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Archives for July 2009

Art’s-Way Manufacturing Announces Global Sales Continue to Grow

FOR IMMEDIATE RELEASE

July 22, 2009

For More Information, Contact:

Jim Drewitz, Investor Relations830-669-2466

ART’S WAY MANUFACTURING ANNOUNCES GLOBAL SALES CONTINUE TO GROW

 

The Company’s 5165 Grinder-Mixer Shipped To Distributors in United Kingdom & Australia

 

ARMSTRONG, Iowa, July 22, 2009 – Art’s Way Manufacturing, Inc. (NASDAQ: ARTW), a leading manufacturer and distributor of niche agricultural machinery, equipment and services, is pleased to announce the Company’s popular and reliable 5165 Grinder-Mixer has been shipped to distributors in the United Kingdom and Australia. Theses are repeat sales to existing distributors and their customers.

J. Ward McConnell, Jr., Executive Chairman of the Board, said, “Even in a world-wide economic depression, we are very pleased our global sales remain quite active. Our Grinder-Mixer is not just the largest in the industry, it’s also the best. The portable 5165 Grinder-Mixer features a tremendous 165-bushel tank with a one-piece 26-inch hammermill. This 4-ton mixer is easily configured to meet the needs of specific livestock operation. In this day of global marketing, our family of products and the way we service our customers offer huge growth opportunities for the future and we believe will certainly increased shareholder value.”

 

About Art’s Way Manufacturing, Inc.

Art’s Way manufactures and distributes farm machinery niche products including animal feed processing equipment, sugar beet defoliators and harvesters, land maintenance equipment, crop shredding equipment, plows, hay and forage equipment and top and bottom drive augers. After market service parts are also an important part of the Company’s business. We have two wholly owned subsidiaries. Art’s Way Vessels Inc. manufactures pressurized tanks and vessels; Art’s Way Scientific Inc. manufactures modular animal confinement buildings and modular laboratories.

 

For More Information, Contact: Jim Drewitz, Investor Relations

830-669-2466 jim@jdcreativeoptions.com

 

Or visit the Company’s website at www.artsway-mfg.com

 

This news release includes “forward-looking statements” within the meaning of the federal securities laws. Statements of anticipated future results are based on current expectations and are subject to a number of risks and uncertainties, including but not limited to, quarterly fluctuations in results, customer demand for the Company’s products, domestic and international economic conditions, the management of growth and other risks detailed from time to time in the Company’s Securities and Exchange Commission filings. Actual results may differ markedly from management’s expectations. The Company cautions readers not to place undue reliance upon any such forward-looking statements.

-END-

ART’S WAY MANUFACTURING ANNOUNCES FINANCIAL RESULTS FOR SECOND QUARTER AND SIX MONTHS

FOR IMMEDIATE RELEASE NEWS

July 7, 2009

NASDAQ:ARTW

ART’S WAY MANUFACTURING ANNOUNCES FINANCIAL RESULTS FOR SECOND QUARTER
AND SIX MONTHS

 

Conference Call Scheduled For 9:00AM CDT,
Wednesday, July 8, 2009

 

ARMSTRONG, IOWA, July 7, 2009 – Art’s Way Manufacturing Co., Inc., (NASDAQ:ARTW) a
leading manufacturer and distributor of agricultural machinery, equipment and
services announced its financial results for the three and six months ended May
31, 2009.  

In conjunction with the release, the Company has
scheduled a conference call Wednesday, July 8, 2009 at 9:00 AM Central Daylight
Time.

What: Art’s Way Manufacturing Second Quarter & Six
Months Financial Results Conference Call

When: Wednesday, July 8, 2009 – 9:00 AM Central Daylight Time

How: Live via phone by dialing 1 (800) 624-7038. Code:
Art’s Way Manufacturing.  Participants to the conference call should call
in at least 5 minutes prior to the start time.

J.
Ward McConnell, Jr., Executive Chairman of the Board of Directors of Art’s Way Manufacturing
will be leading the call and discussing second quarter and six month financial
results, the status of the Company and an outlook for the balance of 2009.

 

Financial Highlights
For the Three And Six Months Ended May 31, 2009:

  • Net sales
    for the three months ended May 31, 2009 were $7.1 million.
  • Net sales
    for the six months ended May 31, 2009 were $13.8 million.
  • As of
    June 2009, order backlog is $10.5 million, compared to $20.5 million in
    June 2008.

 

 

For the Three Months
Ended

 

 

May 31, 2009

May 31, 2008

Change

Revenue

$

7,115,645

$

7,686,553

-7.4%

Operating Income

$

291,227

$

1,039,195

-72.0%

Net Income

$

112,918

$

889,045

-87.3%

EPS (Basic)

$

0.03

$

0.22

-86.4%

EPS (Diluted)

$

0.03

$

0.22

-86.4%

Weighted avg. shares outstanding:

 

 

 

 

 

Basic

 

3,986,830

 

3,972,352

 

Diluted

 

3,989,086

 

3,984,908

 

 

 

 

 

 

 

 

 

For the Six Months
Ended

 

 

May 31, 2009

May 31, 2008

Change

Revenue

$

13,806,511

$

14,435,067

-4.4%

Operating Income

$

388,864

$

1,853,120

-79.0%

Net Income

$

116,513

$

1,365,886

-91.5%

EPS (Basic)

$

0.03

$

0.34

-91.2%

EPS (Diluted)

$

0.03

$

0.34

-91.2%

Weighted avg. shares outstanding:

 

 

 

 

 

Basic

 

3,986,594

 

3,971,238

 

Diluted

 

3,987,198

 

3,990,110

 

 

 

 

 

 

 

 

Revenue: Consolidated net
sales for the fiscal quarter ended May 31, 2009 were $7,116,000 compared to
$7,687,000 for the same period in fiscal 2008. Consolidated net sales for the
six months ended May 31, 2009 were $13,807,000 compared to $14,435,000 for the
same period in fiscal 2008.

Art’s Way Manufacturing, our
agricultural products segment, had revenue of approximately $6,165,000 and $10,874,000
for the three- and six-month periods ended May 31, 2009, respectively, compared
to $5,066,000 and $9,193,000 for the same respective periods in fiscal 2008,
which represents an increase of 21.7% and 18.3%, respectively. The quarter and six-month increase in sales
for Art’s Way Manufacturing was largely due to the sales of forage boxes and
rakes from the Miller Pro product line, which had minimal sales during the
first half of fiscal 2008 due to product integration.

Art’s Way Vessels, our pressurized vessels
segment, had revenue of approximately $226,000 and $375,000 for the three- and
six-month periods ended May 31, 2009, respectively, compared to $90,000 and
$203,000 for the same respective periods in fiscal 2008, which represents an
increase of 151.1% and 84.3%, respectively. This was an expected increase due
to the rebuilding of sales lost after moving to a new facility.

Art’s Way Scientific – Buildings for Science –, our modular
buildings segment, had a decrease of revenue of 71.3% and 49.2% for the three-
and six-month periods ended May 31, 2009, respectively. Art’s Way Scientific had revenue of
approximately $725,000 and $2,558,000 for the three- and six-month periods
ended May 31, 2009, respectively, compared to $2,531,000 and $5,039,000 for the
same respective periods in fiscal 2008. The decrease in revenue for Art’s Way
Scientific was the result of a decrease in demand for modular buildings, which
management believes was largely due to the impact of current economic
conditions on the capital budgets of potential customers.

 

Income: Operating income decreased 72% from $1,039,000 to
$291,000 for the three months ended May 31, 2009, while net income for the
three months ended May 31, 2009 decreased 87.3%, from $889,000 to
$113,000. Operating income for the six
months ended May 31, 2009 decreased 79% from $1,853,000 to $389,000. These
decreases are primarily due to decreased gross margins.

 

Consolidated
gross profit margin for the three- and six-month periods ended May 31, 2009 was
20.6% and 20.2%, respectively, compared to 31.7% and 32.0% for the same respective
periods in the 2008 fiscal year, primarily due to decreases in gross profit
margin at Art’s Way Manufacturing and Art’s Way Scientific. The gross profit margin of Art’s Way
Manufacturing decreased from 34.8% and 36.4% in the three- and six-month
periods ended May 31, 2008, respectively, to 25.7% and 23.9% for the same respective
periods in 2009. After the purchase of
the Miller Pro product line, we had many orders that we were unable to produce
in a timely fashion. In order to satisfy
our customers, we agreed to sell these goods at the lower prices quoted in
2007. As a result of our production
delays caused by the integration of this product line, we shipped goods in the
first and second quarters of 2009 that were priced at the end of 2007 and
manufactured with materials purchased at the higher prices of 2008. We have nearly completed our commitments on
the 2007 pricing, and do not anticipate any additional production delays.

The gross profit
margin of Art’s Way Scientific decreased from 29.6% and 29.1% in the three- and
six–month periods ended May 31, 2008, respectively, to 6.6% and 12.9% for the
same respective periods in 2009. The decrease in gross profit margin at Art’s
Way Scientific was primarily due to the decrease in revenue explained above. In
addition, gross profit margins at Art’s Way Scientific were negatively impacted
during the first and second quarter by unanticipated cost overruns on a project
that was substantially completed during the period.

Earnings Per Share: Earnings per diluted and basic share for the three
months ended May 31, 2009 decreased to $0.03 as compared to $0.22, a decrease
of 86.4% or $0.19 from the earnings per share for the three months ended May 31,
2008. Earnings per share basic and
diluted share for the six months ended May 31, 2009 decreased 91.2% from $0.34
to $0.03.

J. Ward McConnell Jr., Executive Chairman of the
Board of Directors said, “We are very encouraged by the increase in sales of
21.7% for three months and 18.3% for six months, ,
with Art’s Way Manufacturing, our core agricultural product business. Our
Miller Pro line is becoming very well accepted in the market place and, as
promised, we have completed our production delays of the product line and
fulfilled our commitments on 2007 pricing.

 

With
the ramping up of Art’s Way Vessels, we had a significant increase in revenue
for the quarter and six months ended May 31. It was completely expected and
anticipated and we hope to keep this growth progressing.

 

Even
with production and revenue improvement, t
his has been another challenging quarter for the
Company – especially Art’s Way Scientific.
As
we indicated last quarter, we continue to monitor closely our market
opportunities and our operating structure due to the changing and challenging
market conditions. Incoming orders for all divisions, but especially Scientific,
slowed in the first quarter and we have seen a continuation of that trend in
the second quarter. While our quotation levels have increased during the
quarter when compared to the fourth quarter of last fiscal year and first
quarter this year, we have not seen a corresponding increase in our incoming
order rate. Incoming orders continue to be slower than desired due to increased
customer deliberation on the release of new orders pertaining to projects. We
will continue our efforts to expand our served markets and product offerings,
and believe the strength of our historical operating performance, combined with
the excellent positioning of our core products and our new auger product
provides an excellent platform from which to grow once we do see market
recovery.”

 

About Art’s Way
Manufacturing, Inc.

 

Art’s
Way manufactures and distributes farm machinery niche products including animal
feed processing equipment, sugar beet defoliators and harvesters, land
maintenance equipment, crop shredding equipment, plows, hay and forage
equipment
and top and bottom drive
augers.
After market service parts are also an important
part of the Company’s business. We have two wholly owned subsidiaries. Art’s Way
Vessels, Inc. manufactures pressurized tanks and vessels and Art’s Way
Scientific, Inc. manufactures modular animal confinement buildings and modular
laboratories.

 

For More Information,
Contact: Jim Drewitz, Investor Relations

830-669-2466
jim@jdcreativeoptions.com

 

Or
visit the Company’s website at www.artsway-mfg.com/

 

 

This news release includes “forward-looking
statements” within the meaning of the federal securities laws. In this release, forward-looking statements
generally relate to: (i) the Company’s ability to
meet its production schedule; (ii) acceptance of the Company’s Miller Pro
product line; (iii) revenue expectations for Art’s-Way Vessels; (iv) the
Company’s plans to expand its served markets and product offerings; (v) intent
to monitor market opportunities and operating structure; and (vi) the Company’s
growth potential in its industry. Statements of anticipated future results are
based on current expectations and are subject to a number of risks and
uncertainties, including but not limited to, quarterly fluctuations in results,
customer demand for the Company’s products and acceptance of its product lines,
current domestic and international economic conditions, the Company’s ability
to manage growth, incorrect assumptions by management with respect to
production cycles and market conditions, unexpected production delays and other
risks detailed from time to time in the Company’s Securities and Exchange
Commission filings. Actual results may
differ markedly from management’s expectations.

The Company cautions readers not to place undue reliance upon any such
forward-looking statements.

 

 

 

 

Corporate - Art's Way Mfg