PII - Polaris Inc. (PII) Q1 2024 Earnings Call Transcript
2024-04-23 14:57:08 ET
Polaris, Inc. (PII)
Q1 2024 Earnings Conference Call
April 23, 2024 10:00 AM ET
Company Participants
J.C. Weigelt - Vice President of Investor Relations
Michael Speetzen - Chief Executive Officer
Robert Mack - Chief Financial Officer
Conference Call Participants
Craig Kennison - Baird
Noah Zatzkin - KeyBanc Capital Markets
Joseph Altobello - Raymond James
Fred Wightman - Wolfe Research, LLC
Megan Alexander - Morgan Stanley
Alexander Perry - BofA SECURITIES
David MacGregor - Longbow Research
James Hardiman - Citi Research
Tristan Thomas-Martin - BMO Capital Markets
Robin Farley - UBS Securities
Presentation
Operator
Good day, and welcome to the Polaris First Quarter 2024 Earnings Conference Call and Webcast. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. Please note, today's event is being recorded.
I'd now like to turn the conference over to J.C. Weigelt, Vice President, Investor Relations. Please go ahead.
J.C. Weigelt
Thank you, Rocco, and good morning or afternoon, everyone. I'm J.C. Weigelt, Vice President of Investor Relations at Polaris. Thank you for joining us for our 2024 first quarter earnings call. We will reference a slide presentation today, which is accessible on our website at ir.polaris.com. Joining me on the call today are Mike Speetzen, our Chief Executive Officer; and Bob Mack, our Chief Financial Officer. Both have prepared remarks summarizing the first quarter as well as our expectations for the remainder of 2024, then we'll take your questions.
During the call, we will be discussing various topics, which should be considered forward-looking for the purpose 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 2023 10-K for additional details regarding risks and uncertainties. All references to the first quarter actual results and 2024 guidance are for our continuing operations and are reported on an adjusted non-GAAP basis, unless otherwise noted. Please refer to our Reg G reconciliation schedules at the end of the presentation for the GAAP to non-GAAP adjustments.
Now I will turn it over to Mike Speetzen. Go ahead, Mike.
Michael Speetzen
Thanks, J.C. Good morning, everyone, and thank you for joining us today. First quarter performance largely put out consistent with our expectations. You'll recall that headed into the year, we expected the first quarter to be one of the most challenging quarters given the difficult year-over-year comparisons and our plan to actively manage dealer inventory coupled with a more normalized production delivery of Snowmobiles. Q1 also saw us focused on continuing to execute the early stages to improve delivery, increase efficiencies and drive down operating costs in our larger manufacturing facilities.
Sales in the first quarter were down 20%, which was in line with our expectations and adjusted EPS came in above our expectations given better performance on cost management. While we're pleased with our financial performance, we did experience the worst Snowmobile season we've seen in 13 years, driven by a lack of Snow across much of North America. Overall, it was great to see our products take share in ORV, motorcycles and marine. Our new product innovation is resonating with customers, which will drive future share gains. That, coupled with our operational improvements, makes me very optimistic about the direction of the business.
North America retail was down 10%, driven by a weak Snow season, but was up 3% when you exclude Snow. Utility Off-Road vehicles continue to lead the way with strong demand for our RANGER lineup. Recreation was down, while On-Road was up for the quarter, driven by strength in North American markets, somewhat offset by international market weakness....
Polaris, Inc. (PII) Q1 2024 Earnings Call Transcript