Exhibit 99
For more information
Jay Lemke
Carmichael Lynch Spong
(612) 375-8529
jlemke@clynch.com
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ASV Announces Results for 2nd Quarter 2001
Record Quarter Reflects 17% Rise in Net Sales
GRAND RAPIDS, MN (July 24, 2001) - ASV, Inc. (NASDAQ: ASVI) today
reported its net sales for the second quarter of 2001 increased 17% to
$14,226,161, the highest quarterly net sales figure in the Company's history,
compared with $12,124,441 for the same period in 2000. Due in part to the
Company's continued investment in research and development, which increased
approximately $428,000 in the second quarter of 2001, net earnings totaled
$90,774, or $.01 per share, for the second quarter of 2001 compared with
$599,308, or $.06 per share, for the second quarter of 2000.
For the six months ended June 30, 2001, net sales also increased 17% to
$27,180,877 compared with $23,308,025 for the same period in 2000. With research
and development increasing approximately $900,000 in the first half of 2001, net
earnings were $294,744 for the six months ended June 30, 2001 compared with
$1,016,069 for the same period in 2000; and earnings per share were $.03 in 2001
compared with $.10 for 2000.
"We are pleased to report another quarter of record sales," said Gary
Lemke, President of ASV, Inc. "Second quarter was also a landmark as we
delivered our first shipments of undercarriages to Caterpillar Inc. (NYSE: CAT)
for use in the first two models of our jointly-developed Multi-Terrain
Loaders(TM) (MTL). Caterpillar has begun shipping completed MTLs to 16 select
North American dealers. All of Caterpillar's 69 North American dealers are
expected to have access to the MTLs in 2002 with worldwide availability expected
in 2003."
ASV and Caterpillar announced in October 2000 that they would jointly
develop and manufacture a new product line of Caterpillar branded rubber track
compact loaders called Multi-Terrain Loaders. The MTL product line, which is
expected to include five new models, features Caterpillar's patented skid steer
loader technology and ASV's patent-pending Maximum Traction Support System(TM)
rubber track undercarriage. The Company's increased investment in research and
development costs, which affected net earnings in the second quarter and for the
six months ended June 30, 2001, reflects a continuing commitment by ASV to the
expansion of the MTL line.
Continuing, Lemke stated, "Overall, our gross profit percentage for the
second quarter of 2001 decreased due to a greater concentration of sales of the
Polaris ASL-300 model to Polaris Industries Inc. (NYSE: PII), fewer sales of the
Posi-Track model 4810 and initial start up costs related to the MTL
undercarriages. The Polaris model is sold on a cost plus basis, which is lower
than our normal gross profit achieved on our RCo30(TM) All Surface Loader, but
carries very low sales and marketing costs. We do not anticipate such a
concentration of Polaris sales for the remainder of 2001. This, together with
expected increased shipments of MTL undercarriages, should allow for improvement
in our gross profit percentage for the rest of 2001."
ASV announced in January of this year it had entered into a licensing
agreement with Polaris to build a rubber track, all-surface utility loader
similar to ASV's new RCo30 under the Polaris nameplate.
The Company's selling, general and administrative expenses decreased
both in dollar volume and as a percentage of sales in the second quarter of
2001. This decrease was due primarily to decreased commissions payable to
Caterpillar as a result of fewer sales of the Company's products to Caterpillar
dealers and also fewer products eligible for commission. ASV pays no commission
to Caterpillar on the sale of MTL undercarriages or its RCo30 products.
ASV will conduct a live Webcast at 10 a.m. Central time, Tuesday, July
24th to discuss its results for the second quarter of 2001 and its outlook for
the rest 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 1409952. The Internet replay will be available for 90 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 its unique rubber-tracked products,
visit the Company's web site at www.asvi.com.
Note: The statements set forth above regarding ASV's 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,
ASV's future product mix and ASV's future profitability levels 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, 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 Six Months Ended
June 30, June 30,
------------------------------- -------------------------------
2001 2000 2001 2000
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Net sales................................... $ 14,226,161 $ 12,124,441 $ 27,180,877 $ 23,308,025
Cost of goods sold.......................... 12,177,934 9,157,072 22,925,832 17,807,986
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Gross profit....................... 2,048,227 2,967,369 4,255,045 5,500,039
Operating expenses:
Selling, general and administrative.... 1,442,801 1,847,874 2,873,537 3,518,197
Research and development............... 548,757 121,222 1,156,256 256,370
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Operating income................... 56,669 998,273 225,252 1,725,472
Other income (expense)
Interest expense....................... (36,913) (70,798) (73,738) (164,001)
Other, net............................. 113,018 24,833 289,230 54,598
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Income before income taxes......... 132,774 952,308 440,744 1,616,069
Provision for income taxes.................. 42,000 353,000 146,000 600,000
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NET EARNINGS........................... $ 90,774 $ 599,308 $ 294,744 $ 1,016,069
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Net earnings per common share - Diluted..... $ .01 $ .06 $ .03 $ .10
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Diluted weighted average shares ............ 10,337,792 9,875,867 10,327,081 9,915,453
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-more-
A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS June 30, December 31,
2001 2000
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CURRENT ASSETS
Cash & short-term investments.................. $ 5,556,092 $ 10,762,143
Accounts receivable, net....................... 17,889,576 10,557,907
Inventories.................................... 29,661,738 28,064,998
Prepaid expenses and other..................... 965,615 965,026
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Total current assets....................... 54,073,021 50,350,074
PROPERTY AND EQUIPMENT, net........................ 4,582,228 4,656,118
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Total assets............................... $ 58,655,249 $ 55,006,192
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LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term liabilities....... $ 83,643 $ 82,090
Accounts payable............................... 5,155,031 1,822,912
Accrued expenses............................... 1,177,688 1,023,924
Income taxes payable........................... 31,784 197,021
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Total current liabilities.................. 6,448,146 3,125,947
LONG-TERM LIABILITIES, less current portion........ 2,075,414 2,116,898
SHAREHOLDERS' EQUITY............................... 50,131,689 49,763,347
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Total liabilities & shareholders' equity... $ 58,655,249 $ 55,006,192
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