Polaris (PII) Q4 2001 earnings summary

Executive summary

• Product portfolio spanned ATVs, snowmobiles, motorcycles, personal watercraft (PWC), and parts, garments and accessories (PG&A); ATVs accounted for 56% of 2001 sales.

• A Roseau facility expansion completed in early 2002 was expected to increase capacity and production flexibility.

Financial highlights

• Sales and marketing expense was $119.9 million in 2001, versus $122.0 million in 2000 and $112.1 million in 1999.

• Research and development expense was $35.7 million in 2001, versus $32.4 million in 2000 and $31.3 million in 1999.

Outlook and guidance

• Roseau expansion was expected to support future growth through added capacity and production flexibility.

• Victory dealer network targeted 500–600 dealers over the next three to four years, from approximately 340 dealers at year-end 2001.

• Management could not predict the ultimate operational impact of adopted or proposed emissions regulations.