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results Good day as well as gentlemen, be grateful for standing by.Welcome to the arctic cat fiscal 2012 third quarter earnings business call.During today's visualization, both sides will be in a listen only mode.Using the presentation the conference will be open for questions. (Instruction manuals)This national gathering is being recorded today, wednesday, the month of jan 26, 2012.Cheers, and we appreciate you joining us this morning.I'm shawn brumbaugh considering padilla speer beardsley.Before the market opened today, arctic cat released latest latest shopping results for the fiscal 2012 third quarter ended december 31, 2011.Participating in our call today to discuss the company's performance and outlook will be president and ceo,Claude nike air nike test;And chief banking officer, bernard delmore.Below their remarks, we'll have time for any queries.Prior to this we begin, please note that some of the comments made today will be forward looking statements regarding you can actually expectations, future success.Such statements are subject to risks and questions, and actual results may differ materially from those inside the statements.These risks and questions are described in today's news release and in the company's filings with the securities and exchange commission.We encourage you to review these documents for an account of risk factors that may affect results.Appropriate well, i'll turn the letter over to arctic cat's ceo,Claude nike air nike test.Claude?Due to, shawn.Good early, a lot of people, and very good joining us today.This morning i'll cover whomever performance of our three businesses;In addition to progress we have made in operations as we continue to focus on sales, profitability and defining our balance sheet.Immediately after my comments, bob delmore, our cfo will review our financial representation.Common, we're thrilled with our performance for the quarter, significantly our double digit sales and earnings growth.As we mentioned at the start of the year, we got down to grow sales in all product categories, improve gross prices, elevate earnings per share, minimizing dealer inventory.The particular third quarter, we remain on track to undertake each of these.In regards to you businesses, snow sled sales were up 61% for the quarter, basically driven by increased volume and to a lesser degree pricing and product mix.We continue to focus on matching wholesale to retail to ensure dealers have the appropiate product during the high retail seasons and to drive dealer inventory lower.By way of this focus, we were successful in lowering the american dealer inventory by 10%, when when Shoes
compared to same time last year.The lower dealer inventory will position us snowmobile business well as good quality to next year.In connection with the industry retail sales for the year, sales are up in the mid single digits in comparison to the prior year.About the other hand, arctic cat continued to see strong growth in retail sales up far extra than 15%, driven by the 23 many new procross, proclone snow sled models we launched this year.Even while, we believe industry retail sales will slow slightly over the next several weeks.We continue to believe our retail sales will outperform the industry and we continues to take market share.Utilizing the atv business, sales enlarged 12% for the quarter, driven primarily by international in usa side by side sales.And also, we continue to pay attention to matching our wholesale sales to retail sales to lower our dealer inventory.In order to year, our dealers have retailed 38% more units than many shipped, which has allowed us to lower our united states dealer inventory by 22%.For helping our dealers in managing their inventory, we now have shifted from taking orders three times per year to a monthly ordering system.This new ordering system will allow the dealers to better respond to market conditions and ensure they have the right quantity and mix of products to meet the needs of their clients.Industry retail atv sales for the us had another difficult quarter as sales decreased by 7%.Through the third quarter, our core atv retail business also low priced.In spite of this, we continue to see annually retail growth in our prowler side by side business.In addition to our annually prowler side by side growth, we also started to ship our araneae side by side the wildcat and have already begun to see retail sales.As we previous stated, our plan was to ship the limited number of wildcat in the third quarter with the aim of increasing shipments during the fourth quarter.Sales your parts, closet, and accessory business continued to succeed and were up 7% for the quarter.The elevated sales were driven by the snowmobile and atv accessories, along with atv parts.Market gives our north american customers option to purchase their parts, dresses, and add-Ons online.And regard to operational ranking, our focus may be on improving gross margin, dealing with operating expenses, and healing our balance sheet.In the community of gross margins, our goal at the start of the year was to increase gross margins by 20 to 60 basis points.The actual third quarter, we really seriously top-Quality our gross margins by 154 basis points, primarily due to increased volumes of snow sleds and atvs, but also due to improved prices, solution or service mix, and lower sales credits.Year up to now, our gross margins have finer 30 basis points, and we continue to expect annually improvement to gross margins of 20 to 60 basis points for the year.In terms of operating expenses, we stated at the start of the year, our goal was to hold making use of expenses flat as a percent of sales.To get you started, we have continued to focus all over the business on all aspects of expense control.Having said that, we have continued to invest in product, which has resulted in launching various new models for the snowmobile and atv business.The actual third quarter, we were sensible in decreasing operating expenses as a percent of sales.Based on our plan for all the year, we believe that we will become successful in decreasing operating expenses for the full year.The final area of focus has been attempting to strengthen our balance sheet.Inside third quarter, our annually inventory grew to support our sales growth.Conversely, we were beneficial in improving our inventory turns.As good quality, we will continue to remain focused on having the correct quantity of inventory on hand to support the growth needs of the business, while in unison continuing to focus on improving inventory turns.Regarding cash, we ended the quarter with $76 million of cash and short term investing.This amount is down from the last year by $31 million.Nevertheless, the entire decrease was because of the arctic cat share repurchase from suzuki of $79 million that we announced last month.Capability purchase the 6.1 million shares of Arctic Cat stock using cash on our balance sheet and ending the quarter with $76 million in cash and short term investments leads the business well positioned to continue to meet the capital needs of the business, As well as potential investments in the years ahead, While similarly creating significant shareholder value.To come, we will continue to focus on our cash position and expect to end the year exceeding $60 million of cash on our balance sheet and no debt.Now, i only want to turn the call over to tim, who will study the third quarter financials. Hi and due,Claude.Good day time, everybody under the sun.I'd also like to welcome you to the business call.In recent times, i'll focus on reviewing highlights of our third quarter financial execution and our revised and upgraded guidance for full year and fiscal 2012.Net sales for the third quarter increased to 36% to $207 million from a $152 million for a similar quarter last year.Snow sled sales increased 61% to $125.2 million and ATV sales boosted 12% to $54.4 million hailing beyond $48.6 million.Stages, garments and accessory sales extended 7% to $27.4 million far for $25.6 million for similar quarter last year.Sales increased across all product lines with particularly strong snowmobile sales driven by the creation of our extensive new 2012 snowmobile lineup.Gross profits for the quarter multiplied 46% to $47.8 million because of $32.7 million.The gross profit pct for the quarter increased 154 basis points to 23.1% totally between 21.5% for the third quarter yr after, Mostly due to volumes, Value, Accelerated prices, Which are product mix and lower sales benefits.Hoping to sell, general and admin expenses increased 5% to $21.6 million coming via $20.5 million for similar quarter last year, Primarily due to higher R marketing and advertising expenses, Which were offset to a certain degree by lower general and admin expenses resulting from a favorable of Canadian currency hedge benefits.Dumping, general and management expenses as a percent of sales declined to 10.4%, With regards to 13.5% the same quarter yr after.Our charm income was 23, 000 against 28, 000 for the similar quarter a year ago and interest expense was unchanged to 1, 000 for both sectors.Net earnings for the quarter heightened to 83% to $17 million from $9.3 million and third quarter diluted earnings per share accelerated 84% to $0.92 faraway brought on by $0.50.'