This excerpt taken from the ACAT 8-K filed Oct 25, 2006.
ARCTIC CAT REPORTS FISCAL 2007 SECOND-QUARTER RESULTS
Second-quarter earnings per share rise, in line with guidance;
THIEF RIVER FALLS, Minn., Oct. 25 Arctic Cat Inc. (Nasdaq: ACAT) today reported net sales grew to $285.3 million for the fiscal 2007 second quarter ended September 30, 2006, compared to $276.3 million in the same period last year. Net earnings for the quarter increased to $20.0 million, or $1.03 per diluted share. This was in the range of the companys earnings guidance of $1.03 to $1.08 per diluted share. The fiscal 2007 second quarter earnings include $0.02 per diluted share for the non-cash expense of stock options in accordance with SFAS 123(R). The company reported net earnings in the prior-year period of $19.2 million, or $0.96 per diluted share.
Our record sales and increased earnings for the second quarter were driven primarily by a 9 percent increase in snowmobile sales, continued strong demand for our Prowler utility ATV, and higher ATV parts and accessories sales, said Christopher A. Twomey, chairman and chief executive officer. We are confident that we remain on track to post sales gains across all of our product lines for the fiscal year.
Some snowmobile and ATV sales to dealers that were anticipated to occur in the second quarter will now occur in the third quarter, due to the timing of shipments. Arctic Cat continues to expect full-year revenue growth in the range of 5 percent to 9 percent for snowmobiles, a 3 percent to 5 percent increase in ATV sales, and a gain of 3 percent to 6 percent for parts, garments and accessories sales.
For the six-month period, net sales were $381.7 million compared to $384.2 million in the first half of last fiscal year. Net earnings were $15.4 million, or $0.79 per diluted share, versus net earnings of $19.7 million, or $0.98 per diluted share, in the prior-year first half. The
fiscal 2007 first half earnings include $0.03 per diluted share for the non-cash expense of stock options in accordance with SFAS 123(R).
During its fiscal 2007 second quarter, Arctic Cat repurchased approximately 100,000 shares of its common stock, leaving $6.8 million remaining under the companys $20 million share repurchase program.