ASV Posts 15th Record Quarter
20 October 1998
ASV Posts 15th Record Quarter; Sales Up 83%, Earnings Up 107%
GRAND RAPIDS, Minn., Oct. 20 -- A.S.V., Inc.
today announced another record quarter with its results for the third quarter
of 1998. ASV recorded its 15th consecutive quarter of record sales with net
sales for the three months ended September 30, 1998 totaling $11,397,903 -- an
83% increase over the same period in 1997. Net income for third quarter 1998
rose 107% to $1,122,418 compared with $541,032 for third quarter 1997.
Earnings per share increased 86% to $.13 for third quarter 1998 compared with
$.07 for third quarter 1997. Net sales for the nine months ended
September 30, 1998 totaled $30,911,020 compared with $16,287,812 for the nine
months ended September 30, 1997. Net income through September 30, 1998 was
$2,841,335, or $.33 per share, compared with $1,321,467, or $.17 per share,
for 1997.
ASV attributes its increased sales to the success of ASV's Posi-Track(TM)
machines. "ASV's third quarter set another record for sales and production,"
said Gary Lemke, president of A.S.V., Inc. "This sales record occurred, even
with the start of production of our new MD series Posi-Track. The MD series
incorporates the same maintenance-free suspension found on ASV's popular HD
series, but in a lighter weight, lower priced machine. We believe the MD
series can be an excellent machine for the expanding rental market."
ASV last week announced a strategic alliance with Caterpillar Inc. Under
the alliance, Caterpillar will purchase one million shares of ASV's common
stock and receive a warrant to purchase a controlling interest in ASV. In
return, ASV will have access to Caterpillar's world-wide dealer network to
distribute its Posi-Track products, as well as management, financial and
engineering resources. In addition, ASV and Caterpillar will form a joint
venture to develop and manufacture future product offerings. The agreement
with Caterpillar, subject to regulatory and ASV shareholder approval, is
expected to be finalized within 90 days.
ASV designs, manufactures and sells all-season track-driven 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. More
information on ASV can be found on its web site at http://www.asvi.com
3rd Quarter, 9/30: 1998 1997 % change
Revenue $11,398 $6,229 +83.0
Net 1,122 541 +107.4
Net/Shr .13 .07 +85.7
9 Months 1998 1997 % change
Revenue $30,911 6,288 +89.8
Net 2,841 1,321 +115.0
Net/Shr .33 .17 +94.1
Figures in thousands, except for earnings per share.
A.S.V., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1997 1998 1997
Net sales $11,397,903 $6,228,812 $30,911,020 $16,287,812
Cost of goods sold 8,593,602 4,656,783 23,287,612 12,354,266
Gross profit 2,804,301 1,572,029 7,623,408 3,933,546
Operating expenses:
Selling, general
and administrative 832,962 601,365 2,583,860 1,620,770
Research and
development 77,412 55,830 280,949 163,485
910,374 657,195 2,864,809 1,784,255
Operating
income 1,893,927 914,834 4,758,599 2,149,291
Other income
(expense)
Interest expense (128,085) (93,029) (383,610) (278,969)
Other, net 31,576 50,227 171,346 261,145
Income before
income taxes 1,797,418 872,032 4,546,335 2,131,467
Provision for
income taxes 675,000 331,000 1,705,000 810,000
NET INCOME $1,122,418 $541,032 $2,841,335 $1,321,467
Net income per
common share --
Diluted** $.13 $.07 $.33 $.17
Diluted weighted
average shares 9,084,640 9,008,023 9,011,689 8,857,408
** Includes add-back of after-tax effect of interest expense for
convertible debentures.
A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS September 30, December 31,
1998 1997
CURRENT ASSETS
Cash & short-term
investments $1,236,301 $1,571,759
Accounts receivable,
net 3,103,581 1,989,906
Inventories 16,216,241 11,674,027
Other current assets 751,060 342,896
Total current assets 21,307,183 15,578,588
PROPERTY AND EQUIPMENT,
net 4,432,394 3,636,091
Total assets $25,739,577 $19,214,679
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of
long-term liabilities $219,348 $ --
Accounts payable 3,424,920 1,474,701
Accrued expenses 911,758 560,597
Income taxes payable -- 201,674
Total current
liabilities 4,556,026 2,236,972
LONG-TERM LIABILITIES,
less current portion 7,438,519 7,020,608
SHAREHOLDERS' EQUITY 13,745,032 9,957,099
Total liabilities &
shareholders'
equity $25,739,577 $19,214,679