ASV Reports Q1 1998 Earnings
21 April 1998ASV's Earnings Increase 151% For 1st Quarter 1998
Board of Directors Declares 3-For-2 Stock Split GRAND RAPIDS, Minn., April 21 -- ASV, Inc. today announced record sales levels for its first quarter 1998 with earnings increasing 151% over first quarter 1997. Net sales for the three months ended March 11, 1998 totaled $9,028,838, a 94% increase over the three months ended March 31, 1997. Net income for first quarter 1998 rose 151% to $791,838 compared with $315,542 for first quarter 1997. Earnings per share more than doubled to $.14 for first quarter 1998 compared with $.06 for 1997. The 1998 figures represent ASV's thirteenth consecutive quarter of record sales. ASV President Gary Lemke attributes the improved results to the strong demand for ASV's newest model Posi-Track(TM), the HD 4500 series. Lemke states, "Posi-Track related sales more than doubled in first quarter 1998 with the majority of sales coming from the HD 4500 series Posi-Track. Customers are buying the HD model for its maintenance-free undercarriage and greater power. ASV plans to utilize this same maintenance-free undercarriage under our original model Posi-Track, the MD-70, in second quarter 1998 with the introduction of the model MD 2800. This model will provide those customers who like the lighter weight of the MD-70 with the increased benefits of the maintenance-free undercarriage. Our increased sales are also due, in part, to our growing network of Posi-Track dealers. In the first quarter of 1998, shipments were made to new dealers in California, Alaska, Iowa, Washington, Kansas and New Zealand." ASV also announced today that its Board of Directors has declared a 3-for-2 stock split in the form of a stock dividend. The stock split will be issued May 14, 1998 to shareholders of record as of May 4, 1998 and will increase the number of shares outstanding to approximately 7.5 million. All share and per share data are presented prior to this split. Commenting on the stock split, Lemke said, "This split, our second in 16 months, comes as ASV is experiencing record sales levels and increased earnings. We hope the split will enhance the marketability of ASV stock as well as make our stock more available to a wider range of investors. Our expanded manufacturing facility is working out very well with production levels increasing each month. Our dealer network continues to expand with dealer inquiries continuing at strong levels. We believe ASV is positioned well for future growth." ASV designs, manufactures and sells track-driven all-season vehicles and related accessories and attachments. The Company's Posi-Track product line uses a rubber track suspension system that takes advantage of the benefits of both traditional rubber wheels and steel tracks. This rubber track suspension system provides extremely low ground pressure offering greater productivity with less damage to the surfaces upon which the machines are operated. A.S.V., INC. CONDENSED, CONSOLIDATED STATEMENTS OF EARNINGS Three months ended March 31, 1998 and 1997 1998 1997 Net sales $9,028,838 $4,651,185 Cost of goods sold 6,770,995 3,582,043 Gross Profit 2,257,843 1,069,142 Operating expenses: Selling, general and administrative 808,195 488,057 Research and development 98,449 44,938 906,644 532,995 Operating income 1,351,199 536,147 Other income (expense) Interest expense (128,946) (92,952) Other, net 34,585 65,347 Income before income taxes 1,256,838 508,542 Provision for income taxes 465,000 193,000 NET INCOME $791,838 $315,542 Net income per common share - Diluted ** $.14 $.06 Diluted weighted average shares 5,945,788 5,866,200 ** Includes add back of after-tax effect of interest expense for convertible debentures. A.S.V., INC. CONDENSED, CONSOLIDATED BALANCE SHEETS March 31, 1998 and 1997 ASSETS 1998 1997 CURRENT ASSETS Cash & short-term investments $1,928,188 $5,531,300 Accounts receivable, net 2,685,560 1,177,649 Inventories 12,658,598 6,171,165 Prepaid expenses and other 355,058 259,526 Total current assets 17,627,404 13,139,640 PROPERTY AND EQUIPMENT, net 4,374,498 1,765,130 Total assets $22,O01,902 $14,904,770 LIABILITIES & SHAREHOLDERS' EQUITY CURRENT LIABILITIES Current portion of long- term liabilities $217,515 $ -- Accounts payable 2,334,734 1,928,557 Accrued expenses 644,901 374,743 Income taxes payable 447,924 87,954 Total current liabilities 3,645,074 2,391,254 LONG-TERM LIABILITIES, less current portion 7,452,926 5,708,582 SHAREHOLDERS' EQUITY 10,903,902 6,804,934 Total liabilities & shareholders' equity $22,001,902 $14,904,770 SOURCE ASV, Inc.