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.|
|(000s omitted, except per share amounts)|
|Three Months Ended|
|Snowmobile & ATV Units||$||90,953||$||55,260|
|Parts, Garments & Accessories||20,358||19,670|
|Total Net Sales||111,311||74,930|
|Cost of Goods Sold|
|Snowmobile & ATV Units||75,556||49,129|
|Parts, Garments & Accessories||13,276||11,526|
|Total Cost of Goods Sold||88,832||60,655|
|Selling & Marketing||6,807||6,085|
|Research & Development||4,478||4,002|
|General & Administrative||8,074||7,784|
|Total Operating Expenses||19,359||17,871|
|Other Income (Expense)|
|Total Other Income (Expense)||(7||)||23|
|Earnings (Loss) Before Income Taxes||3,113||(3,573||)|
|Income Tax Expense (Benefit)||1,105||(1,251||)|
|Net Earnings (Loss)||$||2,008||$||(2,322||)|
|Net Earnings (Loss) Per Share|
|Weighted Average Shares Outstanding:|
|Selected Balance Sheet Data:||2012||2011|
|Cash and Short-term Investments||$||17,384||$||99,294|
|Accounts Receivable, net||39,947||32,593|
|Short-term Bank Borrowings||4,214||-|
|Total Current Liabilities||115,539||100,310|
|Three Months Ended|
|Product Line Data:||2012||2011||Change|
|Parts, Garments & Accessories||20,358||19,670||3||%|