EXHIBIT 99
For more information
Jay Lemke
Carmichael Lynch Spong
(612) 375-8529
jlemke@clynch.com
ASV REPORTS RESULTS FOR 2ND QUARTER 2002
EARNINGS EXCEED $1 MILLION FOR CURRENT QUARTER
GRAND RAPIDS, MN (JULY 25, 2002) - ASV, INC. (NASDAQ: ASVI) today
reported its net sales for the second quarter of 2002 increased to $14,713,936,
the highest quarterly net sales figure in the Company's history, compared with
$14,226,161 for the same period in 2001. Due primarily to a significant increase
in the Company's gross profit percentage, net earnings increased more than
ten-fold to $1,013,503, or $.10 per share, for the second quarter of 2002
compared with $90,774, or $.01 per share, for the second quarter of 2001.
For the six months ended June 30, 2002, net sales totaled $20,891,764,
compared to $27,180,877 for the same period in 2001. Net earnings were $647,922,
or $.06 per share, for the six months ended June 30, 2002 compared with
$294,744, or $.03 per share, for the same period in 2001.
"Second quarter 2002 saw a return of undercarriage shipments to
Caterpillar Inc. (NYSE: CAT) for use in the first two models of our
jointly-developed Multi-Terrain Loaders(TM) (MTL)," said Gary Lemke, President
of ASV, Inc. "The second quarter of 2002 was our first full quarter of
production of our RCo50 which experienced strong demand. In addition, we began
shipping the newest product in our R-Series product line during the second
quarter of 2002, the Ro50, the companion product to our RCo50. As expected, ASV
had no shipments to Polaris Industries Inc. (NYSE: PII) of the private label
version of ASV's RCo30, the Polaris ASL-300, during the second quarter of 2002.
All of these items contributed to our increased gross profit percentage and net
earnings for the quarter, even as we increased our investment in research and
development with Caterpillar for the development of future MTL models."
ASV experienced increased sales during the second quarter of 2002, even
after recording sales returns of approximately $1,058,000, which directly
reduced the Company's sales. These returns relate to product sold in prior
periods which were returned to ASV from one of its dealers in 2002. The Company
does not anticipate further product returns from this dealer. ASV had originally
anticipated these machines would be remarketed to other dealers, but instead
chose to utilize these machines in its new rental program which began in the
second quarter.
Under this rental program, machines are being placed at rental
facilities within Minnesota, with ASV receiving a share of the rental proceeds.
If the rental facility wishes to purchase the machine, all rental proceeds
previously paid to ASV during the initial 90-day period are applied to the
purchase price of the machine. Commenting on the new rental program, Lemke
stated, "We have always believed that once a customer uses one of our machines,
the chance of purchasing the machine increases greatly. This rental program
gives more customers the opportunity to experience the features and benefits of
an RCo30. We have already had several rental machines convert to sales from this
program."
Discussing future MTL shipments, Lemke continued, "Because of
production issues unrelated to ASV's undercarriage which have been experienced
at Caterpillar's North Carolina production facility, the overall quantities of
MTL undercarriages to be shipped in 2002 is expected to decrease from levels
originally anticipated. Production of the undercarriage for the next two MTL
models, which had been planned to start at the end of the second quarter, went
into production in mid-July. Production of the undercarriage for the fifth and
final MTL model is now expected to begin in the fourth quarter of 2002."
Discussing ASV's overall outlook for 2002 Lemke states, "Based upon the
results we have achieved during the first half of 2002, and the expected
decrease in undercarriage shipments to Caterpillar, we have revised our sales
expectations for 2002 to $55-60 million, with earnings for 2002 expected to be
in the range of $.26-.34 per share."
CONFERENCE CALL
ASV will conduct a live Webcast at 11:30 a.m. Central time, Thursday,
July 25th to discuss its results for the second quarter of 2002 and its outlook
for the rest of 2002. The call will be broadcast over the Internet and can be
accessed either at www.vcall.com or ASV's web site, www.asvi.com, in the
investor relations section under the "About ASV" tab. To listen to the call, go
to either of the two Web sites at least 15 minutes prior to the call to
register, download and install any needed audio software. A replay of this call
will be available beginning one hour after its conclusion both telephonically
and over the Internet. The telephonic replay will be available for a 24-hour
period and can be accessed by dialing 800-428-6051 and entering pass code
253754. The Internet replay will be available for 90 days and can be accessed at
www.vcall.com or www.asvi.com in the same manner as discussed above.
ABOUT ASV
ASV designs, manufactures and sells all-purpose crawlers and related
accessories and attachments. With its patented Maximum Traction and Support
System undercarriage, ASV leads all rubber-tracked, all-purpose crawlers in
technology and innovation. ASV's products are able to traverse nearly any
terrain with minimal damage to the ground, making it effective in industries
such as construction, landscaping and agriculture. For more information, visit
ASV's website at www.asvi.com.
Note: The statements set forth above regarding ASV's future expected
sales and earnings levels and its expected production dates and volumes of its
undercarriages for sale to Caterpillar 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. Certain factors may affect whether these
anticipated events occur including ASV's ability to successfully manufacture the
machines, unanticipated delays, costs or other difficulties in the manufacture
of the machines, market acceptance of the machines, continued deterioration of
the general market and economic conditions, corporate developments at ASV or
Caterpillar and ASV's ability to realize the anticipated benefits from its
relationship with Caterpillar. Any forward-looking statements provided from
time-to-time by the Company represent only management's then-best current
estimate of future results or trends. 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
period ended June 30, 2001.
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,
------------------------------- -------------------------------
2002 2001 2002 2001
------------- -------------- ------------- --------------
Net sales................................... $ 14,713,936 $ 14,226,161 $ 20,891,764 $ 27,180,877
Cost of goods sold.......................... 11,241,963 12,177,934 15,995,103 22,925,832
------------- -------------- ------------- --------------
Gross profit....................... 3,471,973 2,048,227 4,896,661 4,255,045
Operating expenses:
Selling, general and administrative.... 1,252,804 1,442,801 2,584,836 2,873,537
Research and development............... 708,312 548,757 1,382,745 1,156,256
------------- -------------- ------------- --------------
Operating income................... 1,510,857 56,669 929,080 225,252
Other income (expense)
Interest expense....................... (32,550) (36,913) (63,697) (73,738)
Other, net............................. 46,196 113,018 112,539 289,230
------------- -------------- ------------- --------------
Income before income taxes......... 1,524,503 132,774 977,922 440,744
Provision for income taxes.................. 511,000 42,000 330,000 146,000
------------- -------------- ------------- --------------
NET EARNINGS........................... $ 1,013,503 $ 90,774 $ 647,922 $ 294,744
============= ============== ============= ==============
Net earnings per common share - Diluted... $ .10 $ .01 $ .06 $ .03
============= ============== ============= ==============
Diluted weighted average shares ............ 10,296,860 10,337,792 10,245,762 10,327,081
============= ============== ============= ==============
A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS JUNE 30, December 31,
2002 2001
-------------- -------------
CURRENT ASSETS
Cash & short-term investments............................ $ 1,660,567 $ 5,946,840
Accounts receivable, net................................. 21,249,642 16,828,489
Inventories.............................................. 31,855,453 28,614,053
Prepaid expenses and other............................... 930,440 1,756,844
-------------- -------------
Total current assets 55,696,102 53,146,226
PROPERTY AND EQUIPMENT, net.................................. 4,685,536 4,794,578
-------------- -------------
Total assets $ 60,381,638 $ 57,940,804
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LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Line of credit........................................... $ 455,000 $ -
Current portion of long-term liabilities................. 106,992 106,008
Accounts payable......................................... 4,503,802 2,449,144
Accrued liabilities...................................... 2,098,470 2,296,455
Income taxes payable..................................... 355,069 505,062
-------------- -------------
Total current liabilities 7,519,333 5,356,669
LONG-TERM LIABILITIES, less current portion.................. 1,959,813 2,012,652
SHAREHOLDERS' EQUITY......................................... 50,902,492 50,571,483
-------------- -------------
Total liabilities & shareholders' equity $ 60,381,638 $ 57,940,804
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