MINNEAPOLIS, Minn. - Arctic Cat today reported record net earnings and earnings per diluted share for its fiscal year ended March 31.
Net earnings rose 33 percent year-over-year to $39.7 million. Earnings per diluted share rose 68 percent to $2.89. Arctic Cat’s net sales for the fiscal year increased 15 percent to $671.6 million.
“Higher sales volumes, combined with our ongoing focus on operational excellence and cost control, again contributed to strong top- and bottom-line results for fiscal 2013,” said Claude Jordan, Arctic Cat’s chairman and chief executive officer.
Other results from Arctic Cat’s fiscal 2013 results versus the previous fiscal year:
- Gross profit margin improved to 22.5 percent from 22.3 percent, due to higher volumes and selling prices;
- Operating expenses as a percent of sales declined to 13.4 percent compared to 14.5 percent;
- Operating profit rose 32 percent to $60.7 million, up from $45.9 million;
- The company ended the fiscal 2013 year with cash and short-term investments totaling $112.8 million, nearly double the $62.6 million at the end of fiscal 2012; and
- The company had no short- or long-term debt.
For the fiscal 2013 fourth quarter ended March 31, Arctic Cat reported an improved net loss of $5.1 million, or a loss of $0.38 per diluted share, on 15 percent net sales growth to $113.2 million. In the prior-year fourth quarter, Arctic Cat reported a net loss of $6.2 million, or a loss of $0.49 per diluted share, on net sales of $98.5 million.
Arctic Cat noted that due to the seasonality of its business, it typically reports lower results in its fiscal first and fourth quarters, while the fiscal second and third quarters are historically its strongest.
“Our business performed well in the quarter, with sales increasing across all product lines,” Jordan said. “We continued to pursue our strategy to enter new growth segments and launch innovative new products, including two all-new Wildcat sport side-by-sides. As a result, we again had double-digit sales gains in our ATV and side-by-side segments in the 2013 fourth quarter.”
Arctic Cat’s board of directors has authorized the reinstatement of a quarterly cash dividend of 10 cents per share of common stock. The board also authorized a $30 million stock buyback program. “We are committed to enhancing shareholder value,” Jordan said.
Arctic Cat has about 13.2 million common shares outstanding. (Continued.)