Last week Polaris reported another strong quarter and year for 2012. They continue to lead the UTV market and are now making inroads in the LSV market with their GEM acquisition.  Polaris increased fourth quarter sales 15% to a record $900 million. Fourth quarter net income and earnings per share both increased 38% to $88.1 million and $1.24 per share, respectively. Full year 2012 sales increased 21% to a record $3.2 billion and net income increased 37% to $312.3 million. Net margins reached a record 9.7% and earnings per share rose $4.40, up 38%. Several days after the call management announced that the quarterly dividend would be raised by 14% to $0.42 a share. Some other highlights from the conference call:

•  Revenue in the Off-Road Vehicle (ORV) segment grew 22%, powered by over 20% growth in North American side-by-side sales which outpaced the expansion of the overall market that was estimated at low teen percent.
• While fourth quarter wholesale sales to Bobcat decreased, the full year retail sales there increased upper-single digits. 2012 milItary segment sales were flat.
• Sales from GEM and Goupil increased over 50% in the fourth quarter with GEM up double-digits and orders up even more as distribution increased and a revamped 2013 model line-up was introduced. 
• Overall revenue is expected to increase 7-10% in 2013 with net income and earnings per share projected to increase in the range of 10% to 15% over 2012.
• The management expects a slowdown in the rate of growth in the UTV/side-by-side market but still expects the overall market to grow.
• Sales of Off-Road Vehicles are expected to increase in the high-single digits percent range with retail sales of side-by-side vehicles and ATVs continuing to outpace the overall market, both in North America and internationally.
• Europe and Middle East sales in the ORV market are expected to decline because of economic conditions.
• A new $50 million manufacturing facility will begin construction in Europe in the first half of 2013 to cut costs, better match products to the local markets and alleviate anticipated production constraints in current facilities. It will be a 325,000 square foot facility for welding, painting and assembly of ATVs and UTVs. Production will begin in the second-half of 2014.
• An India plant will also be built as part of their joint venture with Eicher with production expected to begin in 2015.
•  The new RZR XP900 Jagged X was well received by dealers and sold out of it’s initial allotment within 24 hours.
• Over 150 GEM dealers were added in 2012  and 2013 revenue is expected to grow double digits with a focus on growing B2B customers.
• For Goupil, a new G5 hybrid product is launching in 2013.

Read the earnings call transcript:  Seekingalpha.com