Exhibit 99
For more information
Jay Lemke
Carmichael Lynch Spong
(612) 375-8529
jlemke@clynch.com
ASV Announces 4th Quarter 2004 Results
4th Quarter EPS Increases 89% to $.36
Full Year Sales Exceed $160 million, EPS Totals $1.28
GRAND RAPIDS, MN (February 24, 2005) - A.S.V., Inc. (NASDAQ: ASVI)
today reported results for its fourth quarter and fiscal year ended December 31,
2004. Net sales for the fourth quarter of 2004 totaled $48.1 million, compared
with $26.2 million for the same period in 2003, with the Company's October 2004
acquisition of Loegering Mfg. Inc. accounting for $6.8 million of the increase.
Net earnings for the fourth quarter of 2004 were $5.0 million, or $.36 per
diluted share, compared with $2.6 million, or $.19 per diluted share, for the
fourth quarter of 2003. Approximately $.02 of the increased earnings per share
in 2004 was due to the utilization of greater than anticipated research and
development tax credits.
For the year ended December 31, 2004, net sales totaled $160.9 million,
compared with $96.4 million for 2003. Gross profit percentage increased over 100
basis points in 2004, despite rising material prices. Net earnings for the year
ended December 31, 2004 totaled $17.2 million, or $1.28 per share, compared with
net earnings of $8.7 million, or $.78 per share for 2003. The number of diluted
shares outstanding increased 20% in 2004 compared with 2003, due primarily to
common stock transactions with Caterpillar in January, the issuance of shares in
connection with the acquisition of Loegering Mfg. Inc. in October and the
exercise of employee stock options.
Commenting on ASV's results, ASV CEO Gary Lemke stated, "ASV's sales
for the fourth quarter of 2004 came in slightly over our expectations due to
continued strong demand for our R-Series Posi-Track products and increased
demand for service parts due to the greater number of machines and
undercarriages in service. For the quarter, R-Series products accounted for 36%
of our sales while undercarriages for use on Caterpillar's (NYSE: CAT)
Multi-Terrain Loaders were 34% of our sales. Sales of Loegering products were
14% of our sales for the quarter, with sales of service parts accounting for 13%
and used equipment accounting for 3%. Our gross margin for the fourth quarter of
2004 was consistent with the fourth quarter of 2003, even with increased steel
costs of approximately $940,000."
For the three months ended December 31, 2004, the Company's selling,
general and administrative (S, G & A) expenses increased, as a percentage of net
sales, to 6.8%, compared with 6.2% for the same period in 2003. Commenting on
this increase, Lemke stated, "Our S, G & A expenses were in our expected range
for the quarter, with the increase due to the addition of Loegering's operations
for the fourth quarter of 2004, which are not as highly leveraged as ours, and
increased compliance costs. Our research and development expenses increased as
we continued to invest in the on-going development of new products, including
our newest R-Series product, the RCV, which was introduced at our dealer meeting
in January 2005."
The RCV is the industry's first vertical lift machine designed from the
ground up to run on a suspended rubber track undercarriage. As a result, the
distinctive design of the RCV gives it the highest lift height and among the
best visibility in its class. Vertical lift machinery represents a growing
segment of the skid-steer and rubber track loader market. A vertical lift
machine allows a contractor to lift increased weight while keeping the load
closer to the machine with increased reach, which is advantageous for loading
and unloading.
The fourth quarter of 2004 was the first quarter that included the
results of operations for the Company's newly acquired subsidiary, Loegering
Mfg. Inc. of Casselton, ND. Speaking on Loegering, Lemke stated, "Loegering
performed well during the fourth quarter of 2004, adding $6.8 million to ASV's
sales, with approximately one-half coming from the Versatile Track System, or
VTS. Customer acceptance of the VTS track system has been very positive during
this initial introduction period. The VTS track system was formally introduced
to the market at the World of Concrete trade show in Las Vegas in January 2005.
Based on the positive response it received, we believe the VTS track system
could represent a majority of Loegering's sales for 2005."
Outlook
On December 22, 2004 ASV issued its initial 2005 sales and earnings
outlook with sales in the range of $210-230 million and earnings per share
expected to be in the range of $1.50-1.65. 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. Continuing, Lemke stated, "With our solid results from
2004, and
the positive response to the VTS track system it has received, we are
reaffirming our 2005 guidance. We are optimistic that we will see some relief in
steel prices, which could aid our anticipated results for 2005."
Conference Call
ASV will conduct a live Webcast at 9 a.m. Central time, Thursday,
February 24th to discuss its results for the fourth quarter of 2004 and its
outlook for 2005. 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, February 25th, and can be accessed by dialing
877-660-6853 and entering account number 1628 and conference ID number 140125.
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, 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 and earnings levels and the benefits of Loegering's products and
technology, including its VTS track system 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 the risks and uncertainties associated
with successfully integrating the operations of Loegering, unanticipated delays,
costs and expenses inherent in the development, manufacturing and marketing of
new products; developments in the demand for each companies' products; ASV's
ability to successfully manufacture its products; 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; ASV's ability to realize the anticipated benefits from its
relationship with Caterpillar and Loegering; relationships with major customers
and suppliers; the ability to retain key personnel; the impact of governmental
laws and regulations; competitive factors; and any future acts or threats of
terrorism or war. 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.
Condensed financial statements are as follows:
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A.S.V., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
<Table>
<Caption>
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------------------- --------------------------------
2004 2003 2004 2003
------------- ------------- ------------- -------------
Net sales ................................... $ 48,131,056 $ 26,171,219 $ 160,873,320 $ 96,386,576
Cost of goods sold .......................... 37,372,998 20,328,060 124,473,593 75,895,524
------------- ------------- ------------- -------------
Gross profit ....................... 10,758,058 5,843,159 36,399,727 20,491,052
Operating expenses:
Selling, general and administrative .... 3,263,554 1,622,538 9,604,619 6,177,324
Research and development ............... 545,429 237,934 1,106,762 794,729
------------- ------------- ------------- -------------
Operating income ................... 6,949,075 3,982,687 25,688,346 13,518,999
Other income (expense)
Interest income ........................ 259,481 60,131 833,307 140,366
Interest expense ....................... (39,539) (29,391) (124,223) (129,359)
Other, net ............................ 24,042 12,032 27,719 37,897
------------- ------------- ------------- -------------
Income before income taxes ......... 7,193,059 4,025,459 26,425,149 13,567,903
Provision for income taxes .................. 2,225,000 1,440,000 9,250,000 4,850,000
------------- ------------- ------------- -------------
NET EARNINGS ........................... $ 4,968,059 $ 2,585,459 $ 17,175,149 $ 8,717,903
============= ============= ============= =============
Net earnings per common share - Diluted ..... $ .36 $ .19 $ 1.28 $ .78
============= ============= ============= =============
Diluted weighted average shares ............. 13,727,550 13,452,589 13,412,500 11,185,683
============= ============= ============= =============
</Table>
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A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
<Table>
<Caption>
ASSETS December 31, December 31,
2004 2003
------------ ------------
CURRENT ASSETS
Cash & short-term investments .................. $ 37,000,629 $ 29,708,418
Accounts receivable, net ....................... 36,431,774 15,661,269
Inventories .................................... 34,832,868 26,686,707
Other current assets ........................... 2,237,096 3,614,506
------------ ------------
Total current assets ........................... 110,502,367 75,670,900
LONG-TERM INVESTMENTS .............................. 5,912,747 --
LONG-TERM NOTE RECEIVABLE, less current portion .... 703,445 823,334
PROPERTY AND EQUIPMENT, net ........................ 11,108,132 6,129,922
INTANGIBLES, net ................................... 8,002,251 --
GOODWILL ........................................... 8,385,827 --
------------ ------------
Total assets ............................... $144,614,769 $ 82,624,156
============ ============
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term liabilities ....... $ 189,656 $ 136,414
Accounts payable ............................... 11,452,026 6,004,890
Accrued liabilities ............................ 4,494,522 2,358,473
Income taxes payable ........................... 533,995 --
------------ ------------
Total current liabilities .................. 16,670,199 8,499,777
LONG-TERM LIABILITIES, less current portion ........ 1,873,768 1,844,858
SHAREHOLDERS' EQUITY ............................... 126,070,802 72,279,521
------------ ------------
Total liabilities & shareholders' equity ... $144,614,769 $ 82,624,156
============ ============
</Table>