ASV Reports 1st Quarter 2001 Results; Net Sales Increase 16% in Record Quarter

Apr 24, 2001, 01:00 ET from A.S.V., Inc.

    GRAND RAPIDS, Minn., April 24 /PRNewswire Interactive News Release/ --
     ASV, Inc. (Nasdaq: ASVI) today reported its first quarter 2001 financial
 results.  Net sales for the three months ended March 31, 2001, totaled
 $12,954,716, the highest quarterly net sales in the Company's history and a
 16% increase from net sales of $11,183,584 for the same period in 2000.  Due
 in part to the significant increase in spending for research and development,
 net earnings for first quarter 2001 were $203,970 compared with $416,761 for
 first quarter 2000.  Earnings per share were $.02 for first quarter 2001
 compared with $.04 for first quarter 2000.
     Commenting on the results, Gary Lemke, President of ASV, Inc., said, "The
 first quarter of 2001 was ASV's best sales quarter ever, with approximately
 $13 million in net sales.  This is especially pleasing when other equipment
 manufacturers are reporting very small sales increases or even decreases.  We
 believe this says a lot about the types of products ASV offers to its
 customers.  Sales of our RC-30 All Surface Loader continue to increase as we
 expand our dealer network for this product.  In addition, first quarter 2001
 saw the initial shipments of the private label version of the RC-30 product
 under our recently announced alliance agreement with Polaris Industries Inc.
 (NYSE:   PII).  As expected, sales of our 4810 Posi-Track decreased in the first
 quarter of 2001 due in part to the planned introduction of the first two
 models of our jointly developed Multi-Terrain Loaders (MTLs) with Caterpillar
 (NYSE:   CAT)."
     Continuing, Lemke states "ASV's alliances with Polaris and Caterpillar
 contributed to our results for the first quarter of 2001.  Our alliance with
 Polaris helped increase our sales, but as these machines are sold on a cost
 plus basis, our gross profit percentage was less than we experienced in the
 first quarter of 2000.  Fewer sales of our higher margin 4810 Posi-Track in
 2001 also reduced our gross profit percentage.  Our selling, general and
 administrative expenses decreased approximately $240,000 due primarily to
 decreased Caterpillar commissions from the change in sales mix we experienced
 in 2001.  In addition, our investment in research and development totaled over
 $600,000 for the first quarter of 2001, compared with approximately $135,000
 in the first quarter of 2000.  The majority of this was attributable to our
 alliance with Caterpillar for the continued development and testing of the
 MTLs.  We anticipate ASV will begin shipping MTL undercarriages under this
 alliance in the second quarter. We believe these alliances will help ASV reach
 its goal of net sales in excess of $60 million for 2001."
     ASV will conduct a live webcast at 10 a.m. Central time, Tuesday, April
 24th to discuss its results for the first quarter of 2001 and its outlook for
 the balance of 2001.  The call will be broadcast over the Internet and can be
 accessed either at http://www.vcall.com or ASV's recently enhanced web site,
 http://www.asvi.com , in the investor relations 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 and install any needed audio
 software.  A replay of this call will be available beginning two hours 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
 800-642-1687 and entering pass code 792358.  The Internet replay will be
 available for 60 days and can be accessed at http://www.vcall.com or
 http://www.asvi.com in the same manner as discussed above.
     ASV designs, manufactures and sells all-season, track-drive vehicles and
 related accessories and attachments. With its patent-pending Maximum Traction
 and Support System(TM) undercarriage, ASV leads all rubber-tracked,
 all-purpose crawlers in technology and innovation.  ASV's products traverse
 nearly any terrain with minimal damage to the ground, making them effective in
 industries such as construction, landscaping and agriculture.
     To learn more about ASV Inc. and the Posi-Track all-purpose crawler, visit
 the Company's web site at http://www.asvi.com
 
     Note: The statements set forth above regarding ASV's anticipated future
 sales, its plans to jointly develop and manufacture rubber-tracked machines
 with Caterpillar, including the number of models to be developed, the timing
 of their planned introduction and ASV's overall revenue goals are
 forward-looking statements based on current expectations and assumptions, and
 entail 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 machines are ultimately produced
 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, general market conditions,
 corporate developments at ASV, Polaris or Caterpillar and ASV's ability to
 realize the anticipated benefits from its relationship with Polaris and
 Caterpillar.  Actual results might differ materially from those anticipated in
 such forward-looking statements.  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 for the
 nine months ended September 30, 2000.
 
                 Condensed financial statements are as follows:
 
 
     A.S.V., INC.
     CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
     Three months ended March 31, 2001 and 2000
 
                                                      2001            2000
     Net sales                                    $12,954,716    $11,183,584
 
     Cost of goods sold                            10,747,898      8,650,914
       Gross profit                                 2,206,818      2,532,670
     Operating expenses
       Selling, general and administrative          1,430,736      1,670,323
       Research and development                       607,499        135,148
         Operating income                             168,583        727,199
     Other income (expense)
       Interest expense                               (36,825)       (93,203)
       Other, net                                     176,212         29,765
         Income before income taxes                   307,970        663,761
 
     Provision for income taxes                       104,000        247,000
 
       NET EARNINGS                                  $203,970       $416,761
 
     Net earnings per common share
      -- Diluted                                         $.02           $.04
 
     Diluted weighted average
      shares outstanding                           10,316,369      9,955,040
 
 
     A.S.V., INC.
     CONDENSED CONSOLIDATED BALANCE SHEETS
 
       ASSETS                                       March 31,    December 31,
                                                      2001          2000
     CURRENT ASSETS
       Cash & short-term investments               $7,500,657    $10,762,143
       Accounts receivable, net                    16,577,428     10,557,907
       Inventories                                 28,240,313     28,064,998
       Prepaid expenses and other                     961,822        965,026
         Total current assets                      53,280,220     50,350,074
     PROPERTY AND EQUIPMENT, net                    4,581,041      4,656,118
 
         Total assets                             $57,861,261    $55,006,192
 
 
       LIABILITIES & SHAREHOLDERS' EQUITY
 
     CURRENT LIABILITIES
       Current portion of long-term
        liabilities                                   $82,858        $82,090
       Accounts payable                             4,319,628      1,822,912
       Accrued liabilities                          1,122,889      1,023,924
       Income taxes payable                           234,784        197,021
         Total current liabilities                  5,760,159      3,125,947
     LONG-TERM LIABILITIES, less
      current portion                               2,095,985      2,116,898
     SHAREHOLDERS' EQUITY                          50,005,117     49,763,347
 
     Total liabilities &
      shareholders' equity                        $57,861,261    $55,006,192
 
 
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SOURCE A.S.V., Inc.
    GRAND RAPIDS, Minn., April 24 /PRNewswire Interactive News Release/ --
     ASV, Inc. (Nasdaq: ASVI) today reported its first quarter 2001 financial
 results.  Net sales for the three months ended March 31, 2001, totaled
 $12,954,716, the highest quarterly net sales in the Company's history and a
 16% increase from net sales of $11,183,584 for the same period in 2000.  Due
 in part to the significant increase in spending for research and development,
 net earnings for first quarter 2001 were $203,970 compared with $416,761 for
 first quarter 2000.  Earnings per share were $.02 for first quarter 2001
 compared with $.04 for first quarter 2000.
     Commenting on the results, Gary Lemke, President of ASV, Inc., said, "The
 first quarter of 2001 was ASV's best sales quarter ever, with approximately
 $13 million in net sales.  This is especially pleasing when other equipment
 manufacturers are reporting very small sales increases or even decreases.  We
 believe this says a lot about the types of products ASV offers to its
 customers.  Sales of our RC-30 All Surface Loader continue to increase as we
 expand our dealer network for this product.  In addition, first quarter 2001
 saw the initial shipments of the private label version of the RC-30 product
 under our recently announced alliance agreement with Polaris Industries Inc.
 (NYSE:   PII).  As expected, sales of our 4810 Posi-Track decreased in the first
 quarter of 2001 due in part to the planned introduction of the first two
 models of our jointly developed Multi-Terrain Loaders (MTLs) with Caterpillar
 (NYSE:   CAT)."
     Continuing, Lemke states "ASV's alliances with Polaris and Caterpillar
 contributed to our results for the first quarter of 2001.  Our alliance with
 Polaris helped increase our sales, but as these machines are sold on a cost
 plus basis, our gross profit percentage was less than we experienced in the
 first quarter of 2000.  Fewer sales of our higher margin 4810 Posi-Track in
 2001 also reduced our gross profit percentage.  Our selling, general and
 administrative expenses decreased approximately $240,000 due primarily to
 decreased Caterpillar commissions from the change in sales mix we experienced
 in 2001.  In addition, our investment in research and development totaled over
 $600,000 for the first quarter of 2001, compared with approximately $135,000
 in the first quarter of 2000.  The majority of this was attributable to our
 alliance with Caterpillar for the continued development and testing of the
 MTLs.  We anticipate ASV will begin shipping MTL undercarriages under this
 alliance in the second quarter. We believe these alliances will help ASV reach
 its goal of net sales in excess of $60 million for 2001."
     ASV will conduct a live webcast at 10 a.m. Central time, Tuesday, April
 24th to discuss its results for the first quarter of 2001 and its outlook for
 the balance of 2001.  The call will be broadcast over the Internet and can be
 accessed either at http://www.vcall.com or ASV's recently enhanced web site,
 http://www.asvi.com , in the investor relations 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 and install any needed audio
 software.  A replay of this call will be available beginning two hours 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
 800-642-1687 and entering pass code 792358.  The Internet replay will be
 available for 60 days and can be accessed at http://www.vcall.com or
 http://www.asvi.com in the same manner as discussed above.
     ASV designs, manufactures and sells all-season, track-drive vehicles and
 related accessories and attachments. With its patent-pending Maximum Traction
 and Support System(TM) undercarriage, ASV leads all rubber-tracked,
 all-purpose crawlers in technology and innovation.  ASV's products traverse
 nearly any terrain with minimal damage to the ground, making them effective in
 industries such as construction, landscaping and agriculture.
     To learn more about ASV Inc. and the Posi-Track all-purpose crawler, visit
 the Company's web site at http://www.asvi.com
 
     Note: The statements set forth above regarding ASV's anticipated future
 sales, its plans to jointly develop and manufacture rubber-tracked machines
 with Caterpillar, including the number of models to be developed, the timing
 of their planned introduction and ASV's overall revenue goals are
 forward-looking statements based on current expectations and assumptions, and
 entail 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 machines are ultimately produced
 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, general market conditions,
 corporate developments at ASV, Polaris or Caterpillar and ASV's ability to
 realize the anticipated benefits from its relationship with Polaris and
 Caterpillar.  Actual results might differ materially from those anticipated in
 such forward-looking statements.  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 for the
 nine months ended September 30, 2000.
 
                 Condensed financial statements are as follows:
 
 
     A.S.V., INC.
     CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
     Three months ended March 31, 2001 and 2000
 
                                                      2001            2000
     Net sales                                    $12,954,716    $11,183,584
 
     Cost of goods sold                            10,747,898      8,650,914
       Gross profit                                 2,206,818      2,532,670
     Operating expenses
       Selling, general and administrative          1,430,736      1,670,323
       Research and development                       607,499        135,148
         Operating income                             168,583        727,199
     Other income (expense)
       Interest expense                               (36,825)       (93,203)
       Other, net                                     176,212         29,765
         Income before income taxes                   307,970        663,761
 
     Provision for income taxes                       104,000        247,000
 
       NET EARNINGS                                  $203,970       $416,761
 
     Net earnings per common share
      -- Diluted                                         $.02           $.04
 
     Diluted weighted average
      shares outstanding                           10,316,369      9,955,040
 
 
     A.S.V., INC.
     CONDENSED CONSOLIDATED BALANCE SHEETS
 
       ASSETS                                       March 31,    December 31,
                                                      2001          2000
     CURRENT ASSETS
       Cash & short-term investments               $7,500,657    $10,762,143
       Accounts receivable, net                    16,577,428     10,557,907
       Inventories                                 28,240,313     28,064,998
       Prepaid expenses and other                     961,822        965,026
         Total current assets                      53,280,220     50,350,074
     PROPERTY AND EQUIPMENT, net                    4,581,041      4,656,118
 
         Total assets                             $57,861,261    $55,006,192
 
 
       LIABILITIES & SHAREHOLDERS' EQUITY
 
     CURRENT LIABILITIES
       Current portion of long-term
        liabilities                                   $82,858        $82,090
       Accounts payable                             4,319,628      1,822,912
       Accrued liabilities                          1,122,889      1,023,924
       Income taxes payable                           234,784        197,021
         Total current liabilities                  5,760,159      3,125,947
     LONG-TERM LIABILITIES, less
      current portion                               2,095,985      2,116,898
     SHAREHOLDERS' EQUITY                          50,005,117     49,763,347
 
     Total liabilities &
      shareholders' equity                        $57,861,261    $55,006,192
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X58316365
 
 SOURCE  A.S.V., Inc.