Arctic Cat Inc. (NASDAQ: ACAT) today reported that net earnings increased 17 percent to a record $25.0 million, or $1.80 per diluted share, for the fiscal second quarter ended September 30, 2012, compared to prior-year net earnings of $21.4 million, or $1.15 per diluted share. Net sales in the quarter rose 12 percent to $229.0 million versus net sales of $204.8 million in the same quarter last year.
“We are very pleased to report record earnings and EPS on double-digit sales gains in the fiscal 2013 second quarter, on top of a strong quarter last year,” said Claude Jordan, Arctic Cat’s chairman and chief executive officer. “We are beginning to benefit from our growth strategy to enter new market segments with innovative new products, such as our Wildcat pure sport side-by-side, while focusing on operational excellence and cost control. As a result, we continued to leverage higher sales volumes and a lower cost structure to again deliver profitability gains in the second quarter.”
Among the highlights of Arctic Cat’s fiscal 2013 second-quarter financial results versus the prior-year quarter:
- Net sales grew 12 percent, chiefly fueled by sales of Wildcat recreational off-highway vehicles (ROVs);
- The company reported record net earnings and earnings per diluted share, up 17 percent and 57 percent, respectively;
- Operating expenses as a percent of sales declined to 11 percent versus 12 percent;
- Operating profit rose 18 percent to $38.8 million, up from $32.9 million;
- The company had no long-term debt.
For the six months ended September 30, 2012, Arctic Cat’s net earnings rose 41 percent to a record $27.0 million, or $1.95 per diluted share, compared to net earnings of $19.1 million, or $1.02 per diluted share, in the prior-year period. The company’s year-to-date net sales increased 22 percent to $340.3 million versus net sales of $279.8 million in the first six months last year.