Arctic Cat moving Headquarters to Twin Cities
May 15, 2007
Arctic Cat Inc. will shift its headquarters to the Twin Cities from its outstate home, the maker of snowmobiles and all-terrain vehicles said Tuesday. The company also said that it lost money in the fourth quarter, due partly to a lack of snow last winter.
Thief River Falls-based Arctic Cat (Nasdaq: ACAT) also lowered its guidance for the year.
Shifting the company's executives, general managers and marketing staff to the Minneapolis area, CEO Christopher Twomey in a conference call, will put the company's decision makers and business-unit leaders more "in the flow of business with those people we do business with on a regular basis."
The company didn't say if it's picked a site yet.
The shift, which doesn't include Arctic Cat's manufacturing operations -- those stay in Thief River Falls and St. Cloud -- will be complete by this fall. It's part of a restructuring that will divide the company into three divisions: one covering ATVs, another handling snowmobiles and a third focused on parts, clothing and accessories.
Officials said that the revamped structure will improve profitability, which suffered in the past year.
For the fiscal fourth quarter, Arctic Cat posted net sales of $172.6 million for the fiscal fourth-quarter, up 13 percent compared with net sales of $153.3 million in the same period last year.
However, the company's loss widened to $1.6 million, or 8 cents per share, compared with a loss of $592,000, or 3 cents per share, in the year-earlier period.
For the full year, the company posted earnings of $22 million, or $1.15 per diluted share, on sales of $782 million. That compares to earnings of $23.7 million, or $1.20 per diluted share, on sales of $732 million in 2005.
The company noted that the current quarter's results include a stock option charge of 2 cents per share.
Arctic Cat CEO Christopher Twomey said in a statement, "Challenging snowmobile market conditions caused by poor snow in the Midwest and East led to increased sales incentive programs on snowmobiles, which dampened our overall profitability."
The company also lowered its guidance for the year, saying it now sees full-year sales between $710 million and $736 million on earnings between 89 cents and 95 cents per share. It previously forecast revenue in the $760 million to $780 million range.
Article Reference; Arctic Cat moving HQ to Twin Cities - Minneapolis / St. Paul Business Journal:
Arctic Cat Inc. will shift its headquarters to the Twin Cities from its outstate home, the maker of snowmobiles and all-terrain vehicles said Tuesday. The company also said that it lost money in the fourth quarter, due partly to a lack of snow last winter.
Thief River Falls-based Arctic Cat (Nasdaq: ACAT) also lowered its guidance for the year.
Shifting the company's executives, general managers and marketing staff to the Minneapolis area, CEO Christopher Twomey in a conference call, will put the company's decision makers and business-unit leaders more "in the flow of business with those people we do business with on a regular basis."
The company didn't say if it's picked a site yet.
The shift, which doesn't include Arctic Cat's manufacturing operations -- those stay in Thief River Falls and St. Cloud -- will be complete by this fall. It's part of a restructuring that will divide the company into three divisions: one covering ATVs, another handling snowmobiles and a third focused on parts, clothing and accessories.
Officials said that the revamped structure will improve profitability, which suffered in the past year.
For the fiscal fourth quarter, Arctic Cat posted net sales of $172.6 million for the fiscal fourth-quarter, up 13 percent compared with net sales of $153.3 million in the same period last year.
However, the company's loss widened to $1.6 million, or 8 cents per share, compared with a loss of $592,000, or 3 cents per share, in the year-earlier period.
For the full year, the company posted earnings of $22 million, or $1.15 per diluted share, on sales of $782 million. That compares to earnings of $23.7 million, or $1.20 per diluted share, on sales of $732 million in 2005.
The company noted that the current quarter's results include a stock option charge of 2 cents per share.
Arctic Cat CEO Christopher Twomey said in a statement, "Challenging snowmobile market conditions caused by poor snow in the Midwest and East led to increased sales incentive programs on snowmobiles, which dampened our overall profitability."
The company also lowered its guidance for the year, saying it now sees full-year sales between $710 million and $736 million on earnings between 89 cents and 95 cents per share. It previously forecast revenue in the $760 million to $780 million range.
Article Reference; Arctic Cat moving HQ to Twin Cities - Minneapolis / St. Paul Business Journal:
