Polaris Takes Additional Measures to Address COVID-19 Impact
March 31 2020 - 4:30PM
Business Wire
Polaris Inc. (NYSE: PII) today announced several additional
actions in response to the COVID-19 pandemic. These actions will
help the Company navigate the current environment by reducing
expenses and improving its cash position and financial
flexibility.
“This is an unprecedented crisis with a sudden and stark impact
on our business, but in difficult times Polaris has always
responded with agility and proved our resilience,” said Scott Wine,
Polaris Chairman and CEO. “While the immediate future is uncertain,
what is crystal clear is that Polaris must act judiciously but
decisively to win both during this situation and after it is
resolved. The measures we are taking today are necessary responses
to a dynamic environment that compels us to bolster our liquidity
and rapidly adapt to extraordinary circumstances.”
Temporary Measures on Employee Compensation
In response to continued uncertainty in market demand and the
escalating near-term impact of COVID-19, Polaris made the necessary
decision to enact several temporary changes related to employee
compensation and hiring practices for exempt and nonexempt
employees, including:
- Delaying merit increases for exempt and nonexempt employees
through the end of the year
- Implementing a hiring freeze on exempt and nonexempt
positions
- Furloughing most exempt and non-exempt Polaris employees for
two weeks in the second quarter. Employees will not be paid but
will maintain their health care benefits and may be eligible for
unemployment benefits, subject to federal, state, and local
regulations
- Exempt and non-exempt employees, including Polaris’ Executive
Leadership Team, who are not furloughed will have their pay reduced
by approximately 20 percent beginning April 13 through the end of
the second quarter
In addition, Polaris Chairman and CEO, Scott Wine, will forgo
his salary for the remainder of 2020.
Update on Plant Operations
Following the temporary production halt instituted on March 23,
Polaris continues to carefully calibrate its manufacturing
operations with anticipated product demand. Production will restart
this week on select manufacturing lines for products with adequate
demand and supply chain coverage. Polaris continues to ship
finished vehicles to dealers, and to produce products that are
consistent with governing federal, state and local directives.
Increasing Financial Flexibility
In addition to the steps listed above, the Company is taking
further action to increase financial flexibility and liquidity,
including reviewing all operating expenses, postponing
non-essential capital expenditures, and suspending share
repurchases. The Company has also elected to draw down an
incremental $150 million under its current revolving credit
facility. As of March 31, Polaris has more than $420 million in
cash-on-hand to help weather the current COVID-19 crisis.
The Company will continue to evaluate its operations and make
adjustments based on the safety of its employees, demand signals,
the health of its supply chain and distribution network, and
government mandates and local orders.
Polaris Schedules First Quarter 2020 Earnings Call and
Webcast
Polaris Inc. announced today that it will release its first
quarter 2020 financial results on Tuesday, April 28, 2020, and will
hold a conference call and webcast at 9:00 a.m. central time on the
same day to discuss the results. The call will be hosted by Scott
Wine, Chairman and CEO; and Mike Speetzen, Executive Vice President
and CFO. A slide presentation and webcast link will be posted on
the Polaris Investor Relations website at ir.polaris.com. To listen
to the conference call by phone, dial 1-877-883-0383 in the U.S.,
or 1-412-902-6506 Internationally. The Conference ID is 8668695. A
replay of the webcast will be available by accessing the same
webcast link on our website at ir.polaris.com.
About Polaris
As the global leader in Powersports, Polaris Inc. (NYSE: PII)
pioneers product breakthroughs and enriching experiences and
services that have invited people to discover the joy of being
outdoors since our founding in 1954. With annual 2019 sales of $6.8
billion, Polaris’ high-quality product line-up includes the Polaris
RANGER®, RZR® and Polaris GENERAL™ side-by-side off-road vehicles;
Sportsman® all-terrain off-road vehicles; Indian Motorcycle®
mid-size and heavyweight motorcycles; Slingshot® moto-roadsters;
snowmobiles; and deck, cruiser and pontoon boats, including
industry-leading Bennington pontoons. Polaris enhances the riding
experience with parts, garments, and accessories, along with a
growing aftermarket portfolio, including Transamerican Auto Parts.
Polaris’ presence in adjacent markets includes military and
commercial off-road vehicles, quadricycles, and electric vehicles.
Proudly headquartered in Minnesota, Polaris serves more than 100
countries across the globe. www.polaris.com
Forward Looking Statements
Except for historical information contained herein, the matters
set forth in this news release, including management’s expectations
regarding 2020 future sales and demand for our products, the
enhanced ability of the Company to mitigate an economic downturn
given its broadened portfolio, future shipments, net income, and
net income per share, future cash flows and capital requirements
and the ability to access credit facilities, operational
initiatives, and the potential impact of the evolving COVID-19
pandemic, 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 severity and duration
of the evolving COVID-19 pandemic and the resulting impact on the
Company’s business and the global economy; the Company’s ability to
successfully implement its manufacturing operations expansion and
supply chain initiatives, product offerings, promotional activities
and pricing strategies by competitors; economic conditions that
impact consumer spending; disruptions in manufacturing facilities;
acquisition integration costs; product recalls, 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; freight and tariff costs (tariff relief
or ability to mitigate tariffs); changes to international trade
policies and agreements; uninsured product liability claims;
uncertainty in the retail and wholesale credit markets; performance
of affiliate partners; changes in tax policy; relationships with
dealers and suppliers; and the general overall economic and
political environment. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200331005815/en/
Investor Contact: Richard Edwards 763-513-3477
richard.edwards@polaris.com Media Contact: Jess Rogers 763-513-3445
jessica.rogers@polaris.com
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