ASV Announces 1st Quarter 2006 Sales and Earnings Results; 2006 Full Year Earnings Guidance Increased.GRAND RAPIDS Grand Rapids, city (1990 pop. 189,126), seat of Kent co., SW central Mich., on the Grand River; inc. 1850. The second largest city in the state, it is a distribution, wholesale, and industrial center for an area that yields fruit, dairy products, farm produce, , Minn. -- ASV ASV abbr. Bible American Standard Version ASV n abbr (= American Standard Version) → traduction de la Bible ASV n abbr (Bible) (= , Inc. (Nasdaq:ASVI ASVI Alien Status Verification Index ASVI Alien Status Verification Index (US INS) ): Highlights for the First Quarter of 2006 --First quarter 2006 net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight grow 22% to $64.9 million as compared to first quarter 2005. --Sales driven by ASV dealer network expansion, growth in the sales of higher priced machines and accessories, greater price realization and increased VTS See VOB and virtual tape system. VTS - A suite of test programs for Motif from OSF. sales. --Gross margin increased to 25.1% for the quarter, as compared with 24.0% for the first quarter of 2005, based on continued benefits from volume increases and strategic investments in production equipment, increased sales of higher-margin machines and accessories and increases in Loegering Mfg. Inc. sales. --EPS for the first quarter of 2006 increases 25% to $.25 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared with $.20 per diluted share for the first quarter of 2005. The 2006 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. figure includes stock-based compensation related expenses of $.02 per diluted share. --Company increases 2006 full year EPS guidance to $1.10 to $1.20 per share. ASV, Inc. (Nasdaq:ASVI) today reported results for its first quarter ended March 31, 2006. Net sales for the first quarter of 2006 increased 22% to $64.9 million, compared to $53.2 million for the same period in 2005. Assisted by a strong improvement in gross profit percentage, net earnings increased 25% to $6.9 million for the first quarter of 2006, compared with $5.5 million for the first quarter of 2005. EPS for the first quarter of 2006 increased to $.25 per diluted share compared with $.20 per diluted share for the first quarter of 2005. The 2006 EPS figure includes stock-based compensation related expenses of $.02 per diluted share. The Company adopted SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 123(R), Share Based Payment, on January January: see month. 1, 2006. "ASV has delivered another solid quarter, with growth in our ASV machines at the high end of our 2006 guidance range, and VTS product sales more than doubling from the first quarter 2005 level," said Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Gary Gary, city (1990 pop. 116,646), Lake co., NW Ind., a port of entry on Lake Michigan; inc. 1909. Gary was founded by the U.S. Steel Corporation, which purchased the land in 1905 and landscaped it for a city. Lemke Lemke is a surname, and may refer to
This page or section lists people with the surname Lemke. . "Gross margins increased and we've we've Contraction of we have. we've have been able to hold operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: steady, even with the implementation of the expensing of stock options. We also continued to execute on our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth strategies. Our pace of dealer storefront additions is well ahead of last year, and we successfully launched several new products, including our flagship SR-80 machine, which has received strong dealer and customer acceptance." ASV machines generated first quarter sales of $31.4 million, up 45% from the first quarter of 2005. This increase was driven by expansion of the ASV dealer network, growth in the sale of larger Posi-Track machines and accessories and greater price realization. ASV's OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and undercarriage sales increased 11% for the first quarter of 2006, totaling $19.4 million, compared with $17.5 million for the first quarter of 2005. First quarter 2006 OEM undercarriage sales, which include sales to both Caterpillar caterpillar (kăt`əpĭl'ər, kăt`ər–), common name for the larva of a moth or butterfly. Caterpillars have distinct heads and are segmented and wormlike. and Vermeer Vermeer successful fakes of his paintings went undetected for many years. [Dutch Hist.: Brewer Dictionary, 371] See : Forgery , increased, even with the planned price reduction on one model of Caterpillar MTL MTL In currencies, this is the abbreviation for the Maltese Lira. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. undercarriage on January 1, 2006. Sales from ASV's subsidiary, Loegering Mfg. Inc. totaled $8.5 million in the first quarter of 2006, up 33% compared with sales of $6.4 million for the first quarter of 2005. The increase in sales was due to a more than doubling of VTS product line sales, which offset a decline in steel track sales and the absence of the snow blower attachment product line, which was sold in October October: see month. of 2005. The VTS rubber track undercarriage product line accounted for 72% of Loegering's total net sales in the first quarter of 2006, compared with 40% of Loegering's total net sales in the first quarter of 2005. Sales of service parts and other items, which experienced an uneven pattern throughout 2005, continued this trend in 2006 with sales totaling $5.5 million in the first quarter of 2006, compared with $7.7 million in the similar period last year. Driving this decline was a combination of the timing of OEM blanket orders A blanket order is defined as an order the customer makes with its supplier which contains multiple delivery dates scheduled over a period of time, sometimes at predetermined prices. It is normally used when there is a recurring need for expendable goods. and the implementation of lower Caterpillar parts pricing effective November November: see month. 2005. Selling, general and administrative expenses increased $1.7 million to $5.5 million for the first quarter of 2006, which includes $.7 million for stock-based compensation related expenses, compared with $3.8 million for the same period in 2005. The Company also experienced increases in sales-related expenses and an increase in overall expenses due to higher volume in 2006. Research and development expenses declined by 19% in the first quarter of 2006 when compared with the same period in 2005 as ASV completed much of the development work associated with its new SR-Series machines in late 2005. Commenting on the Company's guidance for 2006, Lemke stated, "Given our strong margin performance and the progress we made on our key objectives we are increasing our previously announced 2006 earnings guidance." 2006 Guidance Increased --Diluted earnings per share estimates revised upward to the range of $1.10 - 1.20 per share, from previous guidance of $1.06 - 1.15 per share. The increased guidance represents an increase of 9 to 19% compared with 2005. --The 2006 full year EPS estimate includes stock-based compensation related expenses of $.08 per diluted share. --Previously issued sales guidance for 2006 confirmed in the range of $300 to $320 million, an increase of 22 to 31% over 2005. --Sales breakdown for 2006 is expected to be as follows: --ASV machines approximately 52% of total net sales --OEM undercarriages approximately 25% of total net sales --Parts approximately 14% of total net sales --Loegering products approximately 9% of total net sales Question and Answer Q1: What financial assumptions were made to develop the revised 2006 EPS figures? A: Management made the following assumptions to develop its revised 2006 EPS figure: --Gross margin in the range of 24.0 to 24.5% --SG&A, exclusive of stock-based compensation related expenses, in the range of 6.35 to 6.75% --R&D expenses of .7% --Income tax rate: 36.5% Q2: How many dealers did ASV add during the first quarter of 2006? A: ASV added 21 net new dealer storefronts during the first quarter of 2006, ending the period with a total of 281 dealer storefronts. This represents a 25% increase over the first quarter 2005 figure and compares to 9 net additions in the first quarter of 2005, and 44 total net dealer storefront additions during the full year 2005. Q3: What is your current availability on machines? A: Depending on the model and configuration, our current machine availability ranges from 1 to 20 weeks. The longest lead times are for the SR-70 and SR-80 machines. Q4: What has caused the decline in parts sales compared to the first quarter of 2005? A: As the Company has stated in the past, it will be relatively more difficult to predict the demand for parts until this portion of the business becomes more mature. The demand for parts is a function of machine population, dealer inventory levels, machine usage, and the timing of OEM blanket orders. Q5: What has caused the increase in inventory from December December: see month. 31, 2005? A: It is the Company's practice to set a steady production rate throughout the year to maximize its efficiency and minimize it labor costs. Because of this, it is not uncommon for the Company to build inventory levels in off-peak seasons, to help supply the demand for product during peak times, such as second and third quarters. Inventory increased in the first quarter of 2006 as we took advantage of our available labor and capacity to build machines for later periods when shipments are expected to increase. In addition, raw materials increased as we received materials for expected future production increases and parts sales, and for the production of the SR-70 and SR-80. Q6: What caused accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying to increase in the first quarter of 2006? A: A greater percentage of our first quarter 2006 sales occurred in the last month of the quarter, which coincided with the first shipments of our SR-80s, than was the case in prior quarters. Q7: Can you provide an update on your sales activities to the rental market. A: In the first quarter of 2006 ASV was added as a preferred supplier to the network of True Value rental outlets. We have recently begun a marketing program to target the True Value rental program participants, which include over 1,000 rental outlets. In addition to our initiatives with True Value and Home Depot The Home Depot (NYSE: HD) is an American retailer of home improvement and construction products and services. Headquartered in Vinings, just outside Atlanta in unincorporated Cobb County, Georgia, Home Depot employs more than 355,000 people and operates 2,164 big-box , we are seeing an increased level of activity in ASV dealer sales to rental companies, and we continue to focus our efforts on new opportunities with regional rental companies. Conference Call ASV will conduct a live webcast at 9 a.m. Central Time, Thursday, April 27th to discuss its results for the first quarter 2006. The call will be broadcast over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the and can be accessed at either ASV's web site, www.asvi.com, in the investor relations Investor relations The process by which the corporation communicates with its investors. section under the "About ASV" tab or at http://wsw.com/webcast/asv2/. To listen to the call, go to either of the two web sites at least 15 minutes prior to the call to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any needed audio software. A replay of the call will be available over the Internet shortly after its conclusion, and available telephonically approximately two hours after its conclusion. The telephonic replay will be available through Friday, April 28th, and can be accessed by dialing 800-642-1687 and entering conference ID number 8155569. The Internet replay will be available for 30 days and can be accessed at www.asvi.com or http://wsw.com/webcast/asv2/ in the same manner as discussed above. About ASV ASV designs, manufactures and sells rubber track loaders and related accessories, attachments and traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. products. ASV also manufactures rubber track undercarriages, some of which are a primary component on Caterpillar's Multi Terrain Loaders. With its patented undercarriage technology, ASV leads all rubber track loaders in technology and innovation. ASV's products are able to traverse traverse - traversal nearly any terrain with minimal damage to the ground, making them effective in industries such as construction, landscaping and agriculture. ASV's wholly-owned subsidiary Loegering Mfg. Inc. provides traction products and attachments for the skid-steer industry. For more information, visit ASV's website at www.asvi.com or Loegering's website at www.loegering.com. Forward Looking Statements Note: Some of the statements set forth above, including the statements regarding ASV's future expected sales, sales mix sales mix See product mix. , expense levels, the effects of adopting SFAS 123(R), earnings per share and anticipated start of production for new models, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. based on current expectations and assumptions, and entail entail, in law, restriction of inheritance to a limited class of descendants for at least several generations. The object of entail is to preserve large estates in land from the disintegration that is caused by equal inheritance by all the heirs and by the ordinary 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 or Vermeer relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the manufacturing or marketing of their machines utilizing ASV undercarriage systems, market acceptance of the machines, deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of the general market and economic conditions, corporate developments at ASV, Caterpillar or Vermeer and ASV's ability to realize the anticipated benefits from its relationships with Caterpillar and Vermeer. 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 quarterly reports on Form 10-Q Form 10-Q See 10-Q. and annual reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. .
A.S.V., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
Three months ended March 31, 2006 and 2005
(In thousands, except share data)
2006 2005
----------- -----------
Net sales..................................... $64,877 $53,180
Cost of goods sold............................ 48,593 40,421
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Gross profit.......................... 16,284 12,759
Operating expenses
Selling, general and administrative....... 5,526 3,784
Research and development.................. 348 428
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Operating income...................... 10,410 8,547
Other income (expense)
Interest income........................... 465 303
Interest expense.......................... -- (28)
Other, net................................ 16 46
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Income before income taxes............ 10,891 8,868
Provision for income taxes.................... 3,955 3,325
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NET EARNINGS.......................... $6,936 $5,543
=========== ===========
Net earnings per common share - Diluted....... $.25 $.20
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Diluted weighted average shares outstanding... 27,875,219 27,641,794
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A.S.V., INC.
SALES BREAKDOWN
Three Months Ended March 31, 2006 and 2005
2006 2005
--------- --------
ASV Machines....................................... 48.4% 40.6%
OEM Undercarriages................................. 30.0% 32.8%
Loegering.......................................... 13.1% 12.1%
Parts and Other.................................... 8.5% 14.5%
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TOTAL...................................... 100.0% 100.0%
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A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands)
ASSETS March 31, December 31,
2006 2005
----------- --------------
CURRENT ASSETS
Cash & short-term investments.......... $30,250 $36,741
Accounts receivable, net............... 51,061 43,793
Inventories............................ 61,204 52,362
Deferred income taxes.................. 3,650 3,545
Other current assets................... 766 1,083
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Total current assets 146,931 137,524
PROPERTY AND EQUIPMENT, net................ 22,045 20,907
LONG-TERM INVESTMENTS...................... 14,199 7,995
OTHER NON-CURRENT ASSETS................... 483 535
INTANGIBLES, net........................... 7,849 7,874
GOODWILL................................... 8,386 8,386
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Total assets....................... $199,893 $183,221
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LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term
liabilities........................... $40 $71
Accounts payable....................... 19,015 15,498
Accrued liabilities - Warranties....... 5,431 5,077
Accrued liabilities - Other............ 2,693 2,195
Income taxes payable................... 3,459 855
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Total current liabilities 30,638 23,696
LONG-TERM LIABILITIES, less current portion 66 138
DEFERRED INCOME TAXES...................... 1,075 1,300
SHAREHOLDERS' EQUITY....................... 168,114 158,087
----------- --------------
Total liabilities & shareholders'
equity $199,893 $183,221
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