Wildcat Expected To drive Strong Arctic Cat Earnings

Based on conversations with dealers, an analyst expects Arctic Cat to report strong earnings next week.  The main driver is sales of the Wildcat side-by-side vehicle.  The company’s off-road vehicle sales are expected to increase 36% compared to the previous year’s quarter and 46% for the full year 2012.  Learn more:  Powersportsbusiness.com

New Arctic Cat Wildcat Accessories Available

Arctic Cat recently introduced three new accessories for their Wildcat utility vehicle:  a flip-up windshield, a soft-cab kit and an aluminum light bar.  The windshield retails for $399.95 and is constructed of scratch and abrasion-resistant polycarbonate.  The soft cab kit retails for $649.95 retail and includes the roof, back panel and doors, each constructed from durable 9-oz., heavy series Surlast fabric.  The light bar retails for $229.95 and provides secured mounting for overhead lighting atop the front cab bar.  Lighting must be purchased separately.  Learn more:  Powersportsbusiness.com

Artic Cat Reports Strong Quarterly Results

Last week Arctic Cat reported the results for their third quarter which ended December 31, 2011.  Management reported net sales of $207.0 million  compared to $152.0 million for the the prior-year third quarter.  Net earnings for the same time periods was $17.0 million and $9.3 million respectively.  The sales increase was driven by increased snowmobile sales and international all-terrain vehicle (ATV) sales, as well as the first shipments of their new Wildcat sport side-by-side vehicle.  Arctic Cat’s ATV sales include ATVs and side-by-side vehicles.  “ATV sales increased 12 percent to $54.4 million in the fiscal 2012 third quarter versus $48.6 million in the same period last year, with strong contributions from Arctic Cat’s Prowler line of side-by-sides.”  The company expects to increase production of the Wildcat in the fourth quarter.  Learn more:  Arcticcat.com

Earnings Call Highlights:

• ATV sales increased 14% to $151.1 million from $133 million for the first three quarters of the fiscal year
• Management reports a decline of 7% in the quarter for industry ATV sales in North America.  Side-by-side sales continue to grow however and Prowler sales were up for the quarter and first three quarters.
• Management expects ATV division sales to increase 19% to 22% for the full year, driven by Q4 shipments of the new Wildcat sport side-by-side
• Arctic Cat has shipped 200 Wildcat side-by-sides to date and estimates based on Q&A comments indicate orders in the range of 6,000 to 10,000 vehicles. Sales are meeting expectations according to management.
• Arctic Cat has switched to a monthly ordering system for dealers compared to what was more of a quarterly program.  Comment: This will likely be a continuing trend with manufacturers in the industry as Polaris has also already made this transition to shorter ordering time frames.  The shorter time frame has reportedly allowed for lower inventories and costs, better matching of vehicles to customer needs and faster response to changing market conditions.

Learn more:  Seekingalpha.com (call transcript)

Arctic Cat’s New Wildcat Designed To Take On Polaris RZR XP 900

Last week more information came out about Artic Cat’s Wildcat, an “ultra-performance” side-by-side, which is targeting the same market as the Polaris RZR XP 900.  According to Arctic Cat management the vehicle is designed to exceed the performance of the Polaris offering.  Some of the key features and capabilities include:

• Engine:  951 cc, V-twin, SOHV, four-stroke, four-valve
• 13 inches of ground clearance
• Full perimeter frame
• 5-point multi-link trailing arm suspension with 18 inches of travel
• 17 inches of travel in the front suspension
• Walker Evans Racing shocks in the front and rear
• Electronic power steering
• LED headlights and taillights
• 300 lb cargo bed capacity

Learn more:  ATVMagonline.com

Artic Cat Reports Fiscal 1st Quarter Results

Arctic Cat reported that net sales increased 18 percent to $74.9 million in the fiscal 2012 first quarter ended June 30, 2011, up from net sales of $63.4 million in the prior-year first quarter. The company’s first quarter net loss improved to $2.3 million versus a net loss of $4.5 million. Arctic Cat typically reports a first quarter loss because most of its revenue is seasonal, occurring in their fiscal 2nd and 3rd quarters. Management reported that “Revenue grew across all product lines, with particularly strong sales of our Prowler side-by-side utility vehicles contributing to the quarter’s results.”  Management also raised their guidance for full year sales to $520 to $530 million or a 12-14% increase over 2011.  The increase is expected to be driven in part by the launch of their new sport utility vehicle the Wildcat.  Learn more:  Marketwatch.com

Arctic Cat Reveals New 2012 Wildcat UTV

Arctic Cat revealed a new UTV, the Wildcat, at their recent snowmobile dealer show. Management did not provide many specifics about the vehicle but stated that the vehicle could be in dealer showrooms in fiscal year 2012 which ends in March 2012.  The vehicle looks to be targeted towards the pure sport end of the market and the CEO mentioned an “extremely capable suspension”.  Learn more:  UTVNews.com