Analyst Note| Jaime M. Katz, CFA |
Wide-moat Polaris announced interim CEO Mike Speetzen would be taking the reins permanently, an appointment we view favorably given his robust knowledge base of the powersports industry. After spending five years in the CFO seat andsteering the company through two transformational acquisitions (TAP and Boat Holdings), we see Speetzen as well versed in both the company’s financial merit as well as its operational idiosyncrasies, providing a good fit for the role. Furthermore, given Speetzen’s hand in running certain facets of corporate strategy before, we do not expect any material shift in direction. Additionally, Bob Mack is set to stay on as permanent CFO, bringing his breadth of knowledge across acquisitions, operation, sales, and more to the C-suite. Given that Speetzen and Mack have worked closely in recent years, we don’t expect the stewardship of the balance sheet to change and believe Mack will attempt to maintain low leverage and ensure financial flexibility, barring any further material tie ups (which could be financed by debt).