Arctic Cat Reports Record Sales in Fiscal 2006 First Quarter.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 rise 5% --Earnings 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 of $0.02 --Sales increase across all product lines --Company reiterates full-year outlook 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 $107.9 million for the fiscal 2006 first quarter ended June 30, 2005, up 5 percent versus $102.6 million in the same period last year. Net earnings for the quarter rose to $448,000, or $0.02 per diluted share, compared to net earnings of $124,000, or $0.01 per diluted share, in the prior-year period. "We are pleased to report another record first quarter," said Christopher A. Twomey, chairman and chief executive officer. "Sales increased across all product lines and exceeded our expectations, due to slightly higher than anticipated sales to dealers." 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 (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 increased 6 percent to $41.4 million versus $39.2 million in the first quarter of last year. "Our dealers responded positively to our 2006 model ATVs unveiled at our dealer show in June," said Twomey. "We demonstrated further progress on our ATV growth strategy to extend our products into every market segment and to offer best-in-class ATVs at competitive prices. Notably, in just two years, we have completely redesigned our ATV lineup A criminal investigation technique in which the police arrange a number of individuals in a row before a witness to a crime and ask the witness to identify which, if any, of the individuals committed the crime. and expanded into new categories that offer opportunities to further increase our market share." Among the new 2006 ATVs recently introduced was 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 first entry into the true utility category with the Prowler. The Prowler's extensive features include side-by-side bucket A reserved amount of memory that holds a single item or multiple items of data. Bucket is somewhat synonymous to "buffer," although buffers are usually memory locations for incoming data records, while buckets tend to be smaller holding areas for calculations. See hash table, buffer and variable. seats with seat belts, and a composite rear-cargo box designed for hauling and dumping. Sales of Arctic Cat snowmobiles rose 3 percent to $52.0 million compared to $50.7 million in the prior-year first quarter, due to slightly earlier sales to dealers. Parts, garments and accessories increased to $14.5 million versus $12.7 million in the year-ago period, fueled by sales across all product lines. During the 2006 first quarter, Arctic Cat repurchased approximately 185,000 shares of its common stock under the company's $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. Outlook Arctic Cat currently anticipates fiscal 2006 second-quarter net sales for the period ending September 30, 2005, to range between $255 million and $267 million, up from $240.7 million for the same period last year. Net earnings for the quarter are estimated to be between $0.90 and $0.94 per diluted share versus earnings of $0.94 per diluted share in the prior-year quarter. For the fiscal year ending March 31, 2006, Arctic Cat continues to anticipate that net sales will grow 3 percent to 5 percent and be in the range of $710 million to $723 million. The company is forecasting lower margins in fiscal 2006, due to increased raw material costs, lower 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 sales and a less favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. yen/dollar exchange rate, resulting in estimated 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 in the range of $1.31 to $1.40. Fiscal 2005 earnings per diluted share totaled $1.36. "Our outlook for fiscal 2006 remains unchanged," said Twomey. "We continue to anticipate record full-year sales, but lower margins are expected to constrain con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. earnings." 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 Thursday, 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 Thursday, July 21, until 6 p.m. CT on Thursday, July 28. To access the telephone replay, dial (800) 405-2236, conference ID #11034943. 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 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: 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. The Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
ARCTIC CAT INC.
Financial Highlights
(000s omitted, except per share amounts)
(Unaudited)
Three Months Ended June 30,
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2005 2004
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Net Sales $107,924 $102,594
Cost of Goods Sold 85,644 83,638
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Gross Profit 22,280 18,956
Selling, General And
Administrative Expenses 21,908 18,982
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Operating Profit (Loss) 372 (26)
Other Income:
Interest Income 287 209
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Earnings Before
Income Taxes 659 183
Income Taxes 211 59
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Net Earnings $448 $124
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Net Earnings Per Share
Basic $0.02 $0.01
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Diluted $0.02 $0.01
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Weighted Average Shares
Outstanding
Basic 20,015 20,873
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Diluted 20,229 21,146
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June 30,
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Selected Balance Sheet Data: 2005 2004
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Cash and Short-term Investments $14,335 $37,223
Accounts Receivable, net 48,475 37,565
Inventories 134,218 106,924
Total Assets 287,700 265,435
Current Liabilities 95,335 75,144
Long-term Debt 0 0
Shareholders' Equity 178,748 178,003
Three Months Ended
June 30,
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Product Line Information 2005 2004 Incr %
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Snowmobiles $52,010 $50,698 3%
All-Terrain Vehicles 41,449 39,172 6%
Parts, Garments & Accessories 14,465 12,724 14%
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Total Sales $107,924 $102,594 5%
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