MINNEAPOLIS
— Arctic Cat Inc. today reported a net loss of $5.9 million on net sales of
$69.4 million for the fiscal 2010 first quarter ended June 30, 2009.
Commenting on the first quarter results, Arctic Cat’s chairman and chief
executive officer Christopher A. Twomey said: “Economic conditions remained
difficult during the quarter and continued to affect the recreational products
market overall. Given the current recessionary environment, we are pleased with
the company’s improved results on lower sales. We made significant progress on
our goals to reduce our cost structure and strengthen the balance sheet.”
Among the highlights of Arctic Cat’s 2010 first quarter financial results
versus the same quarter last year:
•
Operating expenses declined
23 percent to $16.2 million from $21.0 million.
•
Inventories were reduced 19
percent to $127.1 million from $156.2 million.
•
Total cash and short-term
investments at quarter end increased to $7.9 million from $5.8 million.
•
The company had no short- or
long-term debt versus $12.1 million in short-term debt in the prior-year
quarter.
“Through strong inventory management, expense controls and a rescaled
business, we are on track to deliver improved operating results this fiscal
year on lower sales,” said Twomey.
During the fiscal first quarter, Arctic Cat entered into an amended credit
facility agreement on June 17, 2009, that extends the agreement until March 31,
2010, and increases the company’s borrowing capacity to $60 million.
All-terrain vehicle (ATV) sales totaled $32.2 million in the first quarter
versus $53.8 million in the same period last year, as Arctic Cat rescaled its
business to align inventory levels with present wholesale and retail demand.
Snowmobile sales were $17.9 million in the first quarter compared to $21.4
million in the prior-year quarter, due to economic factors.
Sales of parts, garments and accessories (PG&A) in the first quarter
were $19.3 million, up from $18.7 million in the prior-year quarter. To help
fuel PG&A sales in fiscal 2010, Arctic Cat is expanding its product
offerings to generate additional revenue and profit through the company’s
established dealer network.
