Press Release-
Arctic Cat Reports Record EPS in Fiscal 2013 Third Quarter
Quarterly EPS increased 41 percent to record $1.30 versus $0.92 in prior-year quarter;
Net sales up 5 percent in quarter to $218.0 million on strong North American ATV/side-by-side sales;
Company reports record year-to-date net earnings and earnings per diluted share; Raising full-year earnings outlook for fiscal 2013
Jan. 24, 2013– Arctic Cat Inc. today reported record earnings per diluted share of $1.30 on net earnings of $17.9 million for the fiscal 2013 third quarter ended December 31, 2012, compared to prior-year earnings per diluted share of $0.92 on net earnings of $17.0 million. Net sales in the fiscal 2013 third quarter increased 5 percent to $218.0 million versus net sales of $207.0 million in the same quarter last year.
“We are very pleased to report record earnings per share and increased sales in our third quarter, compared to a strong prior-year quarter of double-digit sales and earnings gains,” said Claude Jordan, Arctic Cat’s chairman and chief executive officer. “The company’s results are in line with our expectations for continued top- and bottom-line growth. During the fiscal third quarter, we made further progress on our growth strategy to enter new market segments by introducing two new Wildcat™ pure sport side-by-sides that will begin shipping during the fiscal fourth quarter. These included our first four-seat Wildcat model and a high-performance, 90-plus horsepower Wildcat 1000 X model. We now have four models in our Wildcat line, all of which we launched in the past 13 months.”
Among the highlights of Arctic Cat’s fiscal 2013 third quarter financial results versus the prior-year quarter:
*Net sales grew 5 percent, chiefly fueled by North American sales of Wildcat and Prowler side-by-sides, and all-terrain vehicles (ATVs);
*Global ATV and side-by-side business increased sales by 28 percent;
*Earnings per diluted share rose 41 percent to a record high, driven by improved earnings and a lower share count;
*Gross margins improved 22 basis points, due to higher volumes;
*Operating profit rose 5.7 percent;
*Cash increased 26.6 percent to $96.6 million; and
*The company had no long-term debt.
For the nine months ended December 31, 2012, Arctic Cat reported the highest net earnings and earnings per diluted share in the company’s history. Year-to-date earnings per diluted share rose 68 percent to a record $3.25 on record net earnings of $44.8 million, compared to prior-year earnings per diluted share of $1.94 on net earnings of $36.1 million. The company’s year-to-date net sales increased 15 percent to $558.4 million versus net sales of $486.8 million in the first nine months last year.
Business Line Results
Sales in Arctic Cat’s all-terrain vehicle (ATV)/side-by-side business rose 28 percent to $69.6 million, up from $54.4 million in the same period last year. The increase was primarily due to strong global demand from dealers and distributors for the Wildcat side-by-side. Year-to-date ATV/side-by-side sales grew 40 percent to $212.2 million compared to $151.1 million in the first nine months of fiscal 2012.
“Sales of Wildcat side-by-sides met our high expectations for the third quarter and year to date,” said Jordan. “We remain pleased with consumer and dealer enthusiasm for the Wildcat, and anticipate growing revenue contributions from our expanding Wildcat line.”
Arctic Cat’s ATV/side-by-side business rose to 38 percent of consolidated sales year-to-date, up from 31 percent of consolidated sales in the same period last year. “As part of our overall growth strategy, we are focused on further increasing our ATV/side-by-side business as a percent of Arctic Cat’s total sales going forward, driven by innovative product launches in this market segment,” said Jordan. “We continued to advance this goal with our recent launch of two new Wildcat models. In addition, we have a robust new product pipeline for future growth.”
Arctic Cat’s snowmobile sales in the fiscal 2013 third quarter were down 2 percent to $122.4 million from $125.2 million in the prior-year quarter. Year-to-date snowmobile sales increased 5 percent to $269.0 million, up from $257.3 million in the same period last year, led by growth in Canada and other international markets.”
Commented Jordan: “We anticipated that this would be a tough quarterly comparison for our snowmobile sales, as we are up against strong snowmobile sales in the year-ago quarter. Last year, we unveiled the largest new snowmobile introduction in the company’s history, with 23 all-new models representing 75 percent of our offerings.”
Arctic Cat’s new 2013 model year snowmobiles have received industry awards as the Best High Performance for the F800 Sno Pro RR (race-replica) and Best Crossover for the CrossTour 1100 Turbo. The company’s 2013 model year snowmobiles are built on its new ProCross™ performance and ProClimb™ mountain chassis platforms, both of which offer innovative suspension, drive and braking technologies.
Arctic Cat is committed to investing in research and development across its product lines, in order to remain an industry innovation leader and in anticipation of manufacturing its own snowmobile engines.
Sales of parts, garments and accessories (PG&A) in the fiscal 2013 third quarter were down 5 percent to $26.0 million versus $27.4 million in the prior-year quarter. An increase in Wildcat parts and accessories sales in the fiscal 2013 third quarter was not sufficient to offset a decline in snowmobile garment sales, due to lower than expected early season snowfall. Year-to-date PG&A sales totaled $77.1 million, down 2 percent from $78.4 million in the year-ago period. For the fiscal 2013 full year, Arctic Cat continues to anticipate increased PG&A sales of 1 percent to 3 percent.
Company Raises Fiscal 2013 Earnings Outlook
“We remain on track to deliver the highest net earnings in Arctic Cat’s 50-year history for the fiscal 2013 full year,” said Jordan. “We expect to continue generating higher revenue and earnings by developing innovative new products and entering new market segments. Our strategies are working and we are raising our full-year earnings guidance.”
In fiscal 2013, Arctic Cat anticipates continued gains in its ATV/side-by-side business, fueled by the growth potential for the Wildcat and Prowler side-by-side offerings, and many exciting new products being developed. Additionally, the company remains focused on further enhancing profitability through operational efficiencies and cost controls.
Arctic Cat’s fiscal 2013 outlook includes the following assumptions versus the prior fiscal year: ATV North America industry retail sales flat to up 5 percent; side-by-side North America industry retail sales up 10 to 20 percent; snowmobile North America industry retail sales down 2 percent to up 2 percent; Arctic Cat dealer inventories flat to up 5 percent; operating expense levels that are down slightly as a percent of sales; and increasing cash flow from operations. The company expects gross margins to improve between 20 and 60 basis points in fiscal 2013.
For the fiscal year ending March 31, 2013, Arctic Cat now estimates that fiscal 2013 earnings per diluted share will be in the range of $2.75 to $2.85, an increase of 60 percent to 66 percent compared to fiscal 2012. Previously, the company estimated fiscal 2013 earnings of $2.65 to $2.75 per diluted share. The company continues to anticipate sales for the full 2013 fiscal year in the range of $664 million to $684 million, an increase of approximately 13 percent to 17 percent versus fiscal 2012.
Board Additions
Arctic Cat added two new members to its board of directors in the fiscal 2013 third quarter. Joe Puishys is president and CEO of Apogee Enterprises and Stan Askren is chairman and CEO of HNI Corporation. Arctic Cat now has eight members on its board of directors, the majority of whom are independent.
“We look forward to benefiting from their insights, as we pursue continued growth and enhanced operational efficiency,” said Jordan.
I wish I could be happy for your new found prosperity… I can honestly say that if I had it to do over again, AC would not have my money.
Having only switched to ‘Cat a few years ago, I really like the sleds. While we had a great time at the 50th and touring the plant, (Thanks Scott Eilertson) for joining our tour group and telling us some stories along the way.) but I do not understand why ‘Cat, (and the other manufacturers) chose not to be at Eagle River with displays ! This would have been especially true this year for ER’s 50th. can’t sell your products if people don’t see them ! Thanks!
atvs/sidebysides – makes sense they are up
snowmobiles – tough winters and no DI or 600
Clothing/Accesssories – well this one they need a new person in charge of, I think their designing has not been as cool as years past.
I love my 13 RR but maybe they can take some of this new found money and really fix the problems with the clutchs that we are having. 5 blown belts on this sled. And wrecked belt guard and Cat doesn’t want to warranty it or the Belts. I have tried different AC clutches, updated clutches. Still blows belts and snaps helix bolts off. It’s been aligned by 3 different dealers and all say it’s good. First off clutches are way to hot. You can’t even touch them. Second the belt guard cuts the top of belt when it balloons on deceleration. I found the fix for it. I put a team tied secondary on it and not a blown belt if 1500 miles. And you can put your hand ont he clutchs after long pulls and it’s only warm, Maybe thats what AC should be putting on this sled anyways. They put it on the race sleds. So I spent a little over $1000 on blown belts and a good clutch to make this sled work right when it should work when you spend $14000. I was tired of getting the runaround from Cat. No returned calls. And they say no warranty on belts because it’s a wear Item. I would like for you to fix these machines right and warranty my belts and guard. This is uncalled for with a 2nd year sled. Mine is not the only one doing this. We have 6 2013 in our group and all have blown at least 1 belt before 250 miles and some have blown 2 . Step up and do the right thing and fix these things right don’t band aid them until our warranty runs out because then it’s not your problem.
Fix the belt problems on the 2012 2013 procross 800 and turbos or you wont be selling any more of these. These jerks raised the price of belts after we started having belt blowing issues….laughing there asses off all the way to the bank.
Like mentioned above, fix the hot clutches that kill belts and solve the problem of exploding belts. I had a clutch bind and burn 2 belts last year and this year exploded a belt and took out my belly pan. The sled has been at the dealer for almost 2 weeks because of backordered parts. Worse thing is I don’t know why my belt exploded and it can or most likely will happen again, it’s a ticking timebomb! Fix our 2012-2013 sleds CAT!!!!!!
I too have had a number of issues with my Procross including back ordered parts keeping me at home on two different weekends. Disappointing for sure. I haven’t seen the quality in the parts or the build of my Procross that I had with my previous Cats – but that’s just based on my own observations and opinion. Tunnel ice damaged my track on my first real trail ride last year – and Arctic Cat won’t stand behind that.
To hear about record profits while knowing they aren’t standing behind their stuff leaves me with a bad taste for the brand right now. I hope Cat can remain profitable while backing their products as they always have. Otherwise, they are no better than the other makers.
2013 procross xf 1100 turbo 6 belts in 647 miles. This is unreal with zero fix after many attempts. You should be ashamed of yourselves since these sleds have had very little testing and it shows throughout the entire sled and not to mention all the made in china poor quality parts like the belt guard and clutches to name a few You made some Money off me but its the first and last time
im just starting to ride my 2013 hcr 800 and im on my 3rd belt. i thought maybe it was because maybe i had burned it badly when getting stuck. i wan to get a fix for this as i love the rest of the sled. how can i fix this.
Sooooo frustrated!! My 2013 tucker hibbert replica has blown belts every 60-70 miles! 5 total! Break them in lke a grandma for 40 miles even! Dealer said alignment is good. 083 aaaand 084 belts! Destroyed belly pan and garbage belt cover! This sled is a crazy fun machine but this is Bullsh#t artic cat! Start takin care of your customers! No warranty on belts? Whaaaaaaaaat? I geared it down and vented the crap outta panel, that did squat! Looks like ill blow another $400 on a team secondary! Thanks for the money pit! If team don’t fix the problem then look the f#%k out!!! TAKE CARE OF YOUR CUSTOMERS!!!!!
It does appear that both KOAM and KFJX have chagned their web-site look and provider. I went to the World Now site to find they are doing over 270 stations nationwide including most major markets. Why did KODE drop them? They seem to be a big time player in broadcast web-sites. The sites look really good and it appears that either World Now or someone at KOAM and KFJX is keeping them very topical. I think they are nice sites and better than any other local news site including the globe. Whether this credit goes to the company World Now or the local stations, I think they made a smart move.
It does appear that both KOAM and KFJX have chagned their web-site look and provider. I went to the World Now site to find they are doing over 270 stations nationwide including most major markets. Why did KODE drop them? They seem to be a big time player in broadcast web-sites. The sites look really good and it appears that either World Now or someone at KOAM and KFJX is keeping them very topical. I think they are nice sites and better than any other local news site including the globe. Whether this credit goes to the company World Now or the local stations, I think they made a smart move.
It does appear that both KOAM and KFJX have chagned their web-site look and provider. I went to the World Now site to find they are doing over 270 stations nationwide including most major markets. Why did KODE drop them? They seem to be a big time player in broadcast web-sites. The sites look really good and it appears that either World Now or someone at KOAM and KFJX is keeping them very topical. I think they are nice sites and better than any other local news site including the globe. Whether this credit goes to the company World Now or the local stations, I think they made a smart move.
Speaking of KOAM/FOX14…did anyone haeppn to catch their November sweeps launch? Looks like they’re finally stepping into the wide world of new media content with their new websites. And, for the first time that I can recall, the sites are not in-house pos’s! They’re from the former designers of KODE’s site from 2004ish (WorldNow) http://pzwwoi.com [url=http://drqauitewp.com]drqauitewp[/url] [link=http://dyseeougnff.com]dyseeougnff[/link]
Speaking of KOAM/FOX14…did anyone haeppn to catch their November sweeps launch? Looks like they’re finally stepping into the wide world of new media content with their new websites. And, for the first time that I can recall, the sites are not in-house pos’s! They’re from the former designers of KODE’s site from 2004ish (WorldNow) http://pzwwoi.com [url=http://drqauitewp.com]drqauitewp[/url] [link=http://dyseeougnff.com]dyseeougnff[/link]
Speaking of KOAM/FOX14…did anyone haeppn to catch their November sweeps launch? Looks like they’re finally stepping into the wide world of new media content with their new websites. And, for the first time that I can recall, the sites are not in-house pos’s! They’re from the former designers of KODE’s site from 2004ish (WorldNow) http://pzwwoi.com [url=http://drqauitewp.com]drqauitewp[/url] [link=http://dyseeougnff.com]dyseeougnff[/link]
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