Exhibit 99
For more information
Jay Lemke
Carmichael Lynch Spong
(612) 375-8529
jlemke@clynch.com
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ASV Issues Initial Guidance for 2005
Sales Expected to Increase 38-45% in 2005
GRAND RAPIDS, MN (December 22, 2004) -- ASV, Inc. (NASDAQ: ASVI) today
issued its initial financial guidance for 2005. ASV anticipates its net sales
for the year ending December 31, 2005 will be in the range of $210-230 million,
an increase of 38-45% over its anticipated sales of $153-158 million for 2004.
ASV anticipates sales of its R-Series Posi-Track products will account for
approximately 45% of its projected 2005 net sales, with undercarriage sales to
Caterpillar Inc. (NYSE: CAT) accounting for approximately 33% of its projected
net sales for 2005, an increase of 27-28% over 2004. Sales from ASV's recently
acquired subsidiary, Loegering Mfg. Inc., are expected to account for
approximately 12% of ASV's projected net sales for 2005, with parts and used
equipment accounting for approximately 10%.
Commenting on ASV's outlook for 2005, ASV CEO Gary Lemke stated, "The
rubber track loader market has grown from $10 million in 1995 to an expected
$500 million for 2004. As we close out 2004, we continue to see growth for this
market in 2005. We plan to capitalize on this growth by introducing another new
R-Series Posi-Track model at our dealer meeting in January 2005. This new
86-horsepower model includes many of the features already found on our larger
R-Series machines, along with a distinctive new vertical lift loader design.
This new loader design allows increased lift heights and greater forward reach
than our current R-Series products and is becoming increasingly popular in the
construction, site development and rental markets. This exciting new model was
announced in a letter to our dealers earlier this month and is expected to go
into production after our dealer meeting. We also intend to formally roll out
the Loegering Versatile Track System(R) (VTS) in 2005. We have spent the last
few months working with Loegering suppliers to assure adequate quantities of raw
materials are available to meet the expected demand for this product in 2005."
As mentioned above, ASV anticipates the sales of its undercarriages to
Caterpillar Inc. for use on their 5-model line of Multi-Terrain Loaders (MTL)
will increase in 2005 to $69-76 million, compared with $54-60 million in 2004.
Discussing this increase, Lemke stated "The success Caterpillar has had with
their MTL products has led to increased undercarriage orders for 2005. Even with
the contractual gross profit revisions for 2005, we anticipate our overall gross
profit percentage on the sale of undercarriages will exceed 20% for 2005."
During 2004, ASV has been able to increase its quarterly gross profit
percentage, even in the face of rising steel costs. For 2005 ASV anticipates its
gross profit percentage will be in the range of 22-23% for the twelve months
ended December 31, 2005. With the acquisition of Loegering, selling, general and
administrative expenses are expected to be in the range of 7.0-8.0% of net sales
for 2005. Research and development expenses are currently expected to be in the
range of 0.50-0.75% of net sales for 2005.
Anticipated E.P.S.
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ASV currently has approximately 13.3 million shares of common stock
outstanding, with Caterpillar owing 24% of ASV's shares. Based upon the factors
mentioned above, ASV anticipates its diluted earnings per share for 2005 will be
in the range of $1.50-1.65 per share. This represents an increase of 25-31% over
ASV's estimated range of diluted earnings per share of $1.20-1.26 for 2004. This
earnings per share guidance does not include an estimated $.05 per share effect
of implementing FASB Standard No. 123(R), Share-Based Payment, requiring the
expensing of stock options for the second half of 2005. ASV assumes a total of
14 million shares of common stock outstanding in its diluted earnings per share
calculation for 2005.
About ASV
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ASV designs, manufactures and sells rubber-tracked, all-purpose
crawlers and related accessories, attachments and traction products. ASV also
manufactures rubber-tracked undercarriages, some of 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 or Loegering's website at www.loegering.com.
Note: The statements set forth above regarding ASV's future expected
sales, sales mix, expense and earnings levels and earnings per share, growth in
the rubber track loader market, timing of introduction and sales of new R-Series
Posi-Track products and the Versatile Track System and future production plans
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, 2004.