Amigos, I have been looking at (ASVI) A.S.V., Inc. designs and manufactures track-driven all-season vehicles and related accessories and attachments, sold through a national dealer network and also directly to the end user throughout the U.S. and internationally. For the nine months ended 9/30/98, net sales rose 90% to $30.9 million.
Net income totaled $2.8 million, up from $1.3 million. Results reflect increased sales of the Posi-Track vehicle, particularly the HD series, and higher margins due to volume efficiencies.
While at first glance it looks like any other piece of construction equipment with a classic yellow paint job, its operations are so easy to learn that any adult can start work in a Posi-Track within
minutes. In other words, you don't have to have brawny muscles and a degree in Macho Construction 101 to be pushing dirt and hauling boulders. In addition, this machine will treat established lawns with kid gloves. Because of the Posi-Track's specially engineered,
patent-pending rubber track system, it boasts an amazingly low 2.5 pounds per square inch of ground pressure, or about the equivalent of an average child. That means it won't tear up your lawn
like some other work machines.
In October they announced an agreement with Caterpillar Inc. (NYSE: CAT - news), the world's largest manufacturer of construction equipment. Under the terms of the agreement, Caterpillar will
acquire one million shares of ASV stock at $18 per share and warrants to acquire a majority ownership at $21 per share.
Under the agreement, ASV products will gradually become available to Caterpillar's worldwide dealer network in more than 200 countries. ASV's Posi-Track(TM), a rubber-tracked work vehicle, moves over nearly any terrain with minimal damage to the ground, making it effective in
numerous applications and industries.
Upon closing, Caterpillar will place two members on ASV's board of eight directors, for a total of ten, and will make various management, financial and engineering resources available to ASV.
ASV, which has achieved 14 consecutive record quarters, had sales of $24 million in 1997, and is on pace to do more than $40 million in 1998. These types of agreements tend to confuse me so here is the whole article biz.yahoo.com
Also in October ASVI recorded its 15th consecutive quarter of record sales. Here is the whole article biz.yahoo.com
Market cap 131m
Shares outstanding 7.9m
Float 5.4m
Insiders 19%
Institutions 7.5%
Latest Fillings
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Company web page asvi.com
Happy New Year Everyone
Joe
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