Arctic Cat Announces Third Quarter 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)--Jan. 27, 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 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 third quarter and nine months ended December December: see month. 31, 1999. 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 were $109,009,000 for the third quarter ended December 31, 1999 versus $109,750,000 for the same period last year. Net earnings were $4,311,000, or $0.17 per share on a 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. basis, compared to $4,278,000, or $0.16 per diluted share, earned in the third quarter of fiscal 1999. For the nine-month period ended December 31, 1999, net sales were $401,444,000 compared to $391,783,000 for the same period last year. Adjusted net earnings were $25,243,000, or $0.98 per diluted share, for the first nine months of fiscal 2000, compared to $24,846,000, or $0.89 per diluted share, earned during the first nine months of fiscal 1999. Adjusted net income and adjusted net income 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: 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. The Company took a charge for these costs last quarter. Including the effects of the PWC exit and related costs, Arctic Cat reported net earnings of $8,344,000, or $0.32 per diluted share for the nine months ended December 31, 1999. Commenting on the quarter, Christopher A. Twomey, president and chief executive officer, said, &uot;Our essentially flat sales for the quarter result from increased 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 and the previously announced planned decrease in 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 shipments reflecting moderately lower dealer orders related to snow conditions.&uot; Twomey noted: &uot;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 again during calendar year 1999, 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 retail sales growth out paced the industry. Late in the quarter, 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 calendar year 2000.&uot; Twomey went on to say, &uot;Snowmobile retail sales through December for the industry and Arctic Cat were slightly lower than last year. While customer interest remains strong, good rideable snow only arrived in mid-January n. 1. the middle part of January. Noun 1. mid-January - the middle part of January period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" over most of the snow belt. To help dealers sell their remaining inventory, Arctic Cat has initiated a factory cash-back program direct to retail customers, which already appears to be stimulating retail sales. With continued good snow conditions driving retail sales we expect to end the year with very manageable inventory levels and look forward to our exciting model year 2001, which will be unveiled at our dealer shows in February February: see month. .&uot; Arctic Cat Inc. designs, engineers, manufactures and markets snowmobiles and all-terrain vehicles 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. (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 An assurance, promise, or guaranty by one party that a particular statement of fact is true and may be relied upon by the other party. Warranties are used in a variety of commercial situations. In many instances a business may voluntarily make a 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
(000s omitted, except per share amounts)
Three Months Ended
December 31,
--------------------------------------
1999 1998
------------- -------------
Net Sales $109,009 $109,750
Cost of Goods Sold 75,595 78,227
------------- -------------
Gross Profit 33,414 31,523
Selling, General And
Administrative Expenses 28,210 25,781
------------- -------------
Operating Profit 5,204 5,742
Other Income (Expense):
Interest Income 1,480 892
Interest Expense - (1)
------------- -------------
1,480 891
Earnings Before Income Taxes 6,684 6,633
Income Taxes 2,373 2,355
------------- -------------
Net Earnings $4,311 $ 4,278
============= =============
Net Earnings Per Share
Basic $ 0.17 $ 0.16
============= =============
Diluted $ 0.17 $ 0.16
============= =============
Weighted Average Shares
Outstanding
Basic 25,542 27,480
============= =============
Diluted 25,630 27,515
============= =============
ARCTIC CAT INC.
Financial Highlights
Unaudited
(000s omitted, except per share amounts)
Nine Months Ended December 31,
---------------------------------------------
1999 1998
---------------------------------------------
Before Non- Non-
Recurring Recurring
Charges Charges(a) Reported Reported
------------- ---------- ---------- -----------
Net Sales $401,444 $401,444 $391,783
Cost of Goods Sold 291,612 3,062 294,674 285,045
Watercraft
Inventory Writedown - 2,835 2,835 -
--------- --------- ------------- -----------
Gross Profit 109,832 (5,897) 103,935 106,738
Selling, General And
Administrative Expenses 73,805 1,676 75,481 69,949
Watercraft Exit Costs - 18,627 18,627 -
--------- --------- ------------- -----------
Operating Profit 36,027 (26,200) 9,827 36,789
Other Income (Expense):
Interest Income 3,109 - 3,109 1,759
Interest Expense - - - (27)
--------- --------- ------------- -----------
3,109 - 3,109 1,732
Earnings Before
Income Taxes 39,136 (26,200) 12,936 38,521
Income Taxes 13,893 (9,301) 4,592 13,675
--------- --------- ------------- -----------
Net Earnings $25,243 $(16,899) $8,344 $24,846
========= ========= ============= ===========
Net Earnings Per Share
Basic $ 0.98 $ (0.66) $ 0.32 $ 0.89
========= ========= ============= ===========
Diluted $ 0.98 $ (0.66) $ 0.32 $ 0.89
========= ========= ============= ===========
Weighted Average Shares
Outstanding
Basic 25,733 25,733 25,733 27,822
========= ========= ============= ===========
Diluted 25,785 25,785 25,785 27,858
========= ========= ============= ===========
(a) Costs related to discontinued personal watercraft business. |
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