ASV Issues Preliminary Results for Third Quarter 1999
17 September 1999
ASV Issues Preliminary Results for Third Quarter 1999
GRAND RAPIDS, Minn., Sept. 16 -- ASV, Inc.
announced today that it expects net sales and earnings for its third quarter
ending September 30, 1999 to be less than it reported for second quarter 1999.
ASV expects third quarter 1999 net sales to be 6-12% less than the $9,064,173
reported net sales for second quarter 1999. Earnings per share are expected
to be less than the $.07 reported for second quarter 1999.
Discussing the preliminary figures, ASV President Gary Lemke states, "The
transition of selling our Posi-Track products to the Caterpillar dealer
network has taken longer than we originally anticipated and we expect to see
some of these transitional effects continue in the short-term. In addition,
we encountered unexpected delays in the start up production of our newest
model Posi-Track, the 4810. However, we remain optimistic about the future
growth possibilities resulting from the association of ASV with Caterpillar.
We believe the ability to distribute our products to the North American
Caterpillar dealers and eventually Caterpillar dealers around the world will
be very beneficial to ASV on a long-term basis."
ASV has now begun full-scale production of its newest model Posi-Track,
the 4810. This model represents ASV's first Caterpillar powered product,
utilizing the Caterpillar 3054 turbo diesel engine. The 4810 incorporates
ASV's Maximum Traction and Support System (MTSS) undercarriage, which was
introduced in 1997. The 4810 replaces ASV's HD4500 series and incorporates
many enhancements and additional features. The 4810 has a retail price of
between $50,000 and $55,000 in its most common configuration.
ASV designs, manufactures and sells all-purpose crawlers 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.
Note: Certain statements contained in this press release that are not
historical in nature, including statements regarding the level of the
Company's sales and earnings per share expected for the third quarter of 1999
and the future benefits of the Company's association with Caterpillar and its
access to the Caterpillar dealer network, are forward-looking statements based
on the Company's 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. Factors which could
affect the achievement of the results implied by the forward-looking
statements include the actual level of sales the Company achieves during the
remainder of the third quarter, the Company's actual expenses for the third
quarter, further unexpected delays in the production of the Posi-Track 4810
and the Company's ability to successfully shift the sale of its products to
the Caterpillar dealer network. 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, and in its report on Form 10-Q for the three and six
months ended June 30, 1999.