Polaris Industries Inc. (NYSE:PII) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 24, 2018 • 11:00 am ET


Polaris Industries Inc. (NYSE:PII) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Good morning. My name is Julie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Polaris First Quarter 2018 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. (Operator Instructions) I would now like to turn the call over to Richard Edwards, Head of Investor Relations. Mr. Edwards, you may begin.

Richard Edwards

Thank you, Julie. And thank you everyone and good morning --thank you for joining us for our 2018 first quarter earnings conference call. A slide presentation is accessible at our website at www.polaris.com/irhome, which has additional information for this morning's call.

Today, you will be hearing prepared comments from Scott Wine, our Chairman and Chief Executive Officer; and Mike Speetzen, our Chief Financial Officer.

During the call, we will be discussing various topics which should be considered forward-looking for the purposes of the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projections in the forward-looking statements. You can refer to our 2017 10-K for a more detailed discussion of those risk and uncertainties.

Throughout the presentation today, all references to first quarter 2018 actual results and 2018 updated guidance are reported on an adjusted non-GAAP basis unless otherwise noted. Adjusted refers to GAAP results excluding TAP integration expenses, the impact associated with the Victory wind-down, restructuring and realignment costs, supply chain transformation cost, EPPL impairment and gain on Brammo investment and the impact of the Tax Reform bill. We have provided a reconciliation of the adjusted non-GAAP to GAAP results, which is shown in appendix of this Presentation.

Now, I'll turn it over to our CEO, Scott Wine.

Scott Wine

Thanks Richard. Good morning and thank you for joining us. We were in Arizona recent for product testing, not to mention a welcome respite from the snow, and it was difficult to contain the excitement about the incredible new vehicles we will launch in the months and years ahead. Innovation is the most consistent driver of growth in our industry, and with products like these, we expect to get paid for our step-function increase in research and development funding.

We are optimistic about the future, but in some ways, the future is already here, as our first quarter product innovations across all three major businesses represents the most significant start of the year innovation in Polaris history, and we intend to maintain a product news pace that will be tough to match. These product launches created more excitement than impact in the quarter, but the innovation in our marketing plans, outstanding execution by our sales teams and the improving consistency in quality from our factory drove strong retain and financial results.

There is not much positive to say about the motorcycle industry in the first quarter, but Indian continued to win on the track and with customers, and both Indian and Slingshot gained market share. Dealer and consumer demand for Indian