenue of $500,000 to $520,000, or 3% – 5% higher than the first quarter of 2010, and a blended gross margin above 38%,” commented Mr. Drechsler.

“Our CountyImports sales are up over the same period last year, demonstrating the importance of the improvements we have made to our websites and the marketing efforts, including our increasingly popular YouTube channel at http://www.youtube.com/user/CountyImportsdotCom.”

About San West, Inc.
San West Inc. sells and services on road, off-road buggies and related after market performance products and accessories. Our products are sold both at our online store and through our growing dealer network, while our buggy repair services are performed at our store, Buggy World. Buggy with its factory-trained staff that can answer all product and service questions. Buggy World currently has one retail locations in San Diego County, California as well as a growing Internet presence. For further information about Buggy World and its products, please visit www.buggyworld.net and http://stores.ebay.com/BuggyWorld-8770.

For further information about San West, Inc. you may visit www.sanwestinc.com.

Forward-Looking Statements
This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of our products or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law. There is no assurance that a definitive agreement will be completed.

Tables to follow

San West, Inc.
Consolidated Statements of Operations
				Years Ended
				December 31,
				2010				2009
								(Restated)
Revenue				$	2,728,937			$	1,047,174
Cost of goods sold					2,090,355				789,197
Gross profit					638,582				257,977
Expenses
	Selling, general and administrative				2,060,749				1,375,186
		Total expenses			2,060,749				1,375,186
Loss from operations					(1,422,167	)			(1,117,209	)
Other income (expense)
	Other income				164				225
	Gain on the forgiveness of debt				13,000				625,976
	Other expense				-				-
	Loss on the disposal of assets				-				(65,960	)
	Amortization of beneficial conversion feature				(298,519	)			-
	Amortization of deferred financing costs				(3,485	)			-
	Interest expense				(52,308	)			(48,816	)
		Total other income (expense)			(341,148	)			511,425
Net loss before income taxes				$	(1,763,315	)		$	(605,784	)
Provision for income taxes					-				-
Net loss				$	(1,763,315	)		$	(605,784	)
Net loss per common share basic				$	(0.00	)		$	(0.01	)
Weighted average shares outstanding basic					163,635,704				96,038,198
The average shares listed below were not included in the computation of diluted losses per share because to do so would have been antidilutive for the periods presented:
Convertible promissory notes					50,447,003				1,834,259

 

San West, Inc.
Consolidated Balance Sheets
			December 31,
ASSETS			2010				2009
							(Restated)
CURRENT ASSETS
Cash			$	11,566			$	50,659
Accounts receivable				5,079				840
Inventory (Note B)				131,768				287,921
Other current assets (Note C)				113,406				33,897
	Total current assets			261,819				373,317
Fixed assets (Note D)				130,226				130,226
Accumulated depreciation				(53,726	)			(31,974	)
	Net fixed assets			76,500				98,252
Deposits				19,474				12,599
Goodwill (Note E)				234,100				234,100
	Total assets		$	591,893			$	718,268
LIABILITIES AND STOCKHOLDERS’ DEFICIT
CURRENT LIABILITIES
Accounts payable (Note F)			$	891,180			$	749,257
Other current liabilities				235,309				187,689
Floorplan notes payable (Note G)				4,721				117,962
Convertible promissory notes (Note H)				194,434				-
Notes payable (Note H)				-				510,000
Subsidiary purchase loan-current portion (Note I)				39,176				32,292
	Total current liabilities			1,364,820				1,597,200
Subsidiary purchase loan (Note I)				183,280				223,820
Convertible promissory notes, non-current (Note H)				110,000				-
Loans from shareholder (Note J)				216,950				216,950
	Total liabilities			1,875,050				2,037,970
Commitments and contingencies
STOCKHOLDERS’ DEFICIT (Note K)
Preferred stock, no par value, 10,000,000 shares authorized; 77,100 and -0- issued and outstanding at December 31, 2010 and 2009, respectively.				77,100				-
Common stock, no par value, 300,000,000 shares authorized; issued and outstanding 192,742,859 and 124,960,826 at December 31, 2010 and 2009, respectively.				1,509,570				(653,015	)
Common stock payable				-				439,825
Accumulated deficit				(2,869,827	)			(1,106,512	)
	Total stockholders’ deficit			(1,283,157	)			(1,319,702	)
Total liabilities and shareholder deficit			$	591,893			$	718,268

SOURCE: San West Inc

####

Carlisle Companies Reports $0.35 Earnings Per Share for the Fourth Quarter, Including Hawk Acquisition Charges

CHARLOTTE, NC – February 7, 2011 – (Motor Sports Newswire) – Carlisle Companies Incorporated (NYSE:CSL) reported net sales from continuing operations of $626.9 million for the quarter ended December 31, 2010, a 20% increase from $524.3 million in the fourth quarter of 2009. Sales increased in all segments with the exception of Carlisle FoodService Products, with organic sales increasing by 16% from the fourth quarter of the prior year. The acquisition of Hawk Corporation on December 1, 2010 contributed $21.6 million of sales in the fourth quarter.

Income from continuing operations was $21.9 million, or $0.35 per diluted share, in the fourth quarter 2010 compared with $36.1 million, or $0.58 per diluted share, in the fourth quarter 2009. 2010 fourth quarter income included after-tax costs incurred related to the Hawk acquisition of $9.9 million, or $0.16 per diluted share. Also impacting the comparison to 2009 was a tax benefit recorded in the fourth quarter of 2009 of $19.6 million, or $0.32 per diluted share, attributable to the release of a deferred tax liability previously provided with respect to un-repatriated earnings. In the fourth quarter of 2010, income was positively impacted by higher sales volume, reduction in plant restructuring costs and savings from the Carlisle Operating System. Partially offsetting these positive impacts were higher raw material costs.

Comment

David A. Roberts, Chairman, President and CEO, said, “Our businesses achieved 16% organic growth in the fourth quarter of 2010 and, for the full year, 9% organic sales growth compared to 2009. We saw demand strengthen in nearly all of our major product lines and our management team did an excellent job in capturing new opportunities in the domestic and global marketplace.

“We were very pleased with the sales and earnings performance of our Construction Materials segment in 2010. Despite continued weak demand for new construction, full year organic sales for Construction Materials grew by 9% reflecting a shift in sales mix from new construction to re-roofing applications, which now comprise approximately 75% of our business. In 2009, we increased our re-roofing focus and have significantly improved our replacement position through our branding strategy and continued support from our channel partners. In contrast to new construction, the re-roofing market is less cyclical and relatively more stable due to the large base of installed roofs requiring replacement in a given year. Raw material costs for this segment rose significantly during 2010, and management met the challenge by focusing on operating expense reductions and cost effective sourcing strategies, increasing EBIT (“earnings before interest and taxes”) by 3% from $155 million in 2009 to $159 million in 2010.”

Roberts continued, “Our Interconnect Technologies segment registered record sales and earnings with organic sales up 17% and EBIT up 116%, reflecting strong demand for its high performance aerospace solutions and specialized military applications while leveraging higher sales volume and utilizing the Carlisle Operating System to significantly improve margins.

“We are also very pleased with the off-highway braking business in our Brake & Friction segment, which achieved organic sales growth of 36% for the full year and 50% organic sales growth in the fourth quarter.” Roberts noted, “On December 1, 2010 we completed the acquisition of Hawk Corporation for $414 million and combined Hawk with the off-highway braking business to form the Carlisle Brake & Friction segment. We incurred $14.2 million in pre-tax costs in connection with the acquisition. The combination of these two higher margin businesses creates a global braking solutions platform with exposure to key emerging markets and is an important growth platform for Carlisle.

“Also during the fourth quarter, we substantially completed plant consolidation activities at our tire manufacturing operations and commenced production at our new tire facility in Jackson, TN. We also closed our Logansport, IN friction plant. For the full year, we incurred $14.2 million in plant restructuring costs and a remaining $2.0 million is expected in the first quarter of 2011. These closures mark the completion of a consolidation process which began in late 2008 that has enabled us to operate in a much more efficient manner while meeting higher production requirements. We expect savings of approximately $14 million in 2011 from company-wide consolidation efforts.”

Roberts continued, “We realigned our segments during the fourth quarter as follows:

• Carlisle Construction Materials
• Carlisle Transportation Products, which includes the tire and wheel, and power transmission belt product lines
• Carlisle Brake & Friction, which combines the off-highway brake and friction business with the friction business obtained in the Hawk acquisition
• Carlisle Interconnect Technologies
• Carlisle FoodService Products

“We partially funded the Hawk acquisition with $250 million in new senior unsecured notes issued in December 2010. We currently have a debt-to-capital ratio of 26% and available borrowing of $409 million under our revolving credit facility, leaving us well positioned to continue our focus on growth by investing in our businesses and pursuing other strategic acquisitions.”

Roberts concluded by stating, “For the full-year 2011, we are planning for sales growth in the mid-teens, which includes the acquisition of Hawk. While escalating raw material costs will continue to pressure earnings, we expect EBIT margins to improve during the year to reflect the consolidation savings in the Transportation Products segment, margin contribution from the Brake & Friction segment as well as continued focus on new product development and efficiencies gained from the Carlisle Operating System. We are pleased with our performance in 2010 and the actions taken to establish a platform for growth and margin improvement in 2011.”

Segment Results

Carlisle Construction Materials: Fourth quarter 2010 net sales increased 16% to $306.5 million from $263.7 million in the fourth quarter of 2009, on continued increased demand for the Company’s re-roofing applications. Despite the sales increase, EBIT declined from $38.7 million in the fourth quarter 2009 to $34.4 million in the fourth quarter 2010. The decline in EBIT reflected higher raw material costs as well as selling prices which, although relatively level with the third quarter of 2010, declined in comparison to the same quarter of the prior year.

Carlisle Transportation Products: Fourth quarter 2010 net sales increased 14% to $146.4 million from $128.1 million during the fourth quarter of 2009. EBIT improved to $0.3 million in the fourth quarter of 2010 from a loss of $6.1 million in the prior year period. The sales improvement was led by a 35% increase in the agriculture and construction product line in addition to a 22% improvement in the power transmission belt business. The outdoor power equipment and ATV product lines also experienced increased sales demand. During the fourth quarter 2010, the Company recorded $2.4 million in restructuring charges, compared with $10.3 million in restructuring costs incurred during the fourth quarter of 2009. While the Company experienced higher raw material costs, particularly for its natural and synthetic rubber purchases, these increases were significantly offset by higher selling prices. The Company also experienced additional start-up costs related to the commencement of production at its new plant in Jackson, TN.

Carlisle Brake & Friction: Fourth quarter 2010 net sales increased 158% to $51.4 million from $19.9 million and EBIT was a loss of $10.7 million compared to a loss of $2.5 million during the prior year period. The acquisition of Hawk in the fourth quarter contributed $21.6 million to net sales. The braking system product line achieved organic growth of 50% primarily due to higher global demand in construction and mining markets. Included in EBIT during the fourth quarter 2010 was $14.2 million in costs incurred in connection with the Hawk acquisition and $1.5 million in restructuring costs for the Logansport, IN plant closure. EBIT in the fourth quarter of 2009 included $2.3 million in plant restructuring costs.

Carlisle Interconnect Technologies: Fourth quarter 2010 net sales increased 20% to $65.5 million from $54.4 million from the fourth quarter of 2009. The Company experienced a 25% increase in demand for its aerospace applications as well as increases in military orders for its RF microwave products. EBIT increased by 242% from $2.6 million in the fourth quarter 2009 to $8.9 million in the fourth quarter 2010, and EBIT margin improved from 4.8% to 13.6% for the comparative periods. EBIT during the fourth quarter 2009 was impacted by $3.1 million in restructuring charges.

Carlisle FoodService Products: Fourth quarter 2010 net sales declined 1.9% to $57.1 million from $58.2 million, and EBIT declined 16% to $5.3 million from $6.3 million for the same period in 2009. Despite declines in restaurant traffic during the fourth quarter 2010, sales in the foodservice product line increased 6.2%, offset by lower orders in the healthcare product line. The Company also experienced higher raw material costs during the fourth quarter 2010 and has announced price increases effective in the first quarter of 2011.

Interest Expense

Interest expense of $3.2 million for the fourth quarter 2010 compared to $2.0 million in 2009. In connection with the Hawk acquisition, the Company assumed Hawk’s 8.75% senior unsecured notes with a principal amount of approximately $57 million. On January 10, 2011, utilizing borrowings under the Company’s revolving credit facility, the Company redeemed the Hawk notes for approximately $59 million, which equaled the notes’ carrying amount. Also, effective December 9, 2010, the Company issued $250 million in 5.125% senior unsecured notes due 2020 to partially fund the Hawk acquisition.

Income Tax Expense

Income tax expense from continuing operations was $1.7 million for the fourth quarter 2010, compared to an income tax benefit of $10.5 million for the same period in 2009. The effective tax rate of 7.2% in the fourth quarter 2010 reflected the impact of tax law changes during this period and resolution of prior year tax audits. The net tax benefit in 2009 resulted from the release of a $19.6 million deferred tax liability.

Discontinued Operations

Income from discontinued operations was $10.3 million, or $0.16 per diluted share, during the fourth quarter of 2010, compared to a loss from discontinued operations of $0.2 million for the same period in 2009. During the fourth quarter of 2010, the Company realized a $3.9 million after-tax gain on the sale of Trail King, which was sold on October 4, 2010. In addition, the Company recognized after-tax gains of $6.0 million during the fourth quarter 2010 related to the final dissolution of certain of its discontinued operations.

Net Income

Net income for the fourth quarter 2010 was $32.2 million, or $0.51 per diluted share, compared to net income of $35.9 million, or $0.58 per diluted share for the fourth quarter 2009. Fourth quarter 2010 net income was negatively impacted by costs incurred in connection with the Hawk acquisition, or $0.16 per diluted share, partially offset by income from discontinued operations. 2009 net income was positively impacted by the aforementioned release of a deferred tax liability of $0.32 per diluted share.

Year-to-Date

Net sales of $2,527.7 million for the year ended December 31, 2010 increased 12% as compared with $2,258.1 million for the prior year. Sales increased in all segments with the exception of FoodService Products. Sales from acquisitions contributed $67.5 million, or 3.0% to net sales.

Income from continuing operations for the year ended December 31, 2010 of $130.6 million, or $2.10 per diluted share, decreased 16% as compared with $155.3 million, or $2.51 per diluted share, for the same period in 2009. 2009 income included the reversal of a $19.6 million deferred tax liability. Full year 2010 EBIT of $196.1 million decreased 7% from $211.9 million in the prior year. 2009 results include a $27 million gain from a fire insurance settlement. 2010 EBIT was also negatively impacted by higher raw material costs, year-over-year decrease in selling prices and $14.2 million in charges related to the Hawk acquisition. These negative impacts were partially offset by higher sales volume and a $17.1 million reduction in restructuring expenses.

Income from Discontinued Operations of $15.0 million, or $0.24 per diluted share, during 2010 compared to a loss from Discontinued Operations of $10.7 million, or $0.17 per diluted share, in 2009.

Net income for the year ended December 31, 2010 was $145.6 million, or $2.34 per diluted share. Net income for the year ended December 31, 2009 was $144.6 million, or $2.34 per diluted share.

Cash Flow

Cash flow provided from operations of $107.4 million for the year ended December 31, 2010 compares to cash flow of $417.2 million for 2009. Cash used for working capital and other assets and liabilities of $109.9 million during 2010 primarily reflected an increase in receivables and inventory due to higher sales activity, as compared to 2009, where cash provided by working capital and other assets and liabilities was $189.4 million as sales declined in 2009. During 2010, average working capital (defined as the average of the quarter end balances, excluding current year acquisitions, of receivables, plus inventory less accounts payable) as a percentage of annualized sales (defined as year-to-date net sales, excluding current year acquisitions, calculated on an annualized basis) was 22%, as compared to 25% for the full year 2009.

Cash used in investing activities of $339.3 million in 2010 compared to cash used of $89.5 million in 2009. In 2010, cash used to purchase Hawk, net of cash acquired, of $343.4 million was partially offset by proceeds from the sale of Johnson Truck Bodies and Trail King. Capital expenditures were $64.6 million during 2010 compared to capital expenditures of $48.2 million during 2009.

Cash provided by financing activities of $223.8 in 2010 compared to cash used in financing activities of $274.2 million in 2009. During 2010, the Company issued $250 million in 5.125% senior unsecured notes due 2020 to partially fund the acquisition of Hawk, and incurred related issuance costs of approximately $1.9 million

Conference Call and Webcast

The Company will discuss fourth quarter 2010 results on a conference call at 10:00 a.m. ET today. The call may be accessed live by going to the Investor Relations section of the Carlisle website (http://www.carlisle.com/investors/conference_call.html), or the taped call may be listened to shortly following the live call at the same website location. A PowerPoint presentation will accompany the call and can be found on the Carlisle website as well.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global economic, business, competitive, market and regulatory factors. More detailed information about these factors is contained in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no duty to update forward-looking statements.

About Carlisle Companies

Carlisle Companies Inc. is a global diversified company that designs, manufactures and markets a wide range of products that serve a broad range of niche markets including commercial roofing, energy, agriculture, lawn and garden, mining and construction equipment, aerospace and electronics, dining and food delivery, and healthcare. Through our group of decentralized operating companies led by entrepreneurial management teams we bring innovative product solutions to solve the challenges our customers face. Our 11,000 employees worldwide, who generated $2.5 billion in net sales in 2010, are focused on continuously improving the value of the Carlisle brand by developing the best products, insuring the highest quality and providing unequaled customer service in the many industries we serve. Learn more about Carlisle at www.carlisle.com.

CARLISLE COMPANIES INCORPORATED
Unaudited Condensed Consolidated Statements of Earnings
(In millions, except share and per share amounts)
		Fourth Quarter											Full Year
		2010			2009				% Change				2010				2009				% Change
Net sales		$	626.9		$	524.3			20	%			$	2,527.7			$	2,258.1			12	%
Cost and expenses:
Cost of goods sold			497.4			412.1			21	%				1,999.0				1,767.8			13	%
Selling and administrative expenses			95.8			71.4			34	%				310.5				274.3			13	%
Research and development expenses			6.4			4.1			56	%				23.2				16.4			41	%
Gain related to fire settlement			-			-			NM					-				(27.0	)		NM
Other expense (income), net			0.5			9.1			NM					(1.1	)			14.7			NM
Earnings before interest and income taxes			26.8			27.6			-3	%				196.1				211.9			-7	%
Interest expense, net			3.2			2.0			60	%				8.3				9.0			-8	%
Earnings before income taxes			23.6			25.6			-8	%				187.8				202.9			-7	%
Income tax expense			1.7			(10.5	)		NM					57.2				47.6			20	%
Income from continuing operations, net of tax			21.9			36.1			-39	%				130.6				155.3			-16	%
Income (loss) from discontinued operations, net of tax			10.3			(0.2	)		NM					15.0				(10.7	)		NM
Net income		$	32.2		$	35.9			-10	%			$	145.6			$	144.6			1	%
Basic earnings (loss) per share (1)
Continuing operations		$	0.36		$	0.59			-39	%			$	2.12			$	2.53			-16	%
Discontinued operations			0.16			-			NM					0.24				(0.17	)		NM
Basic earnings per share		$	0.52		$	0.59			-12	%			$	2.36			$	2.36			0	%
Diluted earnings (loss) per share (1)
Continuing operations		$	0.35		$	0.58			-40	%			$	2.10			$	2.51			-16	%
Discontinued operations			0.16			-			NM					0.24				(0.17	)		NM
Diluted earnings per share		$	0.51		$	0.58			-12	%			$	2.34			$	2.34			0	%
Average shares outstanding – in thousands
Basic			60,997			60,640								60,901				60,601
Diluted			61,766			61,340								61,592				61,234
Dividends		$	10.5		$	9.8			7	%			$	40.6			$	38.6			5	%
Dividends per share		$	0.17		$	0.16			6	%			$	0.66			$	0.63			5	%
(1) Numerator for basic and diluted EPS calculated based on “two class” method of computing earnings per share:
Income from continuing operations		$	21.7		$	35.7							$	129.2			$	153.6
Net income		$	31.9		$	35.5							$	144.0			$	143.0
NM = Not Meaningful

CARLISLE COMPANIES INCORPORATED
Unaudited Segment Financial Data
(In millions)
		Fourth Quarter												Full Year
		2010				2009				% Change				2010				2009				% Change
Net Sales
Carlisle Construction Materials		$	306.5			$	263.7			16	%			$	1,223.6			$	1,125.9			9	%
Carlisle Transportation Products			146.4				128.1			14	%				684.8				633.5			8	%
Carlisle Brake & Friction			51.4				19.9			158	%				129.4				74.6			73	%
Carlisle Interconnect Technologies			65.5				54.4			20	%				251.1				180.5			39	%
Carlisle FoodService Products			57.1				58.2			-2	%				238.8				243.6			-2	%
Total Net Sales		$	626.9			$	524.3			20	%			$	2,527.7			$	2,258.1			12	%
Earnings Before Interest and Income Taxes (EBIT)
Carlisle Construction Materials		$	34.4			$	38.7			-11	%			$	159.2			$	155.2			3	%
Carlisle Transportation Products			0.3				(6.1	)		105	%				21.7				53.4			-59	%
Carlisle Brake & Friction			(10.7	)			(2.5	)		-328	%				(0.9	)			0.8			-213	%
Carlisle Interconnect Technologies			8.9				2.6			242	%				30.9				14.3			116	%
Carlisle FoodService Products			5.3				6.3			-16	%				24.3				24.7			-2	%
Corporate			(11.4	)			(11.4	)		0	%				(39.1	)			(36.5	)		-7	%
Total EBIT		$	26.8			$	27.6			-3	%			$	196.1			$	211.9			-7	%
EBIT Margins
Carlisle Construction Materials			11.2	%			14.7	%							13.0	%			13.8	%
Carlisle Transportation Products			0.2	%			-4.8	%							3.2	%			8.4	%
Carlisle Brake & Friction			-20.8	%			-12.6	%							-0.7	%			1.1	%
Carlisle Interconnect Technologies			13.6	%			4.8	%							12.3	%			7.9	%
Carlisle FoodService Products			9.3	%			10.8	%							10.2	%			10.1	%
Corporate			-1.8	%			-2.2	%							-1.5	%			-1.6	%
Total EBIT Margin			4.3	%			5.3	%							7.8	%			9.4	%

CARLISLE COMPANIES INCORPORATED
Unaudited Condensed Consolidated Balance Sheet
(In millions)
		December 31,			December 31,
		2010			2009
Assets		(Unaudited)
Current Assets
Cash and cash equivalents		$	89.4		$	96.3
Receivables			391.0			287.1
Inventories			430.5			338.3
Prepaid expenses and other			106.0			65.0
Current assets held for sale			-			13.1
Total current assets			1,016.9			799.8
Property, plant and equipment, net			533.4			460.9
Goodwill and other intangible assets			965.0			625.1
Other assets			12.6			4.6
Non-current assets held for sale			1.6			23.7
Total Assets		$	2,529.5		$	1,914.1
Liabilities and Shareholders’ Equity
Current Liabilities
Short-term debt, including current maturities		$	69.0		$	-
Accounts payable			195.4			132.7
Accrued expenses			192.0			160.8
Current liabilities associated with assets held for sale			-			7.6
Total current liabilities			456.4			301.1
Long-term debt			405.1			156.1
Other liabilities			327.3			238.3
Shareholders’ equity			1,340.7			1,218.6
Total Liabilities and Shareholders’ Equity		$	2,529.5		$	1,914.1

CARLISLE COMPANIES INCORPORATED
Unaudited Condensed Consolidated Statements of Cash Flows
(In millions)
		Full Year
		2010				2009
Operating activities
Net income		$	145.6			$	144.6
Reconciliation of net income to operating cash flows:
Depreciation and amortization			71.9				67.5
Non-cash compensation			13.3				13.9
Loss on writedown of assets			0.2				20.9
Gain on insurance recoveries			-				(24.3	)
Deferred taxes			7.5				8.3
Gain on disposition of investments, property and equipment, net			(17.5	)			(1.7	)
Foreign exchange gain			(1.8	)			0.2
Change in working capital and other assets and liabilities			(109.9	)			189.4
Other			(1.9	)			(1.6	)
Net cash provided by operating activities			107.4				417.2
Investing activities
Capital expenditures			(64.6	)			(48.2	)
Acquisitions, net of cash acquired			(343.4	)			(80.8	)
Proceeds from sale of businesses			59.8				-
Proceeds from investments and disposal of property and equipment			9.1				9.2
Proceeds from insurance settlements related to property, plant and equipment			-				30.0
Other			(0.2	)			0.3
Net cash (used in) investing activities			(339.3	)			(89.5	)
Financing activities
Net change in short-term debt and revolving credit lines			10.0				(235.4	)
Net proceeds from long-term debt			248.9				-
Bond issuance costs			(1.9	)			-
Dividends paid			(40.6	)			(38.6	)
Excess tax benefits on share-based compensation			1.3				0.1
Treasury shares and stock options, net			6.1				1.0
Treasury share repurchases			-				(1.3	)
Net cash provided by (used in) financing activities			223.8				(274.2	)
Effect of exchange rate changes on cash			1.2				0.1
Change in cash and cash equivalents			(6.9	)			53.6
Cash and cash equivalents
Beginning of period			96.3				42.7
End of period		$	89.4			$	96.3

CONTACT

Carlisle Companies Incorporated
Steven J. Ford, 704-501-1100
Vice President & Chief Financial Officer
http://www.carlisle.com

####

Polaris Reports Record 2010 Fourth Quarter and Full Year Results

Fourth Quarter and Full Year Highlights:

• Fourth quarter 2010 earnings per diluted share increased 18% to a record $1.55 with sales increasing 31 percent from the 2009 fourth quarter to a record $618.4 million
• All product lines experienced increased sales and market share during the 2010 fourth quarter and full year
• Full year 2010 earnings per diluted share increased 40% to a record $4.28 with record sales of $1,991.1 million, an increase of 27% from the 2009 full year
• Full year 2010 gross profit margins improved 150 basis points over 2009, primarily due higher production volumes and cost reduction efforts, though partially offset by manufacturing realignment costs. Gross profit margins improved 40 basis points for the fourth quarter
• Cash and cash equivalents totaled $393.9 million at year-end 2010, an increase of 181% over 2009

MINNEAPOLIS, MN – January 27, 2011 – (Motor Sports Newswire) – Polaris Industries Inc. (NYSE:PII) today reported record net income of $1.55 per diluted share for the fourth quarter of 2010, up 18 percent over the 2009 fourth quarter. Net income for the fourth quarter 2010 was a record $54.5 million, an increase of 24 percent over the same period in 2009. Record sales of $618.4 million for the fourth quarter 2010 increased 31 percent over 2009 fourth quarter sales of $471.8 million.

Full Year Results

For the full year ended December 31, 2010, Polaris reported record net income of $147.1 million, or a record $4.28 per diluted share, compared to $101.0 million, or $3.05 per diluted share for the year ended December 31, 2009. This represents a 40 percent increase on a per diluted share basis and a 46 percent increase in net income. Sales for the full year 2010 totaled a record $1,991.1 million, an increase of 27 percent compared to sales of $1,565.9 million for the full year 2009.

“2010 was an exceptional year for Polaris. Not only did we deliver record sales and earnings, but the Polaris team made significant progress toward our long-term strategy and positioned the business for profitable growth in the future. We gained market share in all of our businesses and grew sales in every region of the world. Our persistent focus on margins paid dividends, as gross profit margins increased 150 basis points and net margins expanded by 90 basis points to 7.4 percent of sales. We also expanded our leadership position in the side-by-side industry, and grew sales and market share in our Victory motorcycles and snowmobile businesses,” stated Scott Wine, Chief Executive Officer. “In addition to our record financial performance, we made several strategic investments in the business during 2010 that position us for future growth, including investments in China, Brazil and India, and a small powertrain acquisition in Europe. Lastly, our manufacturing realignment project, announced in mid-2010, is on track to begin production in our new Monterrey facility by mid-2011.”

“Our efforts throughout 2010 have further positioned the Company for continued growth and profitability in 2011 and beyond. Importantly, dealer inventories for ORV and Victory continued to decline in 2010 and are at appropriate levels as we enter 2011. Additionally, we expanded the retail sales program called Max Velocity Program, or MVP, into the remaining 50 percent of our ORV dealers in North America during the second half of 2010. We expect MVP to continue to drive retail sales velocity and market share gains in 2011,” Wine continued.

“Ending 2010 with $394 million in cash and only $200 million in total debt, we have both the financial strength and flexibility to continue to make organic and acquisitive investments to support our long-term growth initiatives. We expect the investments made over the past two years, supported by continued product innovation, ever-increasing speed to market, productive lean manufacturing initiatives, and low-cost purchasing capabilities to continue to deliver net margin expansion in 2011, resulting in another record year of sales and earnings for the Company.”

2011 Business Outlook

Full year 2011 earnings are expected to be in the range of $4.65 to $4.85 per diluted share, which represents an increase of nine to 13 percent when compared to full year 2010 earnings. Net income for full year 2011 is expected to increase in the range of 14 to 20 percent over full year 2010. Sales for full year 2011 are expected to increase eight to 11 percent over full year 2010 sales, with sales increases projected in each product line and geographic region. The full year 2011 expectations include transition costs related to the manufacturing realignment in the range of $12.0 million to $14.0 million, with the majority of the costs impacting gross margins. Savings from the manufacturing realignment project are expected to begin in the second half of 2011 but will only partially offset project transition costs in 2011.

Fourth Quarter Performance Summary (in thousands except per share data)
		Three Months ended December 31,													Twelve Months ended December 31,
Product line Sales		2010				2009				Change					2010				2009				Change
Off-Road Vehicles		$	394,550			$	282,816			40	%				$	1,376,373			$	1,021,128			35	%
Snowmobiles			104,073				81,441			28	%					188,877				179,238			5	%
On-Road/Victory Motorcycles			20,640				19,139			8	%					81,624				52,811			55	%
Parts, Garments & Accessories			99,179				88,374			12	%					344,265				312,710			10	%
Total Sales		$	618,442			$	471,770			31	%				$	1,991,139			$	1,565,887			27	%
Gross profit		$	171,516			$	128,610			33	%				$	530,213			$	393,219			35	%
Gross profit as a % of sales			27.7	%			27.3	%		+40 bpts						26.6	%			25.1	%		+150 bpts
Operating expenses		$	97,589			$	63,926			53	%				$	326,348			$	245,320			33	%
Operating expenses as a % of sales			15.8	%			13.6	%		+220 bpts						16.4	%			15.7	%		+70 bpts
Operating Income		$	78,146			$	69,463			13	%				$	220,721			$	164,970			34	%
Operating Income as a % of sales			12.6	%			14.7	%		-210 bpts						11.1	%			10.5	%		+60 bpts
Net income		$	54,522			$	43,910			24	%				$	147,138			$	101,017			46	%
Net income as a % of sales			8.8	%			9.3	%		-50 bpts						7.4	%			6.5	%		+90 bpts
Diluted net income per share		$	1.55			$	1.31			18	%				$	4.28			$	3.05			40	%

Off-road Vehicles (“ORV’) sales, which include sales of both ATVs (all-terrain vehicles) and RANGER(TM) side-by-side vehicles, increased 40 percent during the fourth quarter 2010 from the fourth quarter 2009. This increase reflects continued market share gains for both ATVs and side-by-side vehicles driven by industry leading product offerings and the success of the MVP retail go-to-market process. All North American ORV dealers are now utilizing the MVP order process as of the 2010 third quarter. North American dealer inventories of ATVs continued to decline, decreasing 33 percent from the 2009 fourth quarter and sequentially decreasing eight percent from the third quarter of 2010. Polaris’ North American ORV unit retail sales to consumers increased approximately 11 percent for the 2010 fourth quarter compared to a tougher 2009 fourth quarter comparable, with side-by-side vehicle retail sales increasing over 20 percent quarter over quarter and ATV retail sales about flat with the prior year. The Company’s newer products have been well received by consumers, including the new mid-sized RANGER side-by-side with increased power, a 4-person mid-sized RANGER Crew and the first RANGER with a diesel engine. The most recent example of the Company’s continued aggressive new product development is the introduction in January 2011 of the all-new high performance RANGER RZR XP 900 to Polaris’ recreational family of vehicles. The unique features of the RZR XP 900 include a new 88 horsepower electronic fuel injected twin cylinder engine and a new 3-link trailing arm independent rear suspension with 14-inches of travel. In addition, shipments to Bobcat of its differentiated utility vehicle continued to gain market share in the 2010 fourth quarter. Given the growth in the Company’s ORV business worldwide, Polaris has widened its market share leadership in off-road vehicles in both North America and Europe.

Snowmobile sales increased 28 percent during the 2010 fourth quarter compared to the prior year’s fourth quarter. The fourth quarter 2010 increase in sales reflects 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 in the winter season compared to the same period last year. Polaris’ North American snowmobile retail sales to consumers increased over 40 percent for the 2010 fourth quarter compared to the 2009 fourth quarter primarily due to heavy amounts of early snowfall in many key riding areas in North America and the success of model year 2011 new product introductions. Sales of snowmobiles to customers outside of North America, principally the Scandinavian region, increased 43 percent in the fourth quarter of 2010 compared to a year ago. North American dealer inventories of snowmobiles at December 2010 are 22 percent lower than a year ago. For the full year 2010, snowmobile sales increased five percent compared to the prior year.

Sales of On-road Vehicles, which primarily consists of Victory motorcycles, increased eight percent during the fourth quarter of 2010 when compared to the same period in 2009. Victory North American unit retail sales to consumers increased 15 percent during the 2010 fourth quarter when compared to a strong 2009 fourth quarter, resulting in continued market share gains and retail sales growth for the fifth consecutive quarter. The North American heavyweight cruiser and touring motorcycle industry remained weak during the 2010 fourth quarter. However, consumer demand remains strong for Victory’s new touring models, the Cross Country(TM) and Cross Roads(TM) and the Company recently introduced the Victory High-Ball, a custom cruiser aimed at the younger rider looking for a classic factory custom motorcycle. North American dealer inventory of Victory motorcycles declined 30 percent in the 2010 fourth quarter compared to 2009 fourth quarter levels.

Parts, Garments, and Accessories (“PG&A”) sales increased 12 percent during the fourth quarter 2010 compared to the same period last year primarily due to increased ORV, Victory motorcycle and international related PG&A sales.

Gross profit as a percentage of sales was 27.7 percent for the fourth quarter of 2010, an increase of 40 basis points from 27.3 percent for the fourth quarter of 2009. Gross profit dollars increased 33 percent to $171.5 million for the fourth quarter 2010 compared to $128.6 million for the fourth quarter of 2009. The increase in gross profit dollars and the 40 basis points increase in the gross profit margin percentage in the fourth quarter 2010 resulted primarily from higher volume, continued product cost reduction efforts and higher selling prices. These increases were partially offset by manufacturing realignment costs as well as higher commodity and sales promotion costs.

Operating expenses for the fourth quarter 2010 increased 53 percent to $97.6 million, or 15.8 percent of sales, compared to $63.9 million, or 13.6 percent of sales, for the fourth quarter of 2009. Operating expenses in absolute dollars and as a percentage of sales for the fourth quarter 2010 increased primarily due to an increase in incentive compensation plan expenses of $19 million over the 2009 fourth quarter period driven by the higher profitability for 2010 and the recent higher stock price which reflects the Company’s pay for performance compensation philosophy. In addition, incremental investments made in global market expansion and new product development initiatives contributed to the increase in operating expenses in the fourth quarter.

Income from financial services decreased 12 percent to $4.2 million during fourth quarter 2010 from $4.8 million in the fourth quarter of 2009. The decrease was primarily due to lower interest income earned by Polaris Acceptance as a result of the lower dealer inventory levels.

Interest expense decreased to $0.5 million for the fourth quarter 2010, from $0.9 million for the fourth quarter 2009, due to lower interest rates on the Company’s credit facility during the 2010 fourth quarter as compared to the same period in 2009.

Non-operating other income was $0.7 million in the fourth quarter of 2010, as compared to $2.7 million of expense in the fourth quarter of 2009. The income is the result of foreign currency exchange rate movements and the resulting effects on foreign currency transactions related to the Company’s foreign subsidiaries.

The Income tax provision for the fourth quarter 2010 was recorded at a rate of 30.4 percent of pretax income compared to 33.3 percent of pretax income for the fourth quarter 2009. The lower income tax provision rate in the fourth quarter 2010 is primarily due to the extension of the research and development credit by the U.S. Congress in the 2010 fourth quarter.

Financial Position and Cash Flow

Net cash provided by operating activities increased 54 percent to $297.6 million for the year ended December 31, 2010 compared to $193.2 million for the full year 2009. The increase in net cash provided by operating activities for the full year 2010 was due to higher net income and lower investment in working capital, primarily resulting from higher accrued expenses, compared to the same period in 2009. Total debt was $200.0 million, of which $100.0 million was classified as current liabilities and $100.0 million was classified as long term liabilities at December 31, 2010. The Company’s debt-to-total capital ratio was 35 percent at December 31, 2010, compared to 49 percent at the end of 2009. Cash and cash equivalents were $393.9 million at December 31, 2010 compared to $140.2 million for the prior period.

Manufacturing Realignment

The previously announced manufacturing realignment will consolidate manufacturing operations into existing operations in Roseau, Minnesota and Spirit Lake, Iowa and a new facility in Monterrey, Mexico. Construction is underway on the new facility in Monterrey and the building is expected to be completed in the first half of 2011. The Company expects to record pretax transition charges to its statement of income in the range of $24 million to $26 million and incur capital expenditures of approximately $35 million in total related to the implementation of the manufacturing realignment. The Company expects to realize pretax savings in excess of $30 million annually when the transition is completed. During 2010, $5.4 million of exit costs and $5.5 million of startup costs were incurred from the realignment, which are primarily reflected in cost of sales on the statement of income. In addition, capital expenditures of $8.6 million were incurred in 2010 related to the manufacturing realignment.

Polaris’ Board of Directors Increases Dividend for 2011

On January 20, 2011, the Company announced that its Board of Directors approved a 13 percent increase in the regular quarterly cash dividend, representing the 16th consecutive year of increased dividends, effective with the 2011 first quarter dividend payment. The first quarter dividend of $0.45 per share will be payable on February 15, 2011 to shareholders of record at the close of business on February 1, 2011.

Conference Call and Webcast Presentation

Today at 9:00 AM (CT) Polaris Industries Inc. will host a conference call and webcast to discuss Polaris’ 2010 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 approximately 30 minutes before the conference call begins.

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 #36641454.

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 800-642-1687 in the U.S. and Canada, or 706-645-9291 Internationally.

About Polaris

With annual 2010 sales of $1.991 billion, Polaris designs, engineers, manufactures and markets off-road vehicles (ORVs), including all-terrain vehicles (ATVs) and the Polaris RANGER(TM), snowmobiles and Victory motorcycles for recreational and utility use and has recently introduced a new on-road electric powered neighborhood vehicle.

Polaris is a recognized leader in the snowmobile industry; and one of the largest manufacturers of ORVs 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 making in-roads into the cruiser and touring motorcycle marketplace. Polaris also 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 vehicle accessories are available from authorized Polaris dealers or anytime from the Polaris homepage at www.polarisindustries.com.

Except for historical information contained herein, the matters set forth in this news release, including management’s expectations regarding 2011 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)

POLARIS INDUSTRIES INC. CONSOLIDATED STATEMENTS OF INCOME (In Thousands, Except Per Share Data) (Unaudited)
		For Three Months Ended December 31,								For the Year Ended December 31,
		2010				2009				2010				2009
Sales		$	618,442			$	471,770			$	1,991,139			$	1,565,887
Cost of Sales			446,926				343,160				1,460,926				1,172,668
Gross profit			171,516				128,610				530,213				393,219
Operating expenses
Selling and marketing			39,973				27,769				142,353				111,137
Research and development			25,433				15,872				84,940				62,999
General and administrative			32,183				20,285				99,055				71,184
Total operating expenses			97,589				63,926				326,348				245,320
Income from financial services			4,219				4,779				16,856				17,071
Operating Income			78,146				69,463				220,721				164,970
Non-operating Expense (Income):
Interest expense			531				906				2,680				4,111
(Gain)Loss on securities available for sale			-				-				(825	)			8,952
Other expense (income), net			(691	)			2,735				325				733
Income before income taxes			78,306				65,822				218,541				151,174
Provision for Income Taxes			23,784				21,912				71,403				50,157
Net Income		$	54,522			$	43,910			$	147,138			$	101,017
Basic Net Income per share		$	1.60			$	1.35			$	4.40			$	3.12
Diluted Net Income per share		$	1.55			$	1.31			$	4.28			$	3.05
Weighted average shares outstanding:
Basic			34,070				32,526				33,450				32,399
Diluted			35,155				33,502				34,382				33,074

POLARIS INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
Subject to Reclassification
(In Thousands)		December 31, 2010				December 31, 2009
		(Unaudited)
Assets
Current Assets:
Cash and cash equivalents		$	393,927			$	140,240
Trade receivables, net			89,294				90,405
Inventories, net			235,927				179,315
Prepaid expenses and other			21,628				20,638
Deferred tax assets			67,369				60,902
Total current assets			808,145				491,500
Property and equipment, net			184,011				194,416
Investments in finance affiliate			37,169				41,332
Investments in manufacturing affiliates			1,009				10,536
Goodwill and Intangible assets, net			31,313				25,869
Total Assets		$	1,061,647			$	763,653
Liabilities and Shareholders’ Equity
Current Liabilities:
Borrowings under credit agreement		$	100,000				-
Accounts payable			113,248			$	75,657
Accrued expenses:
Compensation			126,781				55,313
Warranties			32,651				25,520
Sales promotions and incentives			75,494				67,055
Dealer holdback			79,688				72,229
Other			52,194				38,748
Income taxes payable			2,604				6,702
Current liabilities of discontinued operations			1,550				1,850
Total current liabilities			584,210				343,074
Long term income taxes payable			5,509				4,988
Deferred income taxes			937				11,050
Borrowings under credit agreement			100,000				200,000
Total liabilities		$	690,656			$	559,112
Shareholders’ Equity:
Total shareholders’ equity		$	370,991			$	204,541
Total Liabilities and Shareholders’ Equity		$	1,061,647			$	763,653

POLARIS INDUSTRIES INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
Subject to Reclassification (In Thousands)		For the Years Ended December 31,
(Unaudited)		2010				2009
Operating Activities:
Net income		$	147,138			$	101,017
Adjustments to reconcile net income to net cash provided by operating activities:
(Gain) loss on securities available for sale			(825	)			8,952
Depreciation and amortization			66,519				64,593
Noncash compensation			18,050				10,226
Noncash income from financial services			(4,574	)			(4,021	)
Noncash expense from manufacturing affiliates			1,376				382
Deferred income taxes			(16,888	)			13,573
Changes in current operating items:
Trade receivables			1,111				8,192
Inventories			(56,612	)			42,997
Accounts payable			37,580				(40,329	)
Accrued expenses			107,663				(24,759	)
Income taxes payable			(3,577	)			7,735
Prepaid expenses and others, net			958				4,643
Net cash provided by continuing operations			297,919				193,201
Net cash flow used for discontinued operations			(300	)			-
Net cash provided by operating activities			297,619				193,201
Investing Activities:
Purchase of property and equipment			(55,718	)			(43,932	)
Investments in finance affiliate, net			8,737				14,254
Proceeds from sale of investments			9,601				-
Acquisition of businesses, net of cash acquired			(4,738	)			-
Net cash (used for) investing activities			(42,118	)			(29,678	)
Financing Activities:
Borrowings under credit agreement			-				364,000
Repayments under credit agreement			-				(364,000	)
Repurchase and retirement of common shares			(27,486	)			(4,556	)
Cash dividends to shareholders			(53,043	)			(50,177	)
Tax effect of proceeds from stock based compensation exercises			10,610				(410	)
Proceeds from stock issuances under employee plans			68,105				4,733
Net cash (used for) financing activities			(1,814	)			(50,410	)
Net increase in cash and cash equivalents			253,687				113,113
Cash and cash equivalents at beginning of period			140,240				27,127
Cash and cash equivalents at end of period		$	393,927			$	140,240

SOURCE: Polaris Industries Inc.

Polaris Industries Inc.
Richard Edwards, 763-542-0500

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