ASV Inc. last week reported results for its second quarter ended June 30, 2006. Net sales for the second quarter of 2006 increased 27 percent to $72.1 million, compared to $56.7 million for the same period in 2005. Net earnings increased 23 percent to $7.6 million for the second quarter of 2006, compared with $6.2 million for the second quarter of 2005. EPS for the second quarter of 2006 increased to 28 cents per diluted share compared with 22 cents per diluted share for the second quarter of 2005. The 2006 EPS figure includes stock-based compensation-related expenses of 2 cents per diluted share. The company adopted SFAS No. 123R, share-based payment, on January 1, 2006.
ASV machines generated second-quarter sales of $39 million, up 36 percent from the second quarter of 2005. This increase was driven by the launch of the SR-70, a full quarter of sales for the SR-80, expansion of the ASV dealer network and greater concentration in the sale of larger machines.
ASV's OEM undercarriage sales, which include sales to both Caterpillar and Vermeer, increased 4 percent for the second quarter of 2006, totaling $17.5 million, compared with $16.8 million for the second quarter of 2005.
Sales from ASV's subsidiary, Loegering Mfg, totaled $7.1 million in the second quarter of 2006, up 45 percent compared with sales of $4.9 million for the second quarter of 2005. This increase was the result of VTS product line sales, which more than doubled and offset an expected decline in the sale of over-the-tire steel tracks. The VTS rubber track undercarriage product line accounted for 79 percent of Loegering's net sales in the second quarter of 2006, compared with 55 percent of Loegering's net sales in the second quarter of 2005.
Sales of service parts and other items increased 34 percent in the second quarter of 2006, to $8.5 million, compared with $6.4 million in the similar period last year.
Based on the company's performance for the first half of 2006 and its outlook for the remainder of the year, ASV revised sales guidance for 2006 to the range of $280 to $300 million, an increase of 14 to 22 percent over 2005. This compares to previous guidance of $300 to $320 million.
Diluted earnings per share estimates, which include stock-based compensation related expenses of 8 cents per diluted share, are revised to the range of $1.05 to $1.15 per share, from previous guidance of $1.10 to $1.20 per share.
Grand Rapids, Mich.-based ASV designs, manufactures and sells rubber track loaders and related accessories, attachments and traction products. ASV also manufactures rubber track undercarriages, some of which are a primary component on Caterpillar's multi-terrain loaders.