ASV Announces 4Th Quarter and Full Year 2006 Results.Full Year ASV ASV abbr. Bible American Standard Version ASV n abbr (= American Standard Version) → traduction de la Bible ASV n abbr (Bible) (= Machine Sales Up 14%, Sales of Loegering's VTS See VOB and virtual tape system. VTS - A suite of test programs for Motif from OSF. (TM) Product Up 30% 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, Inc.(Nasdaq:ASVI ASVI Alien Status Verification Index ASVI Alien Status Verification Index (US INS) ): Highlights for the Fourth Quarter and Fiscal Year 2006 * Full year 2006 sales were $246.1 million compared to $245.1 million in 2005. * ASV machine sales grew 14% in 2006 to $129.8 million as compared to $113.8 million in 2005. Sales of ASV machines increased both domestically and abroad, with international markets showing considerable strength. Sales of ASV machines outside the U.S. increased 68% in 2006. * Sales of the VTS product line manufactured by ASV's subsidiary Loegering Mfg. Inc., grew 30% in 2006, and accounted for 75% of Loegering's sales for the year. * Full year 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. was $.81 compared to $1.01 in 2005. The full year 2006 EPS figure includes stock-based compensation expense of $.07 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. * Total 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 fourth quarter of 2006 were $46.1 million as compared to $66.0 million during the fourth quarter of 2005. * EPS for the fourth quarter of 2006 was $.09 per diluted share compared to $.29 per diluted share for the fourth quarter of 2005. ASV, Inc. (Nasdaq:ASVI) today reported full year 2006 sales of $246.1 million, up $1.0 million compared to sales of $245.1 million for 2005. Net earnings for the year were $22.0 million compared to $27.9 million for 2005, and 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 for 2006 were $.81 compared to $1.01 for 2005. The 2006 EPS figure includes stock-based compensation expense of $.07 per diluted share. Sales for the fourth quarter of 2006 were $46.1 million, compared to $66.0 million during the fourth quarter of 2005, as softness continued in the U.S. residential construction market. Net earnings for the fourth quarter of 2006 were $2.4 million compared to $8.2 million for the fourth quarter of 2005 reflecting lower sales and 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 and higher SG&A expenses primarily related to the adoption of 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 123R. Earnings per diluted share were $.09 for the fourth quarter of 2006 compared to $.29 per diluted share in the fourth quarter of 2005. The fourth quarter 2006 EPS figure includes stock-based compensation expense of $.02 per diluted share. "While 2006 was a challenging year for ASV, there were also many significant achievements," said Dick Benson Benson may mean: Places in England:
Contraction of we have. we've have added bench strength in several key areas and made considerable progress on critical strategy and process initiatives. Our foundation has been strengthened and we are well positioned to respond when market conditions improve." Income Statement For the twelve months ended December 31, 2006 sales of ASV machines were $129.8 million, up 14% compared to $113.8 million for the twelve months ended December 31, 2005. Sales of ASV machines increased both domestically and abroad in 2006, with international markets showing significant growth. Sales of ASV machines outside the U.S. increased 68% in 2006. ASV machines generated fourth quarter sales of $24.2 million (52.4% of net sales), compared to $32.0 million for the fourth quarter of 2005. The decline in machine sales for the quarter reflects the ongoing weakness in the U.S. residential construction markets, which offset strong sales of ASV machines to markets outside the U.S. 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, declined 18% to $61.1 million for the full year 2006, compared to $74.9 million in sales for 2005. For the fourth quarter of 2006 OEM Undercarriage sales were $10.2 million (22.0% of net sales) compared with $20.4 million for the fourth quarter of 2005. The reduction in OEM undercarriage sales for the fourth quarter and full year was primarily related to lower sales to Caterpillar. For the twelve months ended December 31, 2006 sales from ASV's subsidiary, Loegering Mfg. Inc., totaled $24.9 million, up 2% compared to $24.3 million for the twelve months ended December 31, 2005. These results reflect continued strong growth in the VTS product line, offset by a decline in sales of steel tracks and other products more directly affected by the adverse market factors. The comparative period also includes sales associated with the snow blower attachment product line, which was sold in the fourth quarter of 2005. Sales of Loegering's VTS product increased 30% in 2006 and accounted for 75% of Loegering's total net sales. Loegering's sales were $5.1 million (11.1% of net sales) in the fourth quarter of 2006 compared with $5.7 million for the fourth quarter of 2005, reflecting the continued slow down in the U.S. housing activity and its effect on the market for Loegering's 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. Sales of service parts and other items for the full year 2006 were $30.4 million, down 5% compared to $32.1 million for the similar period in 2005. Sales of service parts and other items were $6.7 million (14.5% of net sales) in the fourth quarter of 2006, compared with $7.9 million in the similar period last year. This decrease is related to the greater longevity longevity (lŏnjĕv`ĭtē), term denoting the length or duration of the life of an animal or plant, often used to indicate an unusually long life. of ASV undercarriage components and lower levels of field activity, resulting in lower overall parts consumption. Gross margin for the twelve months ended December 31, 2006 was 23.1% compared to 24.6% for the twelve months ended December 31, 2005, primarily due to a greater mix of the lower gross margin SR-70 and SR-80 machines, greater use of retail finance incentives during the year, and the lower production throughput levels in the second half of the year. Gross margin for the fourth quarter of 2006 was 20.9% compared with 24.8% for the fourth quarter of 2005, due to lower production throughput levels, a greater concentration of lower gross margin products and a greater use of retail finance incentives. Selling, general and administrative expenses were $22.0 million (9.0% of sales) for the twelve months ended December 31, 2006 compared to $16.5 million (6.7% of sales) for the same period in 2005. The increase in SG&A was primarily related to stock-based compensation expense of $3.0 million from the adoption of SFAS No. 123(R), Share Based Payment, on January 1, 2006, personnel additions during the year and costs associated with the termination of an ASV dealer in the third quarter of 2006. SG&A expenses for the fourth quarter of 2006 were $5.5 million compared to $4.5 million for the same period in 2005. The fourth quarter 2006 SG&A expense figure includes $.8 million for stock-based compensation expense. Research and development expenses for the full year 2006 were $1.7 million, unchanged from the fiscal year 2005 level. Research and development expenses for the fourth quarter of 2006 were $.5 million, compared to $.4 million for the fourth quarter of 2005 as ASV focused on the Scout utility vehicle and other R&D related efforts. Balance Sheet ASV finished the fourth quarter of 2006 with $31.5 million dollars of cash and investments, down $2.8 million from the September 30, 2006 figure of $34.3 million, as capital expenditures of $2.3 million, which included $1.3 million related to the new production facility expansion, offset 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 . 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 were $44.2 million on December 31, 2006, down $6.3 million from September 30, 2006, reflecting lower sales for the fourth quarter of 2006. ASV's overall inventory levels increased $5.3 million during the fourth quarter of 2006 to $71.4 million. The increase in inventory was a result of production levels that exceeded order levels for the period as the Company chose to convert available raw materials into finished product. For the fourth quarter ended December 31, 2006, raw materials declined $.3 million to $53.4 million and finished goods increased $5.4 million to $16.7 million. 2007 Guidance Confirmed
-- Sales for 2007 anticipated to be in the range of $230 to $260
million.
-- Sales breakdown for 2007 is expected to be as follows:
-- ASV machines approximately 54.0% of total net sales
-- OEM undercarriages approximately 21.5% of total net sales
-- Parts approximately 14.5% of total net sales
-- Loegering products approximately 10.0% of total net sales
-- Diluted earnings per share is expected to be in the range of $.68
to $.87 per share.
Commenting on the Company's guidance for 2007, Benson stated, "While we are encouraged by recent discussions with customers and dealers suggesting that market conditions are expected to improve as the year progresses, we continue to take a conservative view of prospects for 2007 due largely to lingering lin·ger v. lin·gered, lin·ger·ing, lin·gers v.intr. 1. To be slow in leaving, especially out of reluctance; tarry. See Synonyms at stay1. 2. uncertainty in the U.S. housing market." Question and Answer Q1: What were ASV's capital expenditures and depreciation expense for the quarter? A: During the fourth quarter of 2006, our capital expenditures were $2.3 million, of which $1.3 million was related to our facility expansion. Depreciation expense was $753,000 for the fourth quarter of 2006. Q2: How many dealers did ASV add during the fourth quarter of 2006? A: ASV added 30 net new dealer storefronts during the fourth quarter of 2006, ending the year with a total of 355 dealer storefronts. This represents a 37% increase over the 2005 year end figure of 260 dealer storefronts, an increase of 95 dealer storefronts during 2006. ASV added 44 net new dealer storefronts during the full year 2005. Q3: What is the status of the ASV facility expansion? A: On March 23, 2006 ASV announced plans to expand its Grand Rapids, Minnesota Grand Rapids is a city in Itasca County, Minnesota, United States. The population was 7,764 at the 2000 census. It is the county seat of Itasca County6. Mayor Jim Millis was elected in 2006 and began a four year term in January 2007. production facility. Site work for the 120,000 square foot addition began in early May and construction of the project was completed according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. schedule. Machine production in the new facility began late in the fourth quarter of 2006. Consistent with the Company's expectations, the new production processes have improved both the line flow and efficiency of the Company's assembly operations. The cost to construct and equip e·quip tr.v. e·quipped, e·quip·ping, e·quips 1. a. To supply with necessities such as tools or provisions. b. the new facility was approximately $6.3 million. Q4: Please provide an update on ASV's international sales activity. A: For the twelve months ended December 31, 2006, ASV's sales to non-U.S. dealers were $25.8 million, up 68% as compared to the twelve months ended 2005. For the fourth quarter of 2006 sales to non-U.S. dealers were $5.5 million or 11.9% of total net sales. This compares to $3.6 million or 5.4% of total net sales from non-U.S. dealers in the fourth quarter of 2005. ASV's non-U.S. markets include 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. . Q5: What is your current availability on machines? A: Depending on the model and configuration, our current machine availability ranges from 3 to 8 weeks. Q6: Has there been any activity under the $50 million 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 announced on October 31, 2006? A: No. The Company has not purchased any shares under the program as of yet. For much of the time since the announcement of the buyback program, ASV has had restricted trading capability related to both a change in its 401k provider and the pending announcement of its 2006 year end results. Q7: Please provide additional detail on the increase in the Company's inventory balance during the fourth quarter of 2006. A: Raw materials levels declined slightly for the quarter to $53.4 million as the incoming flow of long lead time items now better reflects the Company's production levels. ASV's finished goods balance increased $5.4 million to $16.7 million as production levels exceeded order levels for the period, reflecting the weakness in the U.S. residential construction sector and the Company's decision to convert available raw materials into finished product. Q8: Please provide additional detail on the gross margin figure for the fourth quarter of 2006. A: Gross margin for the fourth quarter of 2006 was 20.9% compared with 24.8% for the fourth quarter of 2005. The decline was related to lower production throughput levels and a greater concentration of lower gross margin products. The realization of recent price increases on the SR-70 and SR-80 has improved the margins on these machines. However, as previously discussed, it is the combination of the price realization and the effects of component cost improvements over the next quarter that is anticipated to bring margins on the SR-70 and SR-80 machines in line with the Company's target. To a lesser degree, the lower gross margin for the fourth quarter of 2006 also reflects increased retail finance incentives offered during the quarter, the price reduction on a certain model of Caterpillar undercarriages which went into effect January 1, 2006, and the sales mix sales mix See product mix. of Loegering's products. Conference Call ASV will conduct a live webcast at 9 a.m. Central time, Wednesday, March 7th to discuss its fourth quarter 2006 and full year 2006 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/asv5/. 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 Thursday, March 8th, and can be accessed by dialing 877-660-6853 and entering account number 273 and conference ID number 233127. The Internet replay will be available for 30 days and can be accessed at www.asvi.com or http://www.wsw.com/webcast/cc/asv5/ in the same manner as discussed above. About ASV ASV designs, manufactures and sells rubber track machines and related accessories, attachments and traction 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 steer castrated male cattle beast over a year of age. See also bullock, buller steer. steer bulling see bulling. steer Medtalk verb 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, expense levels 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 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. . [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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