ASV Announces 4th Quarter 2005 Results; 4th Quarter Sales Increase 37%, EPS up 61% to $.29; Full Year Sales of $245 million, EPS Totals $1.01
GRAND RAPIDS, Minn.--(Business Wire)--March 8, 2006--
ASV, Inc. (Nasdaq:ASVI):
Highlights for the Fourth Quarter and Fiscal Year 2005
-- Fourth quarter 2005 net sales grow 37% to $66.0 million as
compared to fourth quarter 2004
-- Sales driven by strong demand for R-Series products, increased
OEM undercarriage sales, dealer network expansion and
increases in accessory sales
-- Realized price increases, continued benefits from volume
increases and strategic investments in production equipment,
and increased sales of higher-margin machines and accessories
offset lower gross margins on Caterpillar parts, produce a
gross margin of 24.8% for the quarter
-- EPS for fourth quarter of 2005 increases 61% to $.29 per
share, as compared to fourth quarter 2004, including $.03 due
to a one-time gain from sale of non-strategic product line and
a lower effective tax rate for the fourth quarter of 2005
-- Full year sales up 52% to $245.1 million
-- Full year EPS up 58% to $1.01
ASV, Inc. (Nasdaq:ASVI) today reported results for its fourth
quarter and fiscal year ended December 31, 2005. Net sales for the
fourth quarter of 2005 increased 37% to $66.0 million, compared to
$48.1 million for the same period in 2004. Assisted by a 246 basis
point improvement in its gross profit percentage, the sale of a
non-strategic product line and a lower effective tax rate, net
earnings for the fourth quarter of 2005 grew 64% to $8.2 million,
compared with net earnings of $5.0 million for the fourth quarter of
2004. Diluted earnings per share for the fourth quarter of 2005
increased 61% to $.29 compared with $.18 for the fourth quarter of
2004. The earnings per share in the fourth quarter of 2005 included
approximately $.02 associated with the finalization of the new
Domestic Production Activities Deduction regulations, and
approximately $.01 from the sale of a non-strategic product line by
ASV's subsidiary Loegering Mfg., Inc.
For the 12 months ended December 31, 2005, net sales increased 52%
to $245.1 million, compared to $160.9 million for 2004. Net earnings
for the year were up 62% to $27.9 million compared to $17.2 million in
2004. Diluted earnings per share for 2005 were $1.01 compared to $.64
for 2004, reflecting a 58% year-over-year increase.
"ASV has delivered another strong quarter and record results for
the full year," said Chairman and CEO Gary Lemke. "With over 50%
growth in both sales and earnings, our 2005 performance has outpaced
the expanding rubber track loader market. We expect sales of our
Posi-Track machines to continue to outpace the market in 2006."
R-Series products generated fourth quarter sales of $32.0 million,
up 83% from the fourth quarter of 2004. This increase was driven by
continued strong order flow, growth in the sale of higher-priced
machines and accessories and the expansion of the ASV dealer network.
ASV's OEM undercarriage sales increased 25% for the fourth quarter
of 2005, totaling $20.4 million, compared with $16.4 million for the
fourth quarter of 2004.
Sales from ASV's subsidiary, Loegering Mfg., Inc. (acquired in
October 2004) totaled $5.7 million in the fourth quarter of 2005,
compared with sales of $6.8 million for the fourth quarter of 2004.
The decline in sales was due to the absence of sales from the snow
blower attachment product line, which was sold in October of 2005 and
a reduction in steel track sales as demand for the rubber track
machines and the VTS product line continues to strengthen. Loegering
sales outside of the snow blower and steel track product lines grew by
10% for the quarter. The VTS product line accounted for 65% of
Loegering's total net sales in the fourth quarter of 2005.
Sales of service parts and other items increased 6% in the fourth
quarter of 2005 to $7.9 million compared with $7.4 million in the
similar period last year. Driving this growth was a combination of an
increase in unit sales offset by lower used equipment sales in the
fourth quarter of 2005 and the implementation of new lower-margin
Caterpillar parts pricing effective November 2005.
Selling, general and administrative expenses increased $1.2
million to $4.5 million for the fourth quarter of 2005, but as a
percentage of sales remained flat at 6.8%. The increase in expense was
due primarily to the higher mix of commissioned vs. non-commissioned
sales in the fourth quarter of 2005. Research and development expenses
declined by 27% in the fourth quarter of 2005 when compared with the
same period in 2004 as ASV completed much of the development work
associated with its new SR-Series machines and other new products
expected to be launched in 2006.
ASV, Inc.
Investor Relations:
Lisa Walsh, 218-327-5367
lwalsh@asvi.com
Copyright Business Wire 2006
08Mar06 12:00 GMT
Symbols:
de;ASZ us;ASVI
