Exhibit 99
For more information
Jay Lemke
Carmichael Lynch Spong
(612) 375-8529
jlemke@clynch.com
ASV Reports Record Results for 2nd Quarter 2003
Sales up 80%, Earnings Per Share up 120%
Sale and Earnings Revised Upward Again
GRAND RAPIDS, MN (July 24, 2003) -- ASV, Inc. (NASDAQ: ASVI) today
reported its net sales for the second quarter of 2003 increased to $26.4
million, the highest quarterly net sales figure in the Company's history,
compared with $14.7 million for the same period in 2002. Net earnings increased
to a record level of $2,285,418, or $.22 cents per share, compared with
$1,013,503, or $.10 per share, for the second quarter of 2002.
For the six months ended June 30, 2003, net sales increased 96% to
$41.0 million, compared with $20.9 million for the same period in 2002. Net
earnings increased significantly to $3,053,001, or $.30 per share, for the six
months ended June 30, 2003 compared with $647,922, or $.06 per share, for the
same period in 2002.
Commenting on the second quarter results, ASV President Gary Lemke said
"ASV experienced excellent performance from its main product lines during the
second quarter of 2003. This was our first full quarter of production of our
RC-100 Posi-Track, our largest model. This machine has had great demand since
its introduction in January 2003. Our second quarter of 2003 also saw strong
sales of our mid-sized RC-50 Posi-Track product. We currently have an order
backlog of approximately $6-7 million for the RC-100 and RC-50 Posi-Track
Products. In addition, this quarter was the first quarter of full production for
all three undercarriages for Caterpillar Inc. (NYSE: CAT) for use in their five
models of Multi-Terrain Loaders(TM) (MTL). Our second quarter of 2003 also
included approximately $1 million of sales from our first ever public auction."
Gross profit percentage for the second quarter of 2003 was 20.2%, a
decrease compared to the gross profit percentage of 23.6% for the second quarter
of 2002, but an increase over the gross profit percentage of 19.2% for the first
quarter of 2003. The variance in gross profit percentage was due primarily to a
change in sales mix. For the second quarter of 2002, ASV shipped only Beta MTL
undercarriages to Caterpillar, which is a larger undercarriage and has a higher
gross profit percentage. In contrast, during the second quarter of 2003,
slightly over half of the MTL undercarriages sold were Alpha undercarriages,
which is a smaller undercarriage and has a lower comparative gross profit
percentage. The increase in the gross profit percentage over the first quarter
of 2003 was due primarily to the increased shipments of RC-50 and RC-100
Posi-Track products.
Discussing ASV's overall outlook for the remainder of 2003 Lemke
states, "Based upon the results we have experienced during the first half of
2003, we have increased our sales expectations for 2003 to $81-88 million, up
from our previous guidance of $65-72 million. Included in our revised sales
expectation figures are MTL undercarriage sales to Caterpillar of approximately
$45-47 million. We have also increased our earnings expectations for 2003 to the
range of $.57-.64 per share, up from our previous guidance of $.43-49 per share.
With the increase in our stock price and the anticipated exercise of expiring
in-the-money stock options, our revised earnings per share expectations have
been computed using outstanding common shares of approximately 11 million
shares."
Conference Call
ASV will conduct a live Webcast at 9 a.m. Central time, Thursday, July
24th to discuss its results for the second quarter of 2003 and its outlook for
the remainder of 2003. 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 both telephonically and over the Internet approximately one
hour after its conclusion. The telephonic replay will be available through 11
p.m. Central time, Friday, July 25th, and can be accessed by dialing
800-428-6051 and entering pass code 298994. The Internet replay will be
available for 30 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 rubber-tracked, all-purpose
crawlers and related accessories and attachments. ASV also manufactures
rubber-tracked undercarriages, which are a primary component on Caterpillar's
Multi Terrain Loaders. 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, 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 Six Months Ended
June 30, June 30,
------------------------------- -------------------------------
2003 2002 2003 2002
------------- -------------- ------------- --------------
Net sales................................... $ 26,414,478 $ 14,713,936 $ 41,026,708 $ 20,891,764
Cost of goods sold.......................... 21,082,229 11,241,963 32,890,995 15,995,103
------------- -------------- ------------- --------------
Gross profit....................... 5,332,249 3,471,973 8,135,713 4,896,661
Operating expenses:
Selling, general and administrative.... 1,591,223 1,252,804 3,044,183 2,584,836
Research and development............... 202,182 708,312 363,886 1,382,745
------------- -------------- ------------- --------------
Operating income................... 3,538,844 1,510,857 4,727,644 929,080
Other income (expense)
Interest expense....................... (32,053) (32,550) (68,676) (63,697)
Other, net............................. 49,627 46,196 87,033 112,539
------------- -------------- ------------- --------------
Income before income taxes......... 3,556,418 1,524,503 4,746,001 977,922
Provision for income taxes.................. 1,271,000 511,000 1,693,000 330,000
------------- -------------- ------------- --------------
NET EARNINGS........................... $ 2,285,418 $ 1,013,503 $ 3,053,001 $ 647,922
============= ============== ============= ==============
Net earnings per common share -- Diluted. $ .22 $ .10 $ .30 $ .06
============= ============== ============= ==============
Diluted weighted average shares ............ 10,432,661 10,296,860 10,273,147 10,245,762
============= ============== ============= ==============
A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS June 30, December 31,
2003 2002
-------------- -------------
CURRENT ASSETS
Cash & short-term investments............................ $ 8,817,337 $ 4,797,398
Accounts receivable, net................................. 19,950,476 14,397,958
Inventories.............................................. 29,234,051 31,834,620
Prepaid expenses and other............................... 681,650 1,099,685
-------------- -------------
Total current assets 58,683,514 52,129,661
PROPERTY AND EQUIPMENT, net.................................. 5,362,083 5,080,536
-------------- -------------
Total assets $ 64,045,597 $ 57,210,197
============== =============
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term liabilities................. $ 132,920 $ 129,550
Accounts payable......................................... 5,329,886 2,838,370
Accrued liabilities...................................... 1,983,751 1,795,556
Income taxes payable..................................... 569,231 ---
-------------- -------------
Total current liabilities 8,015,788 4,763,476
LONG-TERM LIABILITIES, less current portion.................. 1,913,285 1,979,798
SHAREHOLDERS' EQUITY......................................... 54,116,524 50,466,923
-------------- -------------
Total liabilities & shareholders' equity $ 64,045,597 $ 57,210,197
============== =============