ASV Announces 2nd Quarter 2000 Results
20 July 2000
Net Sales Rise 34% in Record Quarter
GRAND RAPIDS, Minn. - ASV, Inc. today reported its results for the second
quarter ended June 30, 2000. Second quarter 2000 net sales increased 34% to
$12,124,441 compared with $9,064,173 for the same period in 1999. Second
quarter 2000 net earnings totaled $599,308, or $.06 per share, compared with
$688,695, or $.07 per share for the second quarter of 1999.
For the six months ended June 30, 2000, net sales increased 33% to
$23,308,025 compared with $17,526,818 for the same period in 1999. Net
earnings for the six months ended June 30, 2000 were $1,016,069 compared with
$1,337,642 for the same period in 1999; and earnings per share were $.10 in
2000 compared with $.14 for 1999.
Commenting on the results, Gary Lemke, President of ASV, Inc., said,
"ASV's second quarter of 2000 was our highest sales quarter ever. We
attribute these record sales to the continued increased sales of our 4810
Posi-Track(TM). The combination of ASV's Maximum Traction and Support
System(TM) undercarriage and the Caterpillar components utilized on the 4810
have made it a good complement to Caterpillar dealers' product lines. We
believe the quality of the 4810 and our ability to develop
highly-differentiated equipment played a part in Caterpillar Inc.'s recent
planned decision to increase their ownership in ASV."
ASV recently announced it has signed a non-binding letter of intent with
Caterpillar that calls for Caterpillar to make an additional investment in
ASV. Caterpillar is expected to purchase an additional half-million newly
issued shares at $18 per share, increasing its ownership in ASV to
approximately 15%. The proceeds will help fund ASV participation in new
product development programs.
Continuing, Lemke states, "Our increased sales of used equipment and
slightly lower unit production resulted in ASV's gross profit percentage
decreasing during second quarter 2000 when compared with second quarter 1999.
Selling, general and administrative expenses increased in the second quarter
of 2000 due to the field service reps hired in the fourth quarter of 1999 and
increased commissions paid to Caterpillar as a greater concentration of sales
were made to Caterpillar dealers. Our investment in research and development
decreased slightly in the second quarter of 2000 as we completed our testing
and began production of our newest model, the RC-30 All Surface Loader."
ASV's latest product offering, the RC-30, is designated as an All Surface
Loader. It is similar in features to the larger Posi-Track models. It
measures 91 inches long, 46.5 inches wide and weighs 2,935 pounds --
significantly smaller than any other Posi-Track model. A full line of
dedicated attachments is also ready for production. The RC-30 will be
marketed primarily to the robust landscape industry.
Commenting on this new product, Lemke says, "After more than two years of
research, development and field testing, we're very pleased to bring this
exciting new machine to the marketplace. Based on the response from users in
our field test, we believe we've hit the right combination of machine size and
features for this growing market. We're also pleased to have already received
significant coverage on the RC-30 from large media outlets such as the
Washington Post and the Atlanta Journal-Constitution."
The RC-30 will be formally introduced to the public at the Expo 2000 Lawn,
Garden and Power Equipment Show in Louisville, KY on July 22-24. ASV plans to
distribute the RC-30 through non-exclusive, independent dealers and other
channels. Sales of the RC-30 began in July 2000.
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 line of
rubber-tracked machines traverse nearly any terrain with minimal damage to the
ground, making it effective in industries such as construction, landscaping
and agriculture.
Condensed financial statements are as follows:
A.S.V., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Net sales $12,124,441 $9,064,173 $23,308,025 $17,526,818
Cost of goods sold 9,157,072 6,645,345 17,807,986 12,870,863
Gross profit 2,967,369 2,418,828 5,500,039 4,655,955
Operating expenses:
Selling, general and
administrative 1,847,874 1,252,499 3,518,197 2,365,658
Research and development 121,222 155,176 256,370 263,384
Operating income 998,273 1,011,153 1,725,472 2,026,913
Other income (expense)
Interest expense (70,798) (60,229) (164,001) (126,132)
Other, net 24,833 62,771 54,598 146,861
Income before income
taxes 952,308 1,013,695 1,616,069 2,047,642
Provision for income taxes 353,000 325,000 600,000 710,000
NET EARNINGS $599,308 $688,695 $1,016,069 $1,337,642
Net earnings per common
share -- Diluted $.06 $.07 $.10 $.14
Diluted weighted average
shares 9,875,867 10,081,662 9,915,453 9,880,775
A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS June 30, December 31,
2000 1999
CURRENT ASSETS
Cash & short-term investments $1,298,581 $1,990,880
Accounts receivable, net 12,308,906 8,661,049
Inventories 29,798,312 32,391,256
Prepaid expenses and other 854,049 811,076
Total current assets 44,259,848 43,854,261
PROPERTY AND EQUIPMENT, net 4,715,040 4,795,674
Total assets $48,974,888 $48,649,935
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Line of credit $1,875,000 $4,080,000
Current portion of long-term liabilities 80,588 254,412
Accounts payable 2,972,142 1,775,883
Accrued expenses 1,376,111 1,246,673
Income taxes payable 250,952 --
Total current liabilities 6,554,793 7,356,968
LONG-TERM LIABILITIES, less current portion 2,157,342 2,197,046
SHAREHOLDERS' EQUITY 40,262,753 39,095,921
Total liabilities & shareholders' equity $48,974,888 $48,649,935