EXHIBIT 99
For more information
Jay Lemke
Carmichael Lynch Spong
(612) 375-8529
jlemke@clynch.com
ASV Announces 1st Quarter 2003 Results
Net Sales Increase 137% over 1st Quarter 2002
Grand Rapids, MN (April 24, 2003) -- ASV, Inc. (Nasdaq: ASVI) today
reported its financial results for its first quarter 2003. Net sales for the
three months ended March 31, 2003, totaled $14,612,230, an increase of 137%,
compared with net sales of $6,177,828 for the same period in 2002. The Company
reported net earnings of $767,583 for the first quarter of 2003, compared with a
net loss of ($365,581) for the first quarter of 2002. Earnings per share were
$.08 for the first quarter of 2003 compared with a loss per share of ($.04) for
the first quarter of 2002.
Commenting on the results, Gary Lemke, President of ASV, Inc., said, "The
first quarter of 2003 saw a return of shipments of ASV undercarriages to
Caterpillar Inc. (NYSE: CAT) for use on their Multi-Terrain Loader (MTL) models
267 and 277, as well as strong shipments of ASV undercarriages for use on Cat's
MTL models 247 and 257. We also began shipments of the undercarriage to be used
on Cat's MTL model 287, the fifth model in Caterpillar's MTL product line,
during the first quarter of 2003. In addition, ASV began production of our
latest model, the RC-100 Posi-Track, during the first quarter of 2003. Sales of
our RC-30 and RC-50 products to rental facilities also increased during the
first quarter of 2003 compared with the fourth quarter of 2002 when ASV began a
concentrated marketing effort to rental facilities."
In January 2003, ASV introduced the latest model in its R-Series product
line, the RC-100 Posi-Track. The RC-100 Posi-Track is the largest model in ASV's
R-Series line up, with features not found on other R-Series products. ASV
currently has an order backlog for the RC-100 Posi-Track of approximately $4
million for shipments to be made in 2003.
In further discussion of the results, Lemke said, "During the first quarter
of 2003, our gross profit percentage was lower than expected. This was due in
part to overtime wages paid to fulfill the order demand for our MTL
undercarriages and the RC-100 Posi-Track. The lower gross profit percentage can
also be attributed to inefficiencies experienced during the start of production
of the RC-100, due primarily to timing issues for the receipt of certain raw
materials. We believe most of these inefficiencies have now been resolved. Also
during the first quarter of 2003, our concentration of lower priced MTL
undercarriages was greater than what we expect for the remainder of the year.
Our operating expenses returned to more historical levels in the first quarter
of 2003. Our selling, general and administrative expenses were 9.9% of net sales
and our research and development expenses were 1.1% of net sales for the first
quarter of 2003, compared with 11.4% and 4.1%, respectively, for fiscal 2002."
On March 13, 2003, ASV finalized its marketing agreement with Jacobsen, a
division of Textron Inc. (NYSE: TXT). Jacobsen direct dealers will market the
ASV RC-30 and RC-50 Turf Edition(TM) all-surface loaders designed for the golf
and sports turf markets. The Turf Edition loaders feature ASV's unique
undercarriage system with smooth, rubber tracks that leave fine turf virtually
untouched while still providing excellent traction for digging and grading.
Shipments of Turf Edition products to Jacobsen dealers began in April 2003.
Discussing the outlook for the remainder of 2003 Lemke states, "With our
first quarter complete, we are reaffirming our sales expectations for 2003. We
anticipate sales for 2003 to be in the range of $57-65 million. With a slight
increase in our expected effective tax rate and an increase in the number of
dilutive common share equivalents due to our increased stock price, earnings per
share for 2003 is expected to be in the range of $.33-.43 per share on a diluted
basis."
Conference Call
ASV will conduct a live Webcast at 9 a.m. Central time, Thursday, April
24th to discuss these matters. The call will be broadcast over the Internet and
can be accessed at either 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
288996. 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 undercarriage technology, 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 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
Three months ended March 31, 2003 and 2002
2003 2002
--------------- ---------------
Net sales..................................................... $ 14,612,230 $ 6,177,828
Cost of goods sold............................................ 11,808,766 4,753,140
--------------- ---------------
Gross profit........................................... 2,803,464 1,424,688
Operating expenses
Selling, general and administrative........................ 1,452,960 1,332,032
Research and development................................... 161,704 674,433
--------------- ---------------
Operating income (loss)............................... 1,188,800 (581,777)
Other income (expense)
Interest expense........................................... (36,623) (31,147)
Other, net................................................. 37,406 66,343
--------------- ---------------
Income (loss) before income taxes...................... 1,189,583 (546,581)
Provision for (benefit from) income taxes...................... 422,000 (181,000)
--------------- ---------------
NET EARNINGS (LOSS).................................... $ 767,583 $ (365,581)
=============== ===============
Net earnings (loss) per common share - Diluted................. $ .08 $ (.04)
=============== ===============
Diluted weighted average shares outstanding.................... 10,113,634 10,194,663
=============== ===============
A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS March 31, December 31,
2003 2002
--------------- ---------------
CURRENT ASSETS
Cash & short-term investments............................ $ 3,659,094 $ 4,797,398
Accounts receivable, net................................. 17,133,649 14,397,958
Inventories.............................................. 33,885,327 31,834,620
Prepaid expenses and other............................... 884,414 1,099,685
--------------- ---------------
Total current assets 55,562,484 52,129,661
PROPERTY AND EQUIPMENT, net.................................. 5,135,912 5,080,536
--------------- ---------------
Total assets $ 60,698,396 $ 57,210,197
=============== ===============
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term liabilities................. $ 131,214 $ 129,550
Accounts payable......................................... 5,461,633 2,838,370
Accrued liabilities...................................... 1,785,604 1,795,556
Income taxes payable..................................... 138,708 ---
--------------- ---------------
Total current liabilities 7,517,159 4,763,476
LONG-TERM LIABILITIES, less current portion.................. 1,946,731 1,979,798
SHAREHOLDERS' EQUITY......................................... 51,234,506 50,466,923
Total liabilities & shareholders' equity --------------- ---------------
$ 60,698,396 $ 57,210,197
=============== ===============