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POLARIS Financial and Operational Highlights Third Quarter 2021 Earnings Results October 26 , 2021 Third quarter reported and adjusted sales increased slightly to $ 1,960 million Third quarter reported net income was $ 1.84 per share ; adjusted net income for the same period was $ 1.98 per share Market share improved during the quarter for ORV and Snowmobiles Expanded and strengthened the ORV product portfolio with fifteen new vehicles introduced during the quarter Gross profit margin , reported and adjusted , for the third quarter was 23.8 % and 23.9 % , down 359 and 362 basis points over the prior year , respectively . The decrease was primarily due to increased input costs including logistics , labor and commodity prices , as well as supply chain constraints , partially offset by increased pricing and lower promotional costs North American retail sales decreased 24 % for the quarter driven by the lack of product availability due to supply chain constraints GEM and Taylor - Dunn expected to be divested by year - end Polaris lowered its full year 2021 adjusted earnings and sales guidance given the supply chain constraints and now expects to earn approximately $ 9.00 per diluted share with adjusted sales now expected to be up approximately 16 % over the prior year Key Financial Data ( in millions , except per share data ) INCOME STATEMENT - Q3 September 30 , 2021 Sales $ Reported 1,959.5 YOY % Chg . 0 % $ Adjusted * 1,959.5 YOY % Chg . 0 % Net income attributable to Polaris $ 114.6 ( 31 ) % $ 123.4 ( 31 ) % Diluted EPS $ 1.84 ( 31 ) % $ 1.98 ( 31 ) % BALANCE SHEET - September 30 , 2021 Reported YOY % Chg . Cash and cash equivalents Inventories , net Total debt , finance lease obligations and notes payable Shareholders ' equity SASASA CA $ 316.5 ( 61 ) % $ 1,773.6 46 % $ 1,523.3 ( 18 ) % $ 1,211.8 28 % CASH FLOW - YTD Q3 September 30 , 2021 Reported YOY % Chg . Net cash provided by operating activities Purchase of property & equipment . $ Repurchase and retirement of common shares $ Cash dividends to shareholders SA SASA A $ 153.4 ( 77 ) % 199.3 51 % 411.3 NM $ 115.2 1 % 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 Throughout the third quarter , the Polaris team displayed a high level of flexibility and demonstrated their commitment to delivering industry - leading products to our dealers and customers as quickly as possible . Retail sales were impacted by the substantial deterioration of the supply chain permeating the global economy , but continued interest and demand from existing riders and new customers advanced our market position , further illustrating Polaris ' role as the global leader in Powersports . Despite total Company sales being flat for the quarter due to component shortages , we gained ORV share for the 4th straight quarter against the backdrop of a very difficult supply chain environment . We expect the supply chain will remain volatile into 2022 , but with this team's tenacity , our strong brands , future product plans , and focused execution , I am excited by what the future holds for Polaris . - Mike Speetzen , Chief Executive Officer of Polaris Inc. Investor Contact : Richard Edwards 763-513-3477 | Media Contact : Jess Rogers 763-513-3445 Page 1