ASV Posts Earnings for Q4 and Fiscal 1997
26 February 1998
ASV Posts Record Earnings for 4th Quarter and Fiscal 1997
Quarterly Sales Up 122%, Earnings Up 183%
GRAND RAPIDS, Minn., Feb. 26 -- ASV, Inc.
announced today record sales and earnings for its fourth quarter and year
ended December 31, 1997. Net sales for the three months ended December 31,
1997 were $8,027,779, an increase of 122% over the same period for 1996.
Fourth quarter 1997 net income more than tripled to $1,002,090, or $.17 per
share compared with net income of $318,308 or $.06 per share for fourth
quarter 1996. Net sales for the twelve months ended December 31, 1997
increased 98% to $24,315,591 compared with $12,266,499 for 1996. Fiscal 1997
net income rose to $2,323,557, or $.43 per share compared with net income of
$921,509, or $.18 per share for 1996.
4th Quarter - 12/31 1997 1996 % Change
Net Sales $8,027,779 $3,613,762 +122%
Gross Profit 2,268,135 962,422 +136%
Operating Income 1,605,103 509,699 +215%
Net Income 1,002,090 318,308 +215%
Net Income/Share-Diluted** $.17 $.06 +183%
Shares Outstanding-Diluted 6,020,254 5,682,192
Year-End - 12/31 1997 1996 % Change
Net Sales $24,315,591 $12,266,499 +98%
Gross Profit 6,201,681 2,924,639 +112%
Operating Income 3,754,394 1,423,594 +164%
Net Income 2,323,557 921,509 +152%
Net Income/Share-Diluted** $.43 $.18 +139%
Shares Outstanding-Diluted 5,933,767 5,267,170
** Includes addback of after-tax interest expense for convertible
debentures for all periods presented.
ASV President Gary Lemke, commenting on the above results, states, "Fourth
quarter 1997 was our strongest quarter ever, with sales of all four ASV main
products. Sales of the HD 4500 series of Posi-Track(TM) were very strong in
its first full quarter of production. The end users appreciate its additional
power and maintenance-free suspension. Fourth quarter 1997 also saw the
initial sales of our largest unit, the Posi-Track DX 4530, with approximately
$1,000,000 of our sales increase coming from this model. The Track Truck(R)
and MD-70 Posi-Track also sold well, even with the addition of these two new
models. Gross profit for fourth quarter 1997 increased to 28.3% of net sales,
compared with 26.6% of net sales in 1996, primarily due to increased sales of
the HD Posi-Tracks, as well as the DX Posi-Tracks which were sold direct to
the end user."
For fiscal 1997, Posi-Track unit sales increased 101% over 1996 while
Track Truck unit sales decreased 38% due to the introduction of the DX 4530
model, which serves some of the same markets as the Track Truck. Lemke
states, "The increased Posi-Track production and change in product mix
improved our gross profit to 25.5% of net sales in l997 from 23.8% of net
sales in l996. Even with increased sales, our selling, general and
administrative expenses decreased as a percent of sales from 10.8% in 1996 to
9.2% in 1997."
Lemke continues, "We are very pleased with our results for 1997. But what
we are most excited about is we now have many items in place to increase
production. We believe the investments we have made in people and facilities
position us well for future growth."
ASV, Inc. 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.
SOURCE ASV, Inc.