Arctic Cat Reports Fiscal 2012 Third Quarter Results

MINNEAPOLIS, Jan 26, 2012  --Net sales grew 36 percent;

--Third-quarter operating profit rose 114 percent to $26.2 million from $12.2 million;

--Company again raises fiscal 2012 sales and earnings guidance to a range of $1.60 to $1.70 EPS, a 129% to 143% increase over fiscal 2011, on expected full-year sales growth of 22% to 24%

Arctic Cat Inc.  ACAT +20.03% today reported net earnings of $17.0 million, or $0.92 per diluted share, on net sales of $207.0 million for the fiscal third quarter ended December 31, 2011. In the prior-year third quarter, Arctic Cat reported net earnings of $9.3 million, or $0.50 per diluted share, on net sales of $152.0 million.

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

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

-- Net sales grew 36 percent, chiefly driven by increased snowmobile sales and international all-terrain vehicle (ATV) sales;

-- The company began to ship the new Wildcat sport side-by-side vehicle;

-- Operating expenses as a percent of sales declined to 10.4 percent compared to 13.5 percent;

-- Operating profit rose 114 percent;

-- Cash and short-term investments totaled $76.3 million at quarter end; and

-- The company had no short- or long-term debt.

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

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

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

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

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

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

Business Line Results

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

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

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

Company Raises Fiscal 2012 Outlook

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

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

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

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

Conference Call

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

About Arctic Cat

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

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Can Am Commander & John Deere XUV Owners: We Need Your Opinion!

Clarity Research, a powersports research company ( www.clarityresearch.net ), is conducting a research study in Salt Lake City, UT on Saturday, February 11, 2012 and in Dallas, TX on Saturday, February 18, 2012 among Can-Am Commander 800/1000 and John Deere XUV 625i/825i owners.

Your input into our survey will help design future UTVs.

You will have a chance to view and provide your feedback on current and future UTV vehicles. This survey will last about an hour and in exchange for your feedback we will give you $150 cash.

To see if you qualify or if you have any questions, call 866-622-3119 between Noon and 8pm EST and ask for Judy.

There will be absolutely no sales effort as a result of you giving us your opinions.

Your opinion truly does count!

Thanks in Advance,
Dave Pagnucco
Clarity Research LLC

Monster Energy Kawasaki Off Road Racers Converge in the Deserts of Southern California

Irvine, Calif. (January 25, 2012) – Monster Energy Kawasaki off-road racers kicked-off the opening rounds of the World Off Road Championship Series (WORCS) ATV/UTV season at Glen Helen Raceway in San Bernardino, Calif., and the AMA Hare and Hound series in Lucerne Valley, Calif. At the WORCS UTV season opener, Muzzy’s Kawasaki driver Dan Kelly powered his Kawasaki Teryx® to the top of the podium in the SXS Production 850 class with fellow Teryx drivers David Lytle in second and Funco Kawasaki’s Garrett George in fifth. In the SXS Production 1000 class, Funco Monster Energy Kawasaki’s Taylor George finished 10th while Muzzy’s Monster Energy Kawasaki’s Robert VanBeekum blew a tire while leading the pack and had to pull off the track. At the Hare and Hound opener, Monster Energy Kawasaki’s Destry Abbott was on course to grab a podium finish, but problems late in the race left him finishing fourth.

Sound Strategy After a series of storms inundated the track at Glen Helen Raceway with more water than it could absorb, racers knew the opening round of the WORCS ATV season would be nothing short of a mug bog. Muzzy’s Kawasaki pilot Kelly came into the weekend with a single goal, to just finish the 45-minute race, regardless of position. When the gate dropped Kelly nailed the holeshot and led wire-to-wire to take the win in the SXS Production 850 class.

Teryx Attack Battling through the tight and congested course, Kawasaki Teryx driver Lytle commanded the runner-up spot on the podium in the SXS Production 850 class not far behind Kelly. Rounding out the top-five was Funco Kawasaki’s Garrett George. After the first round of competition, Kawasaki drivers took home three of the top five spots in the SXS Production 850 class. “The WORCS series has always had a great following,” said Kawasaki’s Senior Manager of Racing Reid Nordin. “Since they began UTV racing and now they’re adopting ISA (International Side X Side Association) rules, we expect the UTV counts will continue to increase. We want to compete against the best UTVs out there. If this last weekend was any indication of the future of the series, WORCS is the place to be. I really think ATV owners are troopers, they want to compete against the best, and that is where Kawasaki wants to be as well.”

The Funco Dynasty The George family’s Funco factory race teams have been expanding every year and are well on their way to becoming a racing dynasty. While Funco Monster Energy Kawasaki’s Chad George has made a name for himself and his family in the Championship Off Road Racing Series (CORR) and Lucas Oil Off Road Racing Series (LOORRS) picking up four-consecutive championships in his Teryx, his cousins are looking to take over the WORCS ATV/UTV series. For the 2012 race season, Funco will be competing in two classes with Garrett George in the SXS Production 850 class and Taylor George running the SXS Production 1000 class. “We knew this mud bog race would not be about horsepower, it was more about endurance,” said Funco Team Owner Grant George. “Our strategy going into the WORCS series was different from our LOORRS strategy. In the WORCS it’s more about preparation and skilled driving versus flat-out horsepower. Right now the WORCS series is the only place we can go race and get a good run for our money. There were almost 50 entrants in the first round of the WORCS, so it’s definitely a more competitive environment, and that’s exactly where we want to be.”

Top Contender In her first-ever WORCS race, Funco Monster Energy Kawasaki’s Taylor George finished 10th in a stacked field of racers. Driving a modified version of the high-horsepower Teryx Chad George ran in the LOORRS, her finesse behind the wheel coupled with the UTV’s powerful CNG-prepped Kawasaki V-twin engine, makes Taylor a top contender in the series.

Hard Charger In the SXS Production 1000 class, Monster Energy Kawasaki’s VanBeekum was dealt a third-row start for the main event and knew making passes on 20 UTVs in front of him on the one-lined, muddy course was going to be a challenge. In the main event, VanBeekum got a good start and put on a serious charge. He found a couple of places to make moves and went to work weaving around competitors. By the halfway point he had moved through a field of more than 20 racers and pulled into the lead. However, a flat tire eventually forced him off the track and out of the race early. “I almost grabbed the holeshot, but slid out of the corner and recovered in third,” said VanBeekum. “I was moving pretty good through the course the first few laps. Since the tops of the whoops were still dry I was able to make a lot of passes in that section. By the fourth or fifth lap I had more than 300 pounds of mud on the Teryx and was bottoming out on the whoops. I ended up passing over 20 racers to take the lead, but then halfway through the race I blew a tire and that was it.”

Deep in the Desert Not far from the WORCS race at Glen Helen, the first round of the Hare and Hound also got underway with Kawasaki KX™450F riders looking to bring home some hardware from the desert. The race consisted of two loops, the first being a 20-mile technical loop, and the second being a 40-mile high-speed loop. Kawasaki rider David Pearson landed on the podium in second place and Monster Energy Kawasaki’s Abbott powered his new 2012 KX450F through the hills of Lucerne Valley OHV to finish fourth. “I got a great start, but after the bomb run I kind of lost the course for a minute and dropped back to third,” said Abbott. “The first loop was pretty fun, not too fast and not too technical. The second loop was super-fast and there were several times I had the throttle wide-open on my Monster Energy Kawasaki. With 30 miles to go in the second loop I lost my rear brake. I had to back off the throttle a little and settle for fourth.”

Wide Open Three weeks prior to the Hare and Hound season opener, Abbott picked up a brand-new 2012 KX450Fand got it dialed for the desert. Abbott immediately clicked with the new bike, and his blinding speed across the open desert was a testament to his level of comfort. Following the race, GPS data showed Abbott reached nearly 100 miles per hour on the bike as he blasted through the open desert. “The bike really suits me well,” said Abbott. “It was the first time I rode the 2012 KX450F in the desert, and I was really impressed. It handled even better and turned better than my bike last year. I felt really confident and comfortable on the bike. For only having the bike three weeks I was really surprised how strong I felt on it.”

WORCS Results 2012 World Off Road Championship Series (WORCS) ATV/UTV – Round 1 Glen Helen Raceway – San Bernardino, Calif. January 21-22, 2012SXS Production 850 Class Results 1. DAN KELLY, MUZZY’S KAWASAKI 2. DAVID LYTLE, KAWASAKI 3. Kyle Melville, Polaris 4. Alfredo Ramirez, Polaris 5. GARRETT GEORGE, FUNCO KAWASAKI

Hare & Hound Results 2012 AMA National Hare and Hound Series – Round 1 Lucerne Valley, Calif. January 22, 2012Pro Class Results 1. Kurt Caselli, KTM 2. DAVID PEARSON, KAWASAKI 3. David Kamo, 4. DESTRY ABBOTT, MONSTER ENERGY KAWASAKI 5. JUSTIN MORROW, KAWASAKI

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New Project X RZR XP 4 on Destination Polaris

Destination Polaris and Marshall Motoart have teamed up again for another Project X build! This time, they used the new Polaris  RZR XP 4 and outfitted it with accessories from Hard Core Racing, Summers Brothers Racing, Legend Air Suspension, Tiger Tail tow system, Supreme Tool, Super Atv, Wet Sounds, Triple X Seats, K&T Performance, Marshall Motoart Cage and Gull wing doors, and Superwinch. Destination Polaris will feature the vehicle on their Feb 6 show, on the Outdoor Channel, at 4:30PM ET, 9:30PM ET and 1AM ET.



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Polaris Reports Record Annual Sales for 2011

Polaris RZR XP 900

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.

Polaris RZR 570

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

2012 Business Outlook
Wine continued, “The implementation of our strategic initiatives and continued focus on innovation positions us well to realize continued success in 2012. We anticipate further growth and market share gains in our core businesses, while maintaining our focus on expanding our gross and net margins while expanding our investments for future growth and profitability. This motivated and disciplined Polaris team is committed to executing on our strategy in an effort to deliver what we expect to be another excellent year for our shareholders.”
Full year 2012 earnings are expected to be in the range of $3.65 to $3.80 per diluted share, which represents an increase of 14 to 19 percent when compared to full year 2011 earnings. Net income for full year 2012 is also expected to increase in the range of 14 to 19 percent over full year 2011. Sales for full year 2012 are expected to increase five to eight percent over full year 2011 sales, with sales increases projected in each product line and geographic region with the exception of snowmobiles.

Summary of Operations

RANGER RZR XP4 900

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.

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.
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