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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.

 

ART’S WAY MANUFACTURING ANNOUNCES ITS FISCAL YEAR 2010 ANNUAL SHAREHOLDER MEETING

PRESS RELEASE April 21, 2011
FOR IMMEDIATE RELEASE

 

ARMSTRONG, IOWA, April 21, 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 will hold its fiscal year 2010 Annual Shareholder Meeting on Thursday, April 28, 2011. Registration starts are 9:45AM and the meeting begins at 10:00 AM Central Time. The meeting will be held at Art’s Way Manufacturing headquarters located at 5556 Highway 9, Armstrong, Iowa. The Company will present its financial results and business highlights for fiscal year 2010 and will outline the Company’s outlook for 2011 and beyond.

 

J. Ward McConnell Jr., Executive Chairman of the Board of Directors said “We welcome all shareholders to attend the annual meeting to review with us our fiscal year 2010 financial results, discuss our long term growth plans and business development strategies, and tour our ever improving manufacturing facility.”

 

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 First Quarter Results


Conference Call Scheduled For April 14th, 2011 At 10:00 AM Central Time

 

ARMSTRONG, Iowa, April 12, 2011 /PRNewswire/ — Art’s Way Manufacturing Co., Inc. (NASDAQ: ARTW), a leading manufacturer and distributor of agricultural machinery, equipment and services today announced its first quarter financial results for the three months ended February 28, 2011.

 

In conjunction with the release, the Company has scheduled a conference call for April 14th, 2011 at 10:00 AM Central Time. J. Ward McConnell, Jr., Executive Chairman of the Board of Directors of Art’s Way Manufacturing will be leading the call and discussing first quarter financial results, the status of the Company and an outlook for the balance of 2011.

 

What: Art’s Way Manufacturing First Quarter Financial Results

 

When: April 14th, 2011 10:00 AM Central Time.

 

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

 

Historical selected financial data related to all operations:

 

&nbsp For the Three Months Ended
&nbsp February 28, 2011 February 28, 2010
Revenue $ 4,664,000 $ 5,580,000
Operating Income $ (659,000) $ 123,000
Net Income (Loss) $ (485,000) $ 34,000
EPS (Basic) $ (0.12) $ 0.01
EPS (Diluted) $ (0.12) $ 0.01
Weighted avg. shares outstanding: &nbsp &nbsp &nbsp &nbsp
Basic &nbsp 4,010,068 &nbsp 3,990,352
Diluted &nbsp 4,010,068 &nbsp 3,991,900

 

Revenue: Total revenue decreased 16% from $5.58 million for the first fiscal quarter of 2010 to $4.66 million for the three months ended February 28, 2011. Art’s Way Manufacturing Co., Inc. and Art’s Way Vessels, Inc. increased their three-month revenue by 2% and 114% respectively. These increases were offset by a 74% decrease in revenue for Art’s Way Scientific Co., Inc. during this same time period.

 

Income: We incurred an operating loss of $659,000 for the first fiscal quarter of 2011, compared to operating income of $123,000 for the same period in 2010. Net loss for the first fiscal quarter of 2011 was $485,000 compared to net income of $34,000 for the same period in 2010.

 

Consolidated gross profit margin for the first fiscal quarter of 2011 was 10%, compared to 24% for the same period one year ago. Each of our segments saw a decrease in gross profit margin, except Art’s Way Vessels, Inc., when compared to the same period in 2010.

 

The gross profit margin of Art’s Way Manufacturing decreased from 29% in the first fiscal quarter of 2010 to 17% in the three-month period ending February 28, 2011. This decrease in gross margin for the quarter was primarily due to the expenses associated with preparing our West Union, Iowa facility for production and the carrying cost of the facility. We currently have two production lines established and are working to increase the efficiency of those lines and train the new employees at this facility. We are also in the planning stages of transferring two additional lines.

 

The gross profit margin of Art’s Way Vessels increased from -35% in the first fiscal quarter of 2010 to -19% in the three-month period ending February 28, 2011. We hired a Production Manager on February 17, 2011. We expect this hire to result in more efficient production and improved cost control, which we believe will lead to higher gross margins at Art’s Way Vessels. In addition, we believe it will allow our General Manager to focus on sales opportunities.

 

The gross profit margin of Art’s Way Scientific decreased from 24% in the first fiscal quarter of 2010 to -3% in the three-month period ending February 28, 2011. This decrease in gross profit margin, resulted from sluggish and erratic sales, which we believe was due to general economic conditions.

 

Earnings per Share: We incurred a loss per basic share of $-0.12 for the three months ended February 28, 2011 as compared to earnings per basic share of $0.01 for the three months ended February 28, 2010.

 

J. Ward McConnell Jr., Executive Chairman of the Board of Directors said, “It is important to note that both Art’s Way Manufacturing and Art’s Way Vessels had increases to sales in the first quarter. Art’s Way Scientific – Buildings for Science – had a decrease of $1,276,000. Scientific has been experiencing longer than expected approval processes as a result of the economic downturn and the lack of government stimulus funding. Many of Scientific’s customers are government entities and universities. These organizations are struggling not only with funding, but many are facing budget cuts. On the positive side, we continue to have exceptional interest in our 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. Scientific’s lease and contract manufacturing backlog is climbing slowly and we are confident we are the ‘supplier of choice’ and can grow this segment by both leasing and sole-source manufacturing.

 

“As for Art’s Way Vessels, I am pleased to report we have hired Mr. Larry Cornell as Production Manager in charge of production and plant efficiency. Pat O’Neill, General Manager, will lead our sales team. Mr. Cornell, a 30-year manufacturing veteran, brings an extensive background in welding shops, project and manufacturing management. He has a track record of success and is a proven leader who is committed to the company’s mission of providing customers with pressure vessels that are built with consistent quality, delivered in a timely manner and priced competitively. He will be a great asset as we move forward with building a stronger Vessels division.”

 

“The biggest setback this quarter was our gross margins at Art’s Way Manufacturing, but this was expected and hopefully is a temporary occurrence. The decrease in gross margin for the quarter is primarily due to increased start up costs in West Union. In 2010, we purchased 29 acres, 190,000 square foot manufacturing/office facility in West Union, Iowa. We have moved a significant amount of inventory to this location and are in the process of preparing the building for additional production. Many of our costs have gone up for this new facility while we have not yet realized the increase in production for the facility. We currently have two production lines set up and are working to increase the efficiency of those lines and train new employees. This is an outstanding facility. We expect to realize its benefits in the future and long term, as we believe it will allow us to gain valuable production space, increase production and will allow us to accommodate future acquisitions.”

 

We believe the long-term market opportunity is exceptional for our Company and we are optimistic about the remainder of the year.

 

About Art’s Way Manufacturing Co., Inc.

 

Art’s Way manufactures and distributes farm machinery niche products including animal feed processing equipment, sugar beet defoliators and harvesters, land maintenance equipment, crop shredding equipment, plows, hay and forage equipment, manure spreaders and top and bottom drive augers. After-market service parts are also an important part of the Company’s business.

 

We have two wholly-owned subsidiaries. Art’s Way Vessels, Inc. manufactures pressurized tanks and vessels; Art’s Way Scientific, Inc. manufactures modular animal confinement buildings and modular laboratories.

 

For More Information, Contact: Jim Drewitz, Investor Relations

 

830-669-2466 jim@jdcreativeoptions.com

 

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

 

This news release includes “forward-looking statements” within the meaning of the federal securities laws. Statements made in this release that are not strictly statements of historical facts, including: (i) our goal to increase production at our West Union, Iowa facility and transfer two additional lines to that facility, and the expected short and long term benefits of the West Union, Iowa Facility; (ii) the anticipated increase in demand for modular science laboratories; (iii) the anticipated benefits from hiring a Production Manager at Art’s Way Vessels; and (iv) our belief regarding the Company’s long-term market opportunity and performance during the remainder of the year, 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 CO., INC. FIRST QUARTER EARNINGS CALL SCHEDULED FOR APRIL 14, 2011

 

FOR IMMEDIATE RELEASE NEWS
April 7,2011 NASDAQ: ARTW

 

Armstrong, Iowa – April 7, 2011 – Art’s Way Manufacturing Co., Inc. (NASDAQ: ARTW), a leading manufacturer and distributor of agricultural machinery, equipment and services, today announced that it will host a live conference call to review the financial results for its first fiscal quarter of 2011 at 10:00 a.m. Central Time on April 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.

 

Art’s Way expects to issue a press release containing summary financial information for the first quarter on April 12, 2011.

 

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

 

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 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

 

ART’S WAY MANUFACTURING ANNOUNCES STRONG FINANCIAL RESULTS FOR THE FISCAL YEAR 2010

FOR IMMEDIATE RELEASE

Net Income For Fiscal Year 2010 Increases 38%

 

Conference Call Scheduled For Thursday, February 24, 2011
At 10:00 AM Eastern

 

ARMSTRONG, IOWA, February 22, 2011 – Art’s Way Manufacturing Co., Inc., (NASDAQ:ARTW) a leading manufacturer and distributor of farm machinery in the United States and internationally, announced its financial results for the fiscal year ended November 30, 2010. Additionally, the Company has scheduled a conference call Thursday, February 24, 2011 at 10:00 AM Eastern Time to discuss the results and other information material to the Company’s business.

 

What: Art’s Way Manufacturing Fiscal Year 2010 Financial Results Conference Call

 

When: Thursday, February 24, 2011 – 10:00 AM Eastern Time

 

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

 

J. Ward McConnell, Jr., Chairman of the Board of Art’s Way Manufacturing, will be leading the call and discussing fiscal year 2010 financial results, the current state of the Company’s operations and the long-term outlook for the balance of 2011.

 

Highlights:

 

    • Net income for fiscal year 2010 increases 38%

 

    • Revenue increased 10.1%, from $26.3 million in fiscal 2009 to $28.9 million fiscal year 2010

 

    • Earnings per diluted and basic share ended for fiscal 2010 were $0.26, an increase of $0.07 from 2009

 

    • As of February 10, 2011, consolidated order back log was approximately $14,845

 

&nbsp For the Fiscal Year Ended
November 30
&nbsp 2010 2009 Change
Revenue $ 28,951,378 $ 26,296,133 10.1%
Operating Income $ 1,895,028 $ 708,389 167.5%
Net Income $ 1,053,497 $ 762,250 38.2%
EPS (Basic) $ 0.26 $ 0.19 36.8%
EPS (Diluted) $ 0.26 $ 0.19 36.8%
Weighted avg. shares outstanding: &nbsp &nbsp &nbsp &nbsp
Basic &nbsp 3,993,337 &nbsp 3,988,478 &nbsp
Diluted &nbsp 4,011,754 &nbsp 3,990,357 &nbsp

Revenue: Total revenue increased 10.1%, from $26.3 million in fiscal 2009 to $29.0 million for the fiscal year ended November 30, 2010. The increase was mainly due to increased revenues from Art’s Way Scientific, which was heavily impacted by the economic conditions during fiscal year 2009.

 

Income: Operating income increased from $708,000 in fiscal 2009 to $1,895,000 for the fiscal year ended November 30, 2010, while net income for the fiscal year ended November 30, 2010 increased from $762,000 to $1,054,000. The increase was primarily attributable to the strong operating income in the Company’s agriculture segment.

 

Earnings per Share: Earnings per diluted and basic share ended November 30, 2010 were $0.26, an increase of $0.07 from 2009 earnings per diluted and basic share.

 

J. Ward McConnell Jr., Executive Chairman of the Board of Directors said “Art’s Way Manufacturing outstanding results in 2010 reflect strong execution of our strategy as we achieved annual revenue growth of 10% and income growth of 38%. Operationally, we successfully integrated our acquisitions, which contributed to recognizing revenue. Art’s Way Scientific – Buildings For Science – saw significant growth as companies and universities found alternative funding for their laboratories and scientific buildings when the government stimulus funds were not distributed or not distributed in an expeditious manner.

 

“Looking forward, the global agricultural sector is in turmoil which provide an outstanding opportunity for North American farmers. As the economy continues to shows signs of recovery, the North American agricultural sector is robust, our business fundamentals remain exceptionally strong and we believe the Company is well positioned to aggressively move forward into 2011 and beyond.

 

“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. 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 Drewitz

 

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

 

This news release includes “forward-looking statements” within the meaning of the federal securities laws. Statements made in this release that are not strictly statements of historical facts, including: (i) our expectation that long-term demand for farming equipment will increase; (ii) our goal to improve leverage and profitability; (iii) our expectations relating to projects for Art’s Way Scientific; and (iv) our belief that we are well-positioned for market opportunities, are forward-looking statements. Statements of anticipated future results are based on current expectations and are subject to a number of risks and uncertainties, including, but not limited to, quarterly fluctuations in results, customer demand for the Company’s products, domestic and international economic conditions, the cost of raw materials, the management of growth, the availability of investment opportunities, and other factors detailed from time to time in the Company’s Securities and Exchange Commission filings. Actual results may differ markedly from management’s expectations. The Company cautions readers not to place undue reliance upon any such forward-looking statements.

 

-END-

 

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

FOR IMMEDIATE RELEASE

November 9, 2010

 

ARMSTRONG, IOWA, November 9, 2010 – 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, 2010, to shareholders of record on November 12, 2010. 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 2011. 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 Drewitz

 

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

 

This news release includes “forward-looking statements” within the meaning of the federal securities laws. Statements made in this release that are not strictly statements of historical facts, including: (i) our expectation that long-term demand for farming equipment will increase; (ii) our goal to improve leverage and profitability; (iii) our expectations relating to projects for Art’s Way Scientific; and (iv) our belief that we are well-positioned for market opportunities, are forward-looking statements. Statements of anticipated future results are based on current expectations and are subject to a number of risks and uncertainties, including, but not limited to, quarterly fluctuations in results, customer demand for the Company’s products, domestic and international economic conditions, the cost of raw materials, the management of growth, the availability of investment opportunities, and other factors detailed from time to time in the Company’s Securities and Exchange Commission filings. Actual results may differ markedly from management’s expectations. The Company cautions readers not to place undue reliance upon any such forward-looking statements.

 

-END-

 

Corporate - Art's Way Mfg