ASV Reports Results for 2nd Quarter 2002; Earnings Exceed $1 Million for Current Quarter.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 25, 2002 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 2002 increased to $14,713,936, the highest quarterly net sales figure in the Company's history, compared with $14,226,161 for the same period in 2001. Due primarily to a steep increase in the Company's gross profit percentage, net earnings increased more than ten-fold Adj. 1. ten-fold - containing ten or ten parts denary, tenfold multiple - having or involving or consisting of more than one part or entity or individual; "multiple birth"; "multiple ownership"; "made multiple copies of the speech"; "his multiple to $1,013,503, or $.10 per share, for the second quarter of 2002 compared with $90,774, or $.01 per share, for the second quarter of 2001. For the six months ended June June: see month. 30, 2002, net sales totaled $20,891,764, compared to $27,180,877 for the same period in 2001. Net earnings were $647,922, or $.06 per share, for the six months ended June 30, 2002 compared with $294,744, or $.03 per share, for the same period in 2001. "Second quarter 2002 saw a return of undercarriage shipments to 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 the first two models of our jointly-developed 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. )," said 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. , President of ASV, Inc. "The second quarter of 2002 was our first full quarter of production of our RC-50 which experienced strong demand. In addition, we began shipping the newest product in our R-Series product line during the second quarter of 2002, the R-50, the companion product to our RC-50. As expected, ASV had no shipments to Polaris Industries Polaris Industries manufactures a full line of all-terrain vehicles (ATV), snowmobiles, Ranger utility vehicles in 2wd, 4wd or 6wd, Victory Motorcycles and EU rated quadcycles. Polaris no longer manufactures personal water craft or sportboats. Based in Medina, Minnesota. Inc. (NYSE:PII See Pentium II. ) of the private label version of ASV's RC-30, the Polaris ASL-300, during the second quarter of 2002. All of these items contributed to our increased gross profit percentage and net earnings for the quarter, even as we increased our investment in research and development with Caterpillar for the development of future MTL models." ASV experienced increased sales during the second quarter of 2002, even after recording sales returns of approximately $1,058,000, which directly reduced the Company's sales. These returns relate to product sold in prior periods which were returned to ASV from one of its dealers in 2002. The Company does not anticipate further product returns from this dealer. ASV had originally anticipated these machines would be remarketed to other dealers, but instead chose to utilize these machines in its new rental program which began in the second quarter. Under this rental program, machines are being placed at rental facilities within Minnesota, with ASV receiving a share of the rental proceeds. If the rental facility wishes to purchase the machine, all rental proceeds previously paid to ASV during the initial 90-day period are applied to the purchase price of the machine. Commenting on the new rental program, Lemke stated, "We have always believed that once a customer uses one of our machines, the chance of purchasing the machine increases greatly. This rental program gives more customers the opportunity to experience the features and benefits of an RC-30. We have already had several rental machines convert to sales from this program." Discussing future MTL shipments, Lemke continued, "Because of production issues unrelated to ASV's undercarriage which have been experienced at Caterpillar's North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. production facility, the overall quantities of MTL undercarriages to be shipped in 2002 is expected to decrease from levels originally anticipated. Production of the undercarriage for the next two MTL models, which had been planned to start at the end of the second quarter, went into production in mid-July. Production of the undercarriage for the fifth and final MTL model is now expected to begin in the fourth quarter of 2002." Discussing ASV's overall outlook for 2002 Lemke states, "Based upon the results we have achieved during the first half of 2002, and the expected decrease in undercarriage shipments to Caterpillar, we have revised our sales expectations for 2002 to $55-60 million, with earnings for 2002 expected to be in the range of $.26-.34 per share." Conference Call ASV will conduct a live Webcast at 11:30 a.m. Central time, Thursday, July 25th to discuss its results for the second quarter of 2002 and its outlook for the rest of 2002. 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 either at 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 beginning one hour after its conclusion both telephonically and over the Internet. The telephonic replay will be available for a 24-hour period and can be accessed by dialing 800-428-6051 and entering pass code 253754. The Internet replay will be available for 90 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 all-purpose crawlers and related accessories and attachments. With its patented Maximum 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. and Support System undercarriage, 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 and its expected production dates and volumes of its undercarriages for sale to Caterpillar 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, continued 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, 2001. Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. financial statements are as follows:
A.S.V., INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
Net sales .........$14,713,936 $14,226,161 $20,891,764 $27,180,877
Cost of goods
sold ............. 11,241,963 12,177,934 15,995,103 22,925,832
----------- ----------- ----------- -----------
Gross profit .... 3,471,973 2,048,227 4,896,661 4,255,045
Operating expenses:
Selling, general
and
administrative .. 1,252,804 1,442,801 2,584,836 2,873,537
Research and
development ..... 708,312 548,757 1,382,745 1,156,256
----------- ----------- ----------- -----------
Operating
income ......... 1,510,857 56,669 929,080 225,252
Other income
(expense)
Interest expense . (32,550) (36,913) (63,697) (73,738)
Other, net ....... 46,196 113,018 112,539 289,230
----------- ----------- ----------- -----------
Income before
income taxes ... 1,524,503 132,774 977,922 440,744
Provision for
income taxes ..... 511,000 42,000 330,000 146,000
----------- ----------- ----------- -----------
NET EARNINGS .....$ 1,013,503 $ 90,774 $ 647,922 $ 294,744
=========== =========== =========== ===========
Net earnings per
common share -
Diluted .........$ .10 $ .01 $ .06 $ .03
=========== =========== =========== ===========
Diluted weighted
average shares ... 10,296,860 10,337,792 10,245,762 10,327,081
=========== =========== =========== ===========
A.S.V., INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS June 30, December 31,
2002 2001
----------- -----------
CURRENT ASSETS
Cash & short-term investments ............ $ 1,660,567 $ 5,946,840
Accounts receivable, net ................. 21,249,642 16,828,489
Inventories .............................. 31,855,453 28,614,053
Prepaid expenses and other ............... 930,440 1,756,844
----------- -----------
Total current assets 55,696,102 53,146,226
PROPERTY AND EQUIPMENT, net ............... 4,685,536 4,794,578
----------- -----------
Total assets $60,381,638 $57,940,804
=========== ===========
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Line of credit ........................... $ 455,000 $ --
Current portion of long-term liabilities . 106,992 106,008
Accounts payable ......................... 4,503,802 2,449,144
Accrued liabilities ...................... 2,098,470 2,296,455
Income taxes payable ..................... 355,069 505,062
----------- -----------
Total current liabilities 7,519,333 5,356,669
LONG-TERM LIABILITIES, less current portion 1,959,813 2,012,652
SHAREHOLDERS' EQUITY ...................... 50,902,492 50,571,483
----------- -----------
Total liabilities & shareholders' equity $60,381,638 $57,940,804
=========== ===========
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