Arctic Cat Inc.
) loss narrowed to $5.1 million or 38 cents per share in the
fourth quarter of fiscal 2013 ended Mar 31, 2013 from $6.2
million, or 49 cents per share in the year-ago quarter as well as
the Zacks Consensus Estimate of a loss of 40 cents.
ARCTIC CAT INC (ACAT): Free Stock Analysis
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Revenues for the quarter increased 15% year over year to $113.2
million, missing the Zacks Consensus Estimate of $119.0 million.
The year-over-year improvement was attributable to better sales
across all product lines.
Gross profit increased 19% to $13.6 million or 12% of sales from
$11.4 million or 11.6% of sales in the year-ago quarter. The
company recorded narrower operating loss of $8.8 million compared
with $9.6 million in the year-ago quarter. Operating expense rose
6.6% to $22.4 million from $21.0 million year ago.
Revenues from the
Snowmobile & ATV
business improved 19.3% to $82.3 million, driven by higher
revenues from the ATV business, partially offset by a decrease in
revenues from the Snowmobiles business.
Revenues from the ATV business surged 16% to $87.6 million. The
improvement was driven by higher demand from dealers for the
Wildcat side-by-side. The company remained focused on expanding
the ATV business and launched two new Wildcat models in the
fourth quarter. It also plans to introduce more products in the
future. Revenues from the Snowmobiles business (including sales
incentives) narrowed to negative $5.3 million versus negative
$6.8 million in the prior-year quarter.
Revenues from the
Parts, Garments and Accessories
(PG&A) business went up 4.9% to $31.0 million. The increase
was due to improved snowmobile parts sales owing to better snow
conditions in northern U.S.
Financial Position & Share Repurchase
Arctic Cat had cash and short-term investments of $112.8 million
as of Mar 31, 2013, compared with $62.6 million as of Mar 31,
2012. The company had no long-term debt in the reported quarter.
The board of directors of Arctic Cat authorized a share
repurchase program of $30 million of the company's common stock.
For fiscal 2013 (ended Mar 31, 2013), Arctic Cat posted a 68%
increase in earnings to $2.89 per share versus $1.72 per share in
fiscal year 2012. Net income improved 32.7% to $39.7 million from
$29.9 million year ago.
Revenues escalated 15% to $671.6 million from $585.3 million last
fiscal year. The improvement in earnings and revenues was due to
higher sales volumes, together with focus on operational
excellence and cost efficiency.
Arctic Cat expects revenues between $754 million and $768 million
for fiscal year ending Mar 31, 2014, representing a
year-over-year increase of about 12% to 14%. The company expects
earnings per share to be in the range of $3.17 to $3.27 and the
earnings guidance reflects a year-over-year rise of 10%-13%.
Arctic Cat makes snowmobiles and ATVs under the Arctic Cat brand
name and supplies related parts, garments, and accessories. The
company markets its products through a network of independent
dealers located throughout the U.S and Canada, and through
distributors representing dealers in AK, Europe, Middle East,
Asia and other international markets. It currently holds a Zacks
Rank #3 (Hold).
Sturm, Ruger & Co. Inc.
Polaris Industries, Inc.
) are performing well in the same industry where Arctic Cat
operates. While Smith & Sturm, Ruger & Co. is a Zacks
Rank #1 (Strong Buy) stock, Polaris Industries Inc. and Pool
Corp. are Zacks Rank #2 (Buy) stocks.