arctic cat announces fourthquarter and yearend results

 
Business Wire reported today that Arctic Cat's net sales for the fourth quarter decreased slightly due to the company's exit from the personal watercraft business (PWC). A net loss of 723,000, or 3 cents per diluted share, was reported for the fourth quarter compared with a net loss of 1,731,000, or 6 cents per diluted share, in the prior-year period. For the 2000 fiscal year, net sales increased to 484,011,000 compared to 480,348,000 last fiscal year.

"Arctic Cat is beginning to benefit from our growing all-terrain vehicle (ATV) business, which serves to insulate us from weather-related snowmobile demand," said Chris Twomey, president and chief executive officer. "The strong increase in our ATV sales offset the decrease in PWC sales resulting from our exit of that product line, as well as the anticipated modest decrease in snowmobile sales caused by consecutive years of poor snow conditions. Overall ATV industry retail sales continued their strong double-digit growth for the seventh consecutive year during fiscal 2000 and Arctic Cat's ATV sales growth continued to outpace the industry. Late in the year, we began shipping a new 500cc model which is Arctic Cat's first fully automatic ATV. Initial customer response has been very encouraging. As a result of growing brand awareness and the availability of models in every major market segment, we look forward to continued strong ATV sales growth during fiscal 2001."

Twomey explained, "Industry-wide snowmobile retail sales decreased after one of the warmest winters in 100 years. Even with the marginal snow conditions, Arctic Cat customers are very enthusiastic about our 2001 models, as evidenced by their extra-early orders which are up approximately 22 percent over last year. After three consecutive years of poor snow conditions, our dealers have responded by ordering more conservatively for the upcoming model year. We remain confident that with the strong consumer interest we see, and given normal winter conditions, industry-wide retail snowmobile sales will rebound strongly.

"Growth of our ATV sales should offset an anticipated decline in snowmobile sales in fiscal 2001 and, as a result, we expect record-breaking revenues and increased earnings in the year ahead," Twomey said.

Arctic Cat stock is traded under the symbol ACAT. For more information, visit Arctic Cat' s Web site at www.arctic-cat.com.