Arctic Cat Reports Record First-Quarter Sales in Fiscal 2005
THIEF RIVER FALLS, Minn.--July 21, 2004--Arctic Cat Inc. :First-Quarter Highlights:
-- Sales up 33%
-- Net earnings grew 22%
-- Sales increased across all product lines
-- Board authorized $20 million share repurchase program
Arctic Cat Inc. today reported net sales of $102.6 million for the fiscal 2005 first quarter ended June 30, 2004, up 33 percent versus $77.2 million in the same period last year. Net earnings for the quarter rose 22 percent to $124,000, or $0.01 per diluted share, compared to net earnings of $102,000, or $0.00 per diluted share, in the prior-year period.
"We are pleased to report record first-quarter sales," said Christopher A. Twomey, chairman and chief executive officer. "Our financial performance exceeded our expectations, as wholesale sales to dealers occurred at a faster pace than we had projected across all product lines."
All-terrain vehicle (ATVs) sales increased 24 percent to $39.2 million versus $31.5 million in the first quarter of last year. "Dealers were excited with the introduction of the new 2005 model year ATVs. Our ATV retail sales continued to outpace the industry and we gained further market share," said Twomey.
In May, the company unveiled its new line of 2005 ATV models to dealers, including the all-new 650 H1 4X4 Automatic, which features the first ATV engine designed and assembled by Arctic Cat. The 650 H1 will become available to consumers in late fiscal 2005. The company also introduced limited edition 400 and 500 Automatic ATVs. One of the new features on Arctic Cat's ATVs this year, the popular MRP Speedrack(TM) accessory attachment system, is now a standard feature on nearly all 2005 models. In addition, the company's new ATVs offer a quieter ride and enhanced sound quality.
Sales of Arctic Cat snowmobiles rose 46 percent to $50.7 million compared to $34.8 million in the prior-year first quarter, primarily due to the timing of shipments. Parts, garments and accessories sales totaled $12.7 million, up 16 percent versus $10.9 million in the year-ago period.
During the first quarter, Arctic Cat repurchased 334,200 shares of its common stock under an existing share repurchase authorization. In June, the company announced that its board authorized a new $20 million share repurchase program.
Outlook
"We are on track to deliver another year of record sales, with some of the most exciting ATVs and snowmobiles available," said Twomey. "We also remain committed to maintaining our technology leadership position in areas such as fuel management and emissions."
Arctic Cat currently anticipates fiscal 2005 second-quarter net sales for the period ending September 30, 2004, to range between $245 million to $255 million, compared to $237.7 million for the same period last year. Net earnings for the quarter are estimated to be between $0.99 to $1.02 per diluted share versus earnings of $0.98 per diluted share in the prior-year quarter. Due to the seasonal nature of Arctic Cat's snowmobile and ATV products, the majority of the company's sales occur during its second and third fiscal quarters.
For the fiscal year ending March 31, 2005, Arctic Cat continues to anticipate that net sales will grow 4 to 8 percent and be in the range of $676 million to $700 million. Full-year diluted earnings per share are estimated to grow 4 to 8 percent and be in the range of $1.46 to $1.51.
Conference Call
Arctic Cat will host a conference call to discuss the first-quarter results at 10:30 a.m. CT (11:30 a.m. ET) on Wednesday, July 21. To listen to the live Webcast or replay of this call via the Internet, go to the corporate portion of the company's Web site at www.arcticcat.com, and click on the conference call icon. A telephone replay also will be available from approximately 12:30 p.m. CT on Wednesday, July 21, until 6 p.m. CT on Wednesday, July 28. To access the telephone replay, dial (800) 405-2236, conference ID #11002295.
About Arctic Cat
Arctic Cat Inc. designs, engineers, manufactures and markets all-terrain vehicles (ATVs) and snowmobiles under the Arctic Cat(R) brand name, as well as related parts, garments and accessories. Its common stock is traded on the Nasdaq National Market under the ticker symbol "ACAT." More information about Arctic Cat and its products is available on the Internet at www.arcticcat.com.
ARCTIC CAT INC.
Financial Highlights
(000s omitted, except per share
amounts) (Unaudited)
Three Months Ended June 30,
---------------------------------
2004 2003
---------------- ----------------
Net Sales $102,594 $77,189
Cost of Goods Sold 83,638 58,663
---------------- ----------------
Gross Profit 18,956 18,526
Selling, General And
Administrative Expenses 18,982 18,625
---------------- ----------------
Operating Loss (26) (99)
Other Income:
Interest Income 209 249
---------------- ----------------
Earnings Before
Income Taxes 183 150
Income Tax Expense 59 48
---------------- ----------------
Net Earnings $124 $102
================ ================
Net Earnings Per Share
Basic $0.01 $0.00
================ ================
Diluted $0.01 $0.00
================ ================
Weighted Average
Shares Outstanding
Basic 20,873 21,969
================ ================
Diluted 21,146 22,251
================ ================
Three Months Ended
June 30,
----------------------------
Selected Balance Sheet Data: 2004 2003
-------------------------------- -------------- -------------
Cash and Short-term Investments $37,223 $21,015
Accounts Receivable, net 37,565 38,729
Inventories, net 106,924 118,395
Total Assets 268,147 260,370
Current Liabilities 72,880 70,977
Long-term Debt 0 0
Shareholders' Equity 178,003 178,522
Three Months Ended
June 30,
------------------------------------
Product Line Information 2004 2003 Incr %
----------------------------------------------------------------------
Snowmobiles $50,698 $34,766 46%
All-Terrain Vehicles 39,172 31,492 24%
Parts, Garments &
Accessories 12,724 10,931 16%
------------------------------------
Total Sales $102,594 $77,189 33%
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