Arctic Cat Inc. (NASDAQ:ACAT) today reported a net loss of $1.1 million, or $0.08 per diluted share, on net sales of $134.4 million for the fiscal 2016 first quarter ended June 30, 2015. In the prior-year quarter, Arctic Cat reported net earnings of $3.6 million, or $0.27 per diluted share, on net sales of $143.6 million.
“During the first quarter, we implemented initiatives to fuel product innovation and growth, speed organizational change and leverage our efficiency. We are confident that we have the strategy and a talented team to execute. We remain on track with our stated long-range plan,” commented Christopher Metz, Arctic Cat’s president and CEO.
“We made continued progress in the first quarter against our stated goals to reposition the business for growth and clean up the inventory overhang. In particular, we saw encouraging trends in the company’s core North America ATV dealer inventory levels and gained further market share. We remain focused on partnering with our dealers to aggressively reduce non-current inventory and provide marketing support, enabling a return to wholesale and retail growth of new, innovative products,” he said.
Arctic Cat’s fiscal 2016 first quarter net sales were down 6 percent to $134.4 million and in line with the company’s expectations versus $143.6 million in the prior-year quarter. Contributing to the 2016 first quarter sales were OEM snowmobile shipments and the Wildcat recreational off-highway vehicle (ROV) line, led by the Wildcat Trail side-by-side model.
Snowmobile sales in the fiscal 2016 first quarter totaled $58.2 million, up 4 percent versus $56.2 million in the prior-year quarter, chiefly due to the timing of OEM shipments. Sales of parts, garments and accessories (PG&A) in the fiscal 2016 first quarter were down 2 percent to $23.3 million versus $23.7 million in the prior-year quarter. In March 2015, Arctic Cat announced it completed the acquisition of privately held MotorFist, LLC, a manufacturer of high-performance technical riding gear. The acquisition complements Arctic Cat’s garment and riding-gear business.
Commented Metz: “The integration of our MotorFist acquisition is proceeding smoothly. We expect sales of MotorFist branded products to contribute to our PG&A business in fiscal 2016.