Arctic Cat (ACAT) 8-K Arctic Cat Reports Record Earnings in Fiscal 2013 Second Quarter

Exhibit 99.1

NEWS RELEASE

CONTACTS:	Arctic Cat Inc.	Padilla Speer Beardsley Inc.
	Timothy C. Delmore	Shawn Brumbaugh
	Chief Financial Officer	sbrumbaugh@padillaspeer.com
	763-354-1800	612-455-1754

Arctic Cat Reports Record Earnings in Fiscal 2013 Second Quarter

EPS up 57 percent to $1.80 versus $1.15 in prior-year quarter;

Net earnings in the quarter rose 17 percent to $25.0 million;

Net sales increased 12 percent to $229.0 million, driven by strong Wildcat™ ROV sales;

Operating profit up 18 percent to $38.8 million compared to $32.9 million;

Company raises full-year sales and earnings outlook for fiscal 2013

MINNEAPOLIS, October 25, 2012 – Arctic Cat Inc. (NASDAQ: ACAT) today reported that net earnings increased 17 percent to a record $25.0 million, or $1.80 per diluted share, for the fiscal second quarter ended September 30, 2012, compared to prior-year net earnings of $21.4 million, or $1.15 per diluted share. Net sales in the quarter rose 12 percent to $229.0 million versus net sales of $204.8 million in the same quarter last year.

“We are very pleased to report record earnings and EPS on double-digit sales gains in the fiscal 2013 second quarter, on top of a strong quarter last year,” said Claude Jordan, Arctic Cat’s chairman and chief executive officer. “We are beginning to benefit from our growth strategy to enter new market segments with innovative new products, such as our Wildcat pure sport side-by-side, while focusing on operational excellence and cost control. As a result, we continued to leverage higher sales volumes and a lower cost structure to again deliver profitability gains in the second quarter.”

Among the highlights of Arctic Cat’s fiscal 2013 second-quarter financial results versus the prior-year quarter:

• Net sales grew 12 percent, chiefly fueled by sales of Wildcat recreational off-highway vehicles (ROVs);

• The company reported record net earnings and earnings per diluted share, up 17 percent and 57 percent, respectively;

• Operating expenses as a percent of sales declined to 11 percent versus 12 percent;

• Operating profit rose 18 percent to $38.8 million, up from $32.9 million;

• The company had no long-term debt.

For the six months ended September 30, 2012, Arctic Cat’s net earnings rose 41 percent to a record $27.0 million, or $1.95 per diluted share, compared to net earnings of $19.1 million, or $1.02 per diluted share, in the prior-year period. The company’s year-to-date net sales increased 22 percent to

Arctic Cat Reports Fiscal 2013 Second Quarter Results – 2

$340.3 million versus net sales of $279.8 million in the first six months last year.

Business Line Results

Sales in Arctic Cat’s all-terrain vehicle (ATV) business rose 19 percent to $69.7 million, up from $58.8 million in the same period last year. The increase was primarily due to strong global demand from dealers and customers for the Wildcat side-by-side.

During the fiscal 2013 second quarter, Arctic Cat began shipping its new 2013 model year ATVs/ROVs. In addition to offering the Wildcat V-Twin 1000i H.O., the company introduced the new Wildcat 1000 Limited side-by-side, which offers upgraded styling features as part of a standard package. Arctic Cat’s new 2013 models also include five value-priced ATVs, such as the new 500 Core ATV. Additionally, the company introduced three new ATV packages – Limited, XT and CORE – to provide more optional features.

Commented Jordan: “Our entry into the growing sport ROV segment has gone exceptionally well with the Wildcat side-by-side. It is being well-received by enthusiasts and Wildcat sales year to date continue to meet our high expectations. We now have two Wildcat offerings in our portfolio and anticipate launching additional innovative products into this market segment.”

Jordan added: “In August, we were excited to see the Wildcat 1000 named as the top pure sport ROV by a leading industry magazine, after the editors conducted a head-to-head ‘shootout’ comparison against the only competing pure sport side-by-side in the market.”

Arctic Cat’s snowmobile sales in the fiscal 2013 second quarter rose 12 percent to $128.6 million, up from $114.7 million in the prior-year quarter. The company’s new 2013 model year snowmobiles have received numerous industry awards, including: Editor’s Choice for the F1100 Turbo RR (race-replica); Best High Performance for the F800 Sno Pro RR; and Best Crossover for the CrossTour 1100 Turbo.

Arctic Cat is building its 2013 model year snowmobiles on the new ProCross™ performance and ProClimb™ mountain chassis platforms, both of which offer innovative suspension, drive and braking technologies. In addition, during the fiscal 2013 second quarter, the company partnered with world champion snowmobile racer Tucker Hibbert to create a limited edition Tucker Hibbert race-replica model honed to high performance excellence and available to snowmobilers whose passion reflects the same race-winning attitude shared by Tucker Hibbert and Arctic Cat.

Arctic Cat’s new 2013 model year snowmobiles also include:

• ProCross F Sno Pro RR (race-replica) sled, which features high-performance trail racing suspension and styling.

Arctic Cat Reports Fiscal 2013 Second Quarter Results – 3

• ProCross XF CrossTour, a crossover model that combines the best of snowmobile touring, trail and deep-snow capabilities. The CrossTour is available in either the 800 2-stroke, or the 1100 turbo and non-turbo 4-stroke engine. It offers riders trail performance and touring comfort with its wide ski stance, ample storage and a heavy-duty rear bumper that easily accepts accessories, such as an optional passenger seat.

• Arctic Cat’s ProClimb M Series mountain snowmobiles also received further enhancements to performance and handling. The turbocharged M1100 four-stroke mountain model has 177 horsepower, making it the industry’s most powerful production engine available.

Arctic Cat remains committed to investing in research and development across its product lines, in order to remain an industry innovation leader and in anticipation of manufacturing its own snowmobile engines in fiscal 2015.

Sales of parts, garments and accessories (PG&A) in the fiscal 2013 second quarter were down 2 percent to $30.8 million versus $31.4 million in the prior-year quarter. While sales of Wildcat accessories and parts grew significantly in the quarter, snowmobile garment sales were down versus the prior-year period. Arctic Cat continues to anticipate increased PG&A sales for the fiscal 2013 full year.

Company Raises Fiscal 2013 Sales and Earnings Outlook

“Our strategies are working and we are on track to deliver the highest net earnings in Arctic Cat’s 50-year history for fiscal 2013,” said Jordan. “We expect to continue generating higher revenue and earnings by developing innovative new products and entering new segments. We remain focused on new product development as an important catalyst to achieving our future growth goals.”

In fiscal 2013, Arctic Cat anticipates continued gains in its ATV/ROV business, fueled by the growth potential for the Wildcat and Prowler ROV offerings, and many exciting new products being developed. Additionally, the company remains focused on further enhancing profitability through operational efficiencies and cost controls.

Arctic Cat’s fiscal 2013 outlook includes the following assumptions versus the prior fiscal year: ATV North America industry retail sales flat to up 5 percent; ROV North America industry retail sales up 10 to 20 percent; snowmobile North America industry retail sales flat to up 2 percent; Arctic Cat dealer inventories flat to down 5 percent; operating expense levels that are flat to down slightly as a percent of sales; and increasing cash flow from operations. The company expects gross margins to improve between 20 and 60 basis points in fiscal 2013.

For the fiscal year ending March 31, 2013, Arctic Cat is raising its full-year sales guidance to a range of $664 million to $684 million, an increase of approximately 13 percent to 17 percent versus

Arctic Cat Reports Fiscal 2013 Second Quarter Results – 4

fiscal 2012. Assuming diluted weighted average shares of 14 million, the company now estimates that fiscal 2013 earnings per diluted share will be in the range of $2.65 to $2.75, an increase of 54 percent to 60 percent compared to fiscal 2012. Previously, the company estimated fiscal 2013 earnings per diluted share of $2.55 to $2.65 on sales of $662 million to $682 million.

Conference Call

Arctic Cat will host a conference call to discuss the fiscal 2013 second quarter results today, October 25, 2012, at 11 a.m. CT (12 p.m. ET). To listen to the live call dial 1-800-762-8908. The live webcast and replay also may be accessed through the investor relations section ofwww.arcticcat.com/corporate. In addition, a telephone replay will be available through November 1, 2012, by dialing 1-800-406-7325, pass code 4571213.

About Arctic Cat

Arctic Cat Inc. designs, engineers, manufactures and markets all-terrain vehicles (ATVs), recreational off-highway vehicles (ROVs) and snowmobiles under the Arctic Cat^® brand name, as well as related parts, garments and accessories. Its common stock is traded on the Nasdaq Global Select Market under the ticker symbol “ACAT.” More information about Arctic Cat and its products is available atwww.arcticcat.com.

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain forward-looking statements. The Company’s Annual Report, as well as the Report on Form 10-K, its Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission, the Company’s press releases and oral statements made with the approval of an authorized executive officer, contain forward-looking statements that reflect the Company’s current views with respect to future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated. The words “aim,” “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that indicate future events and trends identify forward-looking statements including statements related to our fiscal 2013 outlook. Actual future results and trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to: product mix and volume; competitive pressure on sales, pricing and sales incentives; increase in material or production cost which cannot be recouped in product pricing; changes in the sourcing of engines; interruption of dealer floorplan financing; warranty expenses and product recalls; foreign currency exchange rate fluctuations; product liability claims and other legal proceedings in excess of reserves or insured amounts; environmental and product safety regulatory activity; effects of the weather; general economic conditions and political changes; interest rate changes; consumer demand and confidence; and those set forth in the Company’s Annual Report on Form 10-K for the year ended March 31, 2012, under heading “Item 1A. Risk Factors.” The Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

FINANCIAL TABLES FOLLOW

Arctic Cat Reports Fiscal 2013 Second Quarter Results – 5

ARCTIC CAT INC.

Financial Highlights

(000s omitted, except per share amounts)

(Unaudited)

	Three Months Ended September 30,						Six Months Ended September 30,
	2012			2011			2012			2011
Net Sales
Snowmobile & ATV Units	$	198,274		$	173,459		$	289,227		$	228,719
Parts, Garments & Accessories		30,756			31,370			51,114			51,040
Total Net Sales		229,030			204,829			340,341			279,759
Cost of Goods Sold
Snowmobile & ATV Units		146,000			128,843			221,556			177,972
Parts, Garments & Accessories		19,000			18,837			32,276			30,363
Total Cost of Goods Sold		165,000			147,680			253,832			208,335
Gross Profit		64,030			57,149			86,509			71,424
Operating Expenses
Selling & Marketing		12,018			12,160			18,825			18,245
Research & Development		4,867			3,821			9,345			7,823
General & Administrative		8,391			8,245			16,465			16,029
Total Operating Expenses		25,276			24,226			44,635			42,097
Operating Profit		38,754			32,923			41,874			29,327
Other Income (Expense)
Interest Income		4			20			17			45
Interest Expense		(62	)		(4	)		(82	)		(6	)
Total Other Income (Expense)		(58	)		16			(65	)		39
Earnings Before Income Taxes		38,696			32,939			41,809			29,366
Income Taxes		13,737			11,529			14,842			10,278
Net Earnings	$	24,959		$	21,410		$	26,967		$	19,088
Net Earnings Per Share
Basic	$	1.90		$	1.18		$	2.06		$	1.05
Diluted	$	1.80		$	1.15		$	1.95		$	1.02
Weighted Average Shares Outstanding:
Basic		13,152			18,220			13,106			18,220
Diluted		13,828			18,668			13,852			18,654

	September 30,
Selected Balance Sheet Data:	2012		2011
Cash and Short-term Investments	$	23,993	$	96,564
Accounts Receivable, net		88,640		96,030
Inventories		144,736		103,649
Total Assets		318,536		357,162
Short-term Bank Borrowings		0		0
Total Current Liabilities		152,182		150,393
Long-term Debt		0		0
Shareholders’ Equity		163,731		204,913

Arctic Cat Reports Fiscal 2013 Second Quarter Results – 6

	Three Months Ended September 30,							Six Months Ended September 30,
Product Line Data:	2012		2011		Change			2012		2011		Change
Snowmobiles	$	128,599	$	114,670		12	%	$	146,586	$	132,031		11	%
All-Terrain Vehicles		69,675		58,789		19	%		142,641		96,688		48	%
Parts, Garments & Accessories		30,756		31,370		-2	%		51,114		51,040		0	%
Total Sales	$	229,030	$	204,829		12	%	$	340,341	$	279,759		22	%

# # #