ASV Reports 1st Quarter 2000 Results; Net Sales Up 32%
20 April 2000
ASV Reports 1st Quarter 2000 Results; Net Sales Up 32%
GRAND RAPIDS, Minn., April 20 ASV, Inc. (Nasdaq: ASVI)
today reported its first quarter 2000 financial results. Net sales for the
three months ended March 31, 2000, totaled $11,183,584, a 32 percent increase
from net sales of $8,462,645 for the same period in 1999. Net income for
first quarter 2000 was $416,761 compared with $648,947 for first quarter 1999.
Earnings per share were $.04 compared with $.07 for first quarter 1999.
Commenting on the results, Gary Lemke, President of ASV, Inc., said,
"First quarter 2000 saw improvements and growth in several areas of our
operations compared with previous quarters. We had increased sales of ASV's
4810 and 2800 series Posi-Track products as well as increased production. The
investments we've made in refining some of our internal processes, dealer
support programs and increased dealer training are starting to pay off as
expected. Our dealers now understand both our product and the customer
better, which has resulted in increased order levels.
"We have also seen several key Caterpillar dealers sign on with ASV in
2000. Additionally, we made our first shipments of Posi-Tracks to Mexico in
the first quarter of 2000. With the help of Caterpillar's Latin American
marketing subsidiary, we anticipate extending the success of this new and
exciting relationship into other emerging markets throughout the remainder of
the year.
The product quality program we put in place in 1999 is starting to show
the positive results that we expected. We are seeing increased dealer and
customer satisfaction and decreased warranty costs in 2000. In addition, we
believe the dealer support programs we are utilizing helped drive the
increased sales we experienced in the first quarter."
Continuing, Lemke states, "Unit production was as expected for the first
quarter of 2000, but was less than the first quarter of 1999. This, combined
with greater sales of used equipment, resulted in a lower gross profit
percentage for the same time period in 2000. Selling, general and
administrative expenses increased due to the field service reps hired in the
fourth quarter of 1999 and a full quarter of commissions paid to Caterpillar
in 2000. Also, we increased our investment in research and development in the
first quarter of 2000 as work on our new small machine continues towards
initial production."
ASV has begun the planning for the initial production run of its newest
product scheduled for the second quarter of 2000. Built on a rubber-track
suspension and weighing approximately 2,600 pounds, this new machine will be
marketed to the robust landscape and homeowner market. Commenting on this new
product, Lemke says, "The number one opportunity for landscapers to grow their
business is through diligent management of labor. We believe this new model
will be the ideal machine for landscaping companies seeking to increase
productivity without the need to hire additional labor."
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.posi-track.com . For additional
financial information about ASV Inc., visit http://www.nasdaq.com .
Note: The statements regarding ASV's anticipated production timing of its
new smaller machine, the expansion of ASV's dealer network into other emerging
markets and other statements 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 market acceptance of ASV's current and expected future model machines,
ASV's ability to achieve timely production and enter into appropriate
distribution arrangements for its new smaller machine and 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-Q
for the six months ended June 30, 1999.
Condensed financial statements are as follows:
A.S.V., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Three months ended March 31, 2000 and 1999
2000 1999
Net sales $11,183,584 $8,462,645
Cost of goods sold 8,650,914 6,225,518
Gross profit 2,532,670 2,237,127
Operating expenses:
Selling, general and administrative 1,670,323 1,113,159
Research and development 135,148 108,208
1,805,471 1,221,367
Operating income 727,199 1,015,760
Other income (expense)
Interest expense (93,203) (65,903)
Other, net 29,765 84,090
Income before income taxes 663,761 1,033,947
Provision for income taxes 2 47,000 385,000
NET INCOME $416,761 $648,947
Net income per common share - Diluted $.04 $.07
Diluted weighted average shares outstanding 9,955,040 9,679,889
A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 2000 and December 31, 1999
ASSETS March 31, December 31,
2000 1999
CURRENT ASSETS
Cash & short-term investments $1,672,193 $1,990,880
Accounts receivable, net 10,872,157 8,661,049
Inventories 30,624,115 32,391,256
Prepaid expenses and other 819,859 811,076
Total current assets 43,988,324 43,854,261
PROPERTY AND EQUIPMENT, net 4,778,063 4,795,674
Total assets $48,766,387 $48,649,935
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Line of credit $2,980,000 $4,080,000
Current portion of long-term liabilities 79,857 254,412
Accounts payable 2,429,347 1,775,883
Accrued expenses 1,297,747 1,246,673
Income taxes payable 212,083 --
Total current liabilities 6,999,034 7,356,968
LONG-TERM LIABILITIES, less current portion 2,177,147 2,197,046
SHAREHOLDERS' EQUITY 39,590,206 39,095,921
Total liabilities & shareholders' equity $48,766,387 $48,649,935