ASV Holdings, Inc. (NASDAQ:ASV) Q4 2018 Earnings Conference Call - Final Transcript

Apr 02, 2019 • 08:30 am ET

Previous

ASV Holdings, Inc. (NASDAQ:ASV) Q4 2018 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Good day and welcome to the ASV Holdings 2018 10-K Filing follow-up call. Today's conference is being recorded.

At this time. I'd like to turn the conference over to Andrew Rooke. Please go ahead.

Executive
Andrew Rooke

Thank you, Amanda. Good morning, ladies and gentlemen. Thank you for your interest in ASV. Joining me on the call today is Missi How, our CFO. Today's call is supplemented by the press release issued Friday afternoon and slides posted on the Investor section of our website including replay information.

Before we start with a few prepared remarks, I'd like to remind everybody that today's presentation will include statements about expected future events and financial results that are forward looking in nature and subject to risks and uncertainties. The company cautions that actual performance will be affected by a number of factors, many of which are beyond the company's control and that future events and results may vary substantially from what the company currently foresees. Discussion of the various factors that may affect future results is contained in the company's Annual Report on Form 10-K and subsequent reports on Form 8-K, and other filings with the SEC. All forward looking statements are made as of the date of this call and except as required by law, we do not intend to update this information.

This conference call will also be available for a audio replay in the Investor section on ASV's website at asvi.com. We're hosting a call today to provide some details on our full year and fourth quarter. Now that we finalized results and filed our Form 10-K with the SEC with a complete set of audited financial statements. Many of you will know that we reported just preliminary numbers for the fourth quarter and full year 2018 back on March 14, 2019, as we're (inaudible) in the audit to do an additional impairment test on our goodwill and intangible assets. Importantly today, we'll be able to do a more detailed Q&A session to help you understand the actual results we reported on Friday.

So let's talk about the results, which from an operational perspective are identical to the preliminary update we provided on March 14, which now reflect the impacts of goodwill impairment and deferred tax valuation allowance. Since we've already provided the sales and gross margin breakdowns and discussed the external environment with respect to component costs, shortages and other factors, I'll limit the prepared remarks to presenting the bottom line results, some additional color and reconciliations for the quarter and year, and then we'll open the call to Q&A. I want to also point out that our usual slide presentation that we prepared for our quarterly financial updates is up on our website at asvi.com under the Investor Relations Events Section.

The 2018 full year and fourth quarter GAAP net losses that we reported are primarily the result of a $30.6 million impairment charge to goodwill. The 10-K that's filed provides the detail, but we thought it was important to cover this