Exhibit 99.1

ASV Holdings, Inc. files Form 10-Q with First Quarter 2017 Results

Grand Rapids, MN – June 22, 2017 – ASV Holdings, Inc. (the “Company”) (NASDAQ: ASV) announced that it has filed its Form 10-Q for the first quarter of 2017 today, June 22, 2017. There has been no material change to the quarterly numbers previously reported in connection with the Company’s prospectus dated May 12, 2017.

Financial Highlights:

 

    Net Sales of $28.0 million compared to $28.5 million in Net Sales for the three months ended March 31, 2016

 

    Revenues from sales of machines were $18.7 million compared to $16.8 million during the three months ended March 31, 2016

 

    Operating income of $1.1 million compared to $1.0 million in the three months ended March 31, 2016

 

    GAAP net income was $0.2 million, or $0.03 in earnings per share compared to net loss of $(0.3) million, or $(0.03) in earnings per share in the three months ended March 31, 2016*

 

    Adjusted EBITDA** of $2.4 million, or 8.5% of net sales compared to adjusted EBITDA of $2.3 million or 7.9% of net sales during the three months ended March 31, 2016

*Per share information for March 2016 is Pro Forma to reflect transactions completed in connection with IPO

**Adjusted EBITDA reconciliation is provided below

Corporate Milestones:

 

    In connection with the Company’s IPO, its common stock began trading on The NASDAQ Capital Market on May 12, 2017 under the symbol “ASV”

 

    93% growth in revenues from sales of machines through the Company’s North American dealer distribution channels during the three months ended March 31, 2017 compared to the three months ended March 31, 2016

 

    Significant shift in dealership distribution strategy resulted in equipment sales of just 5.2% through Terex distribution channels as compared to 48.1% in prior year’s period

Andrew Rooke, Chief Executive Officer of ASV commented, “Our results for the first quarter 2017 were as anticipated, and reflect the strategic direction we’ve taken to reinvigorate the ASV brand and expand our dealer network. We added 23 dealers in North America during the quarter, which brings our dealer count to 156 locations throughout North America, and we expect to continue to increase our ASV distribution throughout the year. We believe that our innovative and highly engineered product lines will continue to meet enthusiastic and healthy demand as the construction equipment market continues to grow.”

The Company’s Form 10-Q can be accessed at www.sec.gov as well as on its corporate website, www.asvi.com.


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 consisting of 156 locations, as well as additional dealers in 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.

Forward-Looking Statements and Non-GAAP Financial Measures:

This press release contains forward-looking statements. 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 Company’s Registration Statement on Form S-1 filed in connection with its IPO, its Form 10-Q for the three months ended March 31, 2017 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.

This press release includes the following non-GAAP financial measure: “Adjusted EBITDA”, which is a non-GAAP term, is defined by the Company and may not be comparable to similarly titled measures used by other companies. A reconciliation of Net Income to Adjusted EBITDA is provided below for the three month periods ended March 31, 2016 and 2017.

The Company’s management believes that Adjusted EBITDA and Adjusted EBITDA as a percentage of sales represent key operating metrics for its business. While Adjusted EBITDA is not intended to replace any presentation included in our consolidated financial statements under generally accepted accounting principles (GAAP) and should not be considered an alternative to operating performance or an alternative to cash flow as a measure of liquidity, we believe this measure is useful to investors in assessing our operating results, capital expenditure and working capital requirements and the ongoing performance of its underlying businesses. These calculations may differ in method of calculation from similarly titled measures used by other companies.

Investor Contacts:

At Darrow Associates, Inc.

Peter Seltzberg, Managing Director, Investor Relations

(516) 419-9915

pseltzberg@darrowir.com


ASV Holdings, Inc

Condensed Balance Sheets

 

(In Thousands Except Par Value)    March 31,
2017
    December 31,
2016
 
     Unaudited     Unaudited  

ASSETS

    

CURRENT ASSETS

    

Cash

   $ 9     $ 572  

Cash — restricted

     —         535  

Trade receivables, net

     14,996       13,603  

Receivables from affiliates

     89       1,413  

Inventory

     28,489       30,896  

Prepaid expenses and other

     918       537  
  

 

 

   

 

 

 

Total current assets

     44,501       47,556  

NON-CURRENT ASSETS

    

Property, plant and equipment, net

     14,877       15,402  

Intangible assets, net

     25,187       25,824  

Goodwill

     30,579       30,579  

Deferred financing costs — revolving loan facility

     355       371  
  

 

 

   

 

 

 

Total assets

   $ 115,499     $ 119,732  
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Note payable — short term

   $ 3,000     $ 3,000  

Trade accounts payable

     11,546       11,976  

Payables to affiliates

     1,311       2,298  

Accrued compensation and benefits

     775       1,073  

Accrued warranties

     1,821       1,870  

Accrued product liability- short term

     1,143       2,125  

Accrued other

     1,326       1,312  
  

 

 

   

 

 

 

Total current liabilities

     20,922       23,654  

NON-CURRENT LIABILITIES

    

Revolving loan facility

     13,959       15,605  

Note payable — long term, net

     25,758       26,265  

Accrued product liability — long term

     477        

Other long term liabilities

     716       773  
  

 

 

   

 

 

 

Total liabilities

     61,832       66,297  

STOCKHOLDERS’ EQUITY

    

Preferred stock, $0.001 par value, 5,000 authorized, none outstanding

     —         —    

Common stock, $0.001 par value, 50,000 authorized, 8,000 shares issued and outstanding

     8       —    

Additional paid-in capital

     54,779       54,787  

Accumulated deficit

     (1,120     (1,352
  

 

 

   

 

 

 

TOTAL STOCKHOLDERS’ EQUITY

     53,667       53,435  
  

 

 

   

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   $ 115,499     $ 119,732  
  

 

 

   

 

 

 


ASV Holdings, Inc.

Condensed Statements of Operations

 

(In thousands, except par value)    Three Months Ended
March 31,
 
     2017     2016  
     Unaudited     Unaudited  

Net sales

   $ 28,010     $ 28,470  

Cost of goods sold

     23,650       24,365  
  

 

 

   

 

 

 

Gross profit

     4,360       4,105  

Research and development costs

     537       593  

Selling, general and administrative expense

     2,713       2,485  
  

 

 

   

 

 

 

Operating income

     1,110       1,027  

Other income (expense)

    

Interest expense

     (878     (1,274

Other expense

           (12
  

 

 

   

 

 

 

Total other expense

     (878     (1,286
  

 

 

   

 

 

 

Income (loss) before taxes

     232       (259

Income tax expense (benefit)

     —         —    
  

 

 

   

 

 

 

Net income (loss)

   $ 232     $ (259
  

 

 

   

 

 

 

Earnings per share:

    

Basic net income (loss) per share

   $ 0.03     $ (0.03

Diluted net income (loss) per share

   $ 0.03     $ (0.03

Weighted average common shares outstanding:

    

Basic weighted average common shares outstanding

     8,000       8,000  

Diluted weighted average common shares outstanding

     8,000       8,000  

Pro forma (C corporation basis):

    

Income tax expense (benefit)

   $ 84     $ (93

Net income (loss)

   $ 148     $ (166

Pro forma earnings per share:

    

Basic net income (loss) per share

   $ 0.02     $ (0.02

Diluted net income (loss) per share

   $ 0.02     $ (0.02


ASV Holdings, Inc.

 

Reconciliation of GAAP Net Income to Adjuted EBITDA

($ millions)

   Three Months Ended
March 31,
 
     2017     2016  

Net income (loss)

   $ 0.2     $ (0.3

Interest Expense

     0.9       1.3  

Depreciation & Amortization

     1.2       1.2  

EBITDA (1)

   $ 2.3     $ 2.3  

% of Sales

     8.3     7.9

EBITDA

   $ 2.3     $ 2.3  

Costs of ConExpo trade show (2)

     0.1       —    

Revision to accrual for legal proceeding expenses less legal costs (3)

   $ (0.2     —    

Stock compensation and transaction related compensation costs (4)

     0.1       —    

Adjusted EBITDA (5)

   $ 2.4     $ 2.3  

Adjusted EBITDA as % of net revenues

     8.5     7.9

 

(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 transaction related compensation costs.
(5) 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.