Arctic Cat Reports Record First-Quarter Sales in Fiscal 2005.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. -- 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 ): First-Quarter Highlights: --Sales up 33% --Net earnings grew 22% --Sales increased across all product lines --Board authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: $20 million share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program Arctic Cat Inc. (Nasdaq:ACAT) today reported 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 of $102.6 million for the fiscal 2005 first quarter ended June 30, 2004, up 33 percent versus $77.2 million in the same period last year. Net earnings for the quarter rose 22 percent to $124,000, or $0.01 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, compared to net earnings of $102,000, or $0.00 per diluted share, in the prior-year period. "We are pleased to report record first-quarter sales," said Christopher A. Twomey, chairman and chief executive officer. "Our financial performance exceeded our expectations, as wholesale sales to dealers occurred at a faster pace than we had projected across all product lines." 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. (ATVs) sales increased 24 percent to $39.2 million versus $31.5 million in the first quarter of last year. "Dealers were excited with the introduction of the new 2005 model year ATVs. Our 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. retail sales 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 and we gained further market share," said Twomey. In May, the company unveiled its new line of 2005 ATV models to dealers, including the all-new 650 H1 4X4 Automatic, which features the first ATV engine designed and assembled by Arctic Cat. The 650 H1 will become available to consumers in late fiscal 2005. The company also introduced limited edition 400 and 500 Automatic ATVs. One of the new features on 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 ATVs this year, the popular MRP (Material Requirements Planning) An information system that determines what assemblies must be built and what materials must be procured in order to build a unit of equipment by a certain date. Speedrack(TM) accessory accessory, in criminal law, a person who, though not present at the commission of a crime, becomes a participator in the crime either before or after the fact of commission. attachment system, is now a standard feature on nearly all 2005 models. In addition, the company's new ATVs offer a quieter ride and enhanced sound quality. Sales of Arctic Cat snowmobiles rose 46 percent to $50.7 million compared to $34.8 million in the prior-year first quarter, primarily due to the timing of shipments. Parts, garments and accessories sales totaled $12.7 million, up 16 percent versus $10.9 million in the year-ago period. During the first quarter, Arctic Cat repurchased 334,200 shares of its common stock under an existing share repurchase authorization The right or permission to use a system resource; the process of granting access. See access control. . In June, the company announced that its board authorized a new $20 million share repurchase program. Outlook "We are on track to deliver another year of record sales, with some of the most exciting ATVs and snowmobiles available," said Twomey. "We also remain committed to maintaining our technology leadership position in areas such as fuel management and emissions." Arctic Cat currently anticipates fiscal 2005 second-quarter net sales for the period ending September 30, 2004, to range between $245 million to $255 million, compared to $237.7 million for the same period last year. Net earnings for the quarter are estimated to be between $0.99 to $1.02 per diluted share versus earnings of $0.98 per diluted share in the prior-year quarter. Due to the seasonal nature of Arctic Cat's 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 and ATV products, the majority of the company's sales occur during its second and third fiscal quarters. For the fiscal year ending March 31, 2005, Arctic Cat continues to anticipate that net sales will grow 4 to 8 percent and be in the range of $676 million to $700 million. Full-year diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of are estimated to grow 4 to 8 percent and be in the range of $1.46 to $1.51. Conference Call Arctic Cat will host a conference call to discuss the first-quarter results at 10:30 a.m. CT (11:30 a.m. ET) on Wednesday, July 21. To listen to the live Webcast or replay of this call via the Internet, go to the corporate portion of the company's Web site at www.arcticcat.com, and click on the conference call icon. A telephone replay also will be available from approximately 12:30 p.m. CT on Wednesday, July 21, until 6 p.m. CT on Wednesday, July 28. To access the telephone replay, dial (800) 405-2236, conference ID #11002295. About Arctic Cat Arctic Cat Inc. designs, engineers, manufactures and markets all-terrain vehicles (ATVs) and snowmobiles under the Arctic Cat(R) brand name, as well as related parts, garments and accessories. Its common stock is traded on the Nasdaq National Market under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors "ACAT." More information about Arctic Cat and its products is available on the Internet at www.arcticcat.com. 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. 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
(000s omitted, except per share
amounts) (Unaudited)
Three Months Ended June 30,
---------------------------------
2004 2003
---------------- ----------------
Net Sales $102,594 $77,189
Cost of Goods Sold 83,638 58,663
---------------- ----------------
Gross Profit 18,956 18,526
Selling, General And
Administrative Expenses 18,982 18,625
---------------- ----------------
Operating Loss (26) (99)
Other Income:
Interest Income 209 249
---------------- ----------------
Earnings Before
Income Taxes 183 150
Income Tax Expense 59 48
---------------- ----------------
Net Earnings $124 $102
================ ================
Net Earnings Per Share
Basic $0.01 $0.00
================ ================
Diluted $0.01 $0.00
================ ================
Weighted Average
Shares Outstanding
Basic 20,873 21,969
================ ================
Diluted 21,146 22,251
================ ================
Three Months Ended
June 30,
----------------------------
Selected Balance Sheet Data: 2004 2003
-------------------------------- -------------- -------------
Cash and Short-term Investments $37,223 $21,015
Accounts Receivable, net 37,565 38,729
Inventories, net 106,924 118,395
Total Assets 268,147 260,370
Current Liabilities 72,880 70,977
Long-term Debt 0 0
Shareholders' Equity 178,003 178,522
Three Months Ended
June 30,
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Product Line Information 2004 2003 Incr %
----------------------------------------------------------------------
Snowmobiles $50,698 $34,766 46%
All-Terrain Vehicles 39,172 31,492 24%
Parts, Garments &
Accessories 12,724 10,931 16%
------------------------------------
Total Sales $102,594 $77,189 33%
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