Issue link: http://read.dmtmag.com/i/523095
www.PowersportsBusiness.com NEWS Powersports Business • June 15, 2015 • 9 Arctic Cat Inc. announced that it plans to invest nearly $27 million in its manufac- turing facilities in Thief River Falls and St. Cloud, Minn., resulting in the creation of approximately 50 jobs. Commented Arctic Cat's president and CEO Christopher T. Metz: "We are excited to strengthen our Minnesota manufactur- ing footprint and position the company for continued long-term success. We will be adding a new state-of-the-art production line in Thief River Falls and expanding our engine manufacturing operations in St. Cloud in order to meet the demand for our innovative, quality products. We are grateful to the local leadership of Thief River Falls and St. Cloud, and the state of Minnesota, for their support as we invest in our shared future." Arctic Cat plans to invest approximately $26 million in its Thief River Falls facil- ity for a new paint line and other facility improvements that are estimated to create an additional 39 jobs. The paint line will enable continued growth in the company's recre- ational off-highway vehicle (ROV) business. In St. Cloud, the company plans to invest roughly $400,000 in expanded assembly capability that is anticipated to add about 10 positions at its engine manufacturing facility located there. The company manu- factures and assembles ATV and snowmo- bile engines at its 56,000-square-foot Engine Manufacturing Division in St. Cloud. "For over 50 years, Arctic Cat has oper- ated and expanded in Minnesota, creating thousands of jobs for hard-working Min- nesotans," said Minnesota Governor Mark Dayton. "I congratulate Arctic Cat and its many dedicated employees for their suc- cesses. I thank them for choosing to expand their operations again, right here in Minne- sota. Arctic Cat's expansion will be an asset to the area and the state." Arctic Cat chose to stay in Minnesota, where the company has deep manufacturing roots and a highly educated and skilled labor force. The planned projects are eligible to receive local and state tax incentives. NET LOSS REPORTED IN Q4 Arctic Cat in May reported a net loss of $21.5 million, or $1.66 per diluted share, on net sales of $98.9 million for the fiscal 2015 fourth quarter ended March 31. Arctic Cat's 2015 fourth-quarter adjusted net loss was $1.15 per diluted share, excluding the previously announced charges of $0.46 per diluted share for the planned reduction of core ATV dealer inventory and executive transition costs of $0.05 per diluted share. In the prior-year quarter, Arctic Cat reported a net loss of $1.6 million, or $0.12 per diluted share, on net sales of $145.4 million. Metz said: "We made significant prog- ress in many areas in the fourth quarter during a transitional period. We added key finance, sales and marketing executives to our new management team and expanded our high-performance garments and acces- sories offerings with the completion of the Motorfist acquisition. Further, we initiated a successful promotional program to begin to reduce our North America dealers' core ATV inventory; this effort also generated market share gains." Added Metz: "We are committed to posi- tioning the company for long-term, profit- able growth. We are focused on partnering with our dealers to aggressively reduce non- current inventory and provide marketing support, enabling a return to wholesale and retail growth of new, innovative products. We will seek additional OEM partnerships and small bolt-on acquisitions that enable us to quickly expand our expertise and capa- bilities, and drive faster product innovation and increased sales. In addition, we are focused on investing in our business, speed- ing organizational change and improving efficiency." PSB Arctic Cat invests $27 million in Minnesota manufacturing Arctic Cat has made a multi-million-dollar commitment to its Minnesota manufacturing facilities.