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ART’S WAY MANUFACTURING ANNOUNCES $7 MILLION CONTRACT FOR A MODULAR BUILDING COMPLEX.

FOR IMMEDIATE RELEASE For More Information, Contact:
January 4, 2012 Jim Drewitz, Investor Relations
830-669-2466


Art’s Way Scientific, Inc., Has Designed and Will Manufacture 24 Modular Units.

 

ARMSTRONG, Iowa, January 4, 2012 – Art’s Way Manufacturing Co., Inc. (NASDAQ: ARTW), announces its wholly owned subsidiary, Art’s Way Scientific, Inc., www.buildingsforscience.com has designed, and is under contract to manufacture 24 modular units. The modular units are expected to be constructed and installed over the course of approximately one year and will make one 21,350 square foot research facility. The research facility is being built for one of the world’s leading research and teaching institutions. Art’s Way also expects to procure an installation contract, which could yield additional revenue of approximately $2 million. The anticipated value of the combined contracts would be approximately $9 million over the term of the contracts.

 

Dan Palmer, President of Art’s Way Scientific said, “We are very pleased…to have the opportunity to produce and complete this critical project”.

 

Mr. Palmer continued, “Over the last year we have, along with a team of design professionals developed various ideas and concepts for this facility. We signed a design agreement several months ago and the design is complete. This allowed us to prepare for a quick start on fabrication and site work upon approvals. Fabrication on the first of the 24 modular sections started recently. Fabrication and delivery is being coordinated to coincide with completion of the foundation work during the spring and summer months. The team is targeting occupancy of the building by the end of 2012.”

 

J. Ward McConnell, Jr., Executive Chairman of the Board, said, “We are excited to be working on this significant project. I want to thank our hardworking, dedicated employees who have worked tirelessly to bring this contract to fruition. Art’s Way Scientific’s modular laboratories will allow faculty, students and staff to carry out critical research procedures in the buildings. Our labs will help train students with diverse backgrounds for careers in the biological and biomedical sciences.”

 

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 husbandry 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 and top and bottom drive augers. After market service parts are also an important part of the Company’s business. We have two wholly owned subsidiaries. Art’s Way Vessels, Inc. manufactures pressurized tanks and vessels and Art’s Way Scientific, Inc. manufactures modular animal housing buildings and modular laboratories.

 

For More Information, Contact: Jim Drewitz, Investor Relations
830-669-2466
jim@jdcreativeoptions.com
www.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, including but not limited to anticipated revenues and timeframes discussed in this release, are based on current expectations and are subject to a number of risks and uncertainties, including but not limited to, unforeseen delays in production unforeseen contract disputes, our ability to procures the installment contract discussed in this release, events affecting others that are beyond our control 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 INCREASED SALES ORDERS FOR ART’S WAY SCIENTIFIC FOR FOURTH QUARTER 2011.

FOR IMMEDIATE RELEASE For More Information, Contact:
January 3, 2012 Jim Drewitz, Investor Relations
830-669-2466

 

Interest and sales can be attributed to IRS tax incentives on agricultural buildings

 

ARMSTRONG, Iowa, January 3, 2012 – Art’s Way Manufacturing Co., Inc. (NASDAQ: ARTW), announces its wholly owned subsidiary; Art’s Way Scientific, Inc. www.buildingsforscience.com has experienced an increase in sales orders in the fourth quarter 2011. In addition, Art’s Way Scientific has also seen a meaningful spike in inquiries of modular Ag buildings as a result of Congressional enacted tax incentives on agricultural buildings. Recently the Company received orders for several Ag related buildings, totaling approximately $400,000.

 

Dan Palmer, General Manager of Art’s Way Scientific said, “Many of these new orders have come from existing customers, and repeat business is always gratifying. The tax incentives will last through 2012 and make it attractive for farmers and ranchers to expand their operations…. so we anticipate the demand to continue through 2012.“

 

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

 

Art’s Way Scientific, Inc. is a wholly owned subsidiary of Art’s Way Manufacturing Co., Inc. It is the recognized leading supplier of modular laboratories for biocontainment, animal husbandry 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 and top and bottom drive augers. After market service parts are also an important part of the Company’s business. We have two wholly owned subsidiaries. Art’s Way Vessels, Inc. manufactures pressurized tanks and vessels and Art’s Way Scientific, Inc. manufactures modular animal confinement buildings and modular laboratories.

 

For More Information, Contact: Jim Drewitz, Investor Relations

 

830-669-2466

 

jim@jdcreativeoptions.com

 

www.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.

 

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ART’S WAY MANUFACTURING ANNOUNCES CASH DIVIDEND ON THE COMPANY’S COMMON STOCK

ARMSTRONG, IOWA, November 8, 2011 – Art’s Way Manufacturing Co., Inc., (NASDAQ:ARTW) a leading manufacturer and distributor of agricultural machinery, equipment and services announces the Board of Directors of the corporation approved a cash dividend on the Company’s common stock. The dividend of $0.06 is payable on November 30, 2011, to shareholders of record on November 11, 2011. Art’s Way Manufacturing has paid a dividend each year since 2005.

 

J. Ward McConnell Jr., Executive Chairman of the Board of Directors said, “We are very pleased to be continuing our legacy of dividend payouts. We have a track record of paying dividends and delivering long-term value to our shareholders is a top priority of the Company.

 

“The agricultural sector is robust, our business fundamentals remain strong and we believe the Company is well positioned to aggressively move forward into 2012. We want to thank all of our loyal shareholders for their support.”

 

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

 

www.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 beliefs with respect to the current state of the agricultural sector of the economy and (ii) our expectations for 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.

 

ART’S WAY MANUFACTURING ANNOUNCES 13.1% INCREASE IN OPERATING INCOME OVER THE THIRD QUARTER OF 2010

Conference Call Scheduled For October 13, 2011 at 10:00 AM CDT

 

ARMSTRONG, IOWA, October 12, 2011 – Art’s Way Manufacturing Co., Inc. (NASDAQ: ARTW), a leading manufacturer and distributor of agricultural machinery, equipment and services is pleased to announce its financial results for the three and nine months ended August 31, 2011.

 

In conjunction with the release, the Company has scheduled a conference call for October 13, 2011 at 10:00 AM CDT. J. Ward McConnell, Jr., 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 2011.

 

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

 

When: October 13, 2011 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, 2011:

 

  • Operating income for the three months ended August 31, 2011 increased 13.1% over 2010.
  • Net sales for the three months ended August 31, 2011 totaled $9.25 million.
  • Earnings Per Basic and Diluted Share for the three months ended August 31, 2011 were $0.25 versus $0.19 for the same period in 2010.

 

For the Three Months Ended
(Consolidated)
 
August 31, 2011 August 31, 2010 Change
Revenue $ 9,252,063 $ 10,581,783 -12.6%
Income from Operations $ 1,437,907 $ 1,270,882 13.1%
Net Income $ 1,019,836 $ 751,802 35.7%
EPS (Basic) $ 0.25 $ 0.19
EPS (Diluted) $ 0.25 $ 0.19
Weighted avg. shares outstanding:  
Basic 4,019,874 3,992,182
Diluted 4,042,135 4,003,766
 

 

For the Nine Months Ended
(Consolidated)
 
August 31, 2011 August 31, 2010 Change
Revenue $ 21,761,551 $ 22,909,802 -5%
Income from Operations $ 1,327,126 $ 1,606,163 -17.4%
Net Income $ 826,002 $ 886707 -6.8%
EPS (Basic) $ 0.21 $ 0.22
EPS (Diluted) $ 0.20 $ 0.22
Weighted avg. shares outstanding:  
Basic 4,016,039 3,991,381
Diluted 4,049,706 4,000,863
 

 

Revenue: Our consolidated corporate sales for the three and nine month periods ending August 31, 2011 were $9,252,000 and $21,762,000 respectively, compared to $10,582,000 and $22,910,000 during the same respective periods in 2010, which is a $1,330,000 decrease for the quarter and $1,148,000 decrease year-to-date, or -12.6%, and -5.0% respectively. Our Agricultural Products segment had the largest increase in year-to-date sales, while our Modular Buildings segment experienced the greatest loss.

 

Art’s Way Manufacturing, our agricultural products segment, had sales for the third fiscal quarter of $7,771,000, compared to $7,725,000 during the same period of 2010, a 0.60% increase. Year-to-date sales were $18,091,000, which is up from $15,927,000 as of August 31, 2010, a 13.6% increase. Gross margin for the quarter ended August 31, 2011 was 30.7% compared to 27.8% for the same period in 2010. The increase in margin during Q3 2011 compared to 2010 was due to our change in product mix. The year-to-date gross margin was 26.9% compared to 27.3% as of August 31, 2010. The year-to-date margin decrease is attributable to higher steel costs that impacted the margin on sales from prior year whole goods sales orders.

 

Art’s Way Vessels, our pressurized tank segment, had sales for the third fiscal quarter of $403,000, compared to $502,000 for the same period in 2010, a 19.7% decrease. Year-to-date sales were $1,368,000 in fiscal 2011, compared to $1,245,000 for the same period in 2010, a 9.9% increase. We hired a new Production Manager on February 17, 2011 which has resulted in improvements to our overall shop flow and cleanliness, and has improved our ability to control costs and increase net revenue on a per-job basis. While we have not seen an immediate financial impact, we are pleased with both the physical and procedural changes that have been made in the factory and believe that the changes will be beneficial to this segment. Over time, we anticipate manufacturing costs will decline and that our margins will subsequently increase. Gross margin for the quarter ended August 31, 2011 was 16.7% compared to -5.0% for the same period in 2010. Year-to-date gross margin was -6.0% compared to -4.4% as of August 31, 2010

 

Art’s Way Scientific, our modular buildings segment, had third fiscal quarter sales of $1,078,000, compared to $2,355,000 for the same period in fiscal 2010, a 54.2% decrease. Year-to-date sales were $2,302,000 in fiscal 2011, compared to $5,738,000 for the same period in 2010, a 59.9% decrease. We believe generally weak economic conditions and government budget cuts have made sales in this segment sluggish thus far. A majority of our customers have applied for federal grant money, but have not received the necessary award amounts to proceed with the projects as quoted. We are now working with those customers who either are scaling their projects back or looking at leasing to meet their funding requirements. We currently have three leased facilities and are building more with the expectation of leasing. We intend to focus our sales activities on entities that do not rely on governmental funding. Our backlog in Scientific remains lower when compared to last year but continues to climb. Gross margin for the quarter ended August 31, 2011 was 23.9% compared to 19.4% for the same period in 2010. Year-to-date gross margin was 15.6% compared to 20.6% as of August 31, 2010, which was attributable to the lower sales volume.

 

Income: Consolidated operating income increased 13.1%, from $1,271,000 for the three months ended August 31, 2010 to $1,438,000, for the three months ended August 31, 2011, while net income for the three months ended August 31, 2011 increased 35.7%, from $752,000 in 2010 to $1,020,000 in 2011. Operating income for the nine months ended August 31, 2011 decreased 17.4%, to $1,327,000 from $1,606,000 for the same period in 2010. Net income for the nine months ended August 31, 2011 decreased 6.8% to $826,000 from $887,000 for the same period in 2010. The changes to net income were primarily attributable to the decrease in consolidated sales for the three and nine month periods, offset by a decrease in consolidated expenses and lower tax expense in 2011 due to recognition of a tax provision reduction during the quarter ended August 31, 2011.

 

Earnings per Share: Basic and diluted earnings per basic share increased 31.6% for the three months ended August 31, 2011 to $0.25 per share from $0.19 per share for the same period in 2010. Basic and diluted earnings per basic share decreased 4.5% and 9.0%, respectively, for the nine months ended August 31, 2011 to $0.21 and $0.20 per share from $0.22 and $0.22 per share, respectively, for the same period in 2010. The changes in earnings per share were primarily attributable to the changes to net income.

 

Income Taxes: During the quarter ended August 31, 2011 we completed our fiscal year ending November 30, 2010 tax filings for both Federal and State Taxing Authorities. We calculated a tax provision reduction for the year ending November 30, 2010. The tax provision reduction was recognized during the quarter ended August 31, 2011 and brought our effective tax rate down during the quarter and year to date ending August 31, 2011, to 25.2% and 23.7%, respectively. The tax provision effective tax rate for the comparative quarter and year to date ending August 31, 2010 was 35.6% and 35.0%, respectively. The tax provision benefit was due to taking advantage of additional tax deductions and credits for the fiscal year ended November 30, 2010.

 

J. Ward McConnell Jr., Chairman of the Board of Directors said, “While we are disappointed with our revenue growth for the three and nine months, we are pleased with our net income and earnings per share increases. Sales in the Company’s core manufacturing business continued to grow, but the Company continued to struggle with revenue shortfall at both Art’s Way Vessels and Art’s Way Scientific.

 

Domestic and global economic indicators continue to signal a fragile and slow economic recovery. Despite the difficult macro environment, we believe the Company’s core manufacturing segment remains strong. We intend to continue to execute our business plan for fiscal year 2011 which includes continued pursuit of additional acquisitions of complementary businesses or product lines, sourcing and product cost management initiatives to partially offset commodity cost increases, and implementation of numerous productivity initiatives to reduce operating expense – particularly at Art’s Way Vessels.

 

The Company’s balance sheet remains strong with working capital at a level consistent with our business activity. Moving forward for the balance of the year, we will continue to support our organic and strategic growth opportunities while closely monitoring our spending. We are mindful of the importance of continuing to invest in key growth initiatives, while still delivering returns to our shareholders.

 

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

 

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

 

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: (i) our beliefs regarding the strength of our manufacturing segment; (ii) the anticipated benefits from hiring a Production Manager for our pressurized vessels segment; (iii) our belief that demand for our modular buildings will increase if economic conditions improve ; (iv) our intent to pursue acquisitions, invest in growth opportunities, and implement cost management and production initiatives; (v) our expectations relating to projects and sales for our modular buildings segment; and (vi) our expected returns to shareholders, 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, our ability to implement cost-management and production initiatives, 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. The company does not intend to update or publicly revise any forward-looking statement.

 

-END-

 

ART’S WAY MANUFACTURING CO., INC. ANNOUNCES THIRD QUARTER EARNINGS RELEASE DATE AND CONFERENCE CALL SCHEDULE

FOR IMMEDIATE RELEASE NEWS
October 6, 2011 NASDAQ: ARTW

 

Armstrong, Iowa – October 6, 2011 – Art’s Way Manufacturing Co., Inc. (NASDAQ: ARTW), a leading manufacturer and distributor of agricultural machinery, equipment and services, announces the Company expects to issue a press release containing financial results information for the third quarter on Wednesday, October 12, 2011.

 

In conjunction with that announcement, Art’s Way will host a live conference call to review the financial results for its third fiscal quarter of 2011 at 10:00 a.m. Central Time on Thursday, October 13, 2011. J. Ward McConnell Jr., Executive Chairman of the Art’s Way Board of Directors, will be leading the call. Participants should dial 800-624-7038 and reference Conference Code Art’s Way Manufacturing. Participants should call in at least 5 minutes prior to the start time.

 

Following the conference call, a replay will be available on Friday, October 14, 2011 on the Investor Relations page of the Art’s Way website. The replay will remain available for 12 months.

 

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

 

Safe Harbor Statement

Some of the statements contained in this news release that are not purely historical statements discuss future expectations or state other forward-looking information. Those statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from those contemplated by the statements. The “forward-looking” information is based on management’s current intent, belief, expectations, estimates and projections regarding our company and our industry. You should be aware that those statements only reflect our predictions. Actual events or results may differ substantially. Important factors that could cause our actual results to be materially different from the forward-looking statements are disclosed under the heading “Forward Looking Statements” in our annual report on Form 10-K for the year ended November 30, 2010 and our quarterly reports on Form 10-Q for the quarters ended February 28, 2011 and May 31, 2011. The forward-looking statements in this release are made only as of the date hereof and we undertake no obligation to update publicly any forward-looking statement unless required by law.

 

-END-

 

ART’S WAY MANUFACTURING TERMINATES ACQUISITION OF IMPERIAL STEEL TANK COMPANY

PRESS RELEASE AUGUST 16, 2011
FOR IMMEDIATE RELEASE

 

ARMSTRONG, IOWA, August 16, 2011 – Art’s Way Manufacturing Co., Inc., (NASDAQ:ARTW) a leading manufacturer and distributor of farm machinery in the United States and internationally, has announced the termination of the proposed acquisition of Imperial Steel Tank Company, located in Frankfort IL, which was contemplated by a Letter of Intent dated June 5, 2011. The parties had not reached a definitive agreement regarding the transaction at the time that negotiations were terminated. The Letter of Intent provided that closing of the transaction would be subject to various conditions which were not met to the mutual satisfaction of the respective parties, including the successful completion of due diligence, board approval and satisfaction of customary closing conditions.

 

J. Ward McConnell Jr., Chairman of the Board of Directors said, “While we are disappointed this acquisition was not completed as expected, we are aggressively looking for other acquisition opportunities to help grow our business and increase shareholder value, as we have always been. Our management team and board remain excited about the Company’s prospects for the future and we are committed to achieving long-term success.”

 

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

 

Safe Harbor Statement

 

Some of the statements contained in this news release that are not purely historical statements. Such statements discuss future expectations or state other forward-looking information related to the Company’s intent to pursue acquisition opportunities and the impact of acquisition opportunities on the Company’s growth and financial results. Those statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from those contemplated by the statements. The “forward-looking” information is based on management’s current intent, belief, expectations, estimates and projections regarding our company and our industry. You should be aware that those statements only reflect our predictions. Actual events or results may differ substantially. Important factors that could cause our actual results to be materially different from the forward-looking statements are disclosed under the heading “Forward Looking Statements” in our annual report on Form 10-K for the year ended November 30, 2010 and our quarterly report on Form 10-Q for the quarter ended February 28, 2011 and May 31, 2011. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee the availability of viable acquisition opportunities or our future results. The forward-looking statements in this release are made only as of the date hereof and we undertake no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future.

 

-END-

 

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

Net Income increased 189.6% Over The Same Period In 2010

 

Revenue Increased 16.3% to $7.84 million For The Quarter

 

Conference Call Scheduled For July 14, 2011 At 10:00 AM CDT

 

ARMSTRONG, IOWA, July 13, 2011 – 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, 2011.

 

Additionally, the Company has scheduled a conference call for Thursday, July 14, 2011 at 10:00 AM Central to discuss the results and other information material to the Company’s business.

 

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

 

When: July 14, 2011 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.

 

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 2011.

 

Financial Highlights For the Three and Six Months Ended May 31, 2011:
Net Income for the three months ended May 31, 2011 increased 189.6% over the same period in 2010.
Net sales for the three months ended May 31, 2011 were $7.84 million.
Operating Income for the three months ended May 31, 2011 increased 158.8% over the same period in 2010.
Net sales for the six months ended May 31, 2011 increased 1.50% over the same period in 2010.

 

&nbsp For the Three Months Ended
(Consolidated)
&nbsp
&nbsp May 31, 2011 May 31, 2010 Change
Revenue $ 7,845,150 $ 6,748,178 16.3%
Operating Income $ 548,175 $ 211,854 158.8%
Net Income $ 290,749 $ 100,480 189.6%
EPS (Basic) $ 0.07 $ 0.03 &nbsp
EPS (Diluted) $ 0.07 $ 0.03 &nbsp
Weighted Avg. Shares Outstanding: &nbsp &nbsp &nbsp
Basic 4,017,852 &nbsp 3,991,586 &nbsp
Diluted 4,047,678 &nbsp 4,006,068 &nbsp

 

&nbsp For the Six Months Ended
(Consolidated)
&nbsp May 31, 2011 May 31, 2010 Change
Revenue $ 12,509,488 $ 12,328,019 1.50%
Operating Income (Loss) $ (110,781) $ 335,281 -133.0%
Net Income (Loss) $ (193,828) $ 134,905 -243.7%
EPS (Basic) $ (0.05) $ 0.03 &nbsp
EPS (Diluted) $ (0.05) $ 0.03 &nbsp
Weighted Avg. Shares Outstanding: &nbsp &nbsp &nbsp &nbsp &nbsp
Basic 4,014,102 &nbsp 3,990,975 &nbsp
Diluted 4,014,102 &nbsp 4,000,216 &nbsp

 

Revenue: Our consolidated corporate sales for the three- and six-month period ended May 31, 2011 were approximately $7,845,000 and $12,509,000, respectively, compared to $6,748,000 and $12,328,000 during the same respective periods in 2010, a $1,100,000 increase for the quarter and $181,000 increase year-to-date, or 16.3% and 1.50% increases, respectively.

 

Art’s Way Manufacturing, our agricultural products segment, had revenue for the three months ended May 31, 2011 of $6,664,000, compared to $4,606,000 during the same period of 2010, a 44.7% increase. Year-to-date sales were up to $10,321,000, from $8,202,000 as of May 31, 2010, an increase of $2,119,000, or 25.8%. The quarter ended May 31, 2011 and year-to-date beet harvester sales increased by approximately $1,500,000 and $1,800,000, respectively. This was due to a change in our production schedule which moved the beet harvesting equipment onto dealer lots earlier in the selling season. We expect total beet harvester sales for fiscal 2011 to be comparable to total beet harvester sales in fiscal 2010. Other various increases to whole goods and service part items contributed to the residual changes in sales for the quarter ended May 31, 2011 and year-to-date 2011. Gross margin for the quarter ended May 31, 2011 was 28.3% compared to 25.8% for the same period in 2010. The quarter ended May 31, 2011 gross margin increase was due to increased service parts sales which have higher margins. The year-to-date gross margin was 24.0% compared to 26.8% as May 31, 2010. The year-to-date margin decrease was attributable to higher steel costs that impacted the margin on sales from prior year whole goods sales orders.

 

Art’s Way Vessels, our pressurized vessels segment, had revenue for the three months ended May 31, 2011 of $402,000, compared to $480,000 for the same period in 2010, a 16.3% decrease. Year-to-date sales were $965,000, compared to $743,000 as of May 31, 2010, a 29.9% increase. We hired a Production Manager on February 17, 2011. He has been with us one quarter during which time he has improved our overall shop flow and cleanliness, and has improved our ability to track cost and revenue on a per-job basis. While we have not seen an immediate financial impact, we feel his addition was imperative. Over time, we anticipate manufacturing costs will decline and that margins will subsequently increase. In addition, we believe it will allow our General Manager at Vessels to focus on sales opportunities. Gross margin for the quarter ended May 31, 2011 was -10.8% compared to 12.8% for the same period in 2010. Year-to-date gross margin was -15.4% compared to -4.1% as May 31, 2010.

 

Art’s Way Scientific, our modular buildings segment, had revenue for the three months ended May 31, 2011 of $779,000, compared to $1,662,000 for the same period in fiscal 2010, a 53.1% decrease. Year-to-date sales were $1,224,000 in fiscal 2011, compared to $3,383,000 for the same period in 2010, a 63.8% decrease. We believe the modular buildings sales have been sluggish and erratic due to general economic conditions. Many of Scientific’s customers are government entities or universities that are experiencing budget cuts. A majority of these customers applied for federal grant money, but did not receive the necessary award amounts to proceed with the projects as quoted. We are now working with those customers who are scaling their projects back to meet their funding requirements. We are focusing our sales activities on entities that do not rely on governmental funding. During the second quarter we attended the World Dairy Expo and the National Jersey Convention and received a favorable response to our newly configured 50 head calf barn. Our backlog in Scientific remains lower when compared to last year but continues to climb and we continue our focus on growing this segment. Gross margin for the quarter ended May 31, 2011 was -14.7% compared to 19.2% for the same period in 2010. Year-to-date gross margin was 8.3% compared to 21.4% as May 31, 2010. These decreases can be attributed to the smaller sales volume.

 

Income: Consolidated operating income increased 158.8%, from $212,000 to $548,000, for the three months ended May 31, 2011, while net income for the three months ended May 31, 2011 increased 189.6%, from $100,000 to $291,000. Operating income for the six months ended May 31, 2011 decreased 133.0%, from $335,000 to a loss from operations of $111,000. For the six months ended May 31, 2011 we incurred a net loss of $194,000 compared to net income of $135,000 for the six months ended May 31, 2010.

 

Earnings per Share: Earnings per basic share increased from $0.03 to $0.07, for the three months ended May 31, 2011. Earnings per basic share decreased from $0.03 to $-0.05, for the six months ended May 31, 2011.

 

J. Ward McConnell Jr., Executive Chairman of the Board of Directors said, “We are very encouraged by our strong second quarter results with Art’s Way Manufacturing, but continue to be disappointed with the Vessels and Scientific subsidiaries. Both Vessels and Scientific are working very hard and diligently to improve both top and bottom lines and we believe in the next few quarters that hard work will prove fruitful. On June 22, 2011we signed a non-binding Letter of Intent to acquire the assets of Imperial Steel Tank Company and we hope to close that deal this summer. Imperial is an established vessels manufacturer with an outstanding customer service reputation who has been in business since 1952 and has built a solid revenue base of approximately $2.5 million per year. We anticipate this new business will be fully accretive and will help us grow our vessels business on a greater scale and further develop the Art’s Way brand.

 

“As previously stated, the lack of Scientific’s revenue is because many of their customers are government entities and universities struggling to find funding and facing budget cuts. On the positive side, we continue to have interest in Scientific’s modular laboratories, and, as a result of the lack of funding, customers are turning to Scientific for leasing alternatives. We currently have three laboratories leased and are building more for the express purpose of leasing. We believe this will allow us to generate revenue from the lease and sell the facility when funding becomes available or re-lease for another project.

 

“As for Art’s Way Manufacturing, its sales, net income and operating income were impressive. Our performance reflects the proficient execution of our strategic business plan plus strong demand for our unique agricultural machinery and equipment. We expect to continue to build on our momentum and will continue to manage the level and productivity of our inventory, control expenses and limit capital expenditures while focusing on providing superior customer service and maintaining strong client relationships.

 

“Looking forward, the global agricultural sector continues to remain in turmoil which will provide an outstanding opportunity for North American farmers. Even though the U.S. economy has been going through a soft patch in the first and second quarters, it continues to show signs of recovery. The North American agricultural sector is solid, our agricultural products business fundamentals remain exceptionally strong and we believe the Company is well positioned to surge forward in the coming quarters.

 

“I want to thank all of our dedicated and hard working employees and our loyal shareholders for their support.”

 

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) the expected annual revenue for beet harvesters; (ii) the anticipated benefits from hiring a Production Manager for our pressurized vessels segment; (iii) expected opportunities for our modular buildings segment with customers who do not rely on government funding and customers pursuing leasing alternatives, and our intent to continue to grow that segment; (iv) our beliefs regarding improvements in sales and operating results and our position for growth opportunities; (v) the increase in demand for farming equipment, pressurized vessels and modular science laboratories; (vi) our expectations regarding the completion, timing, and impact of our potential acquisition of Imperial Steel Tank Company; and (vii) our continued efforts to grow sales, manage inventory and 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 strength of agricultural sector; the cost of raw materials; the management of growth; the availability of investment opportunities; the risk that our acquisition of Imperial Steel Tank Company will not close or will be delayed; the risk that, if the acquisition of Imperial Steel Tank Company is completed, the revenues attributable to the acquired assets will not be consistent with that company’s historical revenues, or that the proposed acquisition will not otherwise yield the benefits that we expect; unexpected effects from changes to our production schedule; 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. We do not intend to update forward-looking statements other than as required by law.

 

-END-

 

ART’S WAY MANUFACTURING CO., INC. ANNOUNCES SECOND QUARTER EARNINGS RELEASE DATE AND CONFERENCE CALL SCHEDULE

FOR IMMEDIATE RELEASE NEWS
July 8, 2011 NASDAQ: ARTW

 

Armstrong, Iowa – July 8, 2011 – Art’s Way Manufacturing Co., Inc. (NASDAQ: ARTW), a leading manufacturer and distributor of agricultural machinery, equipment and services, announces the Company expects to issue a press release containing financial results information for the second quarter on Wednesday, July 13, 2011.

 

In conjunction with that announcement, Art’s Way will host a live conference call to review the financial results for its second fiscal quarter of 2011 at 10:00 a.m. Central Time on Thursday, July 14, 2011. J. Ward McConnell Jr., Executive Chairman of the Art’s Way Board of Directors, will be leading the call. Participants should dial 800-624-7038 and reference Conference Code Art’s Way Manufacturing. Participants should call in at least 5 minutes prior to the start time.

 

Following the conference call, a replay will be available on Friday, July 15, 2011 on the Investor Relations page of the Art’s Way website. The replay will remain available for 12 months.

 

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

 

Safe Harbor Statement

 

Some of the statements contained in this news release that are not purely historical statements discuss future expectations or state other forward-looking information related to financial results and business outlook for 2011. Those statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from those contemplated by the statements. The “forward-looking” information is based on management’s current intent, belief, expectations, estimates and projections regarding our company and our industry. You should be aware that those statements only reflect our predictions. Actual events or results may differ substantially. Important factors that could cause our actual results to be materially different from the forward-looking statements are disclosed under the heading “Forward Looking Statements” in our annual report on Form 10-K for the year ended November 30, 2010 and our quarterly report on Form 10-Q for the quarter ended February 28, 2011. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The forward-looking statements in this release are made only as of the date hereof and we undertake no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future.

 

-END-

 

ART’S WAY MANUFACTURING SIGNS LETTER OF INTENT TO PURCHASE IMPERIAL STEEL TANK COMPANY

PRESS RELEASE JUNE 22, 2011
FOR IMMEDIATE RELEASE

 

New Company Will Strengthen Art’s Way’s Growing Vessels Subsidiary

ARMSTRONG, IOWA, June 22, 2011 – Art’s Way Manufacturing Co., Inc., (NASDAQ:ARTW) a leading manufacturer and distributor of farm machinery in the United States and internationally, announces it has signed a formal Letter of Intent (LOI) to acquire Imperial Steel Tank Company. Based in Frankfort, Illinois, near Chicago, Imperial Steel Tank Company is a leader in the fabrication of American Society of Mechanical Engineers (ASME) pressure vessels. They make a variety of pressure vessels, storage tanks, heat exchangers, hazardous chemical tanks, half pipe jackets, manways including both bolted-style and quick-open, and provide custom designed vessels. Imperial’s ASME pressure vessel designs have successfully solved complex process containment problems in the chemical and petrochemical industries, the food processing industry, pharmaceutical industry, and water and waste treatment sector.

 

J. Ward McConnell Jr., Executive Chairman of the Board of Directors said, “With Art’s Way Vessels becoming more production efficient, improving cost controls, growing revenue and margins these past quarters under the co-leadership of Larry Cornell, Production Manager and Pat O’Neil, Sales Manager, we are very excited about this excellent opportunity to acquire a highly respected and successful vessels business to complement Art’s Way Vessels.

 

“Imperial Steel Tank Company is an established manufacturer with an outstanding customer service reputation who has been in business since 1952 and has built a solid revenue base of approximately $2.5 million per year. We will move all production to Art’s Way Vessels in Dubuque, Iowa, but will continue an office in Illinois for engineering, estimating and other services. We are in the process of doing final due diligence and expect to close in early July 2011. We anticipate this new business will be fully accretive and will help us grow our vessels business on a greater scale and further develop the Art’s Way brand both nationally and internationally.”

 

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

 

Safe Harbor Statement

 

Some of the statements contained in this news release that are not purely historical statements discuss future expectations or state other forward-looking information related to financial results and business outlook for 2011. Those statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from those contemplated by the statements. The “forward-looking” information is based on management’s current intent, belief, expectations, estimates and projections regarding our company and our industry. You should be aware that those statements only reflect our predictions. Actual events or results may differ substantially. Important factors that could cause our actual results to be materially different from the forward-looking statements are disclosed under the heading “Forward Looking Statements” in our annual report on Form 10-K for the year ended November 30, 2010 and our quarterly report on Form 10-Q for the quarter ended February 28, 2011. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The forward-looking statements in this release are made only as of the date hereof and we undertake no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future.

 

-END-

 

Art’s Way Manufacturing Announces Operating Efficiency by Moving Auger Production From Salem, SD. to West Union, IA.

[06-May-2011]

 

ARMSTRONG, Iowa, May 6, 2011 /PRNewswire/ — Art’s Way Manufacturing Co., Inc., (NASDAQ: ARTW) a leading manufacturer and distributor of farm machinery in the United States and internationally, announces it will be moving its top and bottom drive auger production from Salem, South Dakota to its newest facility in West Union, Iowa.

 

J. Ward McConnell Jr., Executive Chairman of the Board of Directors said, “This move is just one of the operational opportunities this facility provides us. It will allow for increased production of our auger line and better utilization of the 200,000, square foot facility we purchased in 2010. It will help us consolidate our material movement and allow us to ramp up staffing with the skilled workforce in the West Union area. While we regret leaving Salem, SD., we believe this will provide us an outstanding opportunity to better serve our customers, better control costs utilizing our more modern and updated production facilities and increase shareholder value.”

 

About Art’s Way Manufacturing, Inc.

 

Art’s Way manufactures and distributes farm machinery niche products including animal feed processing equipment, sugar beet defoliators and harvesters, land maintenance equipment, crop shredding equipment, 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/

 

Safe Harbor Statement

 

Some of the statements contained in this news release that are not purely historical statements discuss future expectations or state other forward-looking information related to financial results and business outlook for 2011. Those statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from those contemplated by the statements. The “forward-looking” information is based on management’s current intent, belief, expectations, estimates and projections regarding our company and our industry. You should be aware that those statements only reflect our predictions. Actual events or results may differ substantially. Important factors that could cause our actual results to be materially different from the forward-looking statements are disclosed under the heading “Forward Looking Statements” in our annual report on Form 10-K for the year ended November 30, 2010 and our quarterly report on Form 10-Q for the quarter ended February 28, 2011. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. The forward-looking statements in this release are made only as of the date hereof and we undertake no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future.

 

SOURCE Art’s Way Manufacturing Co., Inc.

 

Corporate - Art's Way Mfg