Arctic Cat Announces Fourth-Quarter and Year-End Results.Business Editors THIEF RIVER The Thief River is a tributary of the Red Lake River in northwestern Minnesota in the United States. Via the Red Lake River, the Red River of the North, Lake Winnipeg and the Nelson River, it is part of the watershed of Hudson Bay. FALLS, Minn.--(BUSINESS WIRE)--May 15, 2000 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. Exceeds Expectations, ATV (1) (Advanced TV) An early name for the digital TV standard proposed by the Advisory Committee on Advanced Television Service (ACATS). See ACATS. See also ATV Forum. (2) (Analog TV) Refers to the NTSC, PAL and SECAM analog TV standads. Sales Growth Strong Arctic Cat Arctic Cat is a producer of all-terrain vehicles and snowmobiles in the United States. Located in Thief River Falls, Minnesota, they are a top competitor with other snowmobile companies such as Polaris, Ski-Doo by Bombardier, and Yamaha Motor Company Ltd.. Inc. (Nasdaq:ACAT ACAT See: Automated Customer Account Transfer ) today reported results for the fourth quarter and year ended March 31, 2000. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight 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 personal watercraft n. 1. A motorized recreational water vehicle normally ridden by straddling a seat. 2. (used with a pl. verb) Such water vehicles considered as a group. (PWC) business. A net loss of $723,000, or 3 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. 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 dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: 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 all-ter·rain vehicle n. Abbr. ATV A small, open motor vehicle having one seat and three or more wheels fitted with large tires. It is designed chiefly for recreational use over roadless, rugged terrain. (ATV) business, which serves to insulate in·su·late tr.v. in·su·lat·ed, in·su·lat·ing, in·su·lates 1. To cause to be in a detached or isolated position. See Synonyms at isolate. 2. us from weather-related snowmobile snowmobile, vehicle designed to travel over snow, ice, and similar surfaces that offer limited traction and weight-supporting capability. As the performance of the vehicle depends to a large extent on keeping its weight as low as possible, there is no enclosure for 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 dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. growth for the seventh consecutive year during fiscal 2000 and Arctic Arctic area of constant cold. [Geography: WB, A:600] See : Coldness (language, music) Arctic - A real-time functional language, used for music synthesis. ["Arctic: A Functional Language for Real-Time Control", R.B. Cat's ATV sales growth continued to outpace out·pace tr.v. out·paced, out·pac·ing, out·pac·es To surpass or outdo (another), as in speed, growth, or performance. outpace Verb [-pacing, 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 ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 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 rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective 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 Adj. 1. record-breaking - surpassing any previously established record; "a record-breaking high jump"; "record-breaking crowds" best - (superlative of `good') having the most positive qualities; "the best film of the year"; "the best solution"; "the best time for revenues and increased earnings in the year ahead," Twomey said. 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, please visit Arctic Cat's Web site at www.arctic-cat.com. Forward Looking Statements The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . This press release contains 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 depending on a variety of factors, including, but not limited to: product mix; 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; warranty expenses; foreign currency exchange rate fluctuations; product liability claims and other legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. in excess of insured amounts; environmental and product safety regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. activity; effects of the weather; and overall economic conditions and consumer confidence. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results, is contained in the Company's filings with the Securities and Exchange Commission.
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. |
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