Exhibit 99
For more information
Jay Lemke
Carmichael Lynch Spong
(612) 375-8529
jlemke@clynch.com
ASV Announces Record Results for 1st Quarter 2005
Q1 2005 Sales up 61%, EPS up 54%
Full Year Sales and Earnings Guidance Increased
Grand Rapids, MN (April 28, 2005) -- ASV, Inc. (Nasdaq: ASVI) today
reported record results for its first quarter of 2005, its fourth consecutive
quarter of record sales and earnings. Net sales for the three months ended March
31, 2005 increased 61% to $53.2 million, compared with $33.1 million for the
same period in 2004. Assisted by a 110 basis point improvement in its gross
profit percentage, ASV reported net earnings of $5.5 million for the first
quarter of 2005, compared with net earnings of $3.6 million for the first
quarter of 2004. Diluted earnings per share increased 54% to $.40 for the first
quarter of 2005 compared with $.26 for the first quarter of 2004.
Commenting on the results, ASV Chairman and CEO Gary Lemke said, "Our
first quarter saw continued sales increases of ASV's R-Series Posi-Track(TM)
products as well as undercarriages sold to Caterpillar Inc. (NYSE: CAT) for use
on their Multi-Terrain Loaders (MTL). Sales of our R-Series Posi-Track products
increased 23% in the first quarter of 2005 compared with the first quarter of
2004 and accounted for 41% of our first quarter 2005 sales. With our planned
production increases of R-Series products throughout the balance of the year, we
expect our R-Series growth to be in excess of 35% for all of 2005. Sales of MTL
undercarriages increased 55% in the first quarter of 2005 compared with the
first quarter of 2004, and accounted for 33% of our first quarter 2005 sales.
Sales from Loegering Mfg. Inc., acquired by ASV in October of 2004, accounted
for 12%, or $6.4 million, of our sales for the first quarter of 2005. Sales of
the Versatile Track System(R) (VTS) accounted for 40% of Loegering's first
quarter 2005 sales. Finally, as the field population of machines and
undercarriages continues to grow, sales of service parts increased 77% in the
first quarter of 2005."
Discussing ASV's results further, Lemke said, "I'm very pleased to see
how ASV has handled its supply chain, which resulted in our increased gross
profit percentage in the first quarter of 2005, even in the face of increased
raw material costs. During the first quarter of 2005, our gross profit
percentage increased to 24.0% compared with 22.9% for the first quarter of 2004
and 22.4% for the fourth quarter of 2004 due to savings realized from cost
reduction projects, lower unit costs from increased volume and price increases
on R-Series Posi-Track products. Our operating expenses came in at the low end
of our anticipated range, with selling, general and administrative expenses
totaling 7.1% of net sales for the first quarter of 2005, compared with 5.7% of
net sales for the first quarter of 2004. This increase was due primarily to the
inclusion of Loegering, which does not yet enjoy the same degree of leverage
that ASV does. We continued to invest in research and development to expand our
product line. During the first quarter of 2005, ASV completed its newest
product, the RCV vertical lift loader, which went into production in April of
2005. In addition, Loegering will be expanding its product line with a smaller
version of its VTS product expected to be available in the third quarter of
2005."
2005 Guidance Increase
ASV previously issued sales guidance for 2005 in the range of $210-230
million and diluted earnings per share guidance in the range of $1.50-1.65 per
share. Given the results for the first quarter of 2005, ASV is increasing its
guidance, with sales now expected to be in the range of $220-230 million for
2005, an increase of 37-43% over 2004. Diluted earnings per share are now
expected to be in the range of $1.60-1.73 per share, an increase of 25-35%
compared with 2004. ASV anticipates its sales breakdown for 2005 will remain as
previously guided, with R-Series Posi-Track products expected to account for
approximately 45% of its projected 2005 net sales and MTL undercarriages
accounting for approximately 33%. Sales of Loegering products 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 the guidance increase, Lemke stated, "We believe the
market is starting to fully realize the benefits of ASV's rubber track
technology. We intend to capitalize on this by continuing to grow our
distribution network, expand our product offerings and develop new markets and
applications for our industry leading rubber track technology."
Conference Call
ASV will conduct a live Webcast at 9 a.m. Central time, Thursday, April
28th to discuss its results for the first quarter of 2005 and its outlook for
the balance of 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, April 29th, and can be accessed by dialing 877-660-6853 and
entering account number 286 and conference ID 149682. 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, sales mix, expense and earnings levels and earnings per share, 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-K for the year ended December 31, 2004.
Condensed financial statements are as follows:
A.S.V., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
Three months ended March 31, 2005 and 2004
<Table>
<Caption>
2005 2004
----------------- -----------------
Net sales..................................................... $ 53,179,842 $ 33,053,771
Cost of goods sold............................................ 40,420,654 25,483,569
----------------- -----------------
Gross profit........................................... 12,759,188 7,570,202
Operating expenses
Selling, general and administrative........................ 3,783,571 1,900,522
Research and development................................... 428,140 155,555
----------------- -----------------
Operating income...................................... 8,547,477 5,514,125
Other income (expense)
Interest income............................................ 303,243 177,887
Interest expense........................................... (28,176) (28,609)
Other, net................................................. 45,431 1,630
----------------- -----------------
Income before income taxes............................. 8,867,975 5,665,033
Provision for income taxes..................................... 3,325,000 2,070,000
----------------- -----------------
NET EARNINGS........................................... $ 5,542,975 $ 3,595,033
================= =================
Net earnings per common share - Diluted........................ $ .40 $ .26
================= =================
Diluted weighted average shares outstanding.................... 13,820,897 13,706,606
================= =================
</Table>
A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<Table>
<Caption>
ASSETS March 31, December 31,
2005 2004
----------------- -----------------
CURRENT ASSETS
Cash & short-term investments............................ $ 37,789,226 $ 37,000,629
Accounts receivable, net................................. 36,631,607 36,431,774
Inventories.............................................. 46,065,551 34,832,868
Other current assets..................................... 2,466,224 2,237,096
----------------- -----------------
Total current assets 122,952,608 110,502,367
LONG-TERM INVESTMENTS 5,917,691 5,912,747
LONG-TERM NOTE RECEIVABLE, less current portion 664,445 703,445
PROPERTY AND EQUIPMENT, net.................................. 11,722,282 11,108,132
INTANGIBLES, net............................................. 7,976,502 8,002,251
GOODWILL..................................................... 8,385,827 8,385,827
----------------- -----------------
Total assets $ 157,619,355 $ 144,614,769
================= =================
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term liabilities................. $ 191,563 $ 189,656
Accounts payable......................................... 14,344,415 11,452,026
Accrued liabilities...................................... 5,078,910 4,494,522
Income taxes payable..................................... 3,340,443 533,995
----------------- -----------------
Total current liabilities 22,955,331 16,670,199
LONG-TERM LIABILITIES, less current portion.................. 1,829,715 1,873,768
SHAREHOLDERS' EQUITY......................................... 132,834,309 126,070,802
----------------- -----------------
Total liabilities & shareholders' equity $ 157,619,355 $ 144,614,769
================= =================
</Table>