Arctic Cat, Inc. reported increased ATV sales for its third quarter, but the Minnesota-based manufacturer could not generate more net earnings in comparison to last year.
Arctic Cat’s net earnings for its third quarter ended Dec. 31, 2005, were $4.7 million, or $0.24 per diluted share, versus net earnings of $5.8 million, or $0.28 per diluted share, for the same period last year.
The manufacturer’s third quarter net sales were $195.3 million, up 3% compared to net sales of $188.9 million in the prior-year period.
Net earnings for the first nine months of the year totaled $24.3 million, or $1.22 per diluted share, versus net earnings of $25.6 million, or $1.22 per diluted share, during the same period of the previous year. Net sales during the recent nine-month period were $579.5 million, up 9% compared to $532.1 million in the year-ago period.
“Despite increased raw material costs, we were pleased to report a solid performance during the quarter and first nine months, and we remain on track to post our sixth consecutive year of record revenues,” said Christopher A. Twomey, Arctic Cat’s chairman and chief executive officer. “Our results have been driven by increased ATV sales and further ATV market share gains for the quarter and year-to-date. We are very pleased that Arctic Cat’s ATV sales continue to outpace the industry. We attribute our success to growing recognition of our best-in-class products, and Arctic Cat’s reputation for innovation and technology leadership.”
Sales of ATVs in the third quarter grew to $90.8 million, up 8% from $84.1 million in the same period last year. The company’s year-to-date ATV sales rose 20% to $268.1 million compared to $223.9 million in the same period last year.
Arctic Cat reported snowmobile sales in the third quarter of $74.5 million versus $78.9 million in the prior-year quarter. Year-to-date snowmobile sales are on plan, totaling $238.0 million compared to $241.6 million during the same period last year.
Parts, garments and accessories (PG&A) sales were $30 million, up 16% versus $25.8 million in the prior-year third quarter. Contributing to the quarter’s PG&A results were increased sales of ATV-related parts and accessories. In areas with ample early snowfall, Arctic Cat also saw increases in snowmobile parts sales. Year-to-date PG&A sales grew 10% to $73.4 million compared to $66.7 million in the year-ago period.
Arctic Cat repurchased 140,000 shares of its common stock in the fiscal third quarter and has approximately $10.5 million remaining on its current share repurchase authorization. As of Dec. 31, the company had $63.7 million in cash and no long-term debt.
Arctic Cat anticipates fiscal 2006 fourth-quarter net sales for the period ending March 31, 2006, to range between $160 million and $170 million, up from $157.0 million for the same period last year. Net earnings for the quarter are estimated to be between $0.09 and $0.13 per diluted share versus earnings of $0.13 per diluted share in the prior-year quarter.
For the fiscal year ending March 31, 2006, Arctic Cat now anticipates record net sales in the range of $740 million to $750 million. psb
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