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ART’S WAY MANUFACTURING ANNOUNCES 88.9% INCREASE IN REVENUES OVER THE THIRD QUARTER OF 2009

FOR IMMEDIATE RELEASE NEWS
October 11, 2010 NASDAQ:ARTW

Conference Call Scheduled For October 13, 2010 At 10:00 AM CT

 

ARMSTRONG, IOWA, October 11, 2010 – Art’s Way Manufacturing Co., Inc. (NASDAQ: ARTW), a leading manufacturer and distributor of agricultural machinery, equipment and services announces its financial results for the three and nine months ended August 31, 2010.

 

 

In conjunction with the release, the Company has scheduled a conference call for October 13, 2010 at 10:00 AM CDT. J. Ward McConnell, Jr., Executive Chairman of the Board of Directors of Art’s Way Manufacturing, will be leading the call and discussing third quarter and nine month financial results and an outlook for the balance of 2010.

 

What: Art’s Way Manufacturing Third Quarter & Nine Month Financial Results.

 

When: October 13, 2010 10:00 AM CT.

 

How: Live via phone by dialing (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.

 

 

Financial Highlights For the Three and Nine Months Ended August 31, 2010:

 

    • Net sales for the three months ended August 31, 2010 were $10.6 million.

 

    • Operating income for the three months ended August 31, 2010 increased 495.9% over 2009.

 

    • Operating income for the nine months ended August 31, 2010 increased 166.8% over the same period in 2009.

 

    • Earnings Per Share for the nine months were $0.22 versus $0.05 for the same period in 2009.

 

 

For the Three Months Ended
(Consolidated)
August 31, 2010 August 31, 2009 Change
Revenue $ 10,581,783 $ 5,600,464 88.9%
Operating Income $ 1,270,882 $ 213,259 495.9%
Net Income $ 751,802 $ 64,725 1061.5%
EPS (Basic) $ 0.19 $ 0.02
EPS (Diluted) $ 0.19 $ 0.02
Weighted avg. shares outstanding:
Basic 3,992,182 3,990,352
Diluted 4,003,766 3,999,950

 

 

For the Nine Months Ended
(Consolidated)
August 31, 2010 August 31, 2009 Change
Revenue $ 22,909,802 $ 19,406,975 18%
Operating Income $ 1,606,163 $ 602,033 166.8%
Net Income $ 886,707 $ 181,238 389.3%
EPS (Basic) $ 0.22 $ 0.05
EPS (Diluted) $ 0.22 $ 0.05
Weighted avg. shares outstanding:
Basic 3,991,381 3,987,856
Diluted 4,000,863 3,989,623

 

Revenue: Our consolidated corporate sales for the three- and nine- month periods ended August 31, 2010 were $10,582,000 and $22,910,000 respectively, compared to $5,600,000 and $19,407,000 during the same respective periods in 2009, a $4,982,000 increase for the quarter and $3,503,000 increase year-to-date, or 88.9%, and 18.0% respectively. While all three divisions had increases in year-to-date sales, the largest increase can be attributed to our modular buildings segment.

 

Art’s Way Manufacturing, our agricultural products segment, had sales for the third fiscal quarter of $7,725,000, compared to $4,993,000 during the same period of 2009, a 54.7% increase. Year-to-date sales were $15,927,000, up from $15,868,000 as of August 31, 2009, a 0.4% increase and a significant improvement over year-to-date results as of the end of the second fiscal quarter. Although we have experienced decreased sales of Miller Pro products and OEM blowers, we have increased our sales of augers and beet equipment which yield higher profit margins. Our year-to-date gross profit was $4,348,000 compared to $4,145,000 for the same period in 2009.

 

Art’s Way Vessels, our pressurized tank segment, had sales for the third fiscal quarter of $502,000, compared to $242,000 for the same period in 2009, a 107.7% increase. Year-to-date sales were $1,245,000 in fiscal 2010, compared to $616,000 for the same period in 2009, a 101.9% increase. Our year-to-date gross profit was -$55,000 compared to -$131,000 for the same period in 2009

 

Art’s Way Scientific, our modular buildings segment, had third fiscal quarter sales of $2,355,000, compared to $365,000 for the same period in fiscal 2009, a 544.2% increase. Year-to-date sales were $5,738,000 in fiscal 2010, compared to $2,923,000 for the same period in 2009, a 96.3% increase. These increases are primarily due to higher demand during 2010, which we believe has resulted from improved economic conditions. Our year-to-date gross profit was $1,180,000 compared to $72,000 for the same period in 2009

 

Income: Consolidated operating income increased 495.9%, from $213,000 for the three months ended August 31, 2009 to $1,271,000, for the three months ended August 31, 2010, while net income for the three months ended August 31, 2010 increased 1061.5%, from $65,000 in 2009 to $752,000. Operating income for the nine months ended August 31, 2010 increased 166.8%, to $1,606,000 from $602,000 for the same period in 2009. Net income for the nine months ended August 31, 2010 increased 389.3% to $887,000 from $181,000 for the same period in 2009.

 

Earnings per Share: Earnings per basic and diluted share increased 850% for the three months ended August 31, 2010 to $0.19 per share from $0.02 per share for the same period in 2009.

 

 

J. Ward McConnell Jr., Executive Chairman of the Board of Directors said, “Factors including stronger demand from customers, the expansion of our customer base, the introduction of new products, improved operational efficiency and reduced costs from increased productivity, and continued overall economic recovery have propelled our third quarter and nine months performance. Agricultural product prices continued to improve last quarter giving a large boost to U.S. farm income. With the higher incomes and robust prices we saw significantly more interest in new and replacement equipment than we have in some time, all of which creates sales opportunities for our expanding agricultural equipment line. We are seeing a longer-term trend as farmland and product prices improve, and we think more capital will be spent in the agricultural sector over the next few years. So while we are pleased with short-term results at Art’s Way we think the trends will be positive for ARTW’s operations longer term.

 

“We are pleased with the strong sales growth achieved during the quarter and nine months at Art’s Way Vessels and the continuing strength in our vessel sales. Our goal is to continue to improve the leverage in our operating model and generate higher profitability.

 

“As for Art’s Way Scientific – Buildings For Science – the increase in revenue was a result of our team aggressively working on the installation of several larger projects. Although the Government Economic Stimulus package never really materialized, there are institutions that have found alternative financing and we are now in discussions about scaled back versions of their intended projects. Additionally, Scientific has remained nimble during this time period and is now able to provide customers with temporary lease space for their expanding program needs or to support research during a major renovation project. We now have 3 modular building units that will be leased for a 12-month to 24-month term, which in the future can be re-leased or sold to other institutions.

 

“We are confident in our business strategy and believe we have positioned the Company well to take advantage of the market opportunities and to reap the rewards of our foresight in the coming years.”

 

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, round hay balers, plows, hay and forage equipment, manure spreaders and top and bottom drive augers. After-market service parts are also an important part of the Company’s business. The Company has 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 made in this release that are not strictly statements of historical facts, including: (i) our expectation that long-term demand for farming equipment will increase; (ii) our goal to improve leverage and profitability; (iii) our expectations relating to projects for Art’s Way Scientific; and (iv) our belief that we are well-positioned for market opportunities, are forward-looking statements. 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 cost of raw materials, the management of growth, the availability of investment opportunities, and other factors 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 INTRODUCES NEW GRINDER MIXER

FOR IMMEDIATE RELEASE For More Information, Contact:
August 31, 2010 Jim Drewitz, Investor Relations
830-669-2466

The Company Unveiled The New Model 6520 At The Farm Progress Show

 

ARMSTRONG, IA August 31, 2010 – Art’s Way Manufacturing, Inc. (Nasdaq: ARTW), a leading manufacturer and distributor of niche agricultural machinery, equipment and services, is pleased to announce they unveiled the next generation of grinder mixers with the introduction of their new, Model 6520 Grinder Mixer at the Farm Progress Show in Boone, Iowa.

 

The Model 6520 features:

 

The largest tank in the industry – 165 bushel capacity.

 

Fully self-contained hydraulics – no tractor hydraulic requirements.

 

Discharge augers driven by hydraulic orbit motors.

 

High capacity, 10” diameter hydraulic driven discharge system – Elimination of bevel gears.

 

Remote control system for auger positioning, tank discharge and operation of the grinder mixer.

 

Double hammers in hammermill for a more consistent grind and less power requirements

 

A prototype of the 6520 has been in use in Tracy, Minnesota by Dan Lanou. Dan said, “The improvements are very innovative. The machine has cut our unload time nearly in half through the use of remote control operations and the increased auger size.”

 

J. Ward McConnell, Jr., Executive Chairman of the Board, said, “At Art’s Way we listened to our customers and responded to their needs. When we showed a prototype to some of our customers they said it is exactly what they wanted. We have made an enormous improvement in the unload system

 

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, round hay balers, plows, hay and forage equipment, manure spreaders 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

 

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 SIX MONTH NET INCOME INCREASE OF 15.8% OVER THE SAME PERIOD IN 2009

FOR IMMEDIATE RELEASE NEWS
July 13, 2010 NASDAQ:ARTW

Conference Call Scheduled For July 14, 2010 At 10:00 AM CDT

 

ARMSTRONG, IOWA, July 13, 2010 – Art’s Way Manufacturing Co., Inc. (NASDAQ:ARTW), a leading manufacturer and distributor of agricultural machinery, equipment and services announces its financial results for the three and six months ended May 31, 2010.

 

In conjunction with the release, the Company has scheduled a conference call for July 14, 2010 at 10:00 AM CDT. 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 and an outlook for the balance of 2010.

 

What: Art’s Way Manufacturing Second Quarter & Six Month Financial Results

 

When: July 14, 2010 10:00 AM CDT.

 

How: Live via phone by dialing (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.

 

Financial Highlights For the Three and Six Months Ended May 31, 2010:

 

    • Net sales for the three months ended May 31, 2010 were $6.7 million.

 

    • Net income for the six months ended May 31, 2010 increased 15.8% over the same period in 2009.

 

    • Consolidated order backlog as of May 31, 2010 was $13,639,000, compared to $10,511,000 on May 31, 2009.

 

 

&nbsp For the Three Months Ended
(Consolidated)
&nbsp
&nbsp May 31, 2010 May 31, 2009 Change
Revenue $ 6,748,178 $ 7,115,645 -5.2%
Operating Income $ 211,854 $ 291,137 -27.2%
Net Income $ 100,408 $ 112,918 -11.1%
EPS (Basic) $ 0.03 $ 0.03 &nbsp
EPS (Diluted) $ 0.03 $ 0.03 &nbsp
Weighted avg. shares outstanding: &nbsp &nbsp &nbsp &nbsp &nbsp
Basic &nbsp 3,991,586 &nbsp 3,986,830 &nbsp
Diluted &nbsp 4,006,068 &nbsp 3,989,086 &nbsp
&nbsp For the Six Months Ended
(Consolidated)
&nbsp
&nbsp May 31, 2010 May 31, 2009 Change
Revenue $ 12,328,019 $ 13,806,511 -10.7%
Operating Income $ 335,281 $ 388,774 -13.8%
Net Income $ 134,905 $ 116,513 15.8%
EPS (Basic) $ 0.03 $ 0.03 &nbsp
EPS (Diluted) $ 0.03 $ 0.03 &nbsp
Weighted avg. shares outstanding: &nbsp &nbsp &nbsp &nbsp &nbsp
Basic &nbsp 3,990,975 &nbsp 3,986,594 &nbsp
Diluted &nbsp 4,000,216 &nbsp 3,987,198 &nbsp

Revenue: Our consolidated corporate sales for the three- and six-month period ended May 31, 2010 were $6,748,000 and $12,328,000, respectively, compared to $7,116,000 and $13,807,000 during the same respective periods in 2009, a $368,000 decrease for the quarter and $1,478,000 decrease year-to-date, or 5.2% and 10.7% decreases, respectively. While both Scientific and Vessels had increases in sales, they were offset by the decreases at Manufacturing.

 

Art’s Way Manufacturing, our agricultural products segment, had revenues for the three months ended May 31, 2010 of $4,606,000, compared to $6,165,000 during the same period of 2009, a 25.3% decrease. This decrease was largely due to lower sales of OEM blowers and Miller Pro equipment, but was offset by increased sales of grinder mixers, augers and manure spreaders. Year-to-date sales were down to $8,202,000 from $10,874,000 as of May 31, 2009, a 24.6% decrease. Year to date Miller Pro sales decreased by $1,460,000, which were offset by auger sales of $1,028,000. Another factor in the reduced sales was a $1,636,000 reduction in OEM blower sales. Our year-to-date gross margin for this segment was 26.8% compared to 23.8% as of May 31, 2009.

 

Art’s Way Vessels, our pressurized vessels segment, had revenues for the three months ended May 31, 2010 of $480,000, compared to $226,000 for the same period in 2009, a 113.0% increase. Year-to-date sales were $743,000, compared to $375,000 as of May 31, 2009, a 98.3% increase. A large portion of this increase was due to a sale for $250,000 to Adamson Global Technology, which is wholly-owned and operated by J. Ward McConnell, Jr., our Executive Chairman of the Board of Directors. Gross margins for the second fiscal quarter of 2010 was 12.8%, compared to -30.2% in fiscal 2009. Year-to-date gross margin was -4.1% compared to -38.1% as of May 31, 2009. These increases can be attributed to the segment’s larger sales volume.

 

Art’s Way Scientific, our modular buildings segment, had revenues for the three months ended May 31, 2010 of $1,662,000, compared to $725,000 for the same period in fiscal 2009, a 129.4% increase. Sales at Scientific slowed significantly during the second fiscal quarter of 2009 due to unfavorable economic conditions, and began to improve in the fourth fiscal quarter. Year-to-date sales were $3,384,000 in fiscal 2010, compared to $2,558,000 for the same period in 2009, a 32.3% increase. Gross margin for the quarter ended May 31, 2010 was 19.2% compared to -6.6% for the same period in 2009. Year-to-date gross margin was 21.4% in 2010 compared to 12.9% for 2009. During 2009, costs increased due to cost overruns on two projects, which negatively impacted our margins.

 

Income: Consolidated operating income decreased 27.2%, from $291,000 to $212,000, for the three months ended May 31, 2010, while net income for the three months ended May 31, 2010 decreased 11.1%, from $113,000 to $100,000. Operating income for the six months ended May 31, 2010 decreased 13.8%, from $389,000 to $335,000.

 

Earnings per Share: Earnings per basic share have remained consistent for both the three and six months ended May 31, 2010 and the three and six months ended May 31, 2009.

 

J. Ward McConnell Jr., Executive Chairman of the Board of Directors said, “We remain concerned about consumer spending based on many economic indicators, most recently the substantial drop in the Consumer Confidence Index which demonstrates the fragile state of the economic recovery. Despite very difficult economic times in the agricultural sector, segments of our business are improving, particularly sales of certain seasonal agricultural and farming products, our overall backlog, net income and gross margins. Coming out of an extremely challenging year following one of the industry’s worst economic downturns, our overall operating results are improving based on our ability to deliver quality products with a customer service focus. We continue to focus on growing sales and improving our execution, discipline and profitability by tightly managing our variable costs. In June, we continued our ‘roll-up strategy’ by announcing the acquisition of the M&W Hay Baler product line. The family of simple-to-use round hay balers from M&W includes nine different models in four different series to handle most any haying application. The M & W round hay baler line is a respected brand in the industry and we are extremely pleased to add this line to the Art’s Way family.

 

“In the big picture, the environment for modular science laboratories is improving nicely with government spending windows shortening. Improving markets for vessels, modular laboratories and for some of our farming equipment, will help us continue on the path of prudently investing in new or acquired products to bring further profitable growth in the balance of 2010 and beyond.”

 

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, round hay balers, plows, hay and forage equipment, manure spreaders 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 Drewitz

 

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 made in this release that are not strictly statements of historical facts, including: (i) our beliefs regarding improvements in sales and operating results; (ii) the increase in demand for farming equipment, pressurized vessels and modular science laboratories; and (iii) our continued efforts to grow sales, improve execution and profitability, manage variable costs, and make investments designed to fuel future growth, are forward-looking statements. 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 cost of raw materials, the management of growth, the availability of investment opportunities, and other factors 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 ACQUISITION COMPLETION OF M&W ROUND HAY BALER PRODUCT LINE FROM ALAMO GROUP, INC.

FOR IMMEDIATE RELEASE For More Information, Contact
June 15, 2010 Jim Drewitz, Investor Relations
830-669-2499


ART’S WAY MANUFACTURING ANNOUNCES ACQUISITION COMPLETION OF M&W ROUND HAY BALER PRODUCT LINE FROM ALAMO GROUP, INC.

 

ARMSTRONG, Iowa, June 15, 2010 – 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 completed the acquisition of the M&W round hay baler product line of Gibson City, IL, www.mw-gear.com , an Alamo Group Inc. company (NYSE: ALG).

 

The family of simple-to-use round hay balers from M&W includes nine different models in four different series to handle most any haying application. Depending on model, M&W balers form a 4′ x 4′, 4′ x 5′, 5′ x 5′, or 5′ x 6′ bale to fit a wide range of haying operations. M&W balers feature fewer moving parts, when compared to “like” competitive balers, helping keep maintenance costs minimal. Operation is simple due to fewer moving parts; an “open-throat” chamber design that reduces the risk of bale starting problems; and an easy push button tying mechanism. As a result, operator fatigue and time spent in the field is reduced. Push button twine tying is standard on the 4407, 4500, 5506, and 5600 balers. The 4497, 4590, 5596, and 5690 feature either push button twine or net wrap tying systems to fit a wider range of haying operations. Unlike competitive belt balers, the M&W bale chamber is nearly fully enclosed which reduces leaf loss, resulting in a higher quality bale.

 

J. Ward McConnell, Jr., Chairman of the Board, said, “The M&W round hay baler line is one of the most respected brands in the industry and we are extremely pleased to add this line to the Art’s Way family. We believe the M&W line will be earnings accretive immediately, hold a compelling valuation, is an outstanding fit with our industry-leading niche Ag equipment and is another important element in our ‘roll-up strategy’.

 

“This vertical acquisition allows us to expand our product line, improve our leadership position, build our asset base for revenue growth and increase shareholder value. Additionally, there is a loyal and dedicated group of M&W dealers nationwide who will now be introduced to Art’s Way complete product line.”

 

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, round hay balers, plows, hay and forage equipment, manure spreaders 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

 

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 PROMOTES DAN PALMER TO PRESIDENT OF ART’S WAY SCIENTIFIC – BUILDINGS FOR SCIENCE

FOR IMMEDIATE RELEASE For More Information, Contact:
May 12, 2010 Jim Drewitz, Investor Relations
830-669-2466

 

ARMSTRONG, Iowa, May 12, 2010 – Art’s Way Manufacturing, Inc. (NASDAQ: ARTW), a leading manufacturer and distributor of niche agricultural machinery, equipment and services, is pleased to announce the promotion of Dan Palmer to President of Art’s Way Scientific – Buildings for Science. Previous, Mr. Palmer served as General Manager.

 

J. Ward McConnell, Jr., Executive Chairman of the Board, said, “ Dan Palmer’s leadership and experience has enabled Art’s Way Scientific to grow and serve the needs of the scientific community. Dan’s judgment, expertise and industry contacts are tremendous assets. He as proven to be a key member of the management team as we continue to focus on providing short term and long term solutions that help the scientific community deal with their laboratory needs and the Government’s financial stimulus program. I am confident Dan’s vision, talent and dedication will continue to re-enforce our position as the industry leader in designing and manufacturing custom-design, modular science laboratories.”

 

About Art’s Way Scientific, Inc. –Buildings For Science –

 

Art’s Way Scientific, Inc. is a wholly owned subsidiary of Art’s Way Manufacturing, Inc. It is the recognized leading supplier of modular laboratories for biocontainment, animal science, public health and security requirements. Art’s Way Scientific custom designs, manufactures, delivers, and installs laboratories and research facilities to meet customers’ critical requirements. For more information, visit our website at www.buildingsforscience.com.

 

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, manure spreaders 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

 

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 CLOSES ON 190,000 SQ. FT. FACILITY IN WEST UNION, IOWA

FOR IMMEDIATE RELEASE For More Information, Contact
May 5, 2010 Jim Drewitz, Investor Relations
830-669-2499

 

The $1.3 Million Warehouse And Factory Expansion Will Create 45 Jobs

 

ARMSTRONG, Iowa, May 5, 2010 – 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 closed on the 190,000 square foot facility in West Union, Iowa on April 30, 2010. The Company paid $1,270,000 for the building. A grant and loan of $65,000 from Iowa Economic Development Board will help offset expenses associated with building repairs and machinery and equipment. Art’s Way is also eligible to receive $158,000 for job training. Art’s Way continues to work with the Iowa Finance Authority, to obtain long term financing of the facility with industrial development bonds.

 

J. Ward McConnell, Jr., Executive Chairman of the Board, said, “We are very pleased to have acquired this facility. Our plans for this facility will be a combination of production of our ag lines and warehouse for finished products. We first intend to start shipping over some of our finished goods for distribution and then move over production lines of our forage boxes and hay rakes. The addition of this facility will allow us to gain valuable production space and will certainly allow us to accommodate any future acquisition. The West Union area has a very deep talent pool, and the $1.3 million factory and warehouse expansion will create approximately 45 new jobs. We are delighted to be part of the West Union community.”

 

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, manure spreaders 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

 

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 First Quarter Profit Increase Of $30,000 Over First Quarter 2009

FOR IMMEDIATE RELEASE NEWS
April 12, 2010 NASDAQ:ARTW

Strong Operating Performance Leads To Highest Earnings Since The Downturn Began

 

Conference Call Scheduled For April 16th, 2010 At 10:00 AM Central

 

ARMSTRONG, IOWA, April 12, 2010 – Art’s Way Manufacturing Co., Inc. (NASDAQ:ARTW), a leading manufacturer and distributor of agricultural machinery, equipment and services announces its first quarter financial results for the three months ended February 28, 2010.

 

In conjunction with the release, the Company has scheduled a conference call for April 16th, 2010 at 10:00 AM Central Time. J. Ward McConnell, Jr., Executive Chairman of the Board of Directors of Art’s Way Manufacturing, will be leading the call and discussing first quarter financial results, the status of the Company and an outlook for the balance of 2010.

 

What: Art’s Way Manufacturing First Quarter Financial Results

 

When: April 16th, 2010 10:00 AM Central Time.

 

How: Live via phone by dialing (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.

 

Financial Highlights For the Three Months Ended February 28, 2010:

 

 • Net income for the quarter increased 858% over first quarter 2009.
 • Operating income for the quarter increased 26.4% over first quarter 2009.
 • Consolidated order backlog as of February 28, 2010 was $17,450,000 compared to $13,127,000 on February 28, 2009.

 

For the Three Months Ended
February 28, 2010 February 28, 2009 Change
Revenue $ 5,579,841 $ 6,690,866 -16.6%
Operating Income $ 123,427 $ 97,637 26.4%
Net Income $ 34,425 $ 3,595 857.6%
EPS (Basic) $ 0.01 $ 0
EPS (Diluted) $ 0.01 $ 0
Weighted avg. shares outstanding:
Basic 3,990,352 3,986,352
Diluted 3,991,900 3,986,352

 

Revenue: Total revenue decreased 16.6% from $6.69 million for the first fiscal quarter of 2009 to $5.58 million for the three months ended February 28, 2010. Art’s Way Vessels, Inc. increased its three month revenue by 76.1%. This increase was offset by a 23.6% decrease in the revenue for Art’s Way Manufacturing Co., Inc. and a 6.1% decrease in revenue for Art’s Way Scientific, Inc. decreased during the first fiscal quarter of 2010.

 

Income: Operating income increased 26.4% from $98,000 for the first fiscal quarter of 2009 to $123,000 for the three months ended February 28, 2010, while net income for the same period increased 857.6%, from $3,600 to $34,000. The most significant reason for these increases is improvement in gross margins.

 

Consolidated gross profit margin for the first fiscal quarter of 2010 was 23.8%, compared to 19.7% for the same period one year ago. Each of our segments saw an increase in gross profit margin when compared to the same period in 2009.

 

The gross profit margin of Art’s Way Manufacturing increased from 21.5% in the first fiscal quarter of 2009 to 28.2% in the three-month period ending February 28, 2010. 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 lower prices initially 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 costs of 2008. We have completed our commitments on the 2007 pricing, and do not anticipate any additional production delays. During the first quarter of 2010 our products were more appropriately priced compared to our material costs and, as a result, we saw an increase in our gross margins.

 

The gross profit margin of Art’s Way Vessels increased from -50.2% in the first fiscal quarter of 2009 to -34.9% in the three-month period ending February 28, 2010. This increase was due to our increased sales, which help defray the fixed manufacturing expenses, such as depreciation and manufacturing overhead.

 

The gross profit margin of Art’s Way Scientific increased from 20.6% in the first fiscal quarter of 2009 to 23.5% in the three-month period ending February 28, 2010. The increase in gross profit margin at Art’s-Way Scientific was primarily due to cost overruns in the first and second quarter of 2009.

 

Earnings per Share: Earnings per basic share for the three months ended February 28, 2010 increased to $0.01 as compared to $0.00 for the three months ended February 28, 2009.

 

J. Ward McConnell Jr., Executive Chairman of the Board of Directors said, “We are very pleased with our strong start to the fiscal year, particularly with our net income and gross margins. Despite coming out of an extremely challenging year following one of the industry’s worst economic downturns, our operating results are improving based on our ability to deliver quality products with a customer service focus. We continue to focus on growing sales and improving our execution, discipline and profitability by tightly managing our variable costs. As noted in recent news releases, we also continue to fund our investments in capital expenditures and acquisitions that are designed to fuel future growth for years to come.

 

“The environment for agricultural machinery and modular science laboratories spending is accelerating and I am excited about the short and long term future of Art’s Way.”

 

About Art’s Way Manufacturing Co., 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, manure spreaders 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

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 made in this release that are not strictly statements of historical facts, including: (i) our ability to meet our production schedule; (ii) the increase in demand for agricultural machinery and modular science laboratories; and (iii) our continued efforts to grow sales, improve execution and profitability, manage variable costs, and make investments designed to fuel future growth, are forward-looking statements. 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 cost of raw materials, the management of growth, the availability of investment opportunities, and other factors 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 PURCHASES AUGER PRODUCTION BUILDING IN SALEM, SOUTH DAKOTA.

FOR IMMEDIATE RELEASE For More Information, Contact:
March 31, 2010 Jim Drewitz, Public Relations

 

Company Had Been Leasing The 15,000 Sq. Ft. Facility Since December 2008

 

ARMSTRONG, Iowa, March 31, 2010 – Art’s Way Manufacturing, Inc. (NASDAQ: ARTW), a leading manufacturer and distributor of niche agricultural machinery equipment and services, is pleased to announce they have purchased the 15,000 square foot production facility they have been leasing to produce portable grain augers in Salem, South Dakota. The Company closed on the plant purchase on March 29, 2010 and paid approximately $ 194,000.

 

J. Ward McConnell, Jr., Executive Chairman of the Board, said, “The auger business opened up to us with the closing of the Feterl business and the purchase of this facility is a smart and cost effective move for us. At Art’s Way, we are committed to customer service and helping farmers grow their business. They know they can trust us to deliver. This facility and the experienced, knowledgeable local work force has allowed us to offer a top quality line of 8”, 10”and 12” diameter Commercial Top Drive Augers as well as Commercial Swing and Galvanized Commercial Swing Drive Augers in lengths from 34 feet to over 120 feet. We not only manufacture augers, we also carry a complete supply of replacement parts for Art’s Way auger and parts for auger not produced by Art’s Way.

 

“We are filling new orders every day, and expect to continue gain market share each quarter. As of March 31, 2010 our auger backlog stands at $2.8 million.”

 

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, manure spreaders 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

 

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 AWARDED GRANT FROM THE IOWA ECONOMIC DEVELOPMENT BOARD TO PURCHASE 190,000 SQ. FT. FACILITY IN WEST UNION, IOWA

FOR IMMEDIATE RELEASE For More Information, Contact:
March 24, 2010 Jim Drewitz, Public Relations

 

The $1.4 Million Warehouse And Factory Expansion Will Create 40 Jobs.

 

ARMSTRONG, Iowa, March 24, 2010 – 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 is planning to purchase a 190,000 square foot facility in West Union, Iowa. A grant and loan of $65,000 from Iowa Economic Development Board will help offset expenses associated with building repairs and machinery and equipment. Art’s Way is also eligible to receive $158,000 for job training. The Board provides incentives that range from loans to tax credits to growing companies like Art’s Way Manufacturing.

 

J. Ward McConnell, Jr., Executive Chairman of the Board, said, “We are very pleased to receive this grant from The Iowa Economic Development Board as it reinforces the strength, importance and industry leadership of Art’s Way Manufacturing. Our entire team has worked extremely hard to demonstrate to the Iowa Economic Development Board that we are worthy of this funding. Our plans for this facility will be a combination of warehouse for finished products and production of some of our ag lines. The addition of this facility will allow us to gain valuable production space and will certainly allow us to accommodate any future acquisition. The $1.4 million warehouse and factory expansion will create approximately 40 new jobs. We are doing final due diligence but expect to close on the facility around April 30, 2010.”

 

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, manure spreaders 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

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 THE FISCAL YEAR 2009

FOR IMMEDIATE RELEASE
NEWS
February 22, 2010 NASDAQ:ARTW

Backlog for 2010 versus 2009 increases 16% to $ 17.4 million

 

Conference Call Scheduled For Thursday, February 25, 2010 At 10:00 AM Eastern

 

ARMSTRONG, IOWA, February 22, 2010 – Art’s Way Manufacturing Co., Inc., (NASDAQ:ARTW) a leading manufacturer and distributor of farm machinery in the United States and internationally, announced its financial results for the fiscal year ended November 30, 2009. Additionally, the Company has scheduled a conference call Thursday, February 25, 2010 at 10:00 AM Eastern Time to discuss the results and other information material to the Company’s business.

 

What: Art’s Way Manufacturing Fiscal Year 2009 Financial Results Conference Call

 

When: Thursday, February 25, 2010 – 10:00 AM Eastern Time

 

How: Live via phone by dialing 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., Chairman of the Board of Art’s Way Manufacturing, will be leading the call and discussing fiscal year 2009 financial results, the current state of the Company’s operations and the long-term outlook for the balance of 2010.

 

Highlight:

 

* As of February 2010, order backlog is approximately $17,436,000, a 16% increase over the same time period in 2009, which was approximately $ 15,012,000.

 

For the Fiscal Year Ended
November 30
2009 2008 Change
Revenue  $ 26,296,133  $ 32,041,138 -17.9%
Operating Income  $ 708,389  $ 2,766,260 -74.4%
Net Income  $ 762,250  $ 1,829,567 -58.3%
EPS (Basic)  $ 0.19  $ 0.46 -58.7%
EPS (Diluted)  $ 0.19  $ 0.46 -58.7%
Weighted avg. shares
outstanding:
Basic 3,988,478 3,973,816
Diluted 3,990,357 3,990,500

 

Revenue: Total revenue decreased 17.9%, from $32.04 million in fiscal 2008 to $26.3 million for the fiscal year ended November 30, 2009. The decrease was mainly due to the unfavorable economic conditions for a majority of the fiscal year 2009, which we believe caused many of our customers to forego or postpone purchases of agricultural equipment.

 

Income: Operating income decreased from $2.77 million in fiscal 2008 to $708,000 for the fiscal year ended November 30, 2009, while net income for the fiscal year ended November 30, 2009 decreased from $1.83 million to $762,000. These decreases were due largely to reduced sales and lower gross margins, which were the result of the high cost of steel during a greater portion of fiscal 2009 versus fiscal 2008.

 

Earnings per Share: Earnings per diluted and basic share ended November 30, 2009 were $0.19, a decrease of $0.27 from 2008 earnings per diluted and basic share.

 

J. Ward McConnell, Jr., Executive Chairman of the Board of Directors said, “Amidst a global recession, starting in the third quarter of 2008 and throughout most of 2009, Art’s Way Manufacturing revenue was negatively influenced by the lack of revenue at Art’s Way Scientific. Their revenue was significantly impacted by the delays in government funding of grants for new modular laboratories as a result of the slow release of the economic stimulus package. Companies and universities postponed many decisions to build scientific buildings until the stimulus funds were released, which is just now beginning to happen. In the coming quarters we expect Art’s Way Scientific – Buildings For Science – to garner a proportionate part of the new laboratories being constructed as the stimulus funds are distributed.

 

“Despite these tough times, we are committed to our strategies of controlling costs, growing our product line mix, like the addition of our auger and manure spreader lines, and improving our product structure to create higher gross profits. We feel this strategic business plan is definitely on target and will prove successful long term as the economic recovery progresses.

 

“The Company’s Board of Directors declared an annual cash dividend of $0.06 payable on November 30, 2009, to shareholders of record on November 16, 2009. I am proud to say Art’s Way Manufacturing has paid a dividend each year since 2005.”

 

Mr. McConnell concluded by saying “I want to assure our shareholders, we have taken aggressive measures to align our business with current market conditions. We are monitoring these initiatives closely to ensure we achieve our future expected financial results. Our strong financial position including our lack of short term debt and our growing backlog of over $17 million will allow us to continue making calculated improvements to our product line and grow our market share for years to come. 2010 is going to be a better year.”

 

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, manure spreaders and top and bottom drive augers. After market, service parts are also an important part of the Company’s business. The Company has 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

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

This news release includes “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements made in this release that are not strictly statements of historical facts, including: (i) statements relating to demand for new laboratory construction, (ii) statements regarding the impact of our strategic business plan on our long-term financial results and (iii) statements relating to future contemplated strategic improvements to our product lines, constitute forward-looking statements. Such statements of anticipated future results are based on certain assumptions by management and 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

Corporate - Art's Way Mfg