Exhibit 99
For more information
Jay Lemke
Carmichael Lynch Spong
(612) 375-8529
jlemke@clynch.com
ASV Reports 3rd Quarter 2002 Results
Earnings Per Share Increases from $.01 to $.05
GRAND RAPIDS, MN (October 29, 2002) - ASV, Inc. (NASDAQ: ASVI) today
reported results for its third quarter ended September 30, 2002. Net sales for
the third quarter of 2002 totaled $11,474,655, compared with $12,052,998 for the
same period in 2001. For the three months ended September 30, 2002, operating
expenses decreased 38% compared with the same period in 2001. This decrease
resulted in increased net earnings for the third quarter of 2002 of $526,610, or
$.05 per share, compared with $92,882, or $.01 per share, for the third quarter
of 2001.
For the nine months ended September 30, 2002, net sales totaled
$32,366,419, compared with $39,233,875 for the same period in 2001. Offsetting
the decrease in net sales was a 520 basis point increase in gross profit
percentage for the nine months ended September 30, 2002 compared with the same
period in 2001 and a decrease in operating expenses of approximately $916,000 in
2002 over 2001. These items resulted in net earnings of $1,174,532 for the nine
months ended September 30, 2002, compared with $387,626 for the same period in
2001 and earnings per share of $.11 in 2002, compared with $.04 for 2001.
"Our sales for the third quarter of 2002 reflected the nationwide
slowdown in construction equipment spending by dealers," said ASV President Gary
Lemke. "In addition, third quarter shipments of ASV undercarriages for use on
the 267 and 277 models of Caterpillar's (NYSE: CAT) Multi-Terrain Loaders (MTL)
were less than originally expected. This decrease was due to a production issue
experienced by Caterpillar, which is unrelated to ASV's undercarriage. This
issue has now been resolved and limited production of the affected models is
expected to resume in the fourth quarter of 2002, with full production expected
in the first quarter of 2003. However, Caterpillar has increased their orders
for ASV undercarriages for use on the 247 and 257 model MTLs by approximately
40% since production began in the third quarter of 2002."
Another area that experienced increased sales activity in the third
quarter of 2002 was sales to rental equipment dealers. During the third quarter
of 2002, ASV began a pilot program of marketing its machines to rental equipment
dealers. Based on the success of that program ASV implemented a program in
October 2002 to significantly increase its marketing effort to the rental
equipment market, with its sales force concentrating heavily on rental equipment
dealers. Commenting on the new program, Lemke stated, "Our success in marketing
to the rental market during the third quarter of 2002 encouraged us to expand
that program. We believe we have developed a very simple plan to market to the
rental equipment market, a plan that makes it very easy for the rental equipment
dealer to attain positive cash flow from our machines from day one."
For the three months ended September 30, 2002, the Company's operating
income increased over $770,000 compared with the same period in 2001. Commenting
on this increase, Lemke stated, "The increase in operating income was due
primarily to decreased research and development expenditures as we near the
completion of the development of undercarriages for Caterpillar's MTL product
line. In addition, selling, general and administrative expenses also decreased,
due, in part, to lower commissions paid to Caterpillar as a greater
concentration of products sold in the third quarter of 2002 were not
commissionable products."
During the third quarter of 2002, ASV recorded a gross profit
percentage of 18.5%, up slightly from 18.3% for the third quarter of 2001, but
down from the gross profit percentage experienced for the six months ended June
30, 2002 of 23.4%. This decrease was attributable to the greater concentration
of undercarriages sold to Caterpillar for use on their 247 and 257 model MTLs,
which carry a lower selling price and thus a lower gross profit than the
undercarriages sold to Caterpillar for use on its larger MTL models. A similar
sales mix is expected for the fourth quarter of 2002.
The Company recently announced its expected level of net sales for the
remainder of 2002 and fiscal 2003. Net sales for 2002 are projected to be in the
range of $43-47 million with net earnings projected to be $.12-.16 per share on
a diluted basis for 2002. The Company's outlook for fiscal 2003 includes net
sales projected in the range of $55-65 million and net earnings projected in the
range of $.32-.44 per share on a diluted basis.
Conference Call
ASV will conduct a live Webcast at 9 a.m. Central time, Tuesday,
October 29th to discuss these matters. 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 264507. 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, 2002.
Condensed financial statements are as follows:
A.S.V., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
<Table>
<Caption>
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------- ----------------------------
2002 2001 2002 2001
------------ ------------ ------------ ------------
Net sales ....................................... $ 11,474,655 $ 12,052,998 $ 32,366,419 $ 39,233,875
Cost of goods sold .............................. 9,352,291 9,848,404 25,347,394 32,774,236
------------ ------------ ------------ ------------
Gross profit ........................... 2,122,364 2,204,594 7,019,025 6,459,639
Operating expenses:
Selling, general and administrative ........ 1,120,999 1,429,160 3,705,835 4,302,697
Research and development ................... 248,663 794,049 1,631,408 1,950,305
------------ ------------ ------------ ------------
Operating income (loss) ................ 752,702 (18,615) 1,681,782 206,637
Other income (expense)
Interest expense ........................... (31,536) (37,004) (95,233) (110,742)
Other, net ................................ 60,444 119,501 172,983 408,731
------------ ------------ ------------ ------------
Income before income taxes ............. 781,610 63,882 1,759,532 504,626
Provision for (benefit from) income taxes ....... 255,000 (29,000) 585,000 117,000
------------ ------------ ------------ ------------
NET EARNINGS ............................... $ 526,610 $ 92,882 $ 1,174,532 $ 387,626
============ ============ ============ ============
Net earnings per common share - Diluted ......... $ .05 $ .01 $ .11 $ .04
============ ============ ============ ============
Diluted weighted average shares ................. 10,253,347 10,445,298 10,248,290 10,366,486
============ ============ ============ ============
</Table>
A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
<Table>
<Caption>
September 30, December 31,
2002 2001
------------- ------------
ASSETS
CURRENT ASSETS
Cash & short-term investments ............... $ 1,648,369 $ 5,946,840
Accounts receivable, net .................... 18,123,195 16,828,489
Inventories ................................. 34,961,445 28,614,053
Prepaid expenses and other .................. 762,119 1,756,844
------------- ------------
Total current assets .................... 55,495,128 53,146,226
PROPERTY AND EQUIPMENT, net ..................... 4,763,237 4,794,578
------------- ------------
Total assets ............................ $ 60,258,365 $ 57,940,804
============= ============
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Line of credit .............................. $ 440,000 $ --
Current portion of long-term liabilities .... 108,346 106,008
Accounts payable ............................ 4,172,664 2,449,144
Accrued liabilities ......................... 2,067,925 2,296,455
Income taxes payable ........................ 244,993 505,062
------------- ------------
Total current liabilities ............... 7,033,928 5,356,669
LONG-TERM LIABILITIES, less current portion ..... 1,932,582 2,012,652
SHAREHOLDERS' EQUITY ............................ 51,291,855 50,571,483
------------- ------------
Total liabilities & shareholders' equity ........ $ 60,258,365 $ 57,940,804
============= ============
</Table>