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Arctic Cat going bankrupt as losses mount

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Arctic Cat going bankrupt as losses mount

Postby FreezurBurnt » May 15th, 2003, 1:06 pm

UPDATE 1-Arctic Cat quarterly loss narrows
Thu May 15, 2003 08:41 AM ET
(Adds company's earnings outlook, sales breakdown)
CHICAGO, May 15 (Reuters) - Arctic Cat Inc. ACAT.O , a maker of snowmobiles and all-terrain vehicles, on Thursday said its fourth-quarter loss narrowed slightly as increased sales of all-terrain vehicles offset weak snowmobile results.

The company, based in Thief River Falls, Minnesota, also predicted lower first-quarter results as its sales mix includes fewer snowmobiles.

Arctic Cat reported a fourth-quarter net loss of $1.7 million, or 8 cents a share, compared with a year-ago loss of $1.8 million, or 8 cents a share. Revenue increased 12 percent to $111.4 million from $99.3 million.

The No. 2 snowmobile maker predicted in January that it would have a net loss of 4 cents to 8 cents a share on sales of $99 million to $105 million.

Arctic Cat said it boosted its share of the snowmobile market during the quarter, with its new Fire Cat model becoming the industry's No. 1 seller.

Snowmobile sales dropped to $1.5 million from $3.3 million, however, due to increased sales incentives related to poor snow conditions across much of the Midwest.

Sales of all-terrain vehicles grew 14 percent in the quarter to $82.7 million from $72.6 million, helped by its new Multi-Rack Platform ATV.

Arctic Cat said it expects first-quarter net sales for the period ending June 30, 2003, to be about $70 million to $80 million, compared with $78.3 million for the same period last year.

It estimated first-quarter earnings between breakeven to a loss of 6 cents per diluted share versus earnings of 8 cents a share in the year-earlier period.

For fiscal 2004, Arctic Cat anticipates net sales will grow 3 to 5 percent and be in the range of $590 million to $602 million. It estimated earnings of $1.39 to $1.41 a share.

Due to the seasonal nature of the company's snowmobile and ATV products, it sells the majority of its products during its second and third fiscal quarters.

The company's shares closed Wednesday at $18.85, just below their 52-week high of $20.75.


Talks are underway with company executives on the possibility of filing for Chapter 11.Speculation is final decision to be made sometime late summer.


Since when did Polaris fall into 3rd in sales????





*This Message was edited on 15-May-03 06:12 PM by FreezurBurnt*
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Arctic Cat going bankrupt as losses mount

Postby FreezurBurnt » May 15th, 2003, 1:20 pm

[b]another article[/b]

Arctic Cat Inc. reported a slightly smaller loss and higher sales for its fourth quarter in fiscal 2003 than in the same period last year. Sales and earnings for the whole fiscal 2003 ended March 31 were up.




Thief River Falls-based Arctic Cat is increasingly dependent on sales of its all-terrain vehicles rather than its traditional snowmobiles. ATV sales were up 14 percent in the fourth fiscal quarter and rose 13 percent for the whole year.



[b]Snowmobile sales dropped 55 percent[/b] in the quarter and 5 percent for all of fiscal 2003. [b]Sales of parts, garments and accessories were up 16 percent in the quarter[/b] and 3 percent for the whole year.

[b]hmmm note the highlighted areas:D

Sales dropped yet parts sales augment:D

hmmm quality speaks volumes and you wonder why sales are down LOL:D[/b]

[b]ride Chelmsford,Northern Ont. area[/b]

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Arctic Cat going bankrupt as losses mount

Postby FreezurBurnt » May 15th, 2003, 1:23 pm

Another

[b]Arctic Cat shares on the Nasdaq National Market were down $1.63, or 8.9 percent, to $17.22 on what promises to be an active day of trading. The drop was possibly caused by fourth-quarter results coming in a penny below expectations. [/b]

oh oh does not look good :D



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Arctic Cat going bankrupt as losses mount

Postby Mainecat » May 15th, 2003, 10:39 pm

FREEZE STARTIN RUMORS OF BANKRUPCY??
no where does it mention bankrupcy.
Come on man they have record revenues!

( BW)(MN-ARCTIC-CAT)(ACAT) Arctic Cat Reports Record Revenues for Fiscal 2003

Business Editors

THIEF RIVER FALLS, Minn.--(BUSINESS WIRE)--May 15, 2003--Arctic Cat Inc. (Nasdaq:ACAT):


-- Diluted EPS up 21 percent to $1.45 in fiscal 2003
-- Full-year net sales up 4 percent to $577.1 million

Arctic Cat Inc. (Nasdaq:ACAT) today reported record net sales of $577.1 million for the fiscal year ended March 31, 2003, versus $556.1 million last fiscal year. Net earnings grew 14 percent to $32.7 million, or $1.45 per diluted share, compared to net earnings of $28.6 million, or $1.20 per diluted share, for fiscal 2002. Fiscal 2003 results included the third-quarter net reduction of restructuring accruals related to Arctic Cat's exit from the personal watercraft (PWC) business in September 1999. Excluding non-recurring items, net sales in fiscal 2003 rose 3 percent to $573.1 million, net earnings increased 2 percent to $29.3 million, and diluted earnings per share grew 8 percent to $1.30.
In the 2003 fourth quarter, net sales increased 12 percent to $111.4 million versus $99.3 million in the same period last year. The company reported a net loss of $1.7 million, or 8 cents per diluted share, compared to a net loss of $1.8 million, or 8 cents per diluted share, in the prior-year fourth quarter.
"We are pleased to report another year of record sales and increased earnings, driven by growing sales of Arctic Cat ATVs," said Christopher A. Twomey, president and chief executive officer. "In addition, sales of Arctic Cat snowmobiles fared better than the industry overall, as we gained market share during a difficult snowmobile season with poor snow in the Midwest. In fact, our North American dealers ended the year with lower snowmobile inventory levels than last year despite the challenging snow conditions. Contributing to our success, Arctic Cat's new Firecat snowmobile, which set new design and engineering standards, became the industry's number-one selling sled."
During the fourth quarter, the company repurchased 62,000 shares of its common stock, bringing the total shares repurchased in fiscal 2003 to 1.5 million. Since 1996, Arctic Cat has repurchased more than 8 million shares under four share repurchase authorizations. The company has approximately one million additional shares remaining under its current repurchase authorization.

Business Line Results

Sales of all-terrain vehicles (ATVs) grew 14 percent in the fourth quarter of 2003 to $82.7 million versus $72.6 million in the same period last year. For fiscal 2003, ATV sales rose 13 percent to $235.9 million.
"We are particularly pleased with the success of our Multi-Rack Platform (MRP) ATV, which was named the 'ATV Product Innovation of the Year' by ATV Magazine," said Twomey. The MRP model enables users to adapt their ATVs to a wide range of applications by attaching up to 24 different, interchangeable accessories on the vehicle's front and rear racks for work and recreation.
Since entering the ATV market in 1996, Arctic Cat's ATV sales have rapidly grown to 41 percent of the company's revenues, leveraging its year-round production capacity and large dealer network. By offering best-in class ATVs, Arctic Cat's sales have continually outpaced the industry's growth rate.
Snowmobile sales in the 2003 fourth quarter totaled $1.5 million versus $3.3 million in the prior-year quarter, due to increased sales incentives related to poor snow conditions across much of the Midwest. Arctic Cat's full-year wholesale sales were down 5 percent to $245.2 million, performing better than the anticipated 7 to 10 percent decline. The company's full-year retail snowmobile sales also fell by 5 percent, representing less than half of the industry's retail sales decline, as the company gained market share.
Arctic Cat offers a complete line of snowmobile models including high performance, mountain, family sport, touring and utility. The company's build-to-order method of manufacturing and emphasis on pre-season snowmobile sales enables Arctic Cat to minimize seasonal carryover inventory.
Sales of parts, garments, and accessories grew 16 percent to $27.2 million in the fourth quarter. For the full fiscal year, sales of parts, garments and accessories increased 3 percent to $92.0 million, due to increased sales of ATV-related parts and accessories.

Outlook

Arctic Cat anticipates 2004 first-quarter net sales for the period ending June 30, 2003, will be in the range of $70 million to $80 million, compared to $78.3 million for the same period last year. Net earnings for the quarter are estimated between breakeven to a loss of 6 cents per diluted share versus earnings of 8 cents per diluted share in the prior-year quarter. The first quarter's results will be lower than last year's first quarter due to fewer snowmobiles in the sales mix.
For the fiscal year ending March 31, 2004, Arctic Cat anticipates net sales will grow 3 to 5 percent and be in the range of $590 million to $602 million. Diluted earnings per share are estimated to be in the range of $1.39 to $1.41. Due to the seasonal nature of Arctic Cat's snowmobile and ATV products, the company sells the majority of its products during its second and third fiscal quarters.

Conference Call

Arctic Cat will host a conference call to discuss the fourth-quarter and full-year results at 10:30 a.m. CT (11:30 a.m. ET) on Thursday, May 15. To access the replay, dial (402) 977-9140, conference ID #21143786. The replay will be available from noon CT on Thursday, May 15, until 5 p.m. CT on Friday, May 16. The conference call also will be Webcast. To access this Webcast, go to the corporate portion of the company's Web site at www.arcticcat.com, and click on the conference call icon. A replay of the Webcast will be archived on Arctic Cat's Web site for 30 days following the call.

About Arctic Cat

Arctic Cat Inc. designs, engineers, manufactures and markets snowmobiles and all-terrain vehicles (ATVs) under the Arctic Cat(R) brand name, as well as related parts, garments and accessories. Its common stock is traded on the Nasdaq National Market under the ticker symbol "ACAT." More information about Arctic Cat and its products is available on the Internet at www.arctic-cat.com.

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain forward-looking statements. The Company's Annual Report, as well as the Report on Form 10-K and future filings with the Securities and Exchange Commission, the Company's press releases and oral statements made with the approval of an authorized executive officer, contain forward-looking statements that reflect the Company's current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. The words "aim," "believe," "expect," "anticipate," "intend," "estimate" and other expressions that indicate future events and trends identify forward-looking statements. Actual future results and trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to: product mix and volume; competitive pressure on sales and pricing; increase in material or production cost which cannot be recouped in product pricing; changes in the sourcing of engines from Suzuki; warranty expenses; foreign currency exchange rate fluctuations; product liability claims and other legal proceedings in excess of insured amounts; environmental and product safety regulatory activity; effects of the weather; overall economic conditions; and consumer demand and confidence.

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Arctic Cat going bankrupt as losses mount

Postby zrcat » May 16th, 2003, 12:36 am

FREEZE, that is the lowest form of trashin' yet!!(I love it)....I see you doctoring up the document...LOL!! Now polaris must've already filed for chapter 11. If they fell to #3 in the biz, then the losses they mounted had to be staggering!!
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Arctic Cat going bankrupt as losses mount

Postby kenlacy » May 16th, 2003, 2:49 am

I love you guys - haha. Doo was never number 1, that was just something promoted by Doo and their dealers. I don't know how many times the motorsports numbers have to be posted for you guys to actually read them.

AC took the 2 spot from Doo and Pol is still 1.

Enjoy.
Recently I was asked to play in a golf tournament.

At first I said, "Naw, I haven't been playing that well."

Then they said to me, "Come on, it's for handicapped and blind kids."

Then I thought...




Chit, I could win this!
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Arctic Cat going bankrupt as losses mount

Postby 96XCR600 » May 16th, 2003, 3:46 am

Polaris's earnings and revenue and long track record of constant gains in earnings and history speak for itself. Just look at the stock prices (PII)
I loved the part where A/C part sales we up but that really isn't a surprise. And Im willing to bet that brcause of all the problems with the Firecrate burning up on the trails, that alot of their profits went up in smoke covering warrenty repairs. I'll stick with a proven winner, quarter after quarter,
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Arctic Cat going bankrupt as losses mount

Postby zrcat » May 16th, 2003, 6:12 am

LMMFAO!!!! phuckin polaris wads never cease to amaze me. whatever
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Arctic Cat going bankrupt as losses mount

Postby Snotcicles » May 16th, 2003, 6:36 am

Polaris is, has, and always will be number 2.
At least in my book.:)
A picture is worth a thousand words.
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Arctic Cat going bankrupt as losses mount

Postby ZRT800 » May 16th, 2003, 10:37 am

Freeze obviously failed Economics in high school, because he has no Fricken clue how to evaluate financial reports!!!! LOL
Who said Cats can't swim?!?
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