Arctic Cat Reports First-Quarter Earnings up 10 Percent
26 July 2000
EPS up 14 Percent
THIEF RIVER FALLS, Minn. - Arctic Cat Inc. today reported results for the fiscal 2001 first quarter ended June 30, 2000.Net earnings for the first quarter rose 10 percent to $2,052,000, or 8 cents per diluted share, versus $1,861,000, or 7 cents per diluted share, for the first quarter of fiscal 2000. Net sales for the quarter were $85,961,000 compared to $86,928,000 for the same period last year, as the company continued to cycle out the discontinuation of its personal watercraft line of business.
Christopher A. Twomey, Arctic Cat's president and chief executive officer, commented, "We're pleased that our first-quarter net sales were nearly even with last year given the discontinued PWC business and a planned decrease in snowmobile shipments, as previously announced, due to moderately lower dealer orders. During the quarter, sales of our all-terrain vehicles grew by more than $24 million, more than making up for the decrease in snowmobile shipments. For the year, we anticipate that growth of ATV sales will offset an anticipated decline in snowmobile sales and, as a result, we continue to expect record-breaking revenues and increased earnings in this fiscal year."
Twomey continued: "Our business mix is changing as part of our strategic growth plan. By year-end, we expect ATVs to account for 40 percent of our total revenues and more than 50 percent of units produced. The ATV market is rapidly growing and serves to insulate us from weather-related snowmobile demand.
"We are particularly optimistic following our 2001 model-year dealer show in June where we unveiled our new ATV models," Twomey added. "Following the show, orders for Arctic Cat's ATVs are coming in as planned and we expect our growth to outpace the ATV industry again this year."
Arctic Cat Inc. designs, engineers, manufactures and markets snowmobiles and all-terrain vehicles under the Arctic Cat brand name, as well as related parts, garments and accessories.
ARCTIC CAT INC.
Financial Highlights
(Unaudited, 000s omitted, except per share amounts)
Three Months Ended
June 30,
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2000 1999
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Net Sales $ 85,961 $ 86,928
Cost of Goods Sold 64,387 65,213
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Gross Profit 21,574 21,715
Selling, General And
Administrative Expenses 19,619 19,600
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Operating Profit 1,955 2,115
Other Income:
Interest Income 1,107 770
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Earnings Before Income Taxes 3,062 2,885
Income Tax Expense 1,010 1,024
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Net Earnings $ 2,052 $ 1,861
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Net Earnings Per Share
Basic $ 0.08 $ 0.07
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Diluted $ 0.08 $ 0.07
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Weighted Average Shares
Outstanding
Basic 24,807 25,952
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Diluted 24,903 25,983
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