Net earnings for Arctic Cat Inc. for its fiscal first quarter tripled compared to one year ago, according to financial figures released by the company on July 21.
The Thief River Falls, Minnesota-based builder of snowmobiles and ATVs reported net sales of $107.9 million for the fiscal 2006 first quarter ending June 30, 2005, up 5 percent versus $102.6 million in the same period last year. Net earnings for the quarter rose to $448,000, or $0.02 per diluted share, compared to net earnings of $124,000, or $0.01 per diluted share, in the prior-year period.
“We are pleased to report another record first quarter,” said Chris Twomey, chairman and chief executive officer. “Sales increased across all product lines and exceeded our expectations, due to slightly higher than anticipated sales to dealers.”
ATV sales increased 6 percent to $41.4 million versus $39.2 million in the first quarter of last year. “Our dealers responded positively to our 2006 model ATVs unveiled at our dealer show in June,” said Twomey. “We demonstrated further progress on our ATV growth strategy to extend our products into every market segment and to offer best-in-class ATVs at competitive prices. Notably, in just two years, we have completely redesigned our ATV lineup and expanded into new categories that offer opportunities to further increase our market share.”
Among the new 2006 ATVs recently introduced was Arctic Cat’s first entry into the true utility category with the Prowler. The Prowler’s extensive features include side-by-side bucket seats with seat belts, and a composite rear-cargo box designed for hauling and dumping.
Sales of Arctic Cat snowmobiles rose 3 percent to $52 million compared to $50.7 million in the prior-year first quarter, due to slightly earlier sales to dealers. Parts, garments and accessories increased to $14.5 million versus $12.7 million in the year-ago period, fueled by sales across all product lines.
During the 2006 first quarter, Arctic Cat repurchased approximately 185,000 shares of its common stock under the company’s $20 million share repurchase program.