The 2009 Arctic Cat ATV Dealer Show is scheduled for next week at the OEM's production facility in Thief River Falls, Minn.
Arctic is offering dealers a chance to tour the factory, spend time with key Arctic Cat employees, and even get a little time to throw a leg over, or in, the company's wheeled product destined for showrooms in 2009.
Arctic Cat ended its business year March 31. Full-year net sales were $621.6 million, down from $782.4 million in the previous fiscal year, and the company reported a full-year net loss of $3.3 million, or 18 cents per share, versus net earnings of $22.1 million, or $1.15 per share, in fiscal 2007.
"After seven consecutive years of record sales, we are disappointed in the company's performance," says Christopher A. Twomey, Arctic Cat's chairman and CEO. "We anticipated that fiscal 2008 would be a challenging year, as we lowered our production levels to reduce dealer inventories. Our results were further impacted by macro-economic issues that weakened consumer confidence and discretionary spending."
Arctic Cat previously announced plans to reduce its fiscal 2008 production of ATVs and snowmobiles in response to the slumping market for recreational vehicles.
"Although recreational vehicles continue to experience a tough retail market, we believe our current dealer inventory levels will enable growth in sales to dealers in our fiscal 2009," Twomey says.
Business Line Results
Arctic Cat's ATV sales were $350.3 million compared with $431.5 million last fiscal year; snowmobile sales totaled $161.9 million, down from $247 million; and PG&A sales were $109.4 million, up from $103.9 million.
Arctic Cat said ATV revenues were lower for the quarter and full year due to declining industrywide ATV retail sales and the company's previously announced 10 percent cut in its ATV production levels; snowmobile sales fell largely due to the company's previously announced 30 percent reduction in fiscal 2008 snowmobile production levels to align inventory with retail demand; and PG&A sales were fueled by snowmobile and ATV parts, garments and accessories.
For the fiscal year ending March 31, 2009, Arctic Cat expects net sales to grow between 5 percent and 8 percent, and be in the range of $650 million to $674 million. Full-year diluted earnings per share are anticipated to be in the range of 18 cents to 28 cents.
"We expect the company to return to profitability in fiscal 2009," Twomey says. "We are focused on achieving growth by offering innovative products that drive market share gains, and lowering costs through our strategic sourcing initiative and by further leveraging our efficiency.
"Following our planned, lower snowmobile production last year, to align dealer inventory with retail demand, we expect increased snowmobile revenues. We also anticipate flat to slightly higher ATV revenues, based on increased Prowler utility vehicle and international ATV sales, as well as an overall richer product mix."