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ART’S WAY MANUFACTURING ANNOUNCES THIRD QUARTER AND YEAR TO DATE FISCAL 2018 FINANCIAL RESULTS

FOR IMMEDIATE RELEASE

October 8, 2018

                                               

ART’S WAY MANUFACTURING ANNOUNCES THIRD QUARTER AND YEAR TO DATE FISCAL 2018 FINANCIAL RESULTS

ARMSTRONG, IOWA, October 8, 2018 – 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 third quarter and year to date of fiscal 2018.

 

For the Three Months Ended
(Continuing Operations, Consolidated)
August 31, 2018 August 31, 2017
Sales $ 5,280,000 $ 6,550,000
Operating Income (Loss) $ (559,000) $ 109,000
Net Income (Loss) $ (767,000) $ 42,000
EPS (Basic) $ (0.18) $ 0.01
EPS (Diluted) $ (0.18) $ 0.01
Weighted Average Shares Outstanding:
Basic 4,209,445 4,161,421
Diluted 4,209,445 4,161,421

 

For the Nine Months Ended
(Continuing Operations, Consolidated)
August 31, 2018 August 31, 2017
Sales $ 15,940,000 $ 15,660,000
Operating (Loss) $ (1,326,000) $ (965,000)
Net (Loss) $ (1,948,000) $ (721,000)
EPS (Basic) $ (0.46) $ (0.17)
EPS (Diluted) $ (0.46) $ (0.17)
Weighted Average Shares Outstanding:
Basic 4,198,250 4,148,6966
Diluted 4,198,250 4,148,966

 

Sales: Our consolidated corporate sales for continuing operations for the three- and nine-month periods ended August 31, 2018 were $5,280,000 and $15,940,000, respectively, compared to $6,550,000 and $15,660,000 for the same respective periods in fiscal 2017, a $1,270,000 or 19.4%, decrease for the three months and a $280,000, or 1.8%, increase for the nine months. The decrease for the three months is primarily due to decreased sales in our agricultural products and tools segments.  More specifically, our agricultural products segment had approximately $720,000 of passthrough revenue from self-propelled beet harvester equipment in 2017, which was not replicated in 2018.  We also note that we experienced a $572,000 reduction in year-over-year revenue attributable to activity from our now-closed Art’s-Way International subsidiary.  Despite this, our consolidated corporate sales for the nine-months have increased.  Adjusted for these items, our consolidated corporate sales for the nine-months are up almost $1,600,000 in 2018, as we shift our focus to Art’s-Way produced products.  Our tools segment’s decrease in sales year over year was the result of losing a major customer.  We have, however, been able to achieve higher gross profit margins with new tools customers.  Consolidated gross margin for the three-month period ended August 31, 2018 was 22.3% compared to 22.1% for the same period in fiscal 2017.  Consolidated gross margin for the nine-month period ended August 31, 2018 was 21.6% compared to 21.5% for the same period in fiscal 2017.  These increased gross margins are largely attributable to increased labor efficiency in our agricultural products segment, as margins have decreased in our modular buildings and tools segments.  While our gross margins are up in the agricultural products segment, gross margins have also received downward pressure from the liquidation of non-strategic inventory, including our snow blower line from our Canadian subsidiary, which was sold off at cost.  The decrease in gross margins for our modular buildings segment is due to increased deprecation expense from utilizing leased assets in our operations.  The decrease in gross margins for our tools segment is due to lower revenues with less variable margin to absorb fixed costs.

 

Income (Loss) from Continuing Operations:  Consolidated net (loss) from continuing operations was $(767,000) for the three-month period and $(1,948,000) for the nine-month period ended August 31, 2018 compared to net income (loss) of $42,000 and $(721,000) for the same respective periods in fiscal 2017.  The increased net loss for the three months ended August 31, 2018 was due to the discovery of mold in our West Union facility.  We estimated approximately $252,000 of expense for mold remediation and $67,000 in damaged inventory, and we recognized an impairment of approximately $199,000 of the asset held for lease.  The West Union facility is currently unoccupied and is listed for lease.  Our net (loss) from continuing operations includes carrying costs of this facility.  The increased net (loss) from continuing operations for the nine-months was largely due to the revaluing of our deferred tax asset at the new income tax rates for the 2018 tax year, which resulted in a loss of approximately $300,000.  We also recognized a loss of approximately $253,000 from the liquidation of our Canadian subsidiary related to the cumulative translation adjustment in the second quarter of fiscal 2018.  These expenses were non-cash expenses and one-time adjustments.  Despite the continued losses, we have reduced our total bank debt by approximately $532,000 since year end.  Our margins are generally depressed from historic levels because low volumes caused by market conditions continue to impact our ability to cover our fixed costs.  Margins are also impacted as we continue to right-size our inventories to focus on products we feel our customers will want to purchase in the future.

Earnings (Loss) per Share from Continuing Operations: (Loss) per basic and diluted share from continuing operations for the third quarter of fiscal 2018 was $(0.18), compared to income per basic and diluted share from continuing operations of $0.01 for the same period in fiscal 2017.  (Loss) per basic and diluted share from continuing operations for the nine months ended August 31, 2018 was $(0.46), compared to (loss) per basic and diluted share from continuing operations of $(0.17) for the same period in fiscal 2017.

Chairman of the Art’s Way Board of Directors, Marc H. McConnell reports, “Despite expecting profitable results for this quarter earlier in the year, we are disappointed to report that our business has been impacted significantly by multiple factors that ultimately drove negative results.

 

“As discussed in previous earnings calls, we have been significantly affected by the announcement of tariffs aimed at correcting trade imbalances.  We have been absorbing significant increases in material costs that we were not able to immediately recapture by re-pricing our products.  We also experienced extended lead times and disruption to the flow of purchased material and components needed to produce our whole goods.   This disruption along with other operational inefficiencies, including difficulty hiring qualified labor, led to substandard output despite incurring overtime and other costs associated with trying to overcome productivity issues.

 

“In addition to these difficulties, we also experienced unforeseen expenses associated with mold discovered at our previously closed facility in West Union which we have been trying to sell for quite some time. This same event also led to us writing off affected inventory at the facility as well as taking an impairment on the book value of the building itself.

 

“Despite the many challenges of the quarter and year, we remain committed to continuing to simplify our business, improving our balance sheet health, and reducing our borrowings while also executing on the key strategic and competitive priorities of quality, customer service, product development, and continuous improvement.  We made progress during the quarter on these fronts and will continue to make the proper long-term decisions that will help us position the company well for future improvement in market conditions.

 

“The agricultural equipment industry remains in upheaval due to tremendous uncertainty in the commodity marketplace and we are consequently seeing a conservative approach by our dealers to ordering and stocking inventory.  While this is giving us very little visibility of forward demand, we do expect margin expansion due to significant price realization, less liquidation activity, and improved efficiencies.

 

“In our modular buildings segment, we are pleased to report backlog growth and have invested in building our management team and production capacity accordingly.  We are seeing improving efficiency and margins on our products as well as a growing lease fleet that is providing the recurring revenue stream we have been seeking to build.  We expect the business to continue to build momentum and contribute going forward.  In our tools segment, we are experiencing soft demand but improving margins, ultimately resulting in positive earnings that has been steady if not overwhelming.

 

“Going forward we remain focused on continuing to work on strategic objectives despite market conditions.   We have operational improvements to make and are in the midst of recruiting key personnel to enhance our production and operations expertise.  We know that we ultimately must increase production capacity to achieve the performance levels we expect from the business. Until that capacity is met with different market conditions it will remain difficult for us to achieve consistent profitability. From here forward we will discontinue the quarterly investor calls so that we may put the energy and resources that have gone into preparing for and conducting the call into improving the operational performance of the business. Concurrent with this change we intend to enhance our earnings releases to be more descriptive than they have been previously.”

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 Art’s Way’s business. Art’s Way has three reporting segments: agricultural products; modular buildings; and tools.

For more information contact: Carrie Gunnerson, President, Chief Executive Officer and Interim Chief Financial 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) future results; (iii) future operational changes; (iv) future costs of materials; (v) the timing of increased performance; and (vi) 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, including the impact of tariffs; 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. We caution 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 SECOND QUARTER AND YEAR TO DATE FISCAL 2018 FINANCIAL RESULTS

FOR IMMEDIATE RELEASE

July 11, 2018

                                               

ART’S WAY MANUFACTURING ANNOUNCES SECOND QUARTER AND YEAR TO DATE FISCAL 2018 FINANCIAL RESULTS

Conference Call Scheduled for July 12, 2018

ARMSTRONG, IOWA, July 11, 2018 – 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 2018.

In conjunction with the release, the Company has scheduled a conference call for Thursday, July 12, 2018 at 10:00 AM CT.  Marc H. McConnell, Chairman of the Board of Directors of Art’s Way Manufacturing, and Carrie Gunnerson, President, Chief Executive Officer and Interim Chief Financial Officer will be leading the call to discuss the second quarter and year to date fiscal 2018 financial results.

What: Art’s Way Manufacturing, Inc. Second Quarter and Year to Date Fiscal 2018 Financial Results.

When: Thursday, July 12, 2018 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, 2018 May 31, 2017
Sales $ 5,294,000 $ 4,689,000
Operating (Loss) $ (458,000) $ (721,000)
Net (Loss) $ (654,000) $ (509,000)
EPS (Basic) $ (0.16) $ (0.12)
EPS (Diluted) $ (0.16) $ (0.12)
Weighted Average Shares Outstanding:
Basic 4,213,893 4,158,969
Diluted 4,213,893 4,158,969

 

For the Six Months Ended
(Continuing Operations, Consolidated)
May 31, 2018 May 31, 2017
Sales $ 10,660,000 $ 9,111,000
Operating (Loss) $ (767,000) $ (1,074,000)
Net (Loss) $ (1,181,000) $ (763,000)
EPS (Basic) $ (0.28) $ (0.18)
EPS (Diluted) $ (0.28) $ (0.18)
Weighted Average Shares Outstanding:
Basic 4,192,592 4,142,672
Diluted 4,192,592 4,142,672

 

Sales: Our consolidated corporate sales for continuing operations for the three- and six-month periods ended May 31, 2018 were $5,294,000 and $10,660,000 compared to $4,689,000 and $9,111,000 during the same respective periods in fiscal 2017, a $605,000, or 12.9%, increase for the three months and a $1,549,000, or 17.0%, increase for the six months. The increases in revenue are primarily due to the increased demand for our agricultural products and modular buildings.  Consolidated gross margin for the three-month period ended May 31, 2018 was 20.9% compared to 17.3% for the same period in fiscal 2017.  Consolidated gross margin for the six-month period ended May 31, 2018 was 21.2% compared to 21.1% for the same period in fiscal 2017.  These increased gross margins are largely attributable to the agricultural products segment as margins have decreased in our modular building and tools segments.

 

Income (Loss) from Continuing Operations:  Consolidated net (loss) from continuing operations was $(654,000) for the three-month period and $(1,181,000) for the six-month period ended May 31, 2018 compared to net (loss) of $(509,000) and $(763,000) for the same respective periods in fiscal 2017.  The increased loss from continuing operations was largely due to the revaluing of our deferred tax asset at the new income tax rates for the 2018 tax year, which was a loss of approximately $(300,000), along with the liquidation of our Canadian subsidiary.  We recognized a loss of approximately $(253,000) from the liquidation of our Canadian subsidiary related to the cumulative translation adjustment in the second quarter of fiscal 2018.  These expenses were non-cash expenses and one-time adjustments.

Earnings (Loss) per Share from Continuing Operations: (Loss) per basic and diluted share from continuing operations for the second quarter of fiscal 2018 was $(0.16), compared to (loss) per basic and diluted share from continuing operations of $(0.12) for the same period in fiscal 2017.  (Loss) per basic and diluted share from continuing operations for the six months ended May 31, 2018 was $(0.28), compared to (loss) per basic and diluted share from continuing operations of $(0.18) for the same period in fiscal 2017.

Chairman of the Art’s Way Board of Directors, Marc H. McConnell reports, “As we have reported over the last few quarters, we are beginning to see some positive signs in the marketplace.  We are pleased to report stronger second quarter revenues than a year ago and greater success selling non-strategic inventory than we’ve had at any point during this agricultural market downturn. We observe that dealers have been more willing to stock whole goods and feel that is a fair indicator for the direction things are starting to go.”

 

“Amid these improving conditions, we did incur significant charges and expenses that negatively impacted our profitability for the quarter, most significantly an accumulated loss on currency translation of $253,000, prompted by the closure of our Art’s Way International entity.  We have been very active in reducing our non-strategic inventory by building out material purchased years ago into whole goods, liquidating whole goods at the expense of margins, and scrapping material where necessary.  These expenses, charges, and low-margin sales are the short-term pain of making the proper long-term decisions to simplify our business and position it for success going forward.”

 

“As we look at the second half of the fiscal year we find ourselves in an ever-improving position but do have more uncertainty than at any point in recent memory.  Concerns over tariffs have driven up material costs while simultaneously rattling commodity markets that drive much of our business.  Such circumstances make future outcomes hard to predict but we know that staying focused on quality, customer service, product development, continuous improvement, and reducing our borrowings will serve our company best in the long-term.  We are making meaningful strides in all of these areas and are building the foundation of what we believe will be a sustainably profitable business in the years 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, 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 Art’s Way’s business. Art’s Way has three reporting segments: agricultural products; modular buildings; and tools.

For more information, including an archived version of the conference call, contact: Carrie Gunnerson, President, Chief Executive Officer and Interim Chief Financial 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) future results; (iii) future operational changes; (iv) future costs of materials; (v) the timing of increased performance; and (vi) 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, including the impact of tariffs; 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. We caution 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 FIRST QUARTER FISCAL 2018 FINANCIAL RESULTS

FOR IMMEDIATE RELEASE

March 29, 2018

                                               

ART’S WAY MANUFACTURING ANNOUNCES FIRST QUARTER FISCAL 2018 FINANCIAL RESULTS

Conference Call Scheduled for March 30, 2018

ARMSTRONG, IOWA, March 29, 2018 – 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 2018.

In conjunction with the release, the Company has scheduled a conference call for Friday, March 30, 2018 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 2018 financial results.

What: Art’s Way Manufacturing, Inc. First Quarter Fiscal 2018 Financial Results.

When: Friday, March 30, 2018 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, 2018 February 28, 2017
Sales $ 5,366,000 $ 4,421,000
Operating (Loss) $ (309,000) $ (352,000)
Net (Loss) $ (527,000) $ (254,000)
EPS (Basic) $ (0.13) $ (0.06)
EPS (Diluted) $ (0.13) $ (0.06)
Weighted Average Shares Outstanding:
Basic 4,170,818 4,126,012
Diluted 4,170,818 4,126,012

 

 

Sales:  Our consolidated corporate sales for continuing operations for the three-month period ended February 28, 2018 were $5,366,000 compared to $4,421,000 during the same period in fiscal 2017, an increase of $945,000, or 21.4%. The increase in consolidated revenue is primarily due to increased demand for our agricultural products and increased revenues in our modular buildings segment. Consolidated gross margin for the three-month period ended February 28, 2018 was 20.9% compared to 25.2% for the same period in fiscal 2017. Our quarterly revenue increased by 16.7% for our agricultural products segment, by 4.8% for our tools segment, and by 90.5% for our modular buildings segment.

 

Income (Loss) from Continuing Operations:  Consolidated net (loss) from continuing operations was $(527,000) for the three-month period ended February 28, 2018 compared to net (loss) from continuing operations of $(254,000) for the same period in fiscal 2017.  The increased net (loss) from continuing operations was largely due to the revaluing of our deferred tax asset at the new income tax rates for the 2018 tax year.

Earnings (Loss) per Share from Continuing Operations: (Loss) per basic and diluted share from continuing operations for the first quarter of fiscal 2018 was ($0.13), compared to (loss) per basic and diluted share from continuing operations of $(0.06) for the same period in fiscal 2017.

Chairman of the Art’s Way Board of Directors, Marc H. McConnell reports, “As reported a quarter ago we are starting to see improved positioning of our company coupled with modest improvement in market conditions, as demonstrated by the significant increase in revenue for the first quarter.  Orders and backlog are strong throughout the company and we feel that momentum is building for each of our entities, largely as a result of new products, an improved sales network, and creative methods of going to market such as leases.  Our customers are taking notice and are responding quite positively to the actions we’ve undertaken.

 

“Affecting profitability for the quarter were numerous expenses related to balance sheet improvement, lower margins due to aggressive pricing used to dispose of non-strategic inventory, and a significant change in the value of our deferred tax asset. While these negatively affected our earnings, we made strides to increase cash flow and reduce debt by successfully exiting the snow blower business, signing a contract to sell the former Vessels building, and continuing to reduce inventory.

 

“As we look ahead, we are poised to keep pace on simplifying the business and improving our balance sheet while putting resources toward quality, customer service, product development, and continuous improvement.  We still have a lot of work to do on these fronts but are confident that we are doing the right things to position the business for long-term, sustainable profitability.  When the commodity markets rebound, we plan to be ready to react with a fresh offering of innovative quality products, industry-leading customer support, a clean and liquid balance sheet, and a very capable and energetic team poised for growth.”

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 development and launch of new products; (iii) future results; (iv) future operational changes; (v) the timing of increased performance; and (vi) 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. We caution 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 FISCAL 2017 FINANCIAL RESULTS

FOR IMMEDIATE RELEASE

February 1, 2018

                                               

ART’S WAY MANUFACTURING ANNOUNCES FISCAL 2017 FINANCIAL RESULTS

Conference Call Scheduled for February 2, 2018

ARMSTRONG, IOWA, February 1, 2018 – 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 fiscal 2017.

In conjunction with the release, the Company has scheduled a conference call for Friday, February 2, 2018 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 fiscal 2017 financial results.

What: Art’s Way Manufacturing, Inc. Fiscal 2017 Financial Results.

When: Friday, February 2, 2018 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 Twelve Months Ended
(Continuing Operations, Consolidated)
November 30, 2017 November 30, 2016
Sales $ 20,715,080 $ 21,557,649
Operating (Loss) $  (1,722,042) $ (431,447)
Net (Loss) $  (1,369,359) $ (426,182)
EPS (Basic) $  (0.33) $ (0.10)
EPS (Diluted) $  (0.33) $ (0.10)
Weighted Average Shares Outstanding:
Basic 4,151,406 4,097,748
Diluted 4,151,406 4,097,748

 

Sales:  Our consolidated net sales for continuing operations totaled $20,715,000 for the 2017 fiscal year, which represents a 3.9% decrease from our consolidated net sales of $21,558,000 for the 2016 fiscal year. The decrease in revenue is due to decreased sales in our Modular Buildings and Agricultural Products segments.  We are experiencing decreased demand of nearly all our agricultural products, including modular buildings geared towards agricultural production. Our consolidated gross profit decreased as a percentage of net sales to 19.7% in 2017 from 24.7% of net sales in 2016.  Measures taken during the year to control our costs did not completely offset the impact of declining revenues as compared to relatively stable fixed costs.  We also experienced decreased efficiencies in our production process due to the introduction of several new products.  Our consolidated operating expenses increased by 0.9%, from $5,751,000 in 2016 to $5,804,000 in 2017. Because the majority of our corporate general and administrative expenses are borne by our Agricultural Products segment, that segment represented $4,173,000 of our total consolidated operating expenses, while our Modular Buildings segment represented $806,000 and our Tools segment represented $825,000.

 

Income (Loss) from Continuing Operations:  Consolidated net loss for the 2017 fiscal year was $(1,369,000) for continuing operations compared to net loss of $(426,000) in the 2016 fiscal year for continuing operations, an increase in loss of $943,000. This increased loss is primarily a result of inefficiencies in the production of new products in our Agricultural Products segment, coupled with soft demand that resulted in lower net sales in our Agricultural Products and Modular Buildings segments.

Earnings (Loss) per Share from Continuing Operations: Loss per basic and diluted share from continuing operations for fiscal 2017 was ($0.33), compared to loss per share from continuing operations of $(0.10) for the same period in fiscal 2016.

Chairman of the Art’s Way Board of Directors, Marc H. McConnell reports “This past year proved to be very challenging for Art’s Way and the agricultural sector in general with low commodity prices driving weak demand for farm equipment and other related products.  We continued to battle through that circumstance as well as all of the difficulties that come with it and, despite losses, managed to end the year a healthier company than we were a year ago.

 

During 2017 we maintained focus on building the foundation of what will be a sustainably successful company in the years ahead.  We continued building a culture that emphasizes quality, customer service, and continuous improvement.  We maintained an accelerated pace of product development with the launch of a new commercial forage box, a new skidsteer-mounted bale processor, a new sugar beet harvester, among others.  We continued building the team and made decisions at every opportunity with an eye toward building the brand and our position in the industries we serve.  Consequently, we added more new dealers than in any year in recent memory while strengthening our relationship with existing dealers.

 

During the year we also successfully refinanced our debt, reduced borrowings to the lowest level in many years, and reduced inventory by over $1.5 million.  We are pleased to report that since the fiscal year end we have made progress toward further simplifying the business and reducing debt. In December we successfully closed on the sale of our snow blower business in Canada, allowing us to focus resources and funds on other key parts of our business.  Additionally, we are pleased to have recently entered a contract to sell the former Art’s Way Vessels facility in Dubuque, IA, scheduled to close in the second fiscal quarter.

 

While the new year will still require a lot of work to further reduce debt, sell unneeded assets, reduce inventory, improve operations, and address other legacy challenges, we enter 2018 with confidence that we have put ourselves on firm footing for an improved year. We have a higher backlog for manufactured products than a year ago, new products yet to be introduced, a broader dealer network, and a focus on the customer that we believe will pay dividends going forward.  Our company and management team alike have weathered quite a storm, but we feel that we are gaining momentum and are poised to start to feel the impact of the strategic decisions we’ve made to keep building the foundation during the downturn to position ourselves for the future.”

 

 

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 increased performance; 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 THIRD QUARTER AND YEAR TO DATE FISCAL 2017 FINANCIAL RESULTS

FOR IMMEDIATE RELEASE

October 4, 2017

                                               

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

Conference Call Scheduled for October 6, 2017

ARMSTRONG, IOWA, October 4, 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 third quarter and year to date of fiscal 2017.

In conjunction with the release, the Company has scheduled a conference call for Friday, October 6, 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 third quarter and year to date fiscal 2017 financial results.

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

When: Friday, October 6, 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)
August 31, 2017 August 31, 2016
Sales $ 6,549,772 $  6,431,217
Operating Income (Loss) $ 109,240 $  (217,165)
Net Income (Loss) $ 41,648 $  (149,676)
EPS (Basic) $ 0.01 $  (0.04)
EPS (Diluted) $ 0.01 $  (0.04)
Weighted Average Shares Outstanding:
Basic 4,161,421 4,105,704
Diluted 4,161,421 4,105,704

 

 

For the Nine Months Ended
(Continuing Operations, Consolidated)
August 31, 2017 August 31, 2016
Sales $  15,660,294 $  17,441,869
Operating Income (Loss) $  (964,576) $  67,372
Net Income (Loss) $  (720,900) $  807
EPS (Basic) $  (0.17) $ 0.00
EPS (Diluted) $  (0.17) $  0.00
Weighted Average Shares Outstanding:
Basic 4,148,966 4,093,993
Diluted 4,148,966 4,093,993

 

Sales:  Our consolidated sales for continuing operations for the three and nine-month periods ended August 31, 2017 were $6,550,000 and $15,660,000 compared to $6,431,000 and $17,442,000 during the same respective periods in 2016, a $119,000 or 1.8%, increase for the third fiscal quarter and a $1,782,000 or 10.2% decrease for the nine months. The increases in revenue are primarily due to a slight uptick in the agriculture economy and increased sales in our tools segment. Consolidated gross margin for the three-month period ended August 31, 2017 was 22.1% compared to 19.3% in the same period in fiscal 2016.  Consolidated gross margin for the nine-month period ended August 31, 2017 was 21.5% compared to 25.0% for the same period in fiscal 2016. The decreased gross margin for the year is largely attributable to new products in the agriculture segment.

Income (Loss) from Continuing Operations:  Consolidated net income from continuing operations was $42,000 for the three months and $(721,000) of net loss for the nine months ended August 31, 2017 compared to net loss of $(150,000) and net income of $1,000 for the same respective periods in 2016.  The increased income from continuing operations for the third quarter was largely due to the increased gross margins and administrative cost cutting measures.  The decreased revenues and depressed gross margins were the major factors in the decreased income for the nine months ended August 31, 2017 compared to the same period in fiscal 2016.

Earnings (Loss) per Share from Continuing Operations: Earnings per basic and diluted share from continuing operations for the third quarter of fiscal 2017 was $0.01, compared to loss per share from continuing operations of $(0.04) for the same period in fiscal 2016. Loss per basic and diluted share from continuing operations for the nine-month period ended August 31, 2017 was ($0.17), compared to earnings per share from continuing operations of $0.00 for the same period in fiscal 2016.

Chairman of the Art’s Way Board of Directors, Marc H. McConnell reports “We are pleased to report meaningful improvement in our operational performance and profitability for the third quarter. Coming off a very challenging first half of the year, we benefited in the third quarter from many of the strategic investments made in recent quarters.  While the agricultural market at large remains depressed we were able to make more of an impact in the markets we serve while maintaining tight cost control and continuing pursuit of our strategic initiatives.

 

We remain very focused on simplifying the business, strengthening the balance sheet, and putting resources toward customer service, product quality, and product development.  Along these lines we have reduced inventory by $1 million since the end of Q2, announced the closure of our Canadian production facility, reduced overhead expense, and maintained progress on new products under development.

 

Quite significantly, we also recently refinanced our debt with Bank Midwest, a lender who understands our business and we are confident will prove to be the right partner for the Company going forward. In doing so we were able to greatly improve our liquidity position, reduce our annual debt service by over 60%, and establish more favorable covenants.

 

These measures and others driven by the same priorities are key to improving our business through this down cycle and providing for strong positioning in preparation for improving conditions in the future.

 

Market conditions will continue to remain challenging until circumstances improve for our dealers and end-users whose incomes are largely driven by commodities.  That said, our business is stronger than it was at this time last year and we have reason to expect better performance in the fourth quarter than we experienced a year ago.  Our backlog is higher, our incoming order activity is up, and the feedback from our sales force is increasingly positive.  We will remain both cautious and optimistic as we go forward.”

 

 

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 increased performance; 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 THIRD QUARTER AND YEAR TO DATE FISCAL 2016 FINANCIAL RESULTS

FOR IMMEDIATE RELEASE

October 5, 2016

Conference Call Scheduled For October 6, 2016

ARMSTRONG, IOWA, October 5, 2016 – 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 third quarter and year to date of fiscal 2016.

In conjunction with the release, the Company has scheduled a conference call for Thursday, October 6, 2016 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 third quarter and year to date fiscal 2016 financial results.

What: Art’s Way Manufacturing, Inc. Third Quarter and Year to Date Fiscal 2016 Financial Results.

When: Thursday, October 6th, 2016 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)
August 31, 2016 August 31, 2015
Sales $ 6,431,000 $ 6,514,000
Operating Income (Loss) $ (224,000) $ (1,072,000)
Net Income (Loss) $ (150,000) $ (716,000)
EPS (Basic) $ (0.04) $ (0.18)
EPS (Diluted) $ (0.04) $ (0.18)
Weighted Average Shares Outstanding:
Basic 4,105,704 4,061,052
Diluted 4,105,704 4,061,052

 

For the Nine Months Ended
(Continuing Operations, Consolidated)
August 31, 2016 August 31, 2015
Sales $ 17,442,000 $ 20,605,000
Operating Income $ 1,000 $ (395,000)
Net Income (Loss) $ 1,000 $ (262,000)
EPS (Basic) $ 0.00 $ (0.06)
EPS (Diluted) $ 0.00 $ (0.06)
Weighted Average Shares Outstanding:
Basic 4,093,993 4,057,496
Diluted 4,093,993 4,057,496

 

Sales:  Our consolidated corporate sales of continuing operations for the three and nine-month period ended August 31, 2016 were $6,431,000 and $17,442,000 compared to $6,514,000 and $20,605,000 during the same respective periods in 2015, a $83,000 or 1.3% decrease for the third fiscal quarter, and a $3,163,000 or 15.4% decrease year-to-date. The year-to-date decrease in revenue was primarily due to the decreased demand for agricultural products that we have been experiencing for the last year, but was offset by a 43.5% increase in revenue in our modular buildings segment. Quarterly revenue increased modestly at Manufacturing and Metals and was down by approximately 17.5% at Scientific. Consolidated gross margin for the three and nine-month periods ended August 31, 2016 was 19.3% and 25.0% compared to 19.4% and 26.3% for the same respective period in fiscal 2015.  We recognize the market conditions that negatively impact both our year-to-date results for Manufacturing and Metals, and as a result are focusing on gaining market share and improving our cash flow in the near term by reducing costs, inventories, and debt. In addition, we are actively repositioning our product suite to prepare us for future demand, as well as pursuing initiatives to position Art’s Way as an industry leader in customer responsiveness. We believe that the measures we are taking will lead to improved performance even at lower than normal market conditions.

Income from Continuing Operations:  Consolidated net (loss) was $(150,000) for the three-month period ended August 31, 2016, compared to $(716,000) for the same period in 2015.  Consolidated net income (loss) for the nine-month period ended August 31, 2016 was $1,000 compared to $(262,000) for the same period in 2015. The decreased loss in the three- and nine-month periods was largely due to the impairment of goodwill of $618,000 in the third quarter of fiscal 2015, offset by the reduction in revenues for the nine-month period.

Earnings per Share from Continuing Operations: Loss per basic and diluted share for the third quarter of fiscal 2016 was ($0.04), compared to loss per share of ($0.18) for the same period in fiscal 2015.  Loss per basic and diluted share for the first nine-months of fiscal 2016 were ($0.00) compared to ($0.06) for the same period in fiscal 2015.

Chairman of the Art’s Way Board of Directors, Marc H. McConnell reports, “While the headwinds we face in the agricultural equipment industry clearly persist we are seeing signs that the market is stabilizing, as demonstrated by our Manufacturing results for the third quarter.  Achieving profitability remains challenging under these circumstances but, while we remain very cost-focused, we maintain our long-term positive view and make decisions accordingly.

During the quarter, we announced our intention to discontinue the operations of our Vessels business, a necessary step in positioning our business for the long-term stability and profitability we are pursuing.  We see positive opportunities at both Art’s Way Scientific and Ohio Metal that we anticipate will be fruitful in future quarters and we believe that exiting the Vessels business helps us put further resources into growth opportunities in those businesses as well as the agricultural equipment business.

Going forward, we acknowledge that a rebound in the agricultural equipment business will take some time but are doing everything we can to position ourselves for future success by focusing on improving our balance sheet while making quality, customer service, and new product development top priorities for the company.”

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 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 CONFERENCE CALL TO REVIEW SECOND QUARTER AND YEAR TO DATE FISCAL 2016 FINANCIAL RESULTS

Conference Call Scheduled For Monday, July 18, 2016 at 10:00 AM CT

 

ARMSTRONG, IOWA, July 12, 2016 – Art’s Way Manufacturing Co., Inc. (NASDAQ: ARTW), announces a conference call for Monday, July 18, 2016 at 10:00 AM CT.  Marc H. McConnell, 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 second quarter and year to date fiscal 2016 financial results.

 

What: Art’s Way Manufacturing Second Quarter and Year to Date Fiscal 2016 Financial Results

 

When: Monday, July 18, 2016 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/

 

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 CONTACT:

Carrie Majeski

President and Chief Executive Officer

Art’s Way Manufacturing Co., Inc.

investorrelations@artsway-mfg.com

Phone:  712-864-3131

 

 

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

-END-

ART’S WAY MANUFACTURING ANNOUNCES SECOND QUARTER AND YEAR TO DATE FISCAL 2016 FINANCIAL RESULTS

Conference Call Scheduled For Monday, July 18th, 2016 at 10:00 AM CT

ARMSTRONG, IOWA, July 15, 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 its financial results for the second quarter and year to date of fiscal 2016.

In conjunction with the release, the Company has scheduled a conference call for Monday, July 18th, 2016 at 10:00 AM CT.  Marc H. McConnell, Chairman of the Board of Directors of Art’s Way Manufacturing, and Carrie Majeski, President and Chief Executive Officer will be leading the call to discuss the second quarter and year to date fiscal 2016 financial results.

What: Art’s Way Manufacturing, Inc. Second Quarter and Year to Date Fiscal 2016 Financial Results.

When: Monday, July 18th, 2016 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)
May 31, 2016 May 31, 2015 Change
Sales $ 5,741,000 $ 7,804,000 -26.4%
Operating Income (Loss) $ (33,000) $ 414,000 -108.0%
Net Income (Loss) $ (57,000) $ 232,000 -124.6%
EPS (Basic) $ (0.01) $ 0.06 -116.7%
EPS (Diluted) $ (0.01) $ 0.06 -116.7%
Weighted Average Shares Outstanding:
Basic 4,101,810 4,067,775
Diluted 4,101,810 4,062,294

 

For the Six Months Ended
(Consolidated)
May 31, 2016 May 31, 2015 Change
Sales $ 12,133,000 $ 15,093,000 -19.6%
Operating Income $ 116,000 $ 743,000 -84.4%
Net Income $ 24,000 $ 400,000 -94.0%
EPS (Basic) $ 0.01 $ 0.10 -90.0%
EPS (Diluted) $ 0.01 $ 0.10 -90.0%
Weighted Average Shares Outstanding:
Basic 4,088,073 4,055,698
Diluted 4,088,073 4,057,073

 

Sales:  Our consolidated corporate sales for the three and six-month period ended May 31, 2016 were $5,741,000 and $12,133,000 compared to $7,804,000 and $15,093,000 during the same respective periods in 2015, a $2,063,000 or 26.4% decrease for the second fiscal quarter, and a $2,960,000 or 19.6% decrease year-to-date. The decreases in revenue are primarily due to the decreased demand for our agricultural products that we have been experiencing for the last year, but is somewhat offset by increases in revenues in our modular buildings segment. Consolidated gross margin for the three and six-month periods ended May 31, 2016 was 26.1% and 26.4% compared to 28.3% and 28.2% for the same respective period in fiscal 2015.  Our efforts to decrease fixed costs and more closely match our expense load with our current demand have helped to minimize the negative pressures on our gross margins with the decreased revenue levels in 2016 compared to the same periods in 2015.

Income:  Consolidated net income (loss) was $(57,000) for the three-month period ended May 31, 2016, compared to $232,000 for the same period in 2015.  Consolidated net income for the six-month period ended May 31, 2016 was $24,000 compared to $400,000 for the same period in 2015.  The decreases are primarily due to the decreases in revenue described above.

Earnings per Share: Loss per basic and diluted share for the second quarter of fiscal 2016 was ($0.01), compared to earnings per share of $0.06 for the same period in fiscal 2015.  Earnings per basic and diluted share for the first six-months of fiscal 2016 were $0.01 compared to $0.10 for the same period in fiscal 2015.

Chairman of the Art’s Way Board of Directors, Marc H. McConnell reports, “The continued weakness in the agricultural economy has resulted in decreased demand for products manufactured by us and our peers over the last several quarters.  While we have made very significant adjustments to our cost structure and business overall this year, generating adequate revenue to produce profitability has proven to be quite difficult.  We have, however, continued to improve our balance sheet, reduce borrowings, and ultimately further prepare our business for both a longer period of weakness in the agricultural sector and to better position us for opportunity we see ahead of us thereafter.  We continue to focus every day on the initiatives that will improve both our company and its enduring profitability going forward.”

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, 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: (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-

 

 

Corporate - Art's Way Mfg