ASV Reports Q1 1998 Earnings
21 April 1998
ASV's Earnings Increase 151% For 1st Quarter 1998
Board of Directors Declares 3-For-2 Stock Split
GRAND RAPIDS, Minn., April 21 -- ASV, Inc.
today announced record sales levels for its first quarter 1998 with earnings
increasing 151% over first quarter 1997. Net sales for the three months ended
March 11, 1998 totaled $9,028,838, a 94% increase over the three months ended
March 31, 1997. Net income for first quarter 1998 rose 151% to $791,838
compared with $315,542 for first quarter 1997. Earnings per share more than
doubled to $.14 for first quarter 1998 compared with $.06 for 1997. The 1998
figures represent ASV's thirteenth consecutive quarter of record sales.
ASV President Gary Lemke attributes the improved results to the strong
demand for ASV's newest model Posi-Track(TM), the HD 4500 series. Lemke
states, "Posi-Track related sales more than doubled in first quarter 1998 with
the majority of sales coming from the HD 4500 series Posi-Track. Customers
are buying the HD model for its maintenance-free undercarriage and greater
power. ASV plans to utilize this same maintenance-free undercarriage under
our original model Posi-Track, the MD-70, in second quarter 1998 with the
introduction of the model MD 2800. This model will provide those customers
who like the lighter weight of the MD-70 with the increased benefits of the
maintenance-free undercarriage. Our increased sales are also due, in part, to
our growing network of Posi-Track dealers. In the first quarter of 1998,
shipments were made to new dealers in California, Alaska, Iowa, Washington,
Kansas and New Zealand."
ASV also announced today that its Board of Directors has declared a
3-for-2 stock split in the form of a stock dividend. The stock split will be
issued May 14, 1998 to shareholders of record as of May 4, 1998 and will
increase the number of shares outstanding to approximately 7.5 million. All
share and per share data are presented prior to this split.
Commenting on the stock split, Lemke said, "This split, our second in 16
months, comes as ASV is experiencing record sales levels and increased
earnings. We hope the split will enhance the marketability of ASV stock as
well as make our stock more available to a wider range of investors. Our
expanded manufacturing facility is working out very well with production
levels increasing each month. Our dealer network continues to expand with
dealer inquiries continuing at strong levels. We believe ASV is positioned
well for future growth."
ASV designs, manufactures and sells track-driven all-season 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.
A.S.V., INC.
CONDENSED, CONSOLIDATED STATEMENTS OF EARNINGS
Three months ended March 31, 1998 and 1997
1998 1997
Net sales $9,028,838 $4,651,185
Cost of goods sold 6,770,995 3,582,043
Gross Profit 2,257,843 1,069,142
Operating expenses:
Selling, general and
administrative 808,195 488,057
Research and development 98,449 44,938
906,644 532,995
Operating income 1,351,199 536,147
Other income (expense)
Interest expense (128,946) (92,952)
Other, net 34,585 65,347
Income before income
taxes 1,256,838 508,542
Provision for income taxes 465,000 193,000
NET INCOME $791,838 $315,542
Net income per common share
- Diluted ** $.14 $.06
Diluted weighted average
shares 5,945,788 5,866,200
** Includes add back of after-tax effect of interest expense for
convertible debentures.
A.S.V., INC.
CONDENSED, CONSOLIDATED BALANCE SHEETS
March 31, 1998 and 1997
ASSETS
1998 1997
CURRENT ASSETS
Cash & short-term
investments $1,928,188 $5,531,300
Accounts receivable, net 2,685,560 1,177,649
Inventories 12,658,598 6,171,165
Prepaid expenses and
other 355,058 259,526
Total current assets 17,627,404 13,139,640
PROPERTY AND EQUIPMENT,
net 4,374,498 1,765,130
Total assets $22,O01,902 $14,904,770
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-
term liabilities $217,515 $ --
Accounts payable 2,334,734 1,928,557
Accrued expenses 644,901 374,743
Income taxes payable 447,924 87,954
Total current
liabilities 3,645,074 2,391,254
LONG-TERM LIABILITIES,
less current portion 7,452,926 5,708,582
SHAREHOLDERS' EQUITY 10,903,902 6,804,934
Total liabilities &
shareholders' equity $22,001,902 $14,904,770
SOURCE ASV, Inc.