Arctic Cat Reports 2002 First-Quarter Results
THIEF RIVER FALLS, Minn.--July 26, 2001--Arctic Cat Inc. today reported results for the fiscal 2002 first quarter ended June 30, 2001.
Net earnings for the 2002 first quarter were $1,957,000, or 8 cents per diluted share, versus $2,052,000, or 8 cents per diluted share, for the first quarter of fiscal 2001. Net sales for the quarter were $79,234,000 compared to $87,965,000 for the same period last year.
Commented Christopher A. Twomey, Arctic Cat's president and chief executive officer: "Net sales and earnings slightly declined in the first quarter due to the timing of shipments of ATVs. As planned, we moved some first-quarter shipments into our second quarter to better match the retail selling season for 2002 models. Based on orders already received from our dealers, we expect full-year ATV sales to increase 5 to 10 percent and surpass last year's record sales."
In the first quarter, Arctic Cat snowmobile revenues continued to grow, posting a 4 percent net sales increase over the same period last year. Based on orders already received from dealers, the company expects full-year snowmobile sales to increase 10 to 15 percent. Arctic Cat also received recognition for its development of cleaner, quieter four-stroke engine technology, earning the BLIZZ'OR environmental award from the Quebec Federation of Snowmobile Clubs, which presents the annual award to a snowmobile manufacturer that undertakes extraordinary environmental activity. Arctic Cat is the first snowmobile manufacturer to offer a commercially available four-stroke product in the 2001-2002 season.
Commenting on the ATV product line, Twomey said: "We are particularly optimistic following our 2002 model-year dealer show in June, where we unveiled eight new ATVs including our 375cc automatic model."
As part of its ATV marketing efforts, Arctic Cat announced during the quarter an exclusive NASCAR sponsorship and multiple Winston Cup Series driver endorsements of the company's ATV line. The sponsorship agreement extends through 2004. A line of NASCAR ATV clothing and accessories also is being introduced through dealers nationwide.
Outlook
Commenting on the outlook for fiscal 2002, Twomey stated: "We continue to expect that ATV revenues will increase during this fiscal year and that our retail sales will again outpace the industry. We also anticipate that fiscal 2002 snowmobile revenues will increase 10 to 15 percent based on orders already received and low dealer inventories. As a result, we expect to report continued record-breaking revenues and increased earnings in the year ahead."
Conference Call
ARCTIC CAT INC.
Financial Highlights
(Unaudited, 000s omitted, except per share amounts)
Three Months Ended
June 30,
---------------------
2001 2000
---- ----
Net Sales $79,234 $87,965
Cost of Goods Sold 58,822 66,391
------- -------
Gross Profit 20,412 21,574
Selling, General And
Administrative Expenses 18,268 19,619
------- -------
Operating Profit 2,144 1,955
Other Income:
Interest Income 726 1,107
------- -------
Earnings Before Income Taxes 2,870 3,062
Income Tax Expense 913 1,010
------- -------
Net Earnings $ 1,957 $ 2,052
======= =======
Net Earnings Per Share
Basic $ 0.08 $ 0.08
======= =======
Diluted $ 0.08 $ 0.08
======= =======
Weighted Average Shares
Outstanding
Basic 23,823 24,807
======= =======
Diluted 24,188 24,903
======= =======