Wildcat is a hit

Arctic Cat warms to ATV sales, reversing a loss and cheering investors




Arctic Cat, best known for its snowmobiles, is becoming less
arctic and more temperate -- and reversing a first-quarter loss in the
process.

Sales of all-terrain vehicles helped the company turn a last
year's loss into a profit, surprising investors who sent the stock up 20
percent during the trading day.

The company swung to a profit of $2 million in its fiscal first
quarter compared with a loss of $2.3 million in the same period last
year. Analysts were expecting a loss. Investors cheered further as the
company upped its guidance for fiscal 2013 earnings and revenue.

Driven by sales of its Wildcat side-by-sides, a hot-rod type of
all-terrain vehicle, plus more traditional "core" ATV sales, revenue
rose 49 percent to $111.3 million from $75 million. Sales of all-terrain
vehicles, Arctic Cat's largest business, grew 93 percent to $73
million. Snowmobiles were up 4 percent. Sales of parts, branded garments
and accessories were up 3 percent.

The increase in sales in Arctic Cat's all-terrain vehicles was
primarily because of strong dealer and customer demand for the all-new
Wildcat model and its Prowler side-by-side utility vehicle.

"Most impressive, in our opinion, was the 92.5 percent increase
in ATVs, which was driven by strong consumer demand for the Wildcat,"
wrote Scott Hamann, an analyst with KeyBanc Capital Markets, in a
research note.

Side-by-sides differ from traditional ATVs is that they are more like cars,








with steering wheels instead of handle bars and with the driver and passengers sitting next to one another.
Over the past few years, the company has focused on driving down dealer inventory levels. Now dealer demand is picking up.

"Big picture, given the uncertain economic outlook, we prefer
consumer discretionary ideas that have lean dealer inventory and strong
product cycles -- supporting our favorable view of Arctic Cat," wrote
Craig Kennison, an analyst with Robert W. Baird & Co., in a research
note.

Claude Jordan, Arctic Cat's chief executive officer, told
analysts that the company is rolling out a new just-in-time ordering
system called RPM designed to keep dealer inventory levels lower.
Dealers now can order a month in advance, not only a few times a year as
in the past.

Arctic Cat books its revenue once its units are shipped to the dealer. Inventory can overwhelm dealers.

The new ordering system was welcome news to Roger Tuckner, owner
of Century Power Sports in Stillwater. He is just clearing out older
models, going back to 2009 inventory. Shorter lead times would help
match inventory to consumer demand for particular models.

Ordering so far ahead of time, up to six months in advance, he's
just guessing what consumers will want. Allowing an order time of two
months would help him replenish what seems to be popular models and
forgo buying so many that don't move as quickly. "You never know what
products are going to sell, and at six months it's just a guess."

"Our goal is to transition to a wholesale retail mentality, where
if dealers retail a unit, then we go ahead and ship a unit," Jordan
said.

In August, Arctic Cat will begin shipping new model year ATVs
including five traditional ATV models and a new limited edition Wildcat,
offering upgraded styling.

The company revised its earnings guidance upward and now
anticipates fiscal 2013 earnings of $2.55 to $2.65 per share, up from
previous guidance of 2.40 to $2.50. Revenue also was revised up to a
range of $662 million and $682 million, up from prior guidance of $631
million to $650 million.

Shares ended the day up 11 percent, or $4.17, at $42.15.

I knew the 1st mile I drove the Wildcat that it could save them. I figured if it didn't, then nothing could. Good to know they will stay in business, and parts will be available. Makes a person feel a little more comfortable about buying one.

Hump wrote:

I knew the 1st mile I drove the Wildcat that it could save them. I figured if it didn't, then nothing could. Good to know they will stay in business, and parts will be available. Makes a person feel a little more comfortable about buying one.

Yea and every time I have to ride my S I'm think I can't wait to have a Wildcat

Bobby D wrote:

Hump wrote:

I knew the 1st mile I drove the Wildcat that it could save them. I figured if it didn't, then nothing could. Good to know they will stay in business, and parts will be available. Makes a person feel a little more comfortable about buying one.

Yea and every time I have to ride my S I'm think I can't wait to have a Wildcat

I got alot of money tied up in my stuff, or I would have one. Plus, I'm waiting to see if there are alot of frequent issues like bushings, balljoints, etc. I'm sick of all that.

I'm kinda like Hump....I'm just waiting to see how they hold up after a year or so of riding. That will prolly be my next sxs for sure.

if i had Tbones money and bobbys time i would allready have one!!!

REDRHINO64 wrote:

if i had Tbones money and bobbys time i would allready have one!!!

If I had TBONES money yea I would have a Wildcat already and a house over there to stay in

Thats all i want too....is it really to much to ask?? lol

I'll be honest that a Wildcat may be in my future. Really like the Machine alot. Still hate that darn front end though. Be at least a year before I'm in the market for one. Should have a good idea by then how well they will hold up. Who knows though, by then maybe Can Am will get off their rear and put out a true sport SXS with a fine suspension and a improved 4WD system.

Artic Cat --- way to go.

Ok laying all jokes aside is the wildcat that much better then the xp 900

big g wrote:

Ok laying all jokes aside is the wildcat that much better then the xp 900

It won't out run a XP 900 in a drag race but it has a better ride, better more comfortable seats,smoother shifting transmission and I like the frame better it looks like it will take more abuse.

The ride is incredible

I don't know if it's better all around but the suspension is hands down better, which is why I upgraded to an XP to begin with. The power difference is not a real big issue in my opinion because there is only so much power or speed that can be applied on the trails. There are things I really like about the Wildcat. Just wanna see how it's gonna hold up over time.

Hope their stuff holds up better then theirs did back a few years ago. Still keep hearing about issues with warrenty work and lack thereof with lots of dealers!

keeter wrote:

Hope their stuff holds up better then theirs did back a few years ago. Still keep hearing about issues with warrenty work and lack thereof with lots of dealers!

I'll be honest when I say I really don't know much about Artic Cat atv's or dealer support. I will say I think they hit a home run with the suspension on the Wildcat. I would love to see Can Am, Honda, Yamaha and Kawasaki go all in on sport SXS. Right now the only two are Polaris and Artic Cat. If Honda got their head out of their rear and realized we are not all farmers they could really shake things up a bit.

Thunter wrote:

keeter wrote:

Hope their stuff holds up better then theirs did back a few years ago. Still keep hearing about issues with warrenty work and lack thereof with lots of dealers!

I'll be honest when I say I really don't know much about Artic Cat atv's or dealer support. I will say I think they hit a home run with the suspension on the Wildcat. I would love to see Can Am, Honda, Yamaha and Kawasaki go all in on sport SXS. Right now the only two are Polaris and Artic Cat. If Honda got their head out of their rear and realized we are not all farmers they could really shake things up a bit.

That's what I wish for, Honda, or Yamaha either one to do something. It would be good. I keep telling myself they are waiting until everyone does all these sport machines, then they will copy them with much better quality.

keeter wrote:

Hope their stuff holds up better then theirs did back a few years ago. Still keep hearing about issues with warrenty work and lack thereof with lots of dealers!

Don't get me started about PO-PO'S warranty...or extended warranty.....cracked exhaust manifold...NOT COVERED!...POS drive shaft....NOT COVERED....sticking throttle cable....NOT COVERED......WHY BUY AN EXTENDED WARRANTY IF THEY DON'T COVER ANYTHING!!!!!!!!

Yep.....the WILDCAT is looking better every day.....DATZ DA TRUFF!!

Was watching the pooplaris show video today and they are getting ready to release a video of te xp, commander, and wild kitty in an offload torture test.

The xp won it and the commander was right behind it. The arctic cat died and they had to go buy a second one to finish the competition.

These are facts.

TBONE21 wrote:

Was watching the pooplaris show video today and they are getting ready to release a video of te xp, commander, and wild kitty in an offload torture test.

The xp won it and the commander was right behind it. The arctic cat died and they had to go buy a second one to finish the competition.

These are facts.

Well the day I put over 80 miles on a Wildcat there was a XP 900 and a Commander trying to keep up with me and it was a job for them through some rough rocky trails ask Hump he was there

Bobby D wrote:

TBONE21 wrote:

Was watching the pooplaris show video today and they are getting ready to release a video of te xp, commander, and wild kitty in an offload torture test.

The xp won it and the commander was right behind it. The arctic cat died and they had to go buy a second one to finish the competition.

These are facts.

Well the day I put over 80 miles on a Wildcat there was a XP 900 and a Commander trying to keep up with me and it was a job for them through some rough rocky trails ask Hump he was there

TBONE21 wrote:

Bobby D wrote:

TBONE21 wrote:

Was watching the pooplaris show video today and they are getting ready to release a video of te xp, commander, and wild kitty in an offload torture test.

The xp won it and the commander was right behind it. The arctic cat died and they had to go buy a second one to finish the competition.

These are facts.

Well the day I put over 80 miles on a Wildcat there was a XP 900 and a Commander trying to keep up with me and it was a job for them through some rough rocky trails ask Hump he was there

You need to drive one on some rocky trails real fast and you will be a believer

Tbone, do you honestly think that a manufacturer would make a video comparing their stuff to the other guy's, and have their own machine lose? Do you not think that they would have their biggest threat finish last?



And, while you're at it, quit believeing all of those Ford commercials. That way you won't have to buy a new truck every 4 months.

Hump wrote:

Tbone, do you honestly think that a manufacturer would make a video comparing their stuff to the other guy's, and have their own machine lose? Do you not think that they would have their biggest threat finish last?



And, while you're at it, quit believeing all of those Ford commercials. That way you won't have to buy a new truck every 4 months.

Hey Hump....Tbone lives in a different world than us.....I could put a ford emblem on a turd and he would buy it.....

bubba53 wrote:

Hump wrote:

Tbone, do you honestly think that a manufacturer would make a video comparing their stuff to the other guy's, and have their own machine lose? Do you not think that they would have their biggest threat finish last?



And, while you're at it, quit believeing all of those Ford commercials. That way you won't have to buy a new truck every 4 months.

Hey Hump....Tbone lives in a different world than us.....I could put a ford emblem on a turd and he would buy it.....