Boat Holdings LLC contribution said to slightly exceed company expectations
Polaris Industries Inc reported that its Boat Holdings LLC acquisition contributed $145m in revenues to its fourth quarter 2018 results, exceeding company expectations.
The company reported sales of $1,627m for the quarter, marking a 14% year-over-year increase over the $1,431m in sales reported for Q4 2017. Net income for the period was reported as $91m or $1.47 per diluted share, compared to $31m or $0.49 per diluted share for the same period the previous year.
Gross profit increased 6.0% to $391m from $368m reported for Q4 2017.
Operating expenses for the quarter increased by 3.0% $272m, or 16.7% of sales, from $264m primarily due to the Boat Holdings acquisition completed during the third quarter of 2018 and investments in strategic projects.
Boat segment sales, which consist of the Boat Holdings acquisition that closed July 2, 2018, were reported as $145m for the quarter generating a gross profit of $26m or 17.9% of sales, slightly exceeding company expectations.
“Growth and market share gains in off-road vehicles, and the acquisition of Boat Holdings, further expanded our position as the global leader in powersports and established Polaris as a leader in the attractive, profitable and growing pontoon market,” said Polaris chairman and CEO, Scott Wine. “We are encouraged by our growth prospects for 2019 and beyond, but keenly aware of, and prepared for, the challenges and uncertainties presented by global trade and economic complications.”