Exhibit 99
ASV Announces Record Fiscal 2000 Results
Net Sales Increase 21% over 1999, 4th Quarter Earnings Rise
Grand Rapids, MN (March 7, 2001) - ASV, Inc. (NASDAQ: ASVI) today
announced record net sales for its recently completed fiscal year 2000. For the
year ended December 31, 2000, ASV's net sales increased 21% to $43,859,509,
compared with $36,168,415 for 1999. Net income for 2000 totaled $1,450,909, a 3%
increase compared with net income for 1999 of $1,412,053. Earnings per share
totaled $.15 for 2000 compared with $.14 for 1999.
For its fourth quarter of 2000, ASV reported net sales of $10,018,787,
a 2% increase over fourth quarter 1999 net sales of $9,860,338. Net income for
the fourth quarter of 2000 was $214,684, or $.02 per share, compared with net
income of $53,513, or $.01 per share, for the fourth quarter of 1999.
Commenting on the fourth quarter results, ASV President Gary Lemke said
"ASV's fourth quarter saw a shift in product mix from previous quarters. The
nationwide slowdown in construction equipment spending caused a decrease in unit
volume for our model 4810 Posi-Track(TM). However, this unit volume decrease was
offset by sales of our RC-30(TM) All Surface Loader product during its first
full quarter of production. Even with the limited number of RC-30 dealers on
board during the fourth quarter, we were able to sell nearly our entire
production. This change in product mix, along with discounts offered on certain
models and increased sales of lower margin used equipment, reduced our gross
profit margin for the quarter. ASV's operating income for the fourth quarter of
2000 decreased due to increased research and development expenditures made in
connection with our alliance with Caterpillar Inc. (NYSE: CAT) to jointly
develop and manufacture a new line of Caterpillar rubber track machines. ASV's
non-operating income increased during the fourth quarter of 2000 due to reduced
line of credit usage and greater interest income. Finally, ASV's income tax
expense benefited from a lower than expected effective tax rate, due primarily
to increased research & development tax credits."
Continuing, Lemke states "We are pleased to see record net sales for
2000, a year in which ASV established strategic alliances with Caterpillar and
Polaris Industries Inc. (NYSE: PII). With sales of ASV's existing products along
with alliance-related sales, we anticipate sales growth to be approximately 40%
for 2001. This would bring us well on our way to our sales goal of $100 million
for 2002. We believe the decreased gross profit margin experienced in the fourth
quarter of 2000 to be a temporary situation. Reduced raw material costs from
greater purchase volumes, improved price realization on several models and
higher than anticipated margins on the Multi-Terrain Loader components are
expected to improve 2001 gross margins over fourth quarter 2000. Accordingly, we
anticipate earnings for 2001 will be 20-30% higher than 2000, even as ASV
invests approximately $2.5 million in research and development for our
Multi-Terrain Loader project with Caterpillar and our own internal projects."
In October of 2000, ASV announced a strategic alliance with Caterpillar
in which the two companies plan to jointly develop and manufacture a
revolutionary new product line of Caterpillar rubber track skid steer loaders
called Multi-Terrain Loaders. The product line, which is expected to include
five new models, will feature Caterpillar's patented skid steer loader
technology and ASV's patent-pending Maximum Traction Support System(TM) rubber
track undercarriage. The machines will complement existing models in both ASV's
and Caterpillar's current product lines. They will be sold through the
Caterpillar dealer network. The first two models of Multi-Terrain Loaders are
expected to be available to select Caterpillar dealers in the second quarter of
2001.
In January of 2001, ASV announced the signing of a licensing agreement
that allows Polaris to sell an ASV-built, rubber track, all-surface utility
loader
similar to ASV's new RC-30. The agreement gives Polaris the right to market and
sell the utility loader under its own nameplate through its worldwide dealer
network. Polaris will purchase the machines, as well as parts and attachments,
directly from ASV. The agreement also provides the option at some future point
for Polaris to manufacture the machines under a royalty arrangement if volume
exceeds ASV's competitive capabilities. ASV anticipates delivering the first
machines to Polaris under this agreement later this month.
Discussing these alliances, ASV's Lemke says, "Our agreements with
Caterpillar and Polaris provide a solid future sales base for ASV. We anticipate
sales of up to $20 million could be generated from these alliances in 2001."
ASV will conduct a live webcast at 10 a.m. Central time, Wednesday,
March 7th to discuss its results for 2000 and its outlook for 2001. The call
will be broadcast over the Internet and can be accessed at www.vcall.com or
www.asvi.com. To listen to the call, go to the web site at least 15 minutes
before the call to register, download and install any needed audio software. A
replay of this call will be available beginning approximately two hours after
its conclusion both telephonically and over the Internet. The telephonic replay
will be available for a 24-hour period and can be accessed by dialing
800-642-1687 and entering pass code 715432. The Internet replay will be
available for 60 days and can be accessed at www.vcall.com or www.asvi.com.
ASV designs, manufactures and sells all-purpose crawlers and related
accessories and attachments. With its patent-pending Maximum Traction and
Support System undercarriage, ASV leads all rubber-tracked, all-purpose crawlers
in technology and innovation. ASV's primary product, the Posi-Track, traverses
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 regarding ASV's anticipated future sales and
earnings, its plans to jointly develop and manufacture rubber-tracked machines
with Caterpillar, including the number of models to be developed, the timing of
their planned introduction and ASV's plans to manufacture and sell machines to
Polaris, including the timing of their planned introduction, the anticipated
revenues from the sale of machines to Polaris and Caterpillar and ASV's overall
revenue goals 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 machines are ultimately
produced 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, general market conditions,
corporate developments at ASV, Polaris or Caterpillar and ASV's ability to
realize the anticipated benefits from its relationship with Polaris and
Caterpillar. Actual results might differ materially from those anticipated in
such forward-looking statements. 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 nine
months ended September 30, 2000.
Condensed financial statements are as follows:
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A.S.V., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Three Months Ended Years Ended
December 31, December 31,
------------------------ ------------------------
2000 1999 2000 1999
----------- ---------- ----------- -----------
Net sales................................... $10,018,787 $9,860,338 $43,859,509 $36,168,415
Cost of goods sold.......................... 8,380,608 7,673,176 34,794,783 27,739,554
----------- ---------- ----------- -----------
Gross profit....................... 1,638,179 2,187,162 9,064,726 8,428,861
Operating expenses:
Selling, general and
administrative..................... 1,268,921 1,916,856 6,210,514 5,670,629
Research and development............... 308,914 118,929 679,233 531,375
----------- ---------- ----------- -----------
Operating income................... 60,344 151,377 2,174,979 2,226,857
Other income (expense)
Interest expense....................... (37,288) (117,452) (266,890) (306,202)
Other, net............................. 221,308 49,588 301,500 246,398
----------- ---------- ----------- -----------
Income before income taxes......... 244,364 83,513 2,209,589 2,167,053
Provision for income taxes.................. 29,680 30,000 758,680 755,000
----------- ---------- ----------- -----------
NET EARNINGS........................... $ 214,684 $ 53,513 $ 1,450,909 $ 1,412,053
=========== ========== =========== ===========
Net earnings per common share
Diluted................................ $ .02 $ .01 $ .15 $ .14
=========== ========== =========== ===========
Diluted weighted average shares ............ 10,140,852 9,935,817 9,966,661 9,941,616
=========== ========= ========== ==========
A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
December 31, December 31,
2000 1999
------------ ------------
CURRENT ASSETS
Cash & short-term investments............... $10,762,143 $ 1,990,880
Accounts receivable, net.................... 10,557,907 8,661,049
Inventories................................. 28,064,998 32,391,256
Other current assets........................ 965,026 811,076
----------- -----------
Total current assets.................... 50,350,074 43,854,261
PROPERTY AND EQUIPMENT, net..................... 4,656,118 4,795,674
----------- -----------
Total assets $55,006,192 $48,649,935
=========== ===========
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Line of credit.............................. $ - $ 4,080,000
Current portion of long-term liabilities.... 82,090 254,412
Accounts payable............................ 1,822,912 1,775,883
Accrued expenses............................ 1,023,924 1,246,673
Income taxes payable........................ 197,021 -
----------- -----------
Total current liabilities.............. 3,125,947 7,356,968
LONG-TERM LIABILITIES, less current portion..... 2,116,898 2,197,046
SHAREHOLDERS' EQUITY............................ 49,763,347 39,095,921
----------- -----------
Total liabilities & shareholders' equity ....... $55,006,192 $48,649,935
=========== ===========
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