Arctic Cat Announces Record 2002 Second-Quarter Sales and Earnings
THIEF RIVER FALLS, Minn.--Oct. 25, 2001--Arctic Cat Inc. :| -- | Net Sales Rise 11 Percent for the Quarter |
| -- | EPS is 84 Cents Versus 76 Cents |
| -- | Company Beats First Call Estimate |
Arctic Cat Inc. today reported results for the fiscal 2002 second-quarter and six-months ended September 30, 2001.
Net sales increased 11 percent to $218,948,000 for the 2002 second quarter versus $197,074,000 for the same period last year. Net earnings rose 9 percent to $20,332,000, or 84 cents per diluted share, for the second quarter compared to net earnings of $18,606,000, or 76 cents per diluted share, reported for the second quarter of fiscal 2001.
For the six-month period, net sales increased 5 percent to $298,182,000 compared to $285,039,000 for the same period last year. Net earnings grew 8 percent to $22,289,000, or 92 cents per diluted share, compared to net earnings of $20,658,000, or 84 cents per diluted share, reported in the first half of fiscal 2001.
Christopher A. Twomey, president and chief executive officer, said, "We are pleased with the record sales and net earnings achieved this quarter, which are the highest of any quarter in our company's history. Arctic Cat posted double-digit sales growth in all areas of the business - snowmobiles, all-terrain vehicles (ATVs), and parts, garments and accessories."
Commenting on Arctic Cat's ATV and snowmobile businesses, Twomey said: "We gained further market share in the ATV segment, as our ATV sales continued to outpace the U.S. industry's double-digit growth rate. As part of our ATV line extension, we recently introduced a fully automatic ATV model, the Arctic Cat 375cc, that just reached our dealers. We expect retail sales of this model to further enhance our rapid growth in this industry. In our snowmobile business, the retail season is just beginning and our dealers are reporting encouraging early season retail sales activity. In fact, extra early orders, which are retail orders accompanied by a cash downpayment, have increased 30 percent over last year. Additionally, increased attendance at all the major snowmobile consumer shows and events continues to demonstrate strong consumer interest this year, which we expect will boost retail sales of Arctic Cat snowmobiles."
During the second quarter, the company repurchased 423,000 shares of common stock and Arctic Cat has now repurchased over 6 million shares under three share repurchase authorizations. The company has approximately 1.5 million additional shares remaining under its current repurchase authorization and plans to continue to buy shares from time to time in the market.
Outlook
Arctic Cat's outlook for fiscal 2002 remains positive and unchanged despite the current uncertain economic environment.
Said Twomey, "We anticipate that fiscal 2002 snowmobile revenues will increase 10 to 15 percent based on orders already received and low dealer inventories. We also continue to expect that ATV revenues will increase during this fiscal year and that our retail sales will again outpace the industry. As a result, we expect to report continued record-breaking revenues and increased earnings in the year ahead."
Conference Call
Arctic Cat will host a conference call to discuss the second quarter results at 10:30 a.m. CT (11:30 a.m. ET) on Thursday, October 25. A replay of the call will be available from 11:30 a.m. CT on Thursday, October 25, until 6:00 p.m. CT on Friday, October 26. To access the replay, dial (800) 633-8284, conference ID No.19876506. The conference call also will be Webcast. To access this Webcast, go to the corporate portion of the company's Web site at www.arctic-cat.com, and click on the conference call icon. A replay of the Webcast will be archived on Arctic Cat's Web site following the call.
Arctic Cat Inc. designs, engineers, manufactures and markets snowmobiles and all-terrain vehicles (ATVs) under the Arctic Cat(R) brand name, as well as related parts, garments and accessories. For more information on Arctic Cat, visit the company's Web site at http://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 Six Months Ended
September 30, September 30,
---------------------------------------
2001 2000 2001 2000
-------- -------- -------- --------
Net Sales $218,948 $197,074 $298,182 $285,039
Cost of Goods Sold 159,233 145,426 218,055 211,817
-------- -------- -------- --------
Gross Profit 59,715 51,648 80,127 73,222
Selling, General And
Administrative Expenses 30,283 24,682 48,551 44,301
-------- -------- -------- --------
Operating Profit 29,432 26,966 31,576 28,921
Other Income
Interest Income 476 804 1,202 1,911
-------- -------- -------- --------
Earnings Before Income Taxes 29,908 27,770 32,778 30,832
Income Taxes 9,576 9,164 10,489 10,174
-------- -------- -------- --------
Net Earnings $ 20,332 $ 18,606 $ 22,289 $ 20,658
======== ======== ======== ========
Net Earnings Per Share
Basic $ 0.85 $ 0.77 $ 0.93 $ 0.84
======== ======== ======== ========
Diluted $ 0.84 $ 0.76 $ 0.92 $ 0.84
======== ======== ======== ========
Weighted Average Shares
Outstanding
Basic 23,869 24,294 23,846 24,550
======== ======== ======== ========
Diluted 24,165 24,544 24,176 24,724
======== ======== ======== ========
