ASV Announces 1st Quarter 2007 Results.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 First Quarter 2007 * In line with Company expectations, first quarter 2007 sales of $46.3 million and 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. of $.08 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 were comparable to fourth quarter 2006 results, but were well below sales of $64.9 million and EPS of $.25 per diluted share for the first quarter of 2006. * Sales of ASV machines and Loegering Mfg. Inc. products increased over fourth quarter 2006 levels. * Strong cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses increased cash 39% to $23.8 million as compared to December December: see month. 31, 2006. * Materials management Materials management is the branch of logistics that deals with the tangible components of a supply chain. Specifically, this covers the acquisition of spare parts and replacements, quality control of purchasing and ordering such parts, and the standards involved in ordering, efforts trimmed 8% or $6.0 million off of inventory levels as compared to December 31, 2006. * Scout SC-50 tracked utility vehicle began shipping. ASV, Inc. (Nasdaq:ASVI) today reported results for its first quarter ended March 31, 2007. In line with Company expectations for a softer first half of the year, 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 for the first quarter of 2007 were $46.3 million compared to $46.1 million for the fourth quarter of 2006 and $64.9 million during the first quarter of 2006, when economic growth and construction spending Construction Spending An economic indicator that measures the amount of spending towards new construction. Released monthly by the U.S. Department of Commerce's Census Bureau, it looks at residential and non-residential construction in the private sector, and state and federal at were still very strong. Net earnings for the first quarter of 2007 were $2.1 million compared to $2.4 million for the fourth quarter of 2006 and $6.9 million for the first quarter of 2006. Earnings per diluted share were $.08 for the first quarter of 2007 compared to $.09 for the fourth quarter of 2006 and $.25 per diluted share in the first quarter of 2006. "Despite ongoing softness in the U.S. marketplace, sales of ASV's machines continue to perform favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. when compared to the compact loader A program routine that copies a program into memory for execution. industry," said Dick Benson Benson may mean: Places in England:
Incremental cost is additional or increased cost of an item or service apart from its actual cost. investments will produce attractive returns once industry growth resumes." Income Statement ASV machines generated first quarter sales of $27.1 million (58.5% of net sales), up 12% compared to $24.2 million for the fourth quarter of 2006 and down 14% compared to $31.4 million for the first quarter of 2006. The year-over-year decline, which compares favorably to the much larger contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction in the U.S. compact loader industry, is a function of a strong comparison quarter and a significantly weaker U.S. economic climate starting in the second half of 2006. For the first quarter of 2007 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, 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 were $8.1 million (17.6% of net sales) compared to $10.2 million for the fourth quarter of 2006 and $19.4 million for the first quarter of 2006. The reduction in OEM undercarriage sales for the first quarter of 2007 was primarily related to lower sales to Caterpillar as their production schedules were lowered considerably in anticipation of model changeovers. Sales from ASV's subsidiary Loegering Mfg. Inc. totaled $5.8 million (12.6% of net sales) in the first quarter of 2007 compared to $5.1 million in the fourth quarter of 2006 and $8.5 million for the first quarter of 2006. The year-over-year comparison reflects the precipitous decline in the U.S. skid steer steer castrated male cattle beast over a year of age. See also bullock, buller steer. steer bulling see bulling. steer Medtalk verb loader market where Loegering's bolt-on undercarriages replace tires. Sales of service parts and other items were $5.3 million (11.3% of net sales) in the first quarter of 2007, compared to $6.7 million in the fourth quarter of 2006 and $5.5 million in the first quarter of 2006. The decline in service parts sales reflects lower levels of machine usage. Gross margin for the first quarter of 2007 was 20.6% compared to 20.9% for the fourth quarter of 2006 and 25.1% for the first quarter of 2006. The year-over-year decline in gross margin primarily was driven by lower production throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. levels. Also impacting the Company's gross margin were ASV's efforts to upgrade dealer capability which resulted in expenses related to returns and refunds, and the Company's efforts to stimulate sales through increased use of finance incentives. Selling, general and administrative expenses were $6.2 million (13.3% of sales) during the first quarter of 2007 compared to $5.5 million (11.9% of sales) for the fourth quarter of 2006 and $5.5 million (8.5% of sales) for the first quarter of 2006. The quarter-over-quarter increase reflects the typical seasonal pattern of our marketing and accounting fees, while the year-over-year increase in SG&A reflected personnel additions made during 2006 and 2007 to support the Company's stated strategic priorities, including increased marketing support. Research and development expenses for the first quarter of 2007 were $.5 million, compared to $.5 million for the fourth quarter of 2006 and $.3 million for the first quarter of 2006. The year-over-year increase in R&D expenses reflects the addition of engineering and product testing personnel to improve product quality and enhance new product development. Balance Sheet ASV finished the first quarter of 2007 with $23.8 million dollars of cash and equivalents, up $6.7 million from the December 31, 2006 figure of $17.1 million. This increase reflects strong cash flow from operations including a reduction in inventory, which more than offset activity under the Company's share buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may program. During the first quarter of 2007 100,000 shares were purchased under the share buyback program at cost of $1.5 million. 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 as of March 31, 2007 were relatively unchanged at $44.5 million compared to $44.2 million at December 31, 2006. ASV's overall inventory levels decreased 8% or $6.0 million during the first quarter of 2007 to $65.4 million compared to $71.4 million at December 31, 2006. The decrease in inventory during the quarter reflected the Company's efforts to better align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. the incoming flow of materials with production levels that are in line with incoming orders. For the first quarter of 2007, raw materials declined 7% or $3.7 million to $49.7 million and finished goods decreased 13% or $2.2 million to $14.5 million. Adoption of New Accounting Standard for Income Taxes On January 1, 2007, the Company adopted the provisions of Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). Interpretation 48, "Accounting for Uncertainty in Income Taxes" (FIN fin, organ of locomotion characteristic of fish and consisting of thin tissue supported by cartilaginous or bony rays. In some fish, e.g., the eel, a single fin extends from the back, around the tail, and along the ventral surface. 48). As a result of the adoption of FIN 48, the Company recognized an increase of $1.8 million in income taxes payable, and a corresponding decrease in beginning retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. as required by FIN 48. 2007 Guidance Confirmed * Sales for 2007 anticipated to be in the range of $230 to $260 million. * Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of is expected to be in the range of $.68 to $.87 per share. Commenting on the Company's outlook for 2007, Benson stated, "We continue to pursue our vision of managing ASV to a $1 billion company, and current market conditions will not move us off our plans. There will be cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. bumps bumps a term used to describe a variety of papulonodular dermatoses in horses, including 'heat bumps', 'feed bumps', 'protein bumps', 'wheat bumps' and others. No specific disease or etiology has been assigned to the term and veterinary dermatologists wish it would disappear from use. in the road from time to time. But our financial strength permits us to weather these temporary storms as evidenced by our strong cash generation despite a top line reduction for the quarter. With the launch of the Caterpillar C-Series, our OEM undercarriage volumes are expected to increase for the balance of the year, which will help offset continued weakness in some of the markets we serve." Question and Answer Q1: How many dealers did ASV add during the first quarter of 2007? A: ASV ended the first quarter of 2007 with 357 dealer storefronts, compared to 281 dealer storefronts at March 31, 2006. ASV added 2 net new dealer storefronts during the first quarter of 2007. The pace of net additions during the quarter reflects the Company's efforts to better align dealers with Company goals. Some dealers were replaced or discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: during the period. While we are in the early stages of this process, we are pleased to be attracting larger, multiple-location dealers with greater financial and operating capacity. Q2: What is your current availability on machines? A: Depending on the model and configuration, our current machine availability ranges from 3 to 6 weeks. Q3: Please provide an update on ASV's international sales activity. A: For the first quarter of 2007 sales to non-U.S. dealers were $3.7 million or 7.9% of total net sales compared to $4.3 million or 6.7% of total net sales in the first quarter of 2006. While we currently have a presence in Australia, Canada, Dubai, Kuwait and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. , Europe now represents one of the most rapidly expanding markets for rubber track loaders and we are devoting considerable energy to establishing distribution capability in that area. Q4: Please explain the increase in the income tax rate in the first quarter of 2007. A: The increase in ASV's effective tax rate from 36.3% for the first quarter of 2006 to 37.5% for the first quarter of 2007 was due to a combination of lower taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. during the quarter and non-deductible expenses which occur evenly throughout the year. Conference Call ASV will conduct a live webcast at 9 a.m. Central time, Thursday, May 3rd to discuss its first quarter 2007 financial results. 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://www.wsw.com/webcast/cc/asv6/. 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 one hour after its conclusion. The telephonic replay will be available through Friday, May 4th, and can be accessed by dialing 877-660-6853 and entering account number 273 and conference ID number 240226. The Internet replay will be available for 30 days and can be accessed at www.asvi.com or http://www.wsw.com/webcast/cc/asv6/in the same manner as discussed above. About ASV ASV designs, manufactures and sells rubber track machines and related components, accessories, and attachments. Its purpose-built chassis Pronounced "chah-see," it is a physical structure that holds everything or that everything is attached to. A computer's cabinet is often called the chassis. and patented rubber track undercarriage technology are unique and lead all rubber track loaders in innovation and performance. ASV's products are able to traverse traverse - traversal nearly any terrain with minimal damage to the ground, making them effective in markets such as construction, landscaping, forestry and agriculture. The Company's rubber track undercarriages are a primary component on Caterpillar(c) Multi Terrain Loaders and certain models of the Vermeer Manufacturing Company's trencher and horizontal directional In one direction. Contrast with omnidirectional. drill products. ASV's wholly-owned subsidiary Loegering Mfg. Inc. designs, manufactures and sells 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 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 and earnings per share 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 the anticipated improvement in the U.S. construction markets, 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, ASV's ability to successfully upgrade its dealer capability, 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) > >
Three months ended March 31, 2007 and 2006 > >
(Unaudited and in thousands, except share data) > >
> > 2007
2006
Net sales > > $46,317
$64,877
> >
Cost of goods sold > > 36,761
48,593
> >
Gross profit > > 9,556
16,284
Gross profit % > > 20.6%
25.1%
> >
Operating expenses > >
Selling, general and administrative > > 6,160
5,526
> >
Research and development > > 526
348
> >
Operating income > > 2,870
10,410
> >
Other income > >
Interest income > > 377
465
> >
Other, net > > 48
16
> >
Income before income taxes > > 3,295
10,891
> >
Provision for income taxes > > 1,236
3,955
> >
NET EARNINGS > > $2,059
$6,936
> >
Net earnings per common share - Diluted > > $.08
$. 25
> >
Diluted weighted average shares outstanding > > 27,187,212
27,875,219
A.S.V., INC. > >
SALES BREAKDOWN > >
Three Months Ended March 31, 2007 and 2006 > >
> > 2007
2006
> >
ASV Machines > > 58.5%
48.4%
> >
OEM Undercarriages > > 17.6%
30.0%
> >
Loegering > > 12.6%
13.1%
> >
Parts and Other > > 11.3%
8.5%
> >
TOTAL > > 100.0%
100.0%
A.S.V., INC. > >
CONDENSED CONSOLIDATED BALANCE SHEETS > >
(Unaudited and in thousands) > >
> >
ASSETS > > March 31,
December 31,
> > 2007
2006
CURRENT ASSETS > >
Cash & cash equivalents > > $23,830
$17,090
> >
Short-term investments > > 3,306
220
> >
Accounts receivable, net > > 44,539
44,184
> >
Inventories > > 65,381
71,384
> >
Deferred income taxes > > 4,565
4,840
> >
Other current assets > > 861
903
> >
Total current assets > > 142,482
138,621
> >
PROPERTY AND EQUIPMENT, net > > 29,236
29,342
> >
LONG-TERM INVESTMENTS > > 11,060
14,155
> >
OTHER NON-CURRENT ASSETS > > 245
313
> >
INTANGIBLES, net > > 7,746
7,771
> >
GOODWILL > > 8,386
8,386
> >
Total assets > > $199,155
$198,588
> >
LIABILITIES & SHAREHOLDERS' EQUITY > >
> >
CURRENT LIABILITIES > >
Current portion of long-term liabilities > > $31
$37
> >
Accounts payable > > 10,037
11,517
> >
Accrued liabilities - Warranties > > 5,758
5,894
> >
Accrued liabilities - Other > > 2,889
2,582
> >
Income taxes payable > > 2,811
686
> >
Total current liabilities > > 21,526
20,716
> >
LONG-TERM LIABILITIES, less current portion > > 40
40
> >
DEFERRED INCOME TAXES > > 1,745
1,630
> >
SHAREHOLDERS' EQUITY > > 175,844
176,202
> >
Total liabilities & shareholders' equity > > $199,155
$198,588
[TABLE OMITTED]
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