ASV Holdings, provider of rubber-tracked compact track loaders and wheeled skid-steer loaders in the compact construction equipment market, posted $30.6 million in net sales in the third quarter, compared to $23 million in the third quarter of 2016, a 33-percent boost. Machine sales revenues jumped 60.1 percent to $19.8 million.
Net income increased to $0.5 million, compared to $0.4 million in the third quarter of 2016.
“Third quarter 2017 results reflect continued progress in the development of ASV as an independent company and good execution from the team, highlighted by 60-percent year-over-year growth from machine sales, a near-doubling in our pre-tax earnings, and expansion in our dealer location count,” said Andrew Rooke, chairman and CEO. “Year-to-date machine sales through our distribution in North America have completely replaced those previously made through the Terex construction group distribution, and the expansion of our ASV network continued through the quarter, with the addition of 21 locations and particularly strong self-through in Australia where we have also added six dealer locations this year. Our targeted penetration into the rental channel was boosted by the receipt of a $2.0 million order for fourth quarter 2017 delivery that we announced in September. In addition, our equipment remains on test at two regional rental companies here in North America which may well lead to further inroads into the rental market.”
Rooke added that the relocation of ASV’s aftermarket parts distribution center to Grand Rapids, Min., is expected to be completed in the second quarter of 2018, and should yield customer service improvements and reduce operating costs.
“The markets we serve remain stable, and we look forward to continuing to execute our plan to stimulate sales and achieve our EBITDA margin and net income growth objectives throughout the year and beyond,” added Rooke.
“We are pleased with our progress in positioning ASV for sustainable, long-term success,” added Missi How, chief financial officer. “Adjusting for certain non-recurring or non-repeating items and public company costs, our gross and EBITDA margins are showing year-over-year improvement. We continue to focus on strengthening our balance sheet and have generated nearly $9 million in operating cash flow year-to-date with roughly $3 million of that in the third quarter.”
How added that the company expects a strong close to the year.