Polaris has announced a sharp turnaround in its business performance, the declaration of a regular quarterly cash dividend and amended covenant agreements.
"I am extremely proud of the resiliency and dedication of our Polaris team as their agility has enabled our response to the unexpectedly sharp recovery we are seeing, which in many cases has meant unprecedented demand for our brands and vehicles," said Scott Wine, Polaris Chairman and CEO.
"The influx of new customers to our dealerships is very encouraging as people seeking fun family activities while social distancing recognize that our vehicles and 'Think Outside' tagline resonate with their desires. With demand rapidly accelerating, bringing our global plant network back online — including the recent resumption of production at our Monterrey facility — provides an important sign of normalcy for our business.
"While we are pleased by current developments, we continue to act prudently to drive business success and remain watchful for a more difficult economic environment. The actions we have announced allow us to maintain strong financial flexibility while continuing to return capital to our shareholders - proving our ongoing commitment to deliver shareholder value despite the macroeconomic uncertainty we are facing."
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| Scott Wine, Polaris Chairman and CEO: "The influx of new customers to our dealerships is very encouraging." |
Dividend
Polaris announced that its Board of Directors has declared a regular quarterly cash dividend of $0.62 per share, payable on June 15, 2020 to shareholders of record at the close of business on June 5, 2020.
Covenant Relief
To further enhance Polaris' liquidity and ensure full availability under its credit agreement, the company and its partner lenders and noteholders amended their arrangements to favorably adjust existing financial covenants. Under the revised agreements, the company's maximum leverage ratio temporarily increases from 3.5 to 1 to 4.75 to 1.
This covenant relief, which will be in place until March 31, 2021, is structured to provide Polaris the ability to maximize the use of its existing credit facility, allowing for increased liquidity and flexibility should there be any additional unexpected negative impact on the business resulting from the COVID-19 pandemic.