In an exclusive interview with Benzinga, Arctic Cat ACAT CEO Claude Jordan gave a breakdown of the recently reinstated dividend and opportunities for acquisition.
After paying a dividend from 1995 through 2008, economic downturn forced Arctic Cat to put a hold on its dividend payments. “We ended the 2009 fiscal year with about 11 million dollars in cash,” stated Jordan.
“We went into a cash conservation mode where we were trying to conserve as much cash as possible.”
Since 2009 lows, shares are up more than 1000 percent and the company initiated a $0.10 dividend.
“At the end of fiscal year 2013… we had about 112.8 million dollars cash. Still very clean balance sheet, no debt whatsoever, short or long term,” explained Jordan. “We felt that we had more than enough cash to return some of it to our shareholders.”
Jordan then broke down the company’s clean balance sheet and debt possibilities.
Related: Institutions Love Arctic Cat's Record Earnings And Share Price
“At times when the cost of debt is so inexpensive, which it is today, there may be better ways to use that cash,” he started.
“With that said, we continue to grow cash and really haven’t found a need for any additional debt.”
“We have started to look beyond the core business, and as things come up in the future, there may be an opportunity for us to go ahead possibly acquire something. I think if we ever do that there would look to take on some additional debt.”
Stay tuned for Claude Jordan’s comments on Arctic Cat’s huge upcoming growth opportunities and newest products.
Shares of Arctic Cat currently trades at $54.11, up 62.05 percent year to date.
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