Arctic Cat Inc. reported an improved net loss of $1.5 million, or a loss of $0.12 per diluted share, on a 28 percent net sales increase to $145.4 million in the fiscal fourth quarter ended March 31, 2014. In the prior-year fourth quarter, Arctic Cat reported a net loss of $5.1 million, or a loss of $0.38 per diluted share, on net sales of $113.2 million.
-Fourth-quarter net sales rose 28 percent to $145.4 million, fueled by strong sales of the new Wildcat Trail;
-Fourth-quarter net loss improved to $0.12 per diluted share;
-Full-year diluted EPS was $2.90 on increased net sales of $730.5 million;
-Company provides fiscal 2015 outlook
Commented Arctic Cat’s chairman and chief executive officer Claude Jordan, said, “The business posted strong double-digit sales gains on increased sales across all product lines and improved bottom-line results. We were pleased with the demand for our new Wildcat Trail side-by-side, as well as the Wildcat X. Our priorities remain to further advance our growth strategy through new product introductions and international expansion, while enhancing our operating efficiency.”
Among the highlights of Arctic Cat’s fiscal 2014 fourth-quarter and full-year financial results compared with the prior-year periods:
-Net sales grew approximately 28 percent for the quarter, led by contributions from the new Wildcat™ Trail and Wildcat™ X side-by-sides.
-Gross profit margin improved to 13.8 percent compared to 12.0 percent in the prior-year quarter due to higher volumes.
-Operating expenses were nearly flat at $22.7 million versus $22.4 million. The company continued to increase investment in research and development, which was up 7 percent in the fourth quarter and 16 percent for the full year, to ensure a strong pipeline of new products and technologies, while maintaining strict cost controls.
-Operating loss improved to $2.6 million versus a loss of $8.8 million in the year-ago quarter.
-At fourth-quarter end, cash and short-term investments totaled $82.5 million and the company had no debt.
Reflecting Arctic Cat’s ongoing commitment to enhancing shareholder return, the company repurchased 538,198 shares at a cost of $23.4 million in the 2014 fourth quarter. Arctic Cat has $2.1 million remaining under its current share repurchase authorization. The company also paid cash dividends of $0.10 per share in the 2014 fourth quarter.
For the 2014 full-year, Arctic Cat reported net earnings of $39.4 million, or $2.90 per diluted share, on net sales of $730.5 million. Sales in 2014 were up 9 percent with increases in all three business segments; however, earnings were reduced by $0.30 per diluted share, due to an unfavorable Canadian currency impact in the second half of the year.