Arctic Cat Revises Fiscal 2005 Second-Quarter Expectations; Full-Year Outlook Remains Unchanged.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 ): --Conference call scheduled at 5 p.m. ET today --Transportation issue caused one-week delay in planned snowmobile shipments Arctic Cat Inc. (Nasdaq:ACAT) today announced that it is lowering its guidance for the fiscal 2005 second quarter ended September 30, 2004, due to a logistical delay in snowmobile shipments. The company now expects to report net earnings in the range of $0.90 to $0.94 per diluted share on 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 $237 million to $241 million. Previously, Arctic Cat estimated second-quarter net earnings of between $0.99 to $1.02 per diluted share on net sales of between $245 million to $255 million. "A transportation delay in shipping approximately 1,000 to 1,500 units to dealers in the final days of the quarter, most of which were our popular new M7 mountain snowmobiles, will cause second-quarter sales and earnings to be lower than originally estimated," said Christopher A. Twomey, chairman and chief executive officer. "This is a one-week hiccup hiccup or hiccough, involuntary spasmodic contraction of the diaphragm followed by a sharp intake of air, which is abruptly stopped by a sudden, involuntary closing of the glottis (opening between the vocal cords); the consequent blocking of air . All of the delayed snowmobile products will be shipped this week." Commenting further, Twomey said: "The quarter's results would have been well within our previous guidance had the ordered and produced snowmobiles been able to be transported to our dealers on time. For the year, we remain on plan to deliver record sales." Arctic Cat's expectations for full-year sales and earnings remain unchanged. For the fiscal year ending March 31, 2005, the company 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. Arctic Cat is scheduled to announce its 2005 second-quarter results and outlook on October 21, 2004, before the market opens. Conference Call Arctic Cat will host a conference call at 5 p.m. ET today. 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 7 p.m. ET today until 7 p.m. ET on Tuesday, October 12. To access the telephone replay, dial (800) 405-2236, conference ID #11010993. The company is also presenting at the RBC Capital Markets RBC Capital Markets is the corporate and investment banking division of Royal Bank of Canada ("RBC"). Broker dealers Depending on the jurisdiction, the division uses different broker dealer subsidiaries of RBC:
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 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. |
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