MINNEAPOLIS, Minn. - Arctic Cat today reported record earnings per diluted share of $1.30 on net earnings of $17.9 million for the fiscal 2013 third quarter ended Dec. 31, an increase of 41 percent compared with prior-year 3Q earnings per diluted share of $0.92 on net earnings of $17.0 million.
Both improved earnings and a lower share count accounted for the EPS record.
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. North American sales of Wildcat and Prowler side-by-sides and ATVs chiefly fueled the increase, the company said.
“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 CEO. “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.”
Other fiscal 3Q highlights versus the prior-year quarter:
- Global ATV and side-by-side business increased sales by 28 percent;
- 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 Dec. 31, 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 $3.25 on 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.
BUSINESS LINE RESULTS
Sales in Arctic Cat’s ATV/side-by-side business rose 28 percent to $69.6 million, up from $54.4 million in the same period last year. The increase was primarily due to strong global demand from dealers and distributors for the Wildcat side-by-side. Year-to-date ATV/side-by-side sales grew 40 percent to $212.2 million compared to $151.1 million in the first nine months of fiscal 2012.
“Sales of Wildcat side-by-sides met our high expectations for the third quarter and year to date,” said Jordan. “We remain pleased with consumer and dealer enthusiasm for the Wildcat, and anticipate growing revenue contributions from our expanding Wildcat line.”
Arctic Cat’s ATV/side-by-side business rose to 38 percent of consolidated sales year-to-date, up from 31 percent of consolidated sales in the same period last year. “As part of our overall growth strategy, we are focused on further increasing our ATV/side-by-side business as a percent of Arctic Cat’s total sales going forward, driven by innovative product launches in this market segment,” said Jordan. “We continued to advance this goal with our recent launch of two new Wildcat models. In addition, we have a robust new product pipeline for future growth.” (continued)