Arctic Cat Inc reported net sales of $159.6 million for the fiscal 2008 third quarter ended December 31, 2007, compared to a record $228.1 million in the same period last year. The net loss for the quarter was $10.5 million, or $0.58 per diluted share, versus prior-year third quarter net earnings of $8.2 million, or $0.43 per diluted share, which included an income tax benefit of $0.03 per diluted share.
For the first nine months of fiscal 2008, Arctic Cat's net sales were $452.7 million compared to $609.9 million in the same period last year. The company reported a net loss of $3.7 million, or $0.20 per diluted share, versus net earnings of $23.6 million, or $1.22 per diluted share, in the nine-month period last year.
Commented Christopher A. Twomey, Arctic Cat's chairman and chief executive officer: "We are disappointed in the company's performance. After seven years of record growth, we anticipated that fiscal 2008 would be a difficult year when we took strategic action to reduce dealers' snowmobile inventories.
Compounding this was an industry wide challenging retail ATV market, which continued to deteriorate through the third quarter. We remain committed to aligning inventories with demand, leveraging our efficiency and strategic sourcing initiative, and maintaining our competitiveness and technology leadership through innovative new products and features."
During the quarter, Arctic Cat repurchased approximately 166,000 shares under its stock repurchase program. In addition, the company announced on January 4, 2008, that its board of directors authorized a new share repurchase program of up to $10 million of its common stock. Arctic Cat has approximately 17.9 million common and Class B common shares outstanding.
Product Line Results: Sales of Arctic Cat's snowmobiles were $60.0 million in the 2008 third quarter versus $106.4 million in the same period last year, reflecting the company's planned reduction in snowmobile production during the current fiscal year.
Early season snowfall in key regions during December generated strong retail snowmobile sales and, combined with the company's planned lower snowmobile production in its current fiscal year, helped reduce dealer inventories. Arctic Cat's year-to-date snowmobile sales totaled $168.9 million compared to $248.8 million in the prior-year period.