Arctic Cat Inc. (NASDAQ:ACAT) 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.