ASV Reports 1st Quarter 2001 Results; Net
Sales Increase 16% in Record Quarter
GRAND RAPIDS, Minn., April 24 ASV, Inc. today reported its first quarter 2001 financial
results. Net sales for the three months ended March 31, 2001, totaled
$12,954,716, the highest quarterly net sales in the Company's history and a
16% increase from net sales of $11,183,584 for the same period in 2000. Due
in part to the significant increase in spending for research and development,
net earnings for first quarter 2001 were $203,970 compared with $416,761 for
first quarter 2000. Earnings per share were $.02 for first quarter 2001
compared with $.04 for first quarter 2000.
Commenting on the results, Gary Lemke, President of ASV, Inc., said, "The
first quarter of 2001 was ASV's best sales quarter ever, with approximately
$13 million in net sales. This is especially pleasing when other equipment
manufacturers are reporting very small sales increases or even decreases. We
believe this says a lot about the types of products ASV offers to its
customers. Sales of our RC-30 All Surface Loader continue to increase as we
expand our dealer network for this product. In addition, first quarter 2001
saw the initial shipments of the private label version of the RC-30 product
under our recently announced alliance agreement with Polaris Industries Inc.
. As expected, sales of our 4810 Posi-Track decreased in the first
quarter of 2001 due in part to the planned introduction of the first two
models of our jointly developed Multi-Terrain Loaders (MTLs) with Caterpillar
."
Continuing, Lemke states "ASV's alliances with Polaris and Caterpillar
contributed to our results for the first quarter of 2001. Our alliance with
Polaris helped increase our sales, but as these machines are sold on a cost
plus basis, our gross profit percentage was less than we experienced in the
first quarter of 2000. Fewer sales of our higher margin 4810 Posi-Track in
2001 also reduced our gross profit percentage. Our selling, general and
administrative expenses decreased approximately $240,000 due primarily to
decreased Caterpillar commissions from the change in sales mix we experienced
in 2001. In addition, our investment in research and development totaled over
$600,000 for the first quarter of 2001, compared with approximately $135,000
in the first quarter of 2000. The majority of this was attributable to our
alliance with Caterpillar for the continued development and testing of the
MTLs. We anticipate ASV will begin shipping MTL undercarriages under this
alliance in the second quarter. We believe these alliances will help ASV reach
its goal of net sales in excess of $60 million for 2001."
ASV will conduct a live webcast at 10 a.m. Central time, Tuesday, April
24th to discuss its results for the first quarter of 2001 and its outlook for
the balance of 2001. The call will be broadcast over the Internet and can be
accessed either at http://www.vcall.com or ASV's recently enhanced web site,
http://www.asvi.com , in the investor relations section under the "About ASV"
tab. To listen to the call, go to either of the two web sites at least 15
minutes prior to the call to register, download and install any needed audio
software. A replay of this call will be available beginning two hours after
its conclusion both telephonically and over the Internet. The telephonic
replay will be available for a 24-hour period and can be accessed by dialing
800-642-1687 and entering pass code 792358. The Internet replay will be
available for 60 days and can be accessed at http://www.vcall.com or
http://www.asvi.com in the same manner as discussed above.
ASV designs, manufactures and sells all-season, track-drive vehicles and
related accessories and attachments. With its patent-pending Maximum Traction
and Support System(TM) undercarriage, ASV leads all rubber-tracked,
all-purpose crawlers in technology and innovation. ASV's products traverse
nearly any terrain with minimal damage to the ground, making them effective in
industries such as construction, landscaping and agriculture.
To learn more about ASV Inc. and the Posi-Track all-purpose crawler, visit
the Company's web site at http://www.asvi.com
Note: The statements set forth above regarding ASV's anticipated future
sales, its plans to jointly develop and manufacture rubber-tracked machines
with Caterpillar, including the number of models to be developed, the timing
of their planned introduction and ASV's overall revenue goals are
forward-looking statements based on current expectations and assumptions, and
entail various risks and uncertainties that could cause actual results to
differ materially from those expressed in such forward-looking statements.
Certain factors may affect whether these machines are ultimately produced
including ASV's ability to successfully manufacture the machines,
unanticipated delays, costs or other difficulties in the manufacture of the
machines, market acceptance of the machines, general market conditions,
corporate developments at ASV, Polaris or Caterpillar and ASV's ability to
realize the anticipated benefits from its relationship with Polaris and
Caterpillar. Actual results might differ materially from those anticipated in
such forward-looking statements. Any forward-looking statements provided from
time-to-time by the Company represent only management's then-best current
estimate of future results or trends. Additional information regarding these
risk factors and uncertainties is detailed from time to time in the company's
SEC filings, including but not limited to, its report on Form 10-Q for the
nine months ended September 30, 2000.
Condensed financial statements are as follows:
A.S.V., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Three months ended March 31, 2001 and 2000
2001 2000
Net sales $12,954,716 $11,183,584
Cost of goods sold 10,747,898 8,650,914
Gross profit 2,206,818 2,532,670
Operating expenses
Selling, general and administrative 1,430,736 1,670,323
Research and development 607,499 135,148
Operating income 168,583 727,199
Other income (expense)
Interest expense (36,825) (93,203)
Other, net 176,212 29,765
Income before income taxes 307,970 663,761
Provision for income taxes 104,000 247,000
NET EARNINGS $203,970 $416,761
Net earnings per common share
-- Diluted $.02 $.04
Diluted weighted average
shares outstanding 10,316,369 9,955,040
A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS March 31, December 31,
2001 2000
CURRENT ASSETS
Cash & short-term investments $7,500,657 $10,762,143
Accounts receivable, net 16,577,428 10,557,907
Inventories 28,240,313 28,064,998
Prepaid expenses and other 961,822 965,026
Total current assets 53,280,220 50,350,074
PROPERTY AND EQUIPMENT, net 4,581,041 4,656,118
Total assets $57,861,261 $55,006,192
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term
liabilities $82,858 $82,090
Accounts payable 4,319,628 1,822,912
Accrued liabilities 1,122,889 1,023,924
Income taxes payable 234,784 197,021
Total current liabilities 5,760,159 3,125,947
LONG-TERM LIABILITIES, less
current portion 2,095,985 2,116,898
SHAREHOLDERS' EQUITY 50,005,117 49,763,347
Total liabilities &
shareholders' equity $57,861,261 $55,006,192
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