ASV Holdings, Inc. (NASDAQ: ASV), a leading provider of
rubber-tracked compact track loaders and wheeled skid steer loaders
in the compact construction equipment market, today announced
preliminary, unaudited results for the full year 2017.
Full year 2017 revenues are expected to be in the range of
$120-$125 million compared to $103.8 million in 2016. The increase
in revenues is due primarily to a continued increase in independent
dealer and rental locations selling branded ASV machines, which
were 222 locations in North America at December 31, 2017. Earnings
per share is expected to be in the range of $0.18 to $0.20,
compared to loss per share of $(0.15) in 2016. Adjusted earnings
per share, excluding the impact of relocating the parts and
distribution center to Grand Rapids and debt refinancing expenses
charged to the fourth quarter of 2017, as previously disclosed, is
expected to be in the range of $0.21 to $0.23 for the year compared
to a pro forma adjusted loss per share of $(0.13) in 2016. Adjusted
EBITDA is expected to be in the range of $10.5 million to $10.8
million for the year, compared with pro forma* Adjusted EBITDA of
$7.8 million last year. The company expects to report total net
debt of approximately $27.0 million compared to $43.4 million at
the end of 2016.
Andrew Rooke, Chief Executive Officer of ASV Holdings, Inc.,
commented, “We made substantial progress in 2017 and look forward
to another healthy year of growth in 2018 and beyond. Increased
market awareness of the ASV brand and initiatives to optimize our
machine and parts distribution are moving forward, and we’re
building a strong foundation to support profitable growth and
remain leaders in compact track loaders.”
The 2017 preliminary results included in this press release are
subject to change and are unaudited. The company expects to provide
its audited full year and fourth quarter financial update and form
10-K in late- to mid-March.
* Pro-forma tax provision and public company cost adjustments
for 2016 are to reflect an equivalent corporate structure to that
of 2017 which include a tax provision and public company costs.
Forward-Looking Statements
This press release contains forward-looking statements. In some
cases, you can identify forward-looking statements by terminology
such as “may,” “should,” “expects,” “plans,” “anticipates,”
“believes,” “estimates,” “predicts,” “potential,” “intends” or
“continue,” and other similar expressions that are predictions of
or indicate future events and future trends. Any forward-looking
statements are subject to risks and uncertainties that may cause
actual results to differ materially, including the risks detailed
under “Risk Factors” in the Registration Statement on Form S-1 (SEC
File No. 333-222142) and in other filings we make from time to time
with the Securities and Exchange Commission, and represent our
views only as of the date they are made and should not be relied
upon as representing our views as of any subsequent date. We do not
assume any obligation to update any forward-looking statements.
About ASV Holdings, Inc.
ASV Holdings, Inc. is a designer and manufacturer of compact
construction equipment. Its patented Posi-Track rubber tracked,
multi-level suspension undercarriage system provides a competitive
market differentiator for its Compact Track Loader (CTL) product
line with brand attributes of power, performance and
serviceability. Its wheeled Skid Steer Loaders (SSLs) also share
the common brand attributes. Equipment is sold through an
independent dealer network throughout North America, Australia, and
New Zealand. The company also sells OEM equipment and aftermarket
parts. ASV owns and operates a 238,000 square-foot production
facility in Grand Rapids, MN.
Supplemental Information
Cautionary Statement Regarding Non-GAAP Measures
This release contains references to “EBITDA” and “Adjusted
EBITDA.” EBITDA is defined for the purposes of this release as net
income or loss before interest, income taxes, depreciation and
amortization. Adjusted EBITDA is defined as EBITDA less the gain or
loss related to non-recurring events. Management believes that
EBITDA and Adjusted EBITDA are useful supplemental measures of our
operating performance and provide meaningful measures of overall
corporate performance exclusive of our capital structure and the
method and timing of expenditures associated with building and
placing our products. EBITDA is also presented because management
believes that it is frequently used by investment analysts,
investors and other interested parties as a measure of financial
performance. Adjusted EBITDA is also presented because management
believes that it provides a measure of our recurring core
business.
However, EBITDA and Adjusted EBITDA are not recognized earnings
measures under generally accepted accounting principles of the
United States (“U.S. GAAP”) and do not have a standardized meaning
prescribed by U.S. GAAP. Therefore, EBITDA and Adjusted EBITDA may
not be comparable to similar measures presented by other issuers.
Investors are cautioned that EBITDA and Adjusted EBITDA should not
be construed as alternatives to net income or loss or other income
statement data (which are determined in accordance with U.S. GAAP)
as an indicator of our performance or as a measure of liquidity and
cash flows. Management’s method of calculating EBITDA and Adjusted
EBITDA may differ materially from the method used by other
companies and accordingly, may not be comparable to similarly
titled measures used by other companies.
Reconciliation of EBITDA to Adjusted
EBITDA (in millions except percentages)
Unaudited For the Year Ended December
31, 2017 2016 Net income (loss) $1.6-$1.8
($1.2) Interest Expense 3.0 5.0 Loss on debt extinguishment 1.0 2.2
Depreciation & Amortization 4.8 4.7 Income Tax (Benefit)
Expense (0.6) -
EBITDA (1) $9.8-$10.0 $10.7 % of Sales
7.9%-8.1% 10.3%
EBITDA $9.8-$10.0 $10.7 Costs of
ConExpo trade show (2) 0.1 -
Revision to accrual for legal proceeding
expenses less legal costs (3)
(0.1) (1.4) Stock compensation and transaction related compensation
costs (4) 0.5 - Aftermarket parts distribution center relocation
(5) 0.3 -
Adjusted EBITDA (6) $10.5-$10.8 $9.3
Adjusted
EBITDA as % of net revenues 8.5%-8.8% 9.0% Pro-forma adjustment
for public company costs - (1.5) Pro-forma Adjusted EBITDA*
$10.5-$10.8 $7.8
* * The Company converted to a C corporation in May 2017, and
consequently 2017 EBITDA for the three and twelve months ended
December 31, 2017 includes approximately $0.6 million and $1.5
million of public company costs not included in 2016 EBITDA. For
the twelve months ended December 31, 2016, Pro Forma Adjusted
EBITDA is $7.8 million.
(1) EBITDA is defined as income or loss before interest,
income taxes, depreciation and amortization. EBITDA is not a
recognized measure under U.S. GAAP and does not have a standardized
meaning prescribed by U.S. GAAP. Therefore, EBITDA may not be
comparable to similar measures presented by other companies. The
table above reconciles net income to EBITDA. See “—Cautionary
Statements Regarding Non-GAAP Measures” for further information
regarding EBITDA. (2) Costs associated with the 2017 ConExpo trade
show. The ConExpo show, which is held every three years, was held
in Las Vegas in March of this year. This show is an international
gathering place for the construction industries. It is estimated
that 130,000 professionals from around the world attended the show.
(3) Revision to accrual for legal proceeding expenses is included
in Adjusted EBITDA since it is an adjustment in the period to an
accrual established at the formation of the Joint Venture and is
not representative of the operating activity in the reported
period. This adjustment was due to the settlement of a legal claim
lower than the accrued cost. (4) Stock compensation and IPO
transaction related compensation costs. (5) Aftermarket Parts
Distribution Center relocation costs are restructuring costs
related to the movement of the ASV aftermarket parts operation from
Southaven Memphis to a facility adjacent to the Company principal
premises in Grand Rapids MN, which commenced in quarter four of
2017 and is expected to be completed in quarter two of 2018. (6)
Adjusted EBITDA is defined as EBITDA less the gain or loss related
to non-recurring events. Adjusted EBITDA is not a recognized
measure under U.S. GAAP and does not have a standardized meaning
prescribed by U.S. GAAP. Therefore, Adjusted EBITDA may not be
comparable to similar measures presented by other companies. The
table above reconciles EBITDA to Adjusted EBITDA. See “—Cautionary
Statements Regarding Non-GAAP Measures” for further information
regarding EBITDA. (6) 2016 Pro Forma Adjusted EBITDA is defined as
Adjusted EBITDA less public company costs
Reconciliation of GAAP Net Income to Adjusted Net Income (in
millions except shares and EPS) Unaudited
For the Year Ended December 31, 2017 2016
Net income (loss) as reported $1.6-$1.8 ($1.2) Revision to
legal costs accrual 0.1 (1.4) Aftermarket parts distribution center
relocation 0.3 - Loss on debt extinguishment 1.0 2.2 Pro-forma
adjustment for public company costs - (1.5) Pro-forma income before
tax $3.0-$3.2 (1.9) Pro forma (C corporation basis) tax
$(1.1)-$(1.2) $0.7
Adjusted Net Income (loss)
$1.9-$2.1 ($1.2) Weighted average diluted
shares outstanding 9,125,000 8,000,000 Basic and Diluted earnings
(loss) per share as reported $0.18-$0.20 ($0.15) Total EPS Effect
$0.03 $0.02 Adjusted (pro forma C Corporation) earnings (loss) per
share $0.21-$0.23 ($0.13)
*Pro forma adjustments for public company costs and (C
corporation basis) tax expense: The company converted from a LLC to
a corporation on May 11, 2017. The pro forma adjustments reflect
the actual public company costs incurred in 2017 as if the company
had been a corporation for the same period in 2016, and a pro forma
(C corporation basis) tax charge on income at a tax rate of
36%.
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Darrow Associates, Inc.Peter Seltzberg, 516-419-9915Managing
Director, Investor Relationspseltzberg@darrowir.comorASV Holdings,
Inc.Andrew Rooke, 218-327-5389Chief Executive
OfficerAndrew.rooke@asvi.com
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