Arctic Cat Posts Narrower-Than-Expected Q4 Loss, But Revenue Misses Views

Arctic Cat Inc ACAT reported a narrower-than-expected loss for the fiscal fourth quarter, but the company's sales missed analysts' estimates. The company also issued a weak forecast for the full year. The Plymouth, Minnesota-based company reported a quarterly loss of $21.5 million, or $1.66 per share, compared to a year-ago loss of $1.6 million, or $0.12 per share. Excluding non-recurring items, the company lost $1.15 per share. Its revenue dropped 32 percent to $98.9 million from $145.4 million. However, analysts were expecting a loss of $1.17 per share on revenue of $112 million. Sales of Arctic Cat's ATVs and side-by-side ROVs slipped to $66.8 million in the latest quarter, versus $105.9 million in the year-ago quarter. Snowmobile sales fell to $5.3 million from $6.4 million, while sales of parts, garments and accessories dropped to $26.8 million from $33.1 million. Gross profit margin was a negative 1.4 percent in the fourth quarter, versus 13.8 percent in the year-ago quarter. Operating loss widened to $29.0 million from $2.6 million. At March 31, 2015, Arctic Cat had $41.3 million in cash and short-term investments, versus $82.5 million a year earlier. Christopher Metz, Arctic Cat's president and chief executive officer said, "Our focus over the next year is to rebuild and reposition the company for a return to long-term growth in fiscal 2017 and beyond. We believe that we have strong strategic plans to turn the business around. Although we face significant challenges in fiscal 2016, including continued foreign currency headwinds, we see tremendous opportunities to improve the company's operations, expand gross margins and enhance financial performance over time." For the full year, Arctic Cat projects earnings of $0.80 to $0.95 per share, on revenue of $690 million to $705 million. Analysts had expected earnings of $1.28 per share on revenue of $712 million. Arctic Cat shares fell 1.21 percent to close at $35.07 yesterday.