ASV Reports Record Results for 2nd Quarter 2003; Sales up 80%, Earnings Per Share up 120%; Sale and Earnings Revised Upward Again.Business Editors 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.--(BUSINESS WIRE)--July 24, 2003 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) ) today reported its 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 second quarter of 2003 increased to $26.4 million, the highest quarterly net sales figure in the Company's history, compared with $14.7 million for the same period in 2002. Net earnings increased to a record level of $2,285,418, or $.22 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with $1,013,503, or $.10 per share, for the second quarter of 2002. For the six months ended June June: see month. 30, 2003, net sales increased 96% to $41.0 million, compared with $20.9 million for the same period in 2002. Net earnings increased significantly to $3,053,001, or $.30 per share, for the six months ended June 30, 2003 compared with $647,922, or $.06 per share, for the same period in 2002. Commenting on the second quarter results, ASV President 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 said "ASV experienced excellent performance from its main product lines during the second quarter of 2003. This was our first full quarter of production of our RC-100 Posi-Track, our largest model. This machine has had great demand since its introduction in January 2003. Our second quarter of 2003 also saw strong sales of our mid-sized RC-50 Posi-Track product. We currently have an order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of approximately $6-7 million for the RC-100 and RC-50 Posi-Track Products. In addition, this quarter was the first quarter of full production for all three undercarriages for 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. Inc. (NYSE NYSE See: New York Stock Exchange :CAT) for use in their five models of Multi-Terrain Loaders(TM) (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. ). Our second quarter of 2003 also included approximately $1 million of sales from our first ever public auction." Gross profit percentage for the second quarter of 2003 was 20.2%, a decrease compared to the gross profit percentage of 23.6% for the second quarter of 2002, but an increase over the gross profit percentage of 19.2% for the first quarter of 2003. The variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality in gross profit percentage was due primarily to a change in sales mix sales mix See product mix. . For the second quarter of 2002, ASV shipped only Beta MTL undercarriages to Caterpillar, which is a larger undercarriage and has a higher gross profit percentage. In contrast, during the second quarter of 2003, slightly over half of the MTL undercarriages sold were Alpha undercarriages, which is a smaller undercarriage and has a lower comparative gross profit percentage. The increase in the gross profit percentage over the first quarter of 2003 was due primarily to the increased shipments of RC-50 and RC-100 Posi-Track products. Discussing ASV's overall outlook for the remainder of 2003 Lemke states, "Based upon the results we have experienced during the first half of 2003, we have increased our sales expectations for 2003 to $81-88 million, up from our previous guidance of $65-72 million. Included in our revised sales expectation figures are MTL undercarriage sales to Caterpillar of approximately $45-47 million. We have also increased our earnings expectations for 2003 to the range of $.57-.64 per share, up from our previous guidance of $.43-49 per share. With the increase in our stock price and the anticipated exercise of expiring ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. in-the-money In-the-money A put option that has a strike price higher than the underlying futures price, or a call option with a strike price lower than the underlying futures price. For example, if the March COMEX silver futures contract is trading at $6 an ounce, a March call with a strike stock options, our revised earnings per share expectations have been computed using outstanding common shares of approximately 11 million shares." Conference Call ASV will conduct a live Webcast at 9 a.m. Central time, Thursday, July 24th to discuss its results for the second quarter of 2003 and its outlook for the remainder of 2003. 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 11 p.m. Central time, Friday, July 25th, and can be accessed by dialing 800-428-6051 and entering pass code 298994. 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-tracked, all-purpose crawlers and related accessories and attachments. ASV also manufactures rubber-tracked undercarriages, which are a primary component on Caterpillar's Multi Terrain Loaders. With its patented undercarriage technology, ASV leads all rubber-tracked, all-purpose crawlers 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. Note: The statements set forth above regarding ASV's future expected sales and earnings levels 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, 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 report on Form 10-Q Form 10-Q See 10-Q. for the period ended June 30, 2002.
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,
------------------------- -------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
Net sales......... $26,414,478 $14,713,936 $41,026,708 $20,891,764
Cost of goods sold 21,082,229 11,241,963 32,890,995 15,995,103
------------ ------------ ------------ ------------
Gross profit.. 5,332,249 3,471,973 8,135,713 4,896,661
Operating
expenses:
Selling, general
and admini-
strative....... 1,591,223 1,252,804 3,044,183 2,584,836
Research and
development.... 202,182 708,312 363,886 1,382,745
------------ ------------ ------------ ------------
Operating
income....... 3,538,844 1,510,857 4,727,644 929,080
Other income
(expense)
Interest expense (32,053) (32,550) (68,676) (63,697)
Other, net...... 49,627 46,196 87,033 112,539
------------ ------------ ------------ ------------
Income before
income taxes 3,556,418 1,524,503 4,746,001 977,922
Provision for
income taxes..... 1,271,000 511,000 1,693,000 330,000
------------ ------------ ------------ ------------
NET EARNINGS.... $2,285,418 $1,013,503 $3,053,001 $647,922
============ ============ ============ ============
Net earnings per
common share -
Diluted.......... $.22 $.10 $.30 $.06
============ ============ ============ ============
Diluted weighted
average shares... 10,432,661 10,296,860 10,273,147 10,245,762
============ ============ ============ ============
A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS June 30, December 31,
2003 2002
------------ ------------
CURRENT ASSETS
Cash & short-term investments........... $8,817,337 $4,797,398
Accounts receivable, net................ 19,950,476 14,397,958
Inventories............................. 29,234,051 31,834,620
Prepaid expenses and other.............. 681,650 1,099,685
------------ ------------
Total current assets 58,683,514 52,129,661
PROPERTY AND EQUIPMENT, net................. 5,362,083 5,080,536
------------ ------------
Total assets $64,045,597 $57,210,197
============ ============
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term liabilities $132,920 $129,550
Accounts payable........................ 5,329,886 2,838,370
Accrued liabilities..................... 1,983,751 1,795,556
Income taxes payable.................... 569,231 ---
------------ ------------
Total current liabilities 8,015,788 4,763,476
LONG-TERM LIABILITIES, less current portion 1,913,285 1,979,798
SHAREHOLDERS' EQUITY........................ 54,116,524 50,466,923
------------ ------------
Total liabilities & shareholders'
equity $64,045,597 $57,210,197
============ ============
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