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TheStreet Open House

Arctic Cat Reports Fiscal 2013 First Quarter Results

Stock quotes in this article: ACAT

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; ROV North America industry retail sales up 10 to 20 percent; snowmobile North America industry retail sales flat to up 2 percent; Arctic Cat dealer inventories flat to down 5 percent; operating expense levels that are flat to 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 is raising its sales guidance to a range of $662 million to $682 million, an increase of approximately 13 percent to 17 percent versus fiscal 2012. Assuming diluted weighted average shares of 14 million, the company now estimates that fiscal 2013 earnings per diluted share will be in the range of $2.55 to $2.65, an increase of 48 percent to 54 percent compared to fiscal 2012. Previously, the company estimated fiscal 2013 earnings per diluted share of $2.40 to $2.50 on sales of $631 million to $650 million.

Conference CallA conference call is scheduled for 11 a.m. CT (12 p.m. ET) today. To listen to the live call dial 1-800-762-8795. A live webcast may be accessed through the investor relations section of www.arcticcat.com/corporate. In addition, a telephone replay will be available through August 2, 2012, by dialing 1-800-406-7325, pass code 4552191.

About Arctic CatArctic Cat Inc. designs, engineers, manufactures and markets all-terrain vehicles (ATVs), recreational off-highway vehicles (ROVs) and snowmobiles under the Arctic Cat® brand name, as well as related parts, garments and accessories. Its common stock is traded on the Nasdaq Global Select Market under the ticker symbol “ACAT.” More information about Arctic Cat and its products is available at www.arcticcat.com.

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain forward-looking statements. The Company’s Annual Report, as well as the Report on Form 10-K, its Quarterly Reports on Form 10-Q and other 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 including statements related to our fiscal 2013 outlook. 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, pricing and sales incentives; increase in material or production cost which cannot be recouped in product pricing; changes in the sourcing of engines; interruption of dealer floorplan financing; warranty expenses and product recalls; foreign currency exchange rate fluctuations; product liability claims and other legal proceedings in excess of reserves or insured amounts; environmental and product safety regulatory activity; effects of the weather; general economic conditions and political changes; interest rate changes; consumer demand and confidence; and those set forth in the Company’s Annual Report on Form 10-K for the year ended March 31, 2012, under heading “Item 1A. Risk Factors.” 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,
2012     2011
Net Sales
Snowmobile & ATV Units $ 90,953 $ 55,260
Parts, Garments & Accessories   20,358         19,670  
Total Net Sales 111,311 74,930
Cost of Goods Sold
Snowmobile & ATV Units 75,556 49,129
Parts, Garments & Accessories   13,276         11,526  
Total Cost of Goods Sold   88,832         60,655  
Gross Profit 22,479 14,275
Operating Expenses
Selling & Marketing 6,807 6,085
Research & Development 4,478 4,002
General & Administrative   8,074         7,784  
Total Operating Expenses   19,359         17,871  
Operating Profit(Loss) 3,120 (3,596 )
Other Income (Expense)
Interest Income 13 25
Interest Expense   (20 )       (2 )
Total Other Income (Expense)   (7 )       23  
Earnings (Loss) Before Income Taxes 3,113 (3,573 )
Income Tax Expense (Benefit)   1,105         (1,251 )
Net Earnings (Loss) $ 2,008       $ (2,322 )
Net Earnings (Loss) Per Share
Basic $ 0.15       $ (0.13 )
Diluted $ 0.14       $ (0.13 )
 
Weighted Average Shares Outstanding:
Basic   13,060         18,220  
Diluted   13,877         18,220  
 
 
June 30,
Selected Balance Sheet Data:       2012     2011
Cash and Short-term Investments $ 17,384 $ 99,294
Accounts Receivable, net 39,947 32,593
Inventories 140,776 86,521
Total Assets 258,735 282,850
Short-term Bank Borrowings 4,214 -
Total Current Liabilities 115,539 100,310
Long-term Debt - -
Shareholders' Equity 140,430 180,494
 
         
Three Months Ended
June 30,
Product Line Data:           2012     2011     Change
All-Terrain Vehicles $ 72,966     $ 37,899     93 %
Snowmobiles 17,987 17,361 4 %
Parts, Garments & Accessories   20,358       19,670     3 %
Total Sales $ 111,311     $ 74,930     49 %




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