Arctic Cat Announces First Quarter Results
29 July 1999
Arctic Cat Announces First Quarter Results
THIEF RIVER FALLS, Minn.--July 29, 1999-- Arctic Cat Inc. today reported results for the first quarter ended June 30, 1999.Net sales were $86,928,000 for the quarter ended June 30, 1999 compared to $88,651,000 for the same period last year. Net earnings for the quarter were $1,861,000, or $0.07 per diluted share, versus $1,529,000, or $0.05 per share, for the first quarter of fiscal 1999.
Christopher A. Twomey, President and Chief Executive Officer, commented, "Our first quarter results are in line with our expectations. Net sales were down slightly from the first quarter last year because of a planned decrease in snowmobile shipments resulting from the previously announced moderately lower orders from our dealers. We anticipate that growth of ATV and personal watercraft sales will offset the anticipated decline in snowmobile sales and as a result, we continue to expect total revenues for fiscal 2000 to be similar to those in fiscal 1999.
"We are particularly optimistic following our model year 2000 dealer show in June where we unveiled our first automatic transmission ATV. Orders for ATVs following the show are coming in as planned and we continue to expect to outpace the ATV industry's double digit growth again this year. PWC industry sales continue to lag behind last year. However, recent hot weather may spur retail sales. Based on lower PWC sales to our dealers, we expect year end dealer inventories to be at historically low levels."
Arctic Cat Inc. designs, engineers, manufactures and markets snowmobiles and all-terrain vehicles (ATVs) under the Arctic Cat(R) brand name, and personal watercraft under the Tigershark(R) brand name, as well as related parts, garments and accessories. For more information on Arctic Cat, visit the Company's website at www.arctic-cat.com.
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain forward-looking statements. The Company's Annual Report, as well as the Report on Form 10-K and future filings with the Securities and Exchange Commission, the Company's press releases and oral statements made with the approval of an authorized executive officer, contain forward-looking statements that reflect the Company's current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. The words "aim," "believe," "expect," "anticipate," "intend," "estimate" and other expressions that indicate future events and trends identify forward-looking statements. Actual future results and trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to: product mix and volume; competitive pressure on sales and pricing; increase in material or production cost which cannot be recouped in product pricing; changes in the sourcing of engines from Suzuki; warranty expenses; foreign currency exchange rate fluctuations; product liability claims and other legal proceedings in excess of insured amounts; environmental and product safety regulatory activity; effects of the weather; overall economic conditions; and consumer demand and confidence.
ARCTIC CAT INC.
Financial Highlights
(Unaudited, 000s omitted, except per share amounts)
Three Months Ended
June 30,
1999 1998
Net Sales $ 86,928 $ 88,651
Cost of Goods Sold 65,213 66,700
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Gross Profit 21,715 21,951
Selling, General And
Administrative Expenses 19,600 19,979
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Operating Profit 2,115 1,972
Other Income (Expense):
Interest Income 770 425
Interest Expense - (26)
770 399
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Earnings Before Income Taxes 2,885 2,371
Income Tax Expense 1,024 842
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Net Earnings $ 1,861 $ 1,529
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Net Earnings Per Share
Basic $ 0.07 $ 0.05
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Diluted $ 0.07 $ 0.05
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Weighted Average Shares
Outstanding
Basic 25,952 28,157
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Diluted 25,983 28,300
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