ASV Reports 1st Quarter 1999 Results
20 April 1999
ASV Reports 1st Quarter 1999 Results
GRAND RAPIDS, Minn., April 20 -- ASV, Inc.
today reported its first quarter 1999 financial results. Net sales for the
three months ended March 31, 1999, totaled $8,462,645, a 6 percent decrease
from net sales of $9,028,838 for the same period in 1998. Net income for
first quarter 1999 was $648,947 compared with $791,838 for first quarter 1998.
Earnings per share were $.07 compared with $.09 for first quarter 1998.
Gary Lemke, president of ASV, Inc., attributed the company's slight
decrease in sales to the continued transition of distributing the
Posi-Track(TM) all-purpose crawler through a primarily independent dealer
network to the Caterpillar dealer network. Caterpillar purchased an
8.8 percent share of ASV, Inc. in January 1999, that includes an agreement
that allows ASV, Inc. to market the Posi-Track crawler through Caterpillar's
worldwide dealer network.
"The transition to the Caterpillar dealer network is progressing very
smoothly," Lemke said. "We currently have 24 Caterpillar dealers in the United
States, Canada and Australia who sell the Posi-Track crawler. These 24 dealers
represent approximately 154 locations, compared to approximately 100 dealer
locations that marketed the Posi-Track at this time last year."
As part of the process to increase awareness and educate Caterpillar
dealers about the Posi-Track, ASV, Inc. demonstrated its Posi-Track machines
to Caterpillar dealers and customers from around the world at Caterpillar's
testing grounds in Arizona in March. ASV's Posi-Track rubber-tracked crawlers
participated in product demonstration displays for an estimated 6,000 dealers
and customers. This was the first time a non-Caterpillar product was featured
at the facility, providing ASV invaluable exposure to many potential customers
in a one week time span.
The Posi-Track MD2800 Series all-purpose crawler was recently honored by
Construction Equipment magazine as one of the 100 most significant product
introductions of 1998 and Heavy Equipment News as one of the top products of
1998, Lemke noted. The Posi-Track also has been featured recently in a number
of leading trade publications, including Tree Care Industry, Landscaping &
Groundskeeping Journal, Lawn & Landscape, Equipment Today, Heavy Equipment
Guide, and Equipment World, which reach the heart of the company's core
customer base.
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 primary product, the
Posi-Track, traverses nearly any terrain with minimal damage to the ground,
making it 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 . For additional financial
information about ASV Inc., visit http://www.nasdaq.com
Note: The statements regarding ASV Inc. contained in this release that
are not historical in nature, particularly those that utilize terminology such
as "may," "will," "expects," "anticipates," believes," "could," or "plans,"
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.
Political, economic, climatic, taxes, regulatory, technological, competitive
and other factors, such as ASV's ability to realize the anticipated benefits
from its relationship with Caterpillar and its dealers, could cause actual
results to differ materially from those anticipated in forward-looking
statements. 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-K for the year ended
December 31, 1998.
Condensed financial statements are as follows:
A.S.V., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Three months ended March 31, 1999 and 1998
1999 1998
Net sales $8,462,645 $9,028,838
Cost of goods sold 6,225,518 6,770,995
Gross profit 2,237,127 2,257,843
Operating expenses:
Selling, general and administrative 1,113,159 808,195
Research and development 108,208 98,449
1,221,367 906,644
Operating income 1,015,760 1,351,199
Other income (expense)
Interest expense (65,903) (128,946)
Other, net 84,090 34,585
Income before income taxes 1,033,947 1,256,838
Provision for income taxes 385,000 465,000
NET INCOME $648,947 $791,838
Net income per common share - Diluted ** $.07 $.09
Diluted weighted average shares 9,679,889 8,918,682
** Includes add back of after-tax effect of interest expense for
convertible debentures for 1998.
A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 1999 and December 31, 1998
ASSETS March 31, December 31,
1999 1998
CURRENT ASSETS
Cash & short-term investments $7,295,670 $551,600
Accounts receivable, net 6,062,114 4,563,840
Inventories 26,145,086 18,776,758
Prepaid expenses and other 687,366 1,076,446
Total current assets 40,190,236 24,968,644
PROPERTY AND EQUIPMENT, net 4,608,689 4,563,996
Total assets $44,798,925 $29,532,640
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Line of credit $ -- $3,535,000
Current portion of long-term liabilities 245,298 219,417
Accounts payable 3,239,883 2,913,526
Accrued expenses 966,190 885,072
Income taxes payable 85,747 --
Total current liabilities 4,537,118 7,553,01
LONG-TERM LIABILITIES, less current portion 2,255,065 2,464,385
SHAREHOLDERS' EQUITY 38,006,742 19,515,240
Total liabilities & shareholders' equity $44,798,925 $29,532,640