Exhibit 99
ASV Reports 1st Quarter 2001 Results
Net Sales Increase 16% in Record Quarter
Grand Rapids, MN (April 24, 2001) -- ASV, Inc. (Nasdaq: ASVI) today
reported its first quarter 2001 financial results. Net sales for the three
months ended March 31, 2001, totaled $12,954,716, the highest quarterly net
sales in the Company's history and a 16% increase from net sales of $11,183,584
for the same period in 2000. Due in part to the significant increase in spending
for research and development, net earnings for first quarter 2001 were $203,970
compared with $416,761 for first quarter 2000. Earnings per share were $.02 for
first quarter 2001 compared with $.04 for first quarter 2000.
Commenting on the results, Gary Lemke, President of ASV, Inc., said
"The first quarter of 2001 was ASV's best sales quarter ever, with approximately
$13 million in net sales. This is especially pleasing when other equipment
manufacturers are reporting very small sales increases or even decreases. We
believe this says a lot about the types of products ASV offers to its customers.
Sales of our RCo30 All Surface Loader continue to increase as we expand our
dealer network for this product. In addition, first quarter 2001 saw the initial
shipments of the private label version of the RCo30 product under our recently
announced alliance agreement with Polaris Industries Inc. (NYSE: PII). As
expected, sales of our 4810 Posi-Track decreased in the first quarter of 2001
due in part to the planned introduction of the first two models of our jointly
developed Multi-Terrain Loaders (MTLs) with Caterpillar (NYSE: CAT)."
Continuing, Lemke states "ASV's alliances with Polaris and Caterpillar
contributed to our results for the first quarter of 2001. Our alliance with
Polaris helped increase our sales, but as these machines are sold on a cost plus
basis, our gross profit percentage was less than we experienced in the first
quarter of 2000. Fewer sales of our higher margin 4810 Posi-Track in 2001 also
reduced our gross profit percentage. Our selling, general and administrative
expenses decreased approximately $240,000 due primarily to decreased Caterpillar
commissions from the change in sales mix we experienced in 2001. In addition,
our investment in research and development totaled over $600,000 for the first
quarter of 2001, compared with approximately $135,000 in the first quarter of
2000. The majority of this was attributable to our alliance with Caterpillar for
the continued development and testing of the MTLs. We anticipate ASV will begin
shipping MTL undercarriages under this alliance in the second quarter. We
believe these alliances will help ASV reach its goal of net sales in excess of
$60 million for 2001."
ASV will conduct a live webcast at 10 a.m. Central time, Tuesday, April
24th to discuss its results for the first quarter of 2001 and its outlook for
the balance of 2001. The call will be broadcast over the Internet and can be
accessed either at www.vcall.com or ASV's recently enhanced 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 beginning 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 792358. The Internet replay will be available for 60 days and
can be accessed at www.vcall.com or www.asvi.com in the same manner as discussed
above.
ASV designs, manufactures and sells all-season, track-drive vehicles
and related accessories and attachments. With its patent-pending Maximum
Traction and Support System(TM) undercarriage, ASV leads all rubber-tracked,
all-purpose crawlers in technology and innovation. ASV's products traverse
nearly any terrain with minimal damage to the ground, making them effective in
industries such as construction, landscaping and agriculture.
To learn more about ASV Inc. and the Posi-Track all-purpose crawler,
visit the Company's web site at www.asvi.com.
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Note: The statements set forth above regarding ASV's anticipated future
sales, 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 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. 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 nine months ended September 30,
2000.
Condensed financial statements are as follows:
A.S.V., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Three months ended March 31, 2001 and 2000
2001 2000
------------ ------------
Net sales ............................................. $ 12,954,716 $ 11,183,584
Cost of goods sold .................................... 10,747,898 8,650,914
------------ ------------
Gross profit .................................. 2,206,818 2,532,670
Operating expenses
Selling, general and administrative ............... 1,430,736 1,670,323
Research and development .......................... 607,499 135,148
------------ ------------
Operating income .............................. 168,583 727,199
Other income (expense)
Interest expense .................................. (36,825) (93,203)
Other, net ........................................ 176,212 29,765
------------ ------------
Income before income taxes .................... 307,970 663,761
Provision for income taxes ............................ 104,000 247,000
------------ ------------
NET EARNINGS .................................. $ 203,970 $ 416,761
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Net earnings per common share - Diluted ............... $ .02 $ .04
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Diluted weighted average shares outstanding............ 10,316,369 9,955,040
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A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS March 31, December 31,
2001 2000
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CURRENT ASSETS
Cash & short-term investments ....................... $ 7,500,657 $10,762,143
Accounts receivable, net ............................ 16,577,428 10,557,907
Inventories ......................................... 28,240,313 28,064,998
Prepaid expenses and other .......................... 961,822 965,026
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Total current assets ............................ 53,280,220 50,350,074
PROPERTY AND EQUIPMENT, net ............................. 4,581,041 4,656,118
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Total assets .................................... $57,861,261 $55,006,192
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LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term liabilities ............ $ 82,858 $ 82,090
Accounts payable .................................... 4,319,628 1,822,912
Accrued liabilities ................................. 1,122,889 1,023,924
Income taxes payable ................................ 234,784 197,021
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Total current liabilities ....................... 5,760,159 3,125,947
LONG-TERM LIABILITIES, less current portion ............. 2,095,985 2,116,898
SHAREHOLDERS' EQUITY .................................... 50,005,117 49,763,347
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Total liabilities & shareholders' equity ........ $57,861,261 $55,006,192
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