Exhibit 99
For more information
Jay Lemke
Carmichael Lynch Spong
(612) 375-8529
jlemke@clynch.com
ASV Reports 4th Quarter 2003 Results
4th Quarter Sales up 120%, EPS Increases from $.02 to $.19
Full Year Sales up 118%, EPS Increases 500%
GRAND RAPIDS, MN (March 2, 2004) - A.S.V., Inc. (NASDAQ: ASVI) today
reported results for its fourth quarter and fiscal year ended December 31, 2003.
Net sales for the fourth quarter of 2003 totaled $26.2 million, compared with
$11.9 million for the same period in 2002. The increased sales, combined with an
increased gross profit percentage, resulted in net earnings for the fourth
quarter of 2003 of $2.6 million, or $.19 per share, compared with $179,000, or
$.02 per share, for the fourth quarter of 2002. Diluted shares outstanding
totaled 13.5 million shares for the fourth quarter of 2003, a 30% increase
compared with diluted shares outstanding of 10.3 million shares for the fourth
quarter of 2002. Approximately 2.1 million shares of this increase were the
result of the dilutive effect of the warrant previously held by Caterpillar Inc.
(NYSE: CAT), which was repurchased by ASV in January 2004.
For the year ended December 31, 2003, net sales totaled $96.4 million,
compared with $44.2 million for 2002. Net earnings for the year ended December
31, 2003 totaled $8.7 million, or $.78 per share, compared with net earnings of
$1.4 million, or $.13 per share for 2002.
Commenting on ASV's results, ASV President Gary Lemke stated, "ASV's fourth
quarter sales were greater than expected due to increased sales of our RC-30
Posi-Track and greater engine deliveries for our RC-100 Posi-Track, allowing for
increased production of this model which remains in a backlogged position.
During the quarter, undercarriage sales to Caterpillar accounted for
approximately 44% of our sales, down slightly from the third quarter of 2003,
due to the increased sale of ASV products and Caterpillar's preparation for the
second generation Multi-Terrain Loaders that went into production in January
2004. Our gross profit percentage was 22.3% in the fourth quarter of 2003, the
same as the third quarter of 2003, but up significantly from the 13.5% we
experienced in the fourth quarter of 2002."
For the three months ended December 31, 2003, the Company's selling,
general and administrative (S, G & A) expenses decreased, as a percentage of net
sales, to 6.2%, compared with 11.1% for the same period in 2002. Commenting on
this decrease, Lemke stated, "Our S, G & A expenses were in our expected range
for the quarter, even with the increased sales we experienced. Our ability to
keep expenses low helped increase our profitability, even with the significant
increase in the number of diluted shares outstanding for the fourth quarter of
2003."
During the fourth quarter of 2003, ASV saw an increase in the number of
diluted shares outstanding, due primarily to the significant increase in its
stock price. This resulted in a sharp increase in the number of dilutive options
and warrants that were required to be included in the diluted earnings per share
calculation. Specifically, 2.1 million shares were included in the diluted
earnings per share calculation for the fourth quarter of 2003 from the dilutive
effect of the Caterpillar warrant. In January of 2004, ASV repurchased this
warrant, thereby eliminating any future dilution that could have occurred had
this warrant remained outstanding past the date it was repurchased.
Outlook
On January 22, 2004, ASV increased its earnings guidance for 2004 to the
expected range of $.95-1.17 per share on a diluted basis from its previously
announced expected range of $.85-1.05 per share. The increase was due primarily
to the repurchase of the Caterpillar warrant in January 2004. These increased
earnings per share expectations are based on 13.5 million diluted shares
outstanding for 2004, a 21% increase compared with the number of diluted shares
outstanding for 2003. ASV's sales for 2004 are expected to be in the range of
$130-155 million, an expected increase of 35% to 61% over 2003.
Continuing, Lemke stated, "With the positive results and growth we
experienced in 2003 and our existing level of pre-sold production, we are
reaffirming our 2004 guidance. We currently have orders for ASV machines
totaling approximately $16 million, due primarily to the recent introduction of
our RC-60 and RC-85 Posi-Tracks. These machines, which were just introduced to
our dealers in January, have generated significant orders and went into
production that same month. These two additional models provide our dealers with
the most complete line of rubber track loaders of any manufacturer."
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Conference Call
ASV will conduct a live Webcast at 9 a.m. Central time, Tuesday, March 2nd
to discuss its results for the fourth quarter of 2003 and its outlook for 2004.
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, Wednesday, March 3rd, and can be accessed by dialing 800-428-6051 and
entering pass code 340896. 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,
unanticipated problems or delays experienced by Caterpillar relating to the
manufacturing or marketing of the MTL 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, 2003.
Condensed financial statements are as follows:
A.S.V., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------------------- --------------------------------
2003 2002 2003 2002
-------------- -------------- -------------- --------------
Net sales ................................... $ 26,171,219 $ 11,870,457 $ 96,386,576 $ 44,236,876
Cost of goods sold .......................... 20,328,060 10,267,452 75,895,524 35,614,846
-------------- -------------- -------------- --------------
Gross profit ....................... 5,843,159 1,603,005 20,491,052 8,622,030
Operating expenses:
Selling, general and administrative .... 1,622,538 1,323,472 6,177,324 5,029,307
Research and development ............... 237,934 171,552 794,729 1,802,960
-------------- -------------- -------------- --------------
Operating income ................... 3,982,687 107,981 13,518,999 1,789,763
Other income (expense)
Interest expense ....................... (29,391) (30,865) (129,359) (126,098)
Other, net ............................ 72,163 91,481 178,263 264,464
-------------- -------------- -------------- --------------
Income before income taxes ......... 4,025,459 168,597 13,567,903 1,928,129
Provision for (benefit from) income taxes ... 1,440,000 (10,000) 4,850,000 575,000
-------------- -------------- -------------- --------------
NET EARNINGS ........................... $ 2,585,459 $ 178,597 $ 8,717,903 $ 1,353,129
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Net earnings per common share - Diluted ..... $ .19 $ .02 $ .78 $ .13
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Diluted weighted average shares ............. 13,452,589 10,310,412 11,185,683 10,299,057
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A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2003 2002
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ASSETS
CURRENT ASSETS
Cash & short-term investments .................. $ 29,708,418 $ 4,797,398
Accounts receivable, net ....................... 16,484,603 14,397,958
Inventories .................................... 26,686,707 31,834,620
Other current assets ........................... 3,789,506 1,099,685
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Total current assets ....................... 76,669,234 52,129,661
PROPERTY AND EQUIPMENT, net ........................ 6,129,922 5,080,536
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Total assets ............................... $ 82,799,156 $ 57,210,197
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LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term liabilities ....... $ 136,414 $ 129,550
Accounts payable ............................... 6,004,890 2,838,370
Accrued liabilities ............................ 2,533,473 1,795,556
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Total current liabilities .................. 8,674,777 4,763,476
LONG-TERM LIABILITIES, less current portion ........ 1,844,858 1,979,798
SHAREHOLDERS' EQUITY ............................... 72,279,521 50,466,923
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Total liabilities & shareholders' equity ... $ 82,799,156 $ 57,210,197
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