Arctic Cat 4Q Loss Narrows, Reinstate Dividend

MINNEAPOLIS (AP) — Arctic Cat posted a smaller-than-expected loss in its fiscal fourth-quarter, as sales improved across all product lines.

The maker of recreational vehicles and snowmobiles said Wednesday that it is reinstating its quarterly dividend and approved the buyback of up to $30 million of its stock due to its strong performance, healthy cash flow and future prospects.

Arctic Cat lost $5.1 million, or 38 cents per share, during the traditionally slow fourth quarter. That compares with a loss of $6.2 million, or 49 cents per share, a year earlier.

Analysts, on average, expected a loss of 41 cents per share, according to a FactSet survey.

Revenue for the period ended March 31 increased 15 percent to $113.2 million from $98.5 million. Wall Street was looking for $121.4 million in revenue.

All-terrain vehicle/side-by-side revenue climbed 16 percent to $87.6 million mostly on strong dealer demand for Wildcat side-by-sides and North American ATVs and Prowlers. Snowmobile revenue improved mostly because of sales incentives. Sales of parts, clothing and accessories rose 5 percent to $31 million primarily because of snowmobile parts sales.

For the year, Arctic Cat Inc. earned $39.7 million, or $2.89 per share. In the previous year, the company earned $29.9 million, or $1.72 per share.

Annual revenue rose 15 percent to $671.6 million from $585.3 million, buoyed by better sales of snowmobiles and side-by-side, all-terrain vehicles.

Chairman and CEO Claude Jordan said in a statement that increased sales volumes and cost-control efforts helped its full-year performance.

Arctic Cat anticipates 2014 earnings between $3.17 and $3.27 per share on revenue in a range of $754 million to $768 million. Analysts expect earnings of $3.29 per share on revenue of $727.9 million.

The company declared a quarterly dividend of 10 cents per share. The dividend will be paid on June 14 to shareholders of record on May 31. Arctic Cat currently has about 13.2 million outstanding shares.

Its shares finished at $48.74 on Tuesday after hitting a 52-week high of $48.84 earlier in the day.

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