ASV Announces 6th Consecutive Quarter of Record Sales and Earnings; 2005 Full Year Sales and 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 Third Quarter of 2005 --Quarterly sales grow 70% to a record $69.2 million --Sales driven by continued strong order flow, expansion of dealer network, accelerated sales to the gulf coast region and increased parts sales --Cost reduction programs, production process improvements and increased parts sales lift gross margin 207 basis points to 25.0% --EPS increases 71% to $.29 per share --Company increases 2005 full year sales guidance to $237 - 242 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. guidance to $.94 - $.96 per share ASV, Inc. (Nasdaq:ASVI) today reported its sixth consecutive quarter of record sales and earnings. 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 third quarter of 2005 increased 70% to $69.2 million, compared to $40.6 million for the same period in 2004. Assisted by a 207 basis point improvement in its gross profit percentage, net earnings for the period grew 81% to $8.0 million, compared with net earnings of $4.4 million for the third quarter of 2004. 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 increased 71% to $.29 for the third quarter of 2005 compared with $.17 for the third quarter of 2004. All share data presented have been adjusted to reflect ASV's August 2005 2-for-1 stock split. Net sales for the nine months ended September September: see month. 30, 2005 were $179.1 million, up 59% compared to the same period last year. Earnings per share for the nine months ended September 30, 2005 was $.71, up 54% from the previous year. "The third quarter has been a busy one for ASV. In addition to turning out the best quarterly performance in the history of the company, we executed on our growth strategies by completing a new five year supply agreement with 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. (NYSE NYSE See: New York Stock Exchange :CAT), entering into a new 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 alliance with Vermeer Vermeer successful fakes of his paintings went undetected for many years. [Dutch Hist.: Brewer Dictionary, 371] See : Forgery and launching a new VTS See VOB and virtual tape system. VTS - A suite of test programs for Motif from OSF. product offering," 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. . "We take these developments as further evidence not only of the strength of the Company and its products, but of the growing market opportunity created by rubber track loaders." R-Series products generated third quarter sales of $31.1 million, up 66% from 2004. This increase was driven by continued strong order flow, the expansion of the ASV dealer network and accelerated sales to the gulf coast region. Sales of ASV's undercarriages for use on Caterpillar's Multi-Terrain Loaders (MTLs) increased 25% for the third quarter of 2005, totaling $20.2 million, compared with $16.2 million for the third quarter of 2004. Sales from ASV's subsidiary, Loegering Mfg. Inc., (acquired in October October: see month. 2004) totaled $7.3 million compared with sales of $4.9 million for the second quarter of 2005, and $6.4 million in the first quarter of 2005. The increase in sales was due to strong demand for the Versatile Track System (VTS) product line, which was expanded this quarter to include an additional version of the bolt-on-bolt-off rubber track undercarriage system. Along with the success of the VTS product line, demand across all products increased this quarter in response to the hurricane clean up efforts underway in the gulf coast region. VTS products accounted for 70% of Loegering's sales for the third quarter of 2005. Sales of service parts doubled in the third quarter to $10.0 million compared with $5.0 million in the similar period last year. Driving this increase was a combination of the growing field population of ASV and Caterpillar machines, and the timing of certain service part orders. ASV's gross profit percentage for the period increased to 25.0%, compared with 22.9% for the third quarter of 2004 and 24.5% for the second quarter of 2005. This increase in gross profit percentage was due to cost reduction programs and production process improvements, increases in the sales of ASV service parts and the addition of the Loegering sales. Selling, general and administrative expenses for the third quarter of 2005 increased to $4.3 million, or 6.2% of sales, compared with $2.3 million, or 5.8% of sales, for the same period in 2004. The increase in expense was due primarily to the inclusion of Loegering's operation with ASV's in 2005 and an increase in commissions corresponding to the higher sales during the quarter. Research and development expenses more than doubled in the third quarter of 2005 when compared with the same period in 2004 as ASV continues to invest in the on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" development of new products such as the new VTS product introduced this quarter and additional applications of its track technology. 2005 Guidance Increase --Sales guidance for 2005 revised upward to the range of $237 - 242 million, from previous guidance in the range of $220-230 million. The increased guidance represents an increase of 47 - 50% over 2004. --Diluted earnings per share estimates revised upward to the range of $.94 -.96 per share, from previous guidance of $.85 -.885 per share. The increased guidance also represents an increase of 47 - 50% compared with 2004. --Sales breakdown for 2005 is expected to be as follows: --R-Series products expected to account for approximately 47% of total net sales --MTL undercarriages expected to account for approximately 30% --Parts and used equipment expected to account for approximately 13% --Loegering product expected to account for approximately 10% Commenting on the Company's guidance, Lemke stated, "Based on our solid results through the third quarter, and our recent announcements of new business opportunities, our increased guidance reflects our optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op outlook for the Company and market going forward." Conference Call ASV will conduct a live webcast at 9 a.m. Central time, Thursday Thursday: see week. , October 27th to discuss its results for the third quarter of 2005 and its outlook for the balance of 2005. 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 www.vcall.com or 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. 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 this call will be available both telephonically and over the Internet approximately one hour after its conclusion. The telephonic replay will be available through Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , October 28th, and can be accessed by dialing 877-660-6853 and entering account number 286 and conference ID 173399. The Internet replay will be available for 30 days and can be accessed at www.vcall.com or www.asvi.com 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 it effective in industries such as construction, landscaping and agriculture. For more information, visit ASV's website at www.asvi.com or Loegering's website at www.loegering.com. Forward Looking Statements Note: The statements set forth above regarding ASV's future expected sales, sales mix sales mix See product mix. 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 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the manufacturing or marketing of the 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. machines, 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 or Caterpillar and ASV's ability to realize the anticipated benefits from its relationship with Caterpillar,. 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. .
Condensed financial statements are as follows:
A.S.V., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- ---------------------------
2005 2004 2005 2004
------------ ------------ ------------- -------------
Net sales........$69,218,834 $40,607,328 $179,091,131 $112,742,264
Cost of goods
sold............ 51,931,388 31,303,643 135,179,182 87,100,595
------------ ------------ ------------- -------------
Gross profit 17,287,446 9,303,685 43,911,949 25,641,669
Gross
profit %.... 25.0% 22.9% 24.5% 22.7%
Operating expenses:
Selling,
general and
administrative 4,325,523 2,345,209 12,009,525 6,341,065
Research and
development... 453,226 223,798 1,320,982 561,333
------------ ------------ ------------- -------------
Operating
income...... 12,508,697 6,734,678 30,581,442 18,739,271
Other income
(expense)
Interest income 312,108 214,489 941,017 573,826
Interest
expense....... (30,035) (27,907) (86,226) (84,684)
Other, net..... 819 1,599 52,248 3,675
------------ ------------ ------------- -------------
Income before
income taxes 12,791,589 6,922,859 31,488,481 19,232,088
Provision for
income taxes.... 4,790,000 2,493,000 11,760,000 7,025,000
------------ ------------ ------------- -------------
NET EARNINGS... $8,001,589 $4,429,859 $19,728,481 $12,207,088
============ ============ ============= =============
Net earnings per
common share -
Diluted......... $.29 $.17 $.71 $.46
============ ============ ============= =============
Diluted weighted
average shares.. 27,800,299 26,210,046 27,684,154 26,614,968
============ ============ ============= =============
All share data presented have been adjusted to reflect ASV's August
2005 2-for-1 stock split.
A.S.V., INC.
SALES BREAKDOWN
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
2005 2004 2005 2004
--------- -------- -------- --------
R-Series......................... 44.9% 46.0% 45.4% 52.2%
OEM Undercarriages............... 29.1% 40.0% 30.4% 33.4%
Loegering........................ 10.6% 0.0% 10.4% 0.0%
Parts and Other.................. 15.4% 14.0% 13.8% 14.4%
--------- -------- -------- --------
TOTAL....................... 100.0% 100.0% 100.0% 100.0%
========= ======== ======== ========
A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
ASSETS September 30, December 31,
2005 2004
------------- -------------
CURRENT ASSETS
Cash & short-term investments............ $31,025,349 $37,000,629
Accounts receivable, net................. 43,844,156 36,431,774
Inventories.............................. 50,659,496 34,832,868
Deferred income taxes.................... 3,200,000 1,875,000
Other current assets..................... 625,699 1,062,096
------------- -------------
Total current assets 129,354,700 111,202,367
LONG-TERM INVESTMENTS 7,993,728 5,912,747
LONG-TERM NOTE RECEIVABLE, less current
portion................................... 577,778 703,445
PROPERTY AND EQUIPMENT, net................ 20,581,115 11,108,132
INTANGIBLES, net........................... 7,925,006 8,002,251
GOODWILL................................... 8,385,827 8,385,827
------------- -------------
Total assets $174,818,154 $145,314,769
============= =============
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term liabilities $195,465 $189,656
Accounts payable......................... 14,412,726 11,452,026
Accrued liabilities - Warranties......... 4,657,154 3,078,382
Accrued liabilities - Other.............. 2,053,502 1,416,140
Income taxes payable..................... 2,398,397 533,995
------------- -------------
Total current liabilities 23,717,244 16,670,199
LONG-TERM LIABILITIES, less current portion 1,720,850 1,873,768
DEFERRED INCOME TAXES...................... 1,125,000 700,000
SHAREHOLDERS' EQUITY....................... 148,255,060 126,070,802
------------- -------------
Total liabilities & shareholders'
equity $174,818,154 $145,314,769
============= =============
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