Arctic Cat Reports First-Quarter Earnings up 10 Percent; EPS up 14 Percent.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)--July 26, 2000 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 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 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 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 dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of its 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) 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 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, as previously announced, due to moderately lower dealer orders. During the quarter, sales of our all-terrain vehicles (ATVs) 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 op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op 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 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 ATV industry again this year." 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 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. The Company's Annual Report, as well as the Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 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 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 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
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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