Arctic Cat’s snowmobile sales in the fiscal 2013 third quarter were down 2 percent to $122.4 million from $125.2 million in the prior-year quarter. Year-to-date snowmobile sales increased 5 percent to $269.0 million, up from $257.3 million in the same period last year, led by growth in Canada and other international markets.”
Commented Jordan: “We anticipated that this would be a tough quarterly comparison for our snowmobile sales, as we are up against strong snowmobile sales in the year-ago quarter. Last year, we unveiled the largest new snowmobile introduction in the company’s history, with 23 all-new models representing 75 percent of our offerings.”
Arctic Cat’s 2013 model year snowmobiles are built on its new ProCross performance and ProClimb mountain chassis platforms.
Arctic Cat said it is committed to investing in research and development across its product lines in anticipation of manufacturing its own snowmobile engines.
Sales of PG&A in the fiscal 2013 third quarter were down 5 percent to $26.0 million versus $27.4 million in the prior-year quarter. An increase in Wildcat parts and accessories sales in the fiscal 2013 third quarter did not offset a decline in snowmobile garment sales, due to lower-than-expected early season snowfall. Year-to-date PG&A sales totaled $77.1 million, down 2 percent from $78.4 million in the year-ago period. For the fiscal 2013 full year, Arctic Cat continues to anticipate increased PG&A sales of 1 percent to 3 percent.
COMPANY RAISES FISCAL 2013 EARNINGS OUTLOOK
“We remain on track to deliver the highest net earnings in Arctic Cat’s 50-year history for the fiscal 2013 full year,” said Jordan. “We expect to continue generating higher revenue and earnings by developing innovative new products and entering new market segments. Our strategies are working, and we are raising our full-year earnings guidance.”
In fiscal 2013, Arctic Cat anticipates continued gains in its ATV/side-by-side business, fueled by the growth potential for the Wildcat and Prowler side-by-side offerings, and “many exciting new products being developed.” Additionally, the company said it remains focused on further enhancing profitability through operational efficiencies and cost controls.
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; side-by-side North America industry retail sales up 10 to 20 percent; snowmobile North America industry retail sales down 2 percent to up 2 percent; Arctic Cat dealer inventories flat to up 5 percent; operating expense levels that are 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, Arctic Cat now estimates that fiscal 2013 earnings per diluted share will be in the range of $2.75 to $2.85, an increase of 60 percent to 66 percent compared to fiscal 2012. Previously, the company estimated fiscal 2013 earnings of $2.65 to $2.75 per diluted share. The company continues to anticipate sales for the full 2013 fiscal year in the range of $664 million to $684 million, an increase of approximately 13 percent to 17 percent versus fiscal 2012.
Arctic Cat added two new members to its board of directors in the fiscal 2013 third quarter. Joe Puishys is president and CEO of Apogee Enterprises and Stan Askren is chairman and CEO of HNI Corporation. Arctic Cat now has eight members on its board of directors, the majority of whom are independent.
“We look forward to benefiting from their insights, as we pursue continued growth and enhanced operational efficiency,” said Jordan.
Posted by Arlo Redwine