Polaris Declares Regular Cash Dividend and Announces Covenant Relief
May 26 2020 - 4:45PM
Business Wire
Retail Environment Continues Sharp Recovery
Covenant Relief Provides Additional Financial
Flexibility
Maintains Quarterly Dividend
Polaris Inc. (NYSE: PII) today announced a sharp turnaround in
its business performance, the declaration of a regular quarterly
cash dividend and amended covenant agreements.
“I am extremely proud of the resiliency and dedication of our
Polaris team, as their agility has enabled our response to the
unexpectedly sharp recovery we are seeing, which in many cases has
meant unprecedented demand for our brands and vehicles,” said Scott
Wine, Polaris Chairman and CEO. “The influx of new customers to our
dealerships is very encouraging, as people seeking fun family
activities while social distancing recognize that our vehicles and
“Think Outside” tagline resonate with their desires. With demand
rapidly accelerating, bringing our global plant network back online
– including the recent resumption of production at our Monterrey
facility – provides an important sign of normalcy for our business.
While we are pleased by current developments, we continue to act
prudently to drive business success and remain watchful for a more
difficult economic environment. The actions we are announcing today
allow us to maintain strong financial flexibility while continuing
to return capital to our shareholders, proving our ongoing
commitment to deliver shareholder value despite the macroeconomic
uncertainty we are facing.”
Dividend
Polaris announced today that its Board of Directors have
declared a regular quarterly cash dividend of $0.62 per share
payable on June 15, 2020 to shareholders of record at the close of
business on June 5, 2020.
Covenant Relief
To further enhance Polaris’ liquidity and ensure full
availability under its credit agreement, today the Company and its
partner lenders and noteholders amended their arrangements to
favorably adjust the existing financial covenants. Under the
revised agreements, the Company’s maximum leverage ratio
temporarily increases from 3.5 to 1 to 4.75 to 1. This covenant
relief, which will be in place until March 31, 2021, is structured
to provide Polaris the ability to maximize the use of its existing
credit facility, allowing for increased liquidity and flexibility
should there be any additional unexpected negative impact on the
business resulting from the COVID-19 pandemic.
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/20200526005844/en/
Investor Contact: Richard Edwards 763-542-0500
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