Polaris Reports 2019 First Quarter Results
Q1 2019 Highlights
Reported and adjusted sales for the first quarter of 2019 increased 15% to $1,496 million
Reported net income was $0.78 per diluted share, down 8% over the prior year; adjusted net income for the same period was $1.08 per diluted share, down 4% over the prior year, ahead of Company expectations
North American retail sales decreased 3% for the quarter compared to last year; ORV N.A. retail sales were down mid-single digits percent and motorcycle sales were down high-single digits percent, both negatively impacted by weather
Gained market share in snowmobiles for the season ending March 2019; maintained market share in Indian motorcycles in a challenging industry environment
Dealer inventory was down 1% year-over-year for the first quarter 2019, in-line with expectations
Polaris increased its full year 2019 earnings guidance and now expects earnings to be in the $6.05 to $6.30 per diluted share, which includes the absorption of $80 to $90 million of additional tariff costs anticipated in 2019 over 2018. Full year 2019 adjusted sales growth guidance remains unchanged at up 11% to 13% over the prior year.
MINNEAPOLIS–(BUSINESS WIRE)–Polaris Industries Inc. (NYSE: PII):
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Key Financial Data |
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| (in thousands, except per share data) | |||||||||||||||||
| INCOME STATEMENT – Q1 March 31, 2019 | Reported | YOY % Chg. | Adjusted* | YOY % Chg. | |||||||||||||
| Sales | $ | 1,495,690 | 15 | % | $ | 1,495,690 | 15 | % | |||||||||
| Net income attributable to Polaris | $ | 48,378 | (13 | )% | $ | 66,897 | (9 | )% | |||||||||
| Diluted EPS | $ | 0.78 | (8 | )% | $ | 1.08 | (4 | )% | |||||||||
| BALANCE SHEET – Q1 March 31, 2019 | Reported | YOY % Chg. | |||||||||||||||
| Cash and cash equivalents | $ | 151,439 | (9 | )% | |||||||||||||
| Inventories, net | $ | 1,148,637 | 24 | % | |||||||||||||
| Total debt, finance lease obligations and notes payable | $ | 2,101,282 | 104 | % | |||||||||||||
| Shareholders’ equity | $ | 879,202 | (10 | )% | |||||||||||||
| CASH FLOW – YTD March 31, 2019 | Reported | YOY % Chg. | |||||||||||||||
| Net cash used for operating activities | $ | (38,217 | ) | NM | |||||||||||||
| Purchase of property & equipment | $ | 70,254 | 26 | % | |||||||||||||
| Repurchase and retirement of common shares | $ | 6,110 | (59 | )% | |||||||||||||
| Cash dividends to shareholders | $ | 37,144 | (2 | )% | |||||||||||||
| NM = Not meaningful | |||||||||||||||||
| *Note: the results and guidance in this release, including the highlights above, include references to non-GAAP operating measures, which are identified by the word “adjusted” preceding the measure. A reconciliation of GAAP / non-GAAP measures can be found at the end of this release. | |||||||||||||||||
CEO Commentary
“Polaris’ 65th anniversary year is off to a solid start, as we delivered sound results and finished the Quarter with strong momentum. The team executed well, providing quality products to our customers while navigating a dynamic trade environment. Retail sales results were somewhat mixed, with greater than 20 percent Snowmobile growth helping to offset modest weather-related declines in ORV, Motorcycles and Boats, although all three of these segments came on strong at the end of March. Our product lineup has never been stronger, our Boat brands fared well during the recent boat shows, dealer inventory levels are well-positioned to support the peak spring retail selling season, and our strategic sourcing program is accelerating savings and value enhancement. We remain steadfastly committed to enhancing our customer-centric culture, which amplifies our investments in innovation and operational prowess, and as we look to the balance of 2019, we are confident about gaining market share as we continue bringing innovative products to our customers and solidifying our position as the leader in Powersports.”
— Scott Wine, Chairman and Chief Executive Officer of Polaris Industries Inc.
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First Quarter Performance Summary (Reported) |
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| (in thousands, except per share data) | Three months ended March 31, | |||||||||||||
| 2019 | 2018 | Change | ||||||||||||
| Sales | $ | 1,495,690 | $ | 1,297,473 | 15 | % | ||||||||
| Gross profit | 352,448 | 323,481 | 9 | % | ||||||||||
| % of Sales | 23.6 | % | 24.9 | % | -137 bpts | |||||||||
| Total operating expenses | 289,317 | 261,630 | 11 | % | ||||||||||
| % of Sales | 19.3 | % | 20.2 | % | -82 bpts | |||||||||
| Income from financial services | 18,805 | 21,425 | (12 | )% | ||||||||||
| % of Sales | 1.3 | % | 1.7 | % | -39 bpts | |||||||||
| Operating income | 81,936 | 83,276 | (2 | )% | ||||||||||
| % of Sales | 5.5 | % | 6.4 | % | -94 bpts | |||||||||
| Net income attributable to Polaris | 48,378 | 55,714 | (13 | )% | ||||||||||
| % of Sales | 3.2 | % | 4.3 | % | -106 bpts | |||||||||
| Diluted net income per share | $ | 0.78 | $ | 0.85 | (8 | )% | ||||||||
Polaris Industries Inc. (NYSE: PII) (the “Company”) today released first quarter 2019 results with sales of $1,496 million on a reported and adjusted basis, up 15 percent from $1,297 million for the first quarter of 2018, including $185 million of Boat segment sales reported in the first quarter of 2019. The Company reported first quarter 2019 net income of $48 million, or $0.78 per diluted share, compared with net income of $56 million, or $0.85 per diluted share, for the 2018 first quarter. Adjusted net income for the quarter ended March 31, 2019 was $67 million, or $1.08 per diluted share compared to $74 million, or $1.13 per diluted share in the 2018 first quarter.
Gross profit increased 9 percent to $352 million for the first quarter of 2019 from $323 million in the first quarter of 2018. Reported gross profit margin was 23.6 percent of sales for the first quarter of 2019 compared to 24.9 percent of sales for the first quarter of 2018. Gross profit for the first quarter of 2019 includes the negative impact of $7 million of restructuring and realignment costs. Excluding these costs, first quarter 2019 adjusted gross profit was $359 million, or 24.0 percent of adjusted sales. For the first quarter of 2018 adjusted gross profit of $329 million, or 25.4 percent of adjusted sales, excludes the negative impact of $6 million of restructuring and realignment costs. Gross profit margins on an adjusted basis were down 140 basis points. Higher average selling prices were more than offset by tariff costs and the addition of Boats which has lower gross profit margins.
Operating expenses increased 11 percent for the first quarter of 2019 to $289 million, or 19.3 percent of sales, from $262 million, or 20.2 percent of sales, in the same period in 2018. Operating expenses in dollars increased primarily due to the Boat Holdings acquisition completed during the third quarter of 2018 and investments in strategic projects. Operating expenses as a percentage of sales, improved due to the addition of Boats, which has a lower operating expense to sales ratio.
Income from financial services was $19 million for the first quarter of 2019, down 12 percent compared with $21 million for the first quarter of 2018. The decrease is primarily attributable to lower retail sales during the quarter.
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Non-Operating Expenses (Reported) |
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| (in thousands) | Three months ended March 31, | |||||||||||||
| 2019 | 2018 | Change | ||||||||||||
| Interest expense | $ | 20,419 | $ | 8,048 | 154 | % | ||||||||
| Equity in loss of other affiliates | $ | 606 | $ | 21,511 | (97 | )% | ||||||||
| Other income, net | $ | (3,501 | ) | $ | (19,975 | ) | (82 | )% | ||||||
| Provision for income taxes | $ | 16,016 | $ | 17,978 | (11 | )% | ||||||||
Interest expense was $20 million for the first quarter of 2019 compared to $8 million for the same period last year, primarily due to increased debt levels to finance the Boat acquisition and higher interest rates.
Equity in loss of other affiliates was $1 million for the first quarter of 2019 compared to $22 million for the same period last year. In the first quarter 2018, the Company recorded charges totaled approximately $20 million associated with the shut down of the Eicher-Polaris joint venture in India.
Other income, net, was $4 million in the first quarter of 2019 compared to $20 million in the first quarter of 2019 resulting from foreign currency exchange rate movements and the corresponding effects on foreign currency transactions related to the Company’s foreign subsidiaries. In the first quarter of 2018, in addition to the impact of foreign currency exchange rate movements, the Company reported a $13 million gain on the sale of the Company’s investment in Brammo Inc.
The provision for income taxes for the first quarter of 2019 was $16 million, or 24.9 percent of pretax income, compared with $18 million, or 24.4 percent of pretax income for the first quarter of 2018.
Net income attributable to non-controlling interest of $18 thousand reported in the first quarter of 2019 relates to net income attributable to the minority owner of a joint venture between Polaris and a supplier in Vietnam to manufacturer components for the Company.
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Product Segment Highlights (Reported) |
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| (in thousands) | Sales | Gross Profit | ||||||||||||||||||||||
| Q1 2019 | Q1 2018 | Change | Q1 2019 | Q1 2018 | Change | |||||||||||||||||||
| Off-Road Vehicles / Snowmobiles | $ | 867,447 | $ | 832,564 | 4 | % | $ | 252,235 | $ | 243,561 | 4 | % | ||||||||||||
| Motorcycles | $ | 117,942 | $ | 131,557 | (10 | )% | $ | 6,962 | $ | 16,568 | (58 | )% | ||||||||||||
| Global Adjacent Markets | $ | 104,956 | $ | 113,327 | (7 | )% | $ | 29,829 | $ | 31,258 | (5 | )% | ||||||||||||
| Aftermarket | $ | 220,535 | $ | 220,025 | — | % | $ | 56,475 | $ | 58,452 | (3 | )% | ||||||||||||
| Boats | $ | 184,810 | $ | — | $ | 36,164 | $ | — | ||||||||||||||||
Off-Road Vehicles (“ORV”) and Snowmobiles segment sales, including PG&A, totaled $867 million for the first quarter of 2019, up four percent over $833 million for the first quarter of 2018 driven by growth in side-by-side sales. PG&A sales for ORV and Snowmobiles combined increased 12 percent in the first quarter of 2019 compared to the first quarter last year. Gross profit increased four percent to $252 million in the first quarter of 2019, compared to $244 million in the first quarter of 2018. Gross profit percentage declined 20 basis points during the quarter as higher average selling prices and favorable product mix were more than offset by higher tariff costs.
ORV wholegood sales for the first quarter of 2019 increased 4 percent primarily driven by increased average selling prices. Polaris North American ORV retail sales decreased mid-single digits percent for the quarter with side-by-side vehicles down low-single digits percent and ATV vehicles down low-double digits percent. The North American ORV industry was down low-single digits percent compared to the first quarter last year.
Snowmobile wholegood sales in the first quarter of 2019 were $13 million, down 28 percent compared to $18 million in the first quarter last year. Polaris snowmobile retail sales were up high-single digits percent during the first quarter of 2019 and up about 20 percent for the twelve month season ending March 2019. North American industry retail was up low-double digits percent for the first quarter and up low-single digits percent for the season ending March 2019. Polaris gained significant market share for the season.
Motorcycles segment sales, including PG&A, totaled $118 million, down 10 percent compared to the first quarter of 2018, driven largely by declines in Slingshot sales, and to less of an extent, Indian Motorcycle sales, partly due to an ongoing challenging motorcycle market. Gross profit for the first quarter of 2019 was $7 million compared to $17 million in the first quarter of 2018. The decrease in gross profit was primarily the result of lower volume and tariff costs.
North American consumer retail sales for the Polaris motorcycle segment, including both Indian Motorcycle and Slingshot, decreased high-single digits percent during the first quarter of 2019. Indian Motorcycle retail sales decreased mid-single digits percent. Slingshot’s retail sales were down low-double digits percent during the quarter. Motorcycle industry retail sales, 900cc and above, were down mid-single digits percent in the first quarter of 2019.
Global Adjacent Markets segment sales, including PG&A, decreased seven percent to $105 million in the 2019 first quarter compared to $113 million in the 2018 first quarter. Reported gross profit decreased five percent to $30 million in the first quarter of 2019, compared to $31 million in the first quarter of 2018. Adjusted gross profit decreased 6 percent to $30 million in the first quarter of 2019, compared to $32 million in the first quarter of 2018 due to negative product mix.
Aftermarket segment sales of $221 million in the 2019 first quarter increased slightly compared to $220 million in the 2018 first quarter. TAP sales in the first quarter of 2019 were $197 million, which was down two percent from $201 million in the first quarter of 2018. TAP sales declined two percent due to ongoing soft wholesale sales along with lower e-commence demand while the Company’s other aftermarket brands increased sales over 20 percent. Gross profit decreased to $56 million in the first quarter of 2019, compared to $58 million in the first quarter of 2018 due to negative product mix.
Boats segment sales, which consist of the Boat Holdings acquisition which closed July 2, 2018, were $185 million in the 2019 first quarter. Gross profit was $36 million or 19.6 percent of sales in the first quarter of 2019.
Supplemental Data:
Parts, Garments, and Accessories (“PG&A”) sales increased eight percent for the 2019 first quarter primarily driven by growth in ORV and snowmobiles.
International sales to customers outside of North America, including PG&A, totaled $203 million for the first quarter of 2019, down four percent, from the same period in 2018. Increased Indian Motorcycle and PG&A sales were more than offset by negative foreign exchange movements which reduced sales by seven percent for the quarter.
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Financial Position and Cash Flow |
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| (in thousands) | Three Months ended March 31, | |||||||||||||
| 2019 | 2018 | Change | ||||||||||||
| Cash and cash equivalents | $ | 151,439 | $ | 166,357 | (9 | )% | ||||||||
| Net cash used for operating activities | $ | (38,217 | ) | $ | (3,189 | ) | NM | |||||||
| Repurchase and retirement of common shares | $ | 6,110 | $ | 14,987 | (59 | )% | ||||||||
| Cash dividends to shareholders | $ | 37,144 | $ | 37,796 | (2 | )% | ||||||||
| Total debt, finance lease obligations and notes payable | $ | 2,101,282 | $ | 1,029,479 | 104 | % | ||||||||
| Debt to Total Capital Ratio | 71 | % | 51 | % | ||||||||||
| NM = Not meaningful | ||||||||||||||
Net cash used for operating activities was $38 million for the three months ended March 31, 2019, compared to $3 million for the same period in 2018. The increase in net cash used for operating activities for the 2019 period was the result of higher factory inventory due to timing of shipments, preparation for new product launches and additional costs related to tariffs. Total debt at March 31, 2019, including finance lease obligations and notes payable, was $2,101 million. The Company’s debt-to-total capital ratio was 71 percent at March 31, 2019 compared to 51 percent at March 31, 2018. Cash and cash equivalents were $151 million at March 31, 2019, down from $166 million at March 31, 2018.
2019 Business Outlook
Given the 2019 first quarter results, the Company is increasing its full year earnings guidance and now expects adjusted net income to be in the range of $6.05 to $6.30 per diluted share, compared with adjusted net income of $6.56 per diluted share for 2018. Full year 2019 sales expectation remains unchanged at up 11 to 13 percent. The full year earnings guidance is inclusive of the Company’s expectations related to the negative impact of external factors such as the annualized impact of tariffs, adverse foreign exchange impacts, and higher interest rates, totaling approximately $1.50 per diluted share, on a combined basis. Absent these items, the Company is expected to generate positive earnings growth on a year-over-year basis.
Non-GAAP Financial Measures
This press release and our related earnings call contain certain non-GAAP financial measures, consisting of “adjusted” sales, gross profit, income before taxes, net income and net income per diluted share as measures of our operating performance. Management believes these measures may be useful in performing meaningful comparisons of past and present operating results, to understand the performance of its ongoing operations and how management views the business. Reconciliations of reported GAAP measures to adjusted non-GAAP measures are included in the financial schedules contained in this press release. These measures, however, should not be construed as an alternative to any other measure of performance determined in accordance with GAAP.
Investor Conference Call
First Quarter 2019 Earnings Conference Call and Webcast Presentation
Today at 9:00 AM (CDT) Polaris Industries Inc. will host a conference call and webcast to discuss the 2019 first quarter results released this morning. The call will be hosted by Scott Wine, Chairman and CEO; and Mike Speetzen, Executive Vice President – Finance and CFO. The earnings presentation and link to the webcast 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 2001345. A replay of the conference call will be available by accessing the same link on our website.
About Polaris
Polaris Industries Inc. (NYSE: PII) is a global powersports leader that has been fueling the passion of riders, workers and outdoor enthusiasts for more than 60 years. With annual 2018 sales of $6.1 billion, Polaris’ innovative, high-quality product line-up includes the RANGER®, RZR® and Polaris GENERAL™ side-by-side off-road vehicles; the Sportsman® and Polaris ACE® all-terrain off-road vehicles; Indian Motorcycle® mid-size and heavyweight motorcycles; Slingshot® moto-roadsters; snowmobiles; and pontoon, deck, and cruiser boats. 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 globally includes military and commercial off-road vehicles, quadricycles, and electric vehicles. Proudly headquartered in Minnesota, Polaris serves more than 100 countries across the globe. Visit www.polaris.com for more information.
Forward-looking Statements
Except for historical information contained herein, the matters set forth in this news release, including management’s expectations regarding 2019 future sales, shipments, net income, and net income per share, operational initiatives, tariffs, currency fluctuations, interest rates, and commodity costs, 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 Company’s ability to successfully implement its manufacturing operations expansion initiatives, product offerings, promotional activities and pricing strategies by competitors; economic conditions that impact consumer spending; 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; changes to international trade 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. The data source for retail sales figures included in this release is registration information provided by Polaris dealers in North America compiled by the Company or Company estimates and other industry data sources. The Company must rely on information that its dealers supply concerning retail sales, and other retail sales data sources related to Polaris and the powersports industry, and this information is subject to revision. Retail sales references to total Company retail sales includes only ORV, snowmobiles and motorcycles in North America unless otherwise noted.
(summarized financial data follows)
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
| (In Thousands, Except Per Share Data) (Unaudited) | ||||||||||
| Three months ended March 31, | ||||||||||
| 2019 | 2018 | |||||||||
| Sales | $ | 1,495,690 | $ | 1,297,473 | ||||||
| Cost of sales | 1,143,242 | 973,992 | ||||||||
| Gross profit | 352,448 | 323,481 | ||||||||
| Operating expenses: | ||||||||||
| Selling and marketing | 129,259 | 117,707 | ||||||||
| Research and development | 67,120 | 65,230 | ||||||||
| General and administrative | 92,938 | 78,693 | ||||||||
| Total operating expenses | 289,317 | 261,630 | ||||||||
| Income from financial services | 18,805 | 21,425 | ||||||||
| Operating income | 81,936 | 83,276 | ||||||||
| Non-operating expense: | ||||||||||
| Interest expense | 20,419 | 8,048 | ||||||||
| Equity in loss of other affiliates | 606 | 21,511 | ||||||||
| Other income, net | (3,501 | ) | (19,975 | ) | ||||||
| Income before income taxes | 64,412 | 73,692 | ||||||||
| Provision for income taxes | 16,016 | 17,978 | ||||||||
| Net income | 48,396 | 55,714 | ||||||||
| Net income attributable to noncontrolling interest | (18 | ) | — | |||||||
| Net income attributable to Polaris Industries Inc. | $ | 48,378 | $ | 55,714 | ||||||
| Net income per share attributable to Polaris Industries Inc. common shareholders: | ||||||||||
| Basic | $ | 0.79 | $ | 0.88 | ||||||
| Diluted | $ | 0.78 | $ | 0.85 | ||||||
| Weighted average shares outstanding: | ||||||||||
| Basic | 61,284 | 63,303 | ||||||||
| Diluted | 62,027 | 65,219 | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In Thousands), (Unaudited) | ||||||||
| March 31, 2019 | March 31, 2018 | |||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 151,439 | $ | 166,357 | ||||
| Trade receivables, net | 206,812 | 186,044 | ||||||
| Inventories, net | 1,148,637 | 922,925 | ||||||
| Prepaid expenses and other | 106,512 | 96,247 | ||||||
| Income taxes receivable | 25,550 | 13,013 | ||||||
| Total current assets | 1,638,950 | 1,384,586 | ||||||
| Property and equipment, net | 868,128 | 759,957 | ||||||
| Investment in finance affiliate | 99,501 | 95,511 | ||||||
| Deferred tax assets | 88,489 | 114,881 | ||||||
| Goodwill and other intangible assets, net | 1,506,414 | 777,844 | ||||||
| Operating lease assets | 112,286 | — | ||||||
| Other long-term assets | 94,949 | 86,828 | ||||||
| Total assets | $ | 4,408,717 | $ | 3,219,607 | ||||
| Liabilities and Equity | ||||||||
| Current Liabilities: | ||||||||
| Current portion of debt, finance lease obligations and notes payable | $ | 66,512 | $ | 65,245 | ||||
| Accounts payable | 436,938 | 366,872 | ||||||
| Accrued expenses: | ||||||||
| Compensation | 92,107 | 85,997 | ||||||
| Warranties | 116,217 | 116,286 | ||||||
| Sales promotions and incentives | 181,881 | 174,610 | ||||||
| Dealer holdback | 112,705 | 107,829 | ||||||
| Other | 201,790 | 191,057 | ||||||
| Current operating lease liabilities | 34,814 | — | ||||||
| Income taxes payable | 5,144 | 6,599 | ||||||
| Total current liabilities | 1,248,108 | 1,114,495 | ||||||
| Long term income taxes payable | 29,379 | 22,432 | ||||||
| Finance lease obligations | 15,926 | 18,497 | ||||||
| Long-term debt | 2,018,844 | 945,737 | ||||||
| Deferred tax liabilities | 5,847 | 10,006 | ||||||
| Long-term operating lease liabilities | 79,736 | — | ||||||
| Other long-term liabilities | 122,654 | 123,680 | ||||||
| Total liabilities | $ | 3,520,494 | $ | 2,234,847 | ||||
| Deferred compensation | 8,724 | 11,298 | ||||||
| Equity: | ||||||||
| Total shareholders’ equity | 879,202 | 973,462 | ||||||
| Noncontrolling interest | 297 | — | ||||||
| Total equity | 879,499 | 973,462 | ||||||
| Total liabilities and equity | $ | 4,408,717 | $ | 3,219,607 | ||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
| (In Thousands), (Unaudited) | ||||||||||
| Three months ended March 31, | ||||||||||
| 2019 | 2018 | |||||||||
| Operating Activities: | ||||||||||
| Net income | $ | 48,396 | $ | 55,714 | ||||||
| Adjustments to reconcile net income to net cash used for operating activities: | ||||||||||
| Depreciation and amortization | 54,415 | 52,720 | ||||||||
| Noncash compensation | 12,091 | 12,032 | ||||||||
| Noncash income from financial services | (7,655 | ) | (7,003 | ) | ||||||
| Deferred income taxes | (1,329 | ) | 113 | |||||||
| Impairment charges | — | 18,733 | ||||||||
| Other, net | 606 | (10,700 | ) | |||||||
| Changes in operating assets and liabilities: | ||||||||||
| Trade receivables | (11,184 | ) | 15,587 | |||||||
| Inventories | (180,021 | ) | (135,850 | ) | ||||||
| Accounts payable | 91,182 | 48,138 | ||||||||
| Accrued expenses | (75,662 | ) | (75,722 | ) | ||||||
| Income taxes payable/receivable | 12,324 | 14,747 | ||||||||
| Prepaid expenses and others, net | 18,620 | 8,302 | ||||||||
| Net cash used for operating activities | (38,217 | ) | (3,189 | ) | ||||||
| Investing Activities: | ||||||||||
| Purchase of property and equipment | (70,254 | ) | (55,558 | ) | ||||||
| Investment in finance affiliate, net | 213 | 256 | ||||||||
| Investment in other affiliates, net | — | 11,183 | ||||||||
| Net cash used for investing activities | (70,041 | ) | (44,119 | ) | ||||||
| Financing Activities: | ||||||||||
| Borrowings under debt arrangements / finance lease obligations | 1,010,220 | 694,401 | ||||||||
| Repayments under debt arrangements / finance lease obligations | (870,568 | ) | (578,342 | ) | ||||||
| Repurchase and retirement of common shares | (6,110 | ) | (14,987 | ) | ||||||
| Cash dividends to shareholders | (37,144 | ) | (37,796 | ) | ||||||
| Proceeds from stock issuances under employee plans | 3,207 | 11,905 | ||||||||
| Net cash provided by financing activities | 99,605 | 75,181 | ||||||||
| Impact of currency exchange rates on cash balances | (993 | ) | 1,856 | |||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (9,646 | ) | 29,729 | |||||||
| Cash, cash equivalents and restricted cash at beginning of period | 193,126 | 161,618 | ||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 183,480 | $ | 191,347 | ||||||
| The following presents the classification of cash, cash equivalents and restricted cash within the consolidated balance sheets: | ||||||||||
| Cash and cash equivalents | $ | 151,439 | $ | 166,357 | ||||||
| Other long-term assets | 32,041 | 24,990 | ||||||||
| Total | $ | 183,480 | $ | 191,347 | ||||||
Contacts
Investor Contact: Richard Edwards 763-513-3477 | Media Contact: Jess Rogers 763-513-3445
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