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ART’S WAY MANUFACTURING ANNOUNCES SECOND QUARTER AND YEAR TO DATE FISCAL 2017 FINANCIAL RESULTS

FOR IMMEDIATE RELEASE

July 13, 2017

ART’S WAY MANUFACTURING ANNOUNCES SECOND QUARTER AND YEAR TO DATE FISCAL 2017 FINANCIAL RESULTS

Conference Call Scheduled For July 14, 2017

ARMSTRONG, IOWA, July 13, 2017 – Art’s Way Manufacturing Co., Inc. (NASDAQ: ARTW), a diversified, international manufacturer and distributor of equipment serving agricultural, research and steel cutting needs, announces its financial results for the second quarter and year to date of fiscal 2017.

In conjunction with the release, the Company has scheduled a conference call for Friday, July 14, 2017 at 10:00 AM CT. Marc H. McConnell, Chairman of the Board of Directors of Art’s Way Manufacturing, and Carrie Gunnerson, President and Chief Executive Officer will be leading the call to discuss the second quarter and year to date fiscal 2017 financial results.

What: Art’s Way Manufacturing, Inc. Second Quarter and Year to Date Fiscal 2017 Financial Results.

When: Friday, July 14, 2017 10:00 AM CT.

How: Live via phone by dialing (877) 358-7309. Code: Art’s Way Manufacturing. Participants to the conference call should call in at least 5 minutes prior to the start time. A replay of the call will be archived on the Company’s website for 12 months. www.artsway-mfg.com/

 

For the Three Months Ended
(Continuing Operations, Consolidated)
May 31, 2017 May 31, 2016
Sales $ 4,689,000 $ 5,298,00
Operating Income (Loss) $ (721,000) $ 64,000
Net Income (Loss) $ (509,000) $ 17,000
EPS (Basic) $ (0.12) $ 0.00
EPS (Diluted) $ (0.12) $ 0.00
Weighted Average Shares Outstanding:
Basic 4,158,969 4,101,810
Diluted 4,158,969 4,101,810

 

 

For the Six Months Ended
(Continuing Operations, Consolidated)
May 31, 2017 May 31, 2016
Sales $ 9,111,000 $ 11,011,00
Operating Income (Loss) $ (1,074,000) $ 285,000
Net Income (Loss) $ (763,000) $ 150,000
EPS (Basic) $ (0.18) $ 0.04
EPS (Diluted) $ (0.18) $ 0.04
Weighted Average Shares Outstanding:
Basic 4,142,672 4,088,073
Diluted 4,142,672 4,088,073/td>

 

Sales: Our consolidated sales for continuing operations for the three and six-month periods ended May 31, 2017 were $4,689,000 and $9,111,000 compared to $5,298,000 and $11,011,000 during the same respective periods in 2016, a $609,000 or 11.5%, decrease for the second fiscal quarter and a $1,900,000 or 17.3% decrease for the six months. The decreases in revenue are primarily due to the decreased demand for our agricultural products and modular buildings. Consolidated gross margin for the three-month period ended May 31, 2017 was 17.3% compared to 28.0% in the same period in fiscal 2016. Consolidated gross margin for the six-month period ended May 31, 2017 was 21.1% compared to 28.3% for the same period in fiscal 2016. These decreased gross margins are largely attributable to our agricultural products segment.

Income (Loss) from Continuing Operations: Consolidated net (loss) from continuing operations was $(509,000) for the three months and $(763,000) for the six months ended May 31, 2017 compared to net income of $17,000 and $150,000 for the same respective periods in 2016. The decreased income from continuing operations was largely due to the decreased revenues for the first half of 2017.

Earnings (Loss) per Share from Continuing Operations: Loss per basic and diluted share from continuing operations for the second quarter of fiscal 2017 was ($0.12), compared to earnings per share from continuing operations of $0.00 for the same period in fiscal 2016. Loss per basic and diluted share from continuing operations for the six-month period ended May 31, 2017 was ($0.18), compared to earnings per share from continuing operations of $0.04 for the same period in fiscal 2016.

Chairman of the Art’s Way Board of Directors, Marc H. McConnell reports, “The results of our fiscal second quarter clearly demonstrate that we remain in very challenging times brought on by the downturn in the agricultural economy. While we have been working from a higher backlog than a year ago, we have also experienced delays in deliveries of certain products, a shift in our sales mix toward lower margin products, and elevated manufacturing expenses associated with launching new products that impacted our second quarter unfavorably.

Since the end of the second quarter, we have made significant changes to our cost structure and have continued to work toward putting ourselves in the best position to have a more successful second half of the year. Despite our lack of profitability, we have continued to improve our business by maintaining focus on product development, product quality, and customer service—cornerstones of our strategy that we are confident will benefit the company long-term. Additionally, we remain very committed to further improving our balance sheet and positioning ourselves to overcome the headwinds facing the industries we serve.

We are working to improve our operations and are also seeing improvement in some of the markets we serve but remain cautious in our optimism for improving results in the near term.”

 
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, plows, hay and forage equipment, manure spreaders, reels for combines and swathers, and top and bottom drive augers, as well as modular animal confinement buildings and laboratories, and specialty tools and inserts. After-market service parts are also an important part of the Company’s business. The Company has three reporting segments: agricultural products; modular buildings; and tools.

     For more information, including an archived version of the conference call, contact:

Carrie Gunnerson, Chief Executive Officer
712-864-3131

investorrelations@artsway-mfg.com

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

Cautionary Statements

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 our expectations regarding: (i) our business position; (ii) the impact of cost-cutting measures; (iii) future results; and (iv) the timing of possible increases to revenues; and (v) the benefits of our business model and strategy, 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: customer demand for our products; credit-worthiness of our customers; our ability to operate at lower expense levels; our ability to complete projects in a timely and efficient manner in accordance with customer specifications; our ability to renew or obtain financing on reasonable terms; our ability to repay current debt,
continue to meet debt obligations and comply with financial covenants; domestic and international economic conditions; factors affecting the strength of the agricultural sector; the cost of raw materials; unexpected changes to performance by our operating segments; obstacles related to liquidation of product lines and segments; and other factors detailed from time to time in our 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. We do not intend to update forward-looking statements other than as required by law.

ART’S WAY MANUFACTURING ANNOUNCES FIRST QUARTER FISCAL 2017 FINANCIAL RESULTS

 FOR IMMEDIATE RELEASE

March 31, 2017

                                               

ART’S WAY MANUFACTURING ANNOUNCES FIRST QUARTER FISCAL 2017 FINANCIAL RESULTS

Conference Call Scheduled For March 31, 2017

ARMSTRONG, IOWA, March 31, 2017 – Art’s Way Manufacturing Co., Inc. (NASDAQ: ARTW), a diversified, international manufacturer and distributor of equipment serving agricultural, research and steel cutting needs, announces its financial results for the first quarter of fiscal 2017.

In conjunction with the release, the Company has scheduled a conference call for Friday, March 31, 2017 at 10:00 AM CT.  Marc H. McConnell, Chairman of the Board of Directors of Art’s Way Manufacturing, and Carrie Gunnerson, President and Chief Executive Officer will be leading the call to discuss the first quarter fiscal 2017 financial results.

What: Art’s Way Manufacturing, Inc. First Quarter and Year to Date Fiscal 2017 Financial Results.

When: Friday, March 31, 2017 10:00 AM CT.

How: Live via phone by dialing (877) 358-7309. Code: Art’s Way Manufacturing. Participants to the conference call should call in at least 5 minutes prior to the start time.  A replay of the call will be archived on the Company’s website for 12 months.  www.artsway-mfg.com/

 

  For the Three Months Ended
(Continuing Operations, Consolidated)
  February 28, 2017 February 29, 2016
Sales $ 4,421,000 $ 5,713,000
Operating Income (Loss) $ (352,000) $ 221,000
Net Income (Loss) $ (254,000) $ 134,000
EPS (Basic) $ (0.06) $ 0.03
EPS (Diluted) $ (0.06) $ 0.03
         
Weighted Average Shares Outstanding:        
Basic   4,126,012   4,074,338
Diluted   4,126,012   4,074,338

 

Sales:  Our consolidated corporate sales of continuing operations for the three month period ended February 28, 2017 was $4,421,000 compared to $5,713,000 during the same period in 2016, a decrease of $1,292,000, or 22.6%. The quarterly decrease in revenue was primarily due to a continuation of the decreased demand for agricultural products that the industry has been experiencing over the last year.  Quarterly revenue increased by 16.3% at Metals, while Manufacturing and Scientific revenues were down 19.8% and 58.9%, respectively. Consolidated gross margin for the three month period ended February 28, 2017 was 25.2%, compared to 28.5% for the same period in fiscal 2016.

Income (Loss) from Continuing Operations:  Consolidated net (loss) from continuing operations was $(254,000) for the three month period ended February 28, 2017, compared to net income from continuing operations of $133,000 for the same period in 2016.  The increased loss was primarily due to the decreased sales in our Manufacturing and Scientific segments.

Earnings (Loss) per Share from Continuing Operations: Loss per basic and diluted share from continuing operations for the first quarter of fiscal 2017 was ($0.06), compared to earnings per share from continuing operations of $0.03 for the same period in fiscal 2016.

Chairman of the Art’s Way Board of Directors, Marc H. McConnell reports, “While the results of our fiscal first quarter demonstrate the persistence of the historic headwinds our business has faced in the past two years, we are pleased to report that business appears to be on the upswing at Art’s Way.  During the first quarter we experienced low levels of revenue due to slow incoming orders during the fourth quarter of 2016.  We are pleased to have seen an increase of 27% in backlog compared to the prior year due to new product launches and other initiatives we have pursued over the past year.  As such, we incurred additional engineering expenses, labor expenses, and other costs associated with growth in the first quarter while the corresponding revenue will come in the second and third quarters when new products are available to ship.

 

At this time, we are hiring in all reporting segments and while we have not yet felt the positive financial impact, we have managed to fundamentally improve our business amid weakness in the markets we serve by focusing intently on product quality, customer service, and new product development.  We remain committed to improving our balance sheet by reducing inventory, borrowings, and parting with assets not associated with our future growth.  We are pleased with the progress we are making on these fronts, and are optimistic for results in the upcoming quarters.”

 

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, plows, hay and forage equipment, manure spreaders, reels for combines and swathers, and top and bottom drive augers, as well as modular animal confinement buildings and laboratories, and specialty tools and inserts. After-market service parts are also an important part of the Company’s business. The Company has three reporting segments: agricultural products; modular buildings; and tools.

For more information, including an archived version of the conference call, contact: Carrie Gunnerson, Chief Executive Officer

712-864-3131

investorrelations@artsway-mfg.com

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

Cautionary Statements

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 our expectations regarding: (i) our business position; (ii) the impact of cost-cutting measures; (iii) future results; and (iv) the timing of possible increases to revenues; and (v) the benefits of our business model, 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: customer demand for our products; credit-worthiness of our customers; our ability to operate at lower expense levels; our ability to complete projects in a timely and efficient manner in accordance with customer specifications; our ability to renew or obtain financing on reasonable terms; our ability to repay current debt, continue to meet debt obligations and comply with financial covenants; domestic and international economic conditions; factors affecting the strength of the agricultural sector; the cost of raw materials; unexpected changes to performance by our operating segments; obstacles related to liquidation of product lines and segments; and other factors detailed from time to time in our 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.  We do not intend to update forward-looking statements other than as required by law.

-END-

ART’S WAY MANUFACTURING ANNOUNCES DISCONTINUED OPERATIONS OF VESSELS BUSINESS SEGMENT

FOR IMMEDIATE RELEASE
August 11, 2016

ART’S WAY MANUFACTURING ANNOUNCES DISCONTINUED OPERATIONS OF VESSELS BUSINESS SEGMENT

ARMSTRONG, IOWA, August 11, 2016 – Art’s Way Manufacturing Co., Inc. (NASDAQ: ARTW), a diversified, international manufacturer and distributor of equipment serving agricultural, research, water treatment and steel cutting needs, announces it will be discontinuing the operations of its Art’s Way Vessels segment in the third quarter of its 2016 fiscal year.

Art’s Way Vessels, Inc., a wholly-owned subsidiary of Art’s Way Manufacturing Co., Inc., specializes in ASME code and non-code pressurized vessels and storage tanks for water treatment, petroleum, agriculture, food & beverage, marine and mining industries.

We plan to focus our efforts and resources on the parts of our business where we have historically been more successful and where we see greater opportunity for meaningful long-term shareholder return going forward. We will complete our current backlog to fulfill our commitment to customers and subsequently pursue an orderly sale of the assets associated with this segment including real estate, equipment, and inventory. We anticipate incurring charges associated with this divestiture until the process is complete, likely in fiscal 2017.

Chairman of the Art’s Way Board of Directors, Marc H. McConnell reports, “After careful consideration of the possible outcomes for the Vessels segment that would serve our business and shareholders best, the decision was ultimately made to discontinue the operations of Art’s Way Vessels. We would like to thank our Vessels employees for their work over the past eleven years and regret that this decision impacts them negatively. This decision was difficult but is a necessary step in positioning our business for the long-term stability and profitability we are pursuing. Our focus on the activities that have made Art’s Way a strong, enduring, and profitable company for the past 60 years will help ensure that we remain in a position to benefit from the opportunities we see coming forth in the Agricultural, Modular Building, and Tool segments.”

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, reels for combines and swathers, and top and bottom drive augers, as well as pressurized tanks and vessels, modular animal confinement buildings and laboratories and specialty tools and
inserts. After-market service parts are also an important part of the Company’s business. The Company has four reporting segments: agricultural products; pressurized tanks and vessels; modular buildings; and tools.

For more information contact: Carrie Majeski, Chief Executive Officer

712-864-3131

investorrelations@artsway-mfg.com

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

Cautionary Statements

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 our expectations regarding: (i) our business position; (ii) the impact of cost-cutting measures; (iii) future results; and (iv) the benefits of our business model, 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: customer demand for our products; credit-worthiness of our customers; our ability to operate at lower expense levels; our ability to complete projects in a timely and efficient manner in accordance with customer specifications; our ability to renew or obtain financing on reasonable terms; domestic and international economic conditions; factors affecting the strength of the agricultural sector; the cost of raw materials; unexpected changes to performance by our operating segments; and other factors detailed from time to time in our 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. We do not intend to update forward-looking statements other than as required by law.
-END-

Art’s Way Manufacturing Announces Third Quarter 2015 Revenue And Earnings

Conference Call Scheduled For Thursday, October 1st, 2015 at 10:00 AM CT

ARMSTRONG, IOWA, September 30, 2015 – Art’s Way Manufacturing Co., Inc. (NASDAQ: ARTW), a diversified, international manufacturer and distributor of equipment serving agricultural, research, water treatment and steel cutting needs, announces its financial results for the three and nine months ended August 31, 2015.

In conjunction with the release, the Company has scheduled a conference call for Thursday, October 1, 2015 at 10:00 AM CT. Marc H. McConnell, Chairman of the Board of Directors of Art’s Way Manufacturing, J. Ward McConnell, Jr., Vice Chairman of the Board of Directors of Art’s Way Manufacturing, and Carrie Majeski, President and Chief Executive Officer of Art’s Way Manufacturing will be leading the call to discuss the third quarter of 2015 financial results and will also provide an outlook for the balance of 2015.

What: Art’s Way Manufacturing Third Quarter and Year to Date 2015 Financial Results.

When: Thursday, October 1, 2015 10:00 AM CT.

How: Live via phone by dialing (877) 358-7309. Code: Art’s Way Manufacturing. Participants to the conference call should call in at least 5 minutes prior to the start time. A replay of the call will be archived on the Company’s website for 12 months. www.artsway-mfg.com/

For the Three Months Ended
(Consolidated)
 
August 31, 2015 August 31, 2014 Change
Sales $ 6,886,000 $ 11,585,000 -40.6%
Operating Income (Loss) $ (1,004,000) $ 908,000
Net Income (Loss) $ (796,000) $ 558,000
EPS (Basic) $ (0.20) $ 0.14
EPS (Diluted) $ (0.20) $ 0.14
Weighted Average Shares Outstanding:
Basic 4,061,052 4,048,552
Diluted 4,061,052 4,053,129


For the Nine Months Ended
(Consolidated)
 
August 31, 2015 August 31, 2014 Change
Sales $ 21,979,000 $ 27,291,000 -19.5%
Operating Income (Loss) $ (260,000) $ 1,057,000
Net Income (Loss) $ (396,000) $ 553,000
EPS (Basic) $ (0.10) $ 0.14
EPS (Diluted) $ (0.10) $ 0.14
Weighted Average Shares Outstanding:
Basic 4,057,496 4,047,544
Diluted 4,057,496 4,053,152


Sales: Our consolidated corporate sales for the three- and nine-month periods ended August 31, 2015 were $6,886,000 and $21,979,000, respectively, compared to $11,585,000 and $27,291,000 during the same respective periods in 2014, a $4,699,000, or 40.6%, decrease for the quarter and a $5,312,000 or 19.5% decrease year-to-date. The decreases in revenue are primarily due to decreased sales of our agricultural products segments. We are experiencing decreased demand for nearly all agricultural products, but our Universal Harvester reel sales were down nearly 70% during the year-to-date as compared to the prior year. Consolidated gross margin for the three- and nine-month periods ended August 31, 2015 was 18.4% and 25.1%, respectively, compared to 23.3% and 23.4% for the same respective periods in fiscal 2014. The decreased revenue amounts coupled with relatively static fixed costs has put negative pressure on our gross margins both quarterly and year-to-date.

Income: Consolidated net income (loss) was $(796,000) for the three-month period ended August 31, 2015, compared to net income of $558,000 for the same period in 2014. The decrease was primarily due to the decreases in revenue described above and a noncash charge for impairment of the goodwill from our UHC subsidiary, part of the Agricultural Products segment. During the third quarter of fiscal 2015, we evaluated our goodwill for impairment based on economic factors related to that particular product line. As a result of our evaluation, we incurred a noncash impairment charge for the full amount of goodwill associated with our acquisition of the UHC product line of $618,729. The remaining portion of the decreased net income is directly attributable to our decreased sales volume. Consolidated net income (loss) for the nine-month period ended August 31, 2015 was $(396,000) compared to a net income of $553,000 in the same period of 2014. This decrease in income reflects the noncash impairment charge along with decreased operating income across all our segments.

Earnings per Share: Earnings per basic and diluted share for the third quarter ended August 31, 2015 were ($0.20), down from $0.14 from the third quarter of 2014. Earnings per basic and diluted share for the nine months ended August 31, 2015 were ($0.10), compared to $0.14 from the same period in 2014.

Chairman of the Art’s Way Board of Directors, Marc H. McConnell commented, “Our third fiscal quarter of 2015 was challenging to say the least. Several of our business units are experiencing poor market conditions, but most notably in our agricultural products segment. We have implemented various cost cutting measures aimed at scaling our operational size to match the current market conditions. We will continue being proactive in managing through this difficult time. Fortunately, our capital position remains very strong, and we are in the process of adjusting our cost structure in such a way that we will be able to weather the broader agricultural economy’s down cycle without significant degradation of capital until the market improves, however long that may take.

In the meantime, we continue to seek opportunities in the various markets we serve, and have a lot of reason for optimism about projects that may come forth in the months ahead.”

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, round hay balers, plows, hay and forage equipment, manure spreaders, reels for combines and swathers, and top and bottom drive augers, as well as pressurized tanks and vessels, modular animal confinement buildings and laboratories and specialty tools and inserts. After-market service parts are also an important part of the Company’s business. The Company has four reporting segments: agricultural products; pressurized tanks and vessels; modular buildings; and tools.

For more information, including an archived version of the conference call, contact: Carrie Majeski, Chief Executive Officer

712-864-3131

investorrelations@artsway-mfg.com

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

Cautionary Statements

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 our expectations regarding the impact of our management initiatives and cost-cutting measures, 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 our products; domestic and international economic conditions; factors affecting the strength of the agricultural sector; the cost of raw materials; the management of growth; the availability of investment opportunities; unexpected changes to performance by our operating segments; and other factors detailed from time to time in our 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. We do not intend to update forward-looking statements other than as required by law.

-END-



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