Polaris Inc. (NYSE:PII) Q3 2023 Q3 2023 Earnings Conference Call October 24, 2023 10:00 AM ET

Company Participants

J.C. Weigelt - Vice President, Investor Relations

Mike Speetzen - Chief Executive Officer

Bob Mack - Chief Financial Officer and Executive Vice President

Conference Call Participants

Joe Altobello - Raymond James

Craig Kennison - Robert W. Baird and Company

Robin Farley - UBS

Megan Alexander - Morgan Stanley

Fred Wightman - Wolfe Research

Tristan Thomas - BMO Capital Markets

Dave MacGregor - Longbow Research

Jaime Katz - Morningstar

John Healy - Northcoast Research.

Scott Stember - ROTH MKM

Xian Siew - Exane BNP Paribas

Operator

Good morning. And welcome to the Polaris Third Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator instructions] Please note this event is being recorded. I would now like to turn the conference over to J.C. Weigelt, Vice President, Investor Relations. Please go ahead.

J.C. Weigelt

Thank you, Gary, and good morning or afternoon, everyone. I am J.C. Weigelt, Vice President of Investor Relations at Polaris. Thank you for joining us for our 2023 third 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 third quarter, our expectations for the remainder of the year and some initial thoughts on 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 2022 10-K for additional details regarding risks and uncertainties. All references to third quarter 2023 actual results and 2023 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.

Mike Speetzen

Thanks JC. Good morning, everyone. And thank you for joining us today. This morning we posted third quarter results that were slightly lower than our original expectations, driven by elevated manufacturing costs and an increasingly cautious consumer environment. which resulted in lower shipments. Despite these headwinds, we posted share gains across all of our segments for the quarter, and we had record PG&A results that were bolstered by the broadest portfolio and all Powersports. We also had an incredibly successful Off Road dealer meeting in July and marine dealer meetings in August, both with positive feedback from dealers regarding our new products. We are certainly operating in a dynamic environment where we have seen declining consumer confidence, given persistent inflation, coupled with even higher interest rates, and rising consumer debt. We saw this impact retail more than we anticipated in the third quarter, and anticipate this to continue into the fourth quarter.