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Arctic Cat announces $10 mn Share Repurchase Program
05 Jan '08
4 min read
"Our preliminary third-quarter results indicate that while retail sales of Arctic Cat ATVs were in line with the overall ATV marketplace, retail sales of ATVs industrywide continued a year-long decline. Sales of Arctic Cat's snowmobiles remain on plan, while sales of our snow-related parts, garments and accessories are above plan, due to December snow accumulations in key regions."
The industrywide retail ATV sales slowdown has affected all segments of the market, except the large-displacement engine segment, which has shown modest gains. Arctic Cat's results mirror these trends, showing lower sales of ATVs with engines under 650cc's but continued demand for the company's large-displacement ATVs and Prowler utility vehicle.
In light of the current overall industry environment, Arctic Cat is taking steps to produce fewer ATV units in its March quarter. The company plans to cut its annual ATV production by approximately 10 percent during the fiscal fourth quarter ending March 31, 2008. "This action is in keeping with our aim to vigilantly align production and inventory with consumer demand," said Twomey.
"Arctic Cat remains in a strong financial position, with no long-term debt," Twomey said.
The company expects to report its actual fiscal 2008 third-quarter results on January 23, 2008.
Arctic Cat's board of directors has authorized a new share repurchase program of up to $10 million of its common stock. The company has bought back more than 12 million common shares since 1996.
"This share repurchase program supports the company's commitment to increase shareholder value and reflects our belief that the stock represents a good investment," said Twomey.
Share repurchases under this program may be made through open market and privately negotiated transactions from time to time and in such amounts as management deems appropriate. The timing of share repurchases will depend on market conditions and other corporate considerations. Arctic Cat has approximately 17.9 million common and Class B common shares outstanding.
Conference Call:
To listen to the live webcast or replay of this call via the Internet, go to the corporate portion of the company's website. The replay will be available until January 11, 2008.
The industrywide retail ATV sales slowdown has affected all segments of the market, except the large-displacement engine segment, which has shown modest gains. Arctic Cat's results mirror these trends, showing lower sales of ATVs with engines under 650cc's but continued demand for the company's large-displacement ATVs and Prowler utility vehicle.
In light of the current overall industry environment, Arctic Cat is taking steps to produce fewer ATV units in its March quarter. The company plans to cut its annual ATV production by approximately 10 percent during the fiscal fourth quarter ending March 31, 2008. "This action is in keeping with our aim to vigilantly align production and inventory with consumer demand," said Twomey.
"Arctic Cat remains in a strong financial position, with no long-term debt," Twomey said.
The company expects to report its actual fiscal 2008 third-quarter results on January 23, 2008.
Arctic Cat's board of directors has authorized a new share repurchase program of up to $10 million of its common stock. The company has bought back more than 12 million common shares since 1996.
"This share repurchase program supports the company's commitment to increase shareholder value and reflects our belief that the stock represents a good investment," said Twomey.
Share repurchases under this program may be made through open market and privately negotiated transactions from time to time and in such amounts as management deems appropriate. The timing of share repurchases will depend on market conditions and other corporate considerations. Arctic Cat has approximately 17.9 million common and Class B common shares outstanding.
Conference Call:
To listen to the live webcast or replay of this call via the Internet, go to the corporate portion of the company's website. The replay will be available until January 11, 2008.
Arctic Cat Inc
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