Arctic Cat Inc. (NASDAQ: ACAT) today reported the company swung to net earnings of $2.0 million, or $0.14 per diluted share, for the fiscal first quarter ended June 30, 2012, up from a prior-year net loss of $2.3 million, or a loss of $0.13 per diluted share. Arctic Cat’s net sales for the fiscal 2013 first quarter grew 49 percent to $111.3 million versus net sales of $74.9 million in the same quarter last year.
“We are very pleased to start our new fiscal year with another quarter of outstanding sales and earnings,” said Claude Jordan, Arctic Cat’s president and chief executive officer. “Sales rose across all product lines in the first quarter, led by strong contributions from our new Wildcat pure sport and Prowler side-by-side vehicles, and core ATVs. We continued to leverage higher sales volumes and a lower cost structure to deliver improved profitability in the first quarter.”
Among the highlights of Arctic Cat’s fiscal 2013 first-quarter financial results versus the prior-year quarter:
Business Line Results
- Net sales grew 49 percent, chiefly driven by increased Wildcat and Prowler recreational off-highway vehicle (ROV) sales;
- Gross margins improved 114 basis points, due to higher volumes;
- Operating expenses as a percent of sales declined to 17 percent compared to 24 percent;
- The company reported operating profit of $3.1 million versus a loss of $3.6 million;
- The company had no long-term debt.
Sales in Arctic Cat’s all-terrain vehicle (ATV) business rose 93 percent to $73.0 million, up from $37.9 million in the same period last year. The increase was primarily due to strong dealer and customer demand for the all-new Wildcat V-Twin 1000i H.O. pure-sport ROV, as well as Prowler side-by-side utility vehicles and core ATVs.
Commented Jordan: “Wildcat sales are on track to meet our high expectations this fiscal year for the growing ROV market. In addition, with the further reductions achieved in our ATV/ROV inventory in fiscal 2012, dealer inventory is now near optimum levels and we are starting to see increased demand from our dealers.”