Arctic Cat Announces Fourth-Quarter and Year-End Results
15 May 2000
Arctic Cat Announces Fourth-Quarter and Year-End Results
THIEF RIVER FALLS, Minn.--May 15, 2000--Arctic Cat Inc. today reported results for the fourth quarter and year ended March 31, 2000.
Net sales for the fourth quarter decreased slightly, as anticipated, to $82,567,000 compared to $88,565,000 for the same period last year, due to the company's exit from the personal watercraft (PWC) business. A net loss of $723,000, or 3 cents per diluted share, was reported for the fourth quarter compared with a net loss of $1,731,000, or 6 cents per diluted share, in the prior-year period.
For the 2000 fiscal year, net sales increased to $484,011,000 compared to $480,348,000 last fiscal year. Adjusted net earnings were $24,520,000, or 96 cents per diluted share, in fiscal 2000, compared to $23,115,000, or 84 cents per diluted share, earned during fiscal 1999. Adjusted net earnings and adjusted net earnings per diluted share do not include certain costs related to the discontinued PWC business. The company took a previously announced charge for these costs in the second quarter. Including the charge, Arctic Cat reported total net earnings of $7,621,000, or 30 cents per diluted share, for the year ended March 31, 2000, compared to $23,115,000, or 84 cents per diluted share, for fiscal 1999.
"Arctic Cat is beginning to benefit from our growing all-terrain vehicle (ATV) business, which serves to insulate us from weather-related snowmobile demand," said Christopher A. Twomey, president and chief executive officer. "The strong increase in our ATV sales offset the decrease in PWC sales resulting from our exit of that product line, as well as the anticipated modest decrease in snowmobile sales caused by consecutive years of poor snow conditions. Overall ATV industry retail sales continued their strong double-digit growth for the seventh consecutive year during fiscal 2000 and Arctic Cat's ATV sales growth continued to outpace the industry. Late in the year, we began shipping a new 500cc model which is Arctic Cat's first fully automatic ATV. Initial customer response has been very encouraging. As a result of growing brand awareness and the availability of models in every major market segment, we look forward to continued strong ATV sales growth during fiscal 2001."
Twomey went on to say, "Industry-wide snowmobile retail sales decreased after one of the warmest winters in 100 years. Even with the marginal snow conditions, Arctic Cat customers are very enthusiastic about our 2001 models, as evidenced by their extra-early orders which are up approximately 22 percent over last year. After three consecutive years of poor snow conditions, our dealers have responded by ordering more conservatively for the upcoming model year. We remain confident that with the strong consumer interest we see, and given normal winter conditions, industry-wide retail snowmobile sales will rebound strongly."
"Growth of our ATV sales should offset an anticipated decline in snowmobile sales in fiscal 2001 and, as a result, we expect record-breaking revenues and increased earnings in the year ahead," Twomey said.
ARCTIC CAT INC.
Financial Highlights
Unaudited
($ in thousands, except per share amounts)
Three Months Ended
March 31,
--------------------------------
2000 1999
------------- -------------
Net Sales $82,567 $88,565
Cost of Goods Sold 65,949 72,092
------------- -------------
Gross Profit 16,618 16,473
Selling, General And
Administrative Expenses 20,737 20,331
------------- -------------
Operating Profit (Loss) (4,119) (3,858)
Other Income (Expense):
Interest Income 1,482 1,174
Interest Expense - -
------------- -------------
1,482 1,174
Earnings (Loss) Before Income Taxes (2,637) (2,684)
Income Tax (Benefit) (1,914) (953)
------------- -------------
Net Earnings (Loss) ($723) ($1,731)
============= =============
Net Earnings (Loss) Per Share
Basic ($0.03) ($0.06)
============= =============
Diluted
($0.03) ($0.06)
============= =============
Weighted Average Shares
Outstanding
Basic 24,943 27,065
============= =============
Diluted 24,943 27,065
============= =============
ARCTIC CAT INC.
Financial Highlights
Unaudited
($ in thousands, except per share amounts)
Year Ended March 31,
----------------------------------------
2000 1999
------------------------------- --------
Before Non- Non-
Recurring Recurring
Charges Charges(a) Reported Reported
----------- ---------- -------- --------
Net Sales $484,011 $484,011 $480,348
Cost of Goods Sold 357,561 3,062 360,623 357,137
Watercraft Inventory Writedown - 2,835 2,835 -
----------- ---------- -------- --------
Gross Profit 126,450 (5,897) 120,553 123,211
Selling, General And
Administrative Expenses 94,542 1,676 96,218 90,280
Watercraft Exit Costs - 18,627 18,627 -
----------- ---------- -------- --------
Operating Profit 31,908 (26,200) 5,708 32,931
Other Income (Expense):
Interest Income 4,591 - 4,591 2,933
Interest Expense - - - (27)
----------- ---------- -------- --------
4,591 - 4,591 2,906
Earnings Before Income Taxes 36,499 (26,200) 10,299 35,837
Income Taxes 11,979 (9,301) 2,678 12,722
----------- ---------- -------- --------
Net Earnings $24,520 $(16,899) $ 7,621 $ 23,115
=========== ========== ======== ========
Net Earnings Per Share
Basic $ 0.96 $ (0.66) $ 0.30 $ 0.84
=========== ========== ======== ========
Diluted $ 0.96 $ (0.66) $ 0.30 $ 0.84
=========== ========== ======== ========
Weighted Average Shares
Outstanding
Basic 25,535 25,535 25,535 27,632
=========== ========== ======== ========
Diluted 25,586 25,586 25,586 27,668
=========== ========== ======== ========
(a) Costs related to discontinued personal watercraft business.