Attached files
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| 8-K - ARTS WAY MANUFACTURING CO INC | v181192_8k.htm |
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FOR
IMMEDIATE RELEASE
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NEWS
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April
12, 2010
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NASDAQ:ARTW
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Art’s
Way Manufacturing announces first quarter profit increase of $30,000
over
first
quarter 2009
Strong
Operating Performance Leads To Highest Earnings Since The Downturn
Began
Conference
Call Scheduled For April 16th, 2010
At 10:00 AM Central
ARMSTRONG, IOWA, April 12,
2010 – Art’s Way Manufacturing Co., Inc. (NASDAQ:ARTW), a leading
manufacturer and distributor of agricultural machinery, equipment and services
announces its first quarter financial results for the three months ended
February 28, 2010.
In
conjunction with the release, the Company has scheduled a conference call for
April 16th, 2010
at 10:00 AM Central Time. J. Ward McConnell, Jr., Executive Chairman of the
Board of Directors of Art’s Way Manufacturing, will be leading the call and
discussing first quarter financial results, the status of the Company and an
outlook for the balance of 2010.
What:
Art’s Way Manufacturing First Quarter Financial Results
When: April 16th, 2010 10:00 AM Central
Time.
How:
Live via phone by dialing (800) 624-7038. Code: Art’s Way
Manufacturing.
Participants
to the conference call should call in at least 5 minutes prior to the start
time.
Financial
Highlights For the Three Months Ended February 28, 2010:
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Net income for the quarter
increased 858% over first quarter
2009.
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Operating income for the
quarter increased 26.4% over first quarter
2009.
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Consolidated order backlog as
of February 28, 2010 was $17,450,000 compared to $13,127,000 on February
28, 2009.
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For the Three Months Ended
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February 28, 2010
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February 28, 2009
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Change
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Revenue
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$ | 5,579,841 | $ | 6,690,866 | -16.6 | % | ||||||
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Operating
Income
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$ | 123,427 | $ | 97,637 | 26.4 | % | ||||||
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Net
Income
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$ | 34,425 | $ | 3,595 | 857.6 | % | ||||||
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EPS
(Basic)
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$ | 0.01 | $ | 0.00 | ||||||||
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EPS
(Diluted)
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$ | 0.01 | $ | 0.00 | ||||||||
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Weighted
avg. shares outstanding:
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||||||||||||
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Basic
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3,990,352 | 3,986,352 | ||||||||||
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Diluted
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3,991,900 | 3,986,352 | ||||||||||
Revenue: Total
revenue decreased 16.6% from $6.69 million for the first fiscal quarter of 2009
to $5.58 million for the three months ended February 28,
2010. Art’s Way Vessels, Inc. increased its three month revenue
by 76.1%. This increase was offset by a 23.6% decrease in the revenue
for Art’s Way Manufacturing Co., Inc. and a 6.1% decrease in revenue for Art’s
Way Scientific, Inc. decreased during the first fiscal quarter of
2010.
Income: Operating
income increased 26.4% from $98,000 for the first fiscal quarter of 2009 to
$123,000 for the three months ended February 28, 2010, while net income for the
same period increased 857.6%, from $3,600 to $34,000. The most
significant reason for these increases is improvement in gross
margins.
Consolidated
gross profit margin for the first fiscal quarter of 2010 was 23.8%, compared to
19.7% for the same period one year ago. Each of our segments saw an increase in
gross profit margin when compared to the same period in 2009.
The gross
profit margin of Art’s Way Manufacturing increased from 21.5% in the first
fiscal quarter of 2009 to 28.2% in the three-month period ending February 28,
2010. After the purchase of the Miller Pro product line, we had many
orders that we were unable to produce in a timely fashion. In order
to satisfy our customers, we agreed to sell these goods at lower prices
initially quoted in 2007. As a result of our production delays caused
by the integration of this product line, we shipped goods in the first and
second quarters of 2009 that were priced at the end of 2007 and manufactured
with materials purchased at the higher costs of 2008. We have
completed our commitments on the 2007 pricing, and do not anticipate any
additional production delays. During the first quarter of 2010 our products were
more appropriately priced compared to our material costs and, as a result, we
saw an increase in our gross margins.
The gross
profit margin of Art’s Way Vessels increased from -50.2% in the first fiscal
quarter of 2009 to -34.9% in the three-month period ending February 28,
2010. This increase was due to our increased sales, which help defray
the fixed manufacturing expenses, such as depreciation and manufacturing
overhead.
The gross
profit margin of Art’s Way Scientific increased from 20.6% in the first fiscal
quarter of 2009 to 23.5% in the three-month period ending February 28, 2010. The
increase in gross profit margin at Art’s-Way Scientific was primarily due to
cost overruns in the first and second quarter of 2009.
Earnings per
Share: Earnings per basic share for the three months ended
February 28, 2010 increased to $0.01 as compared to $0.00 for the three months
ended February 28, 2009.
J. Ward
McConnell Jr., Executive Chairman of the Board of Directors said, “We are very
pleased with our strong start to the fiscal year, particularly with our net
income and gross margins. Despite coming out of an extremely challenging year
following one of the industry’s worst economic downturns, our operating results
are improving based on our ability to deliver quality products with a customer
service focus. We continue to focus on growing sales and improving our
execution, discipline and profitability by tightly managing our variable
costs. As noted in recent news releases, we also continue to fund our
investments in capital expenditures and acquisitions that are designed to fuel
future growth for years to come.
“The
environment for agricultural machinery and modular science laboratories spending
is accelerating and I am excited about the short and long term future of
Art’s Way.”
About Art’s Way
Manufacturing Co., Inc.
Art's Way
manufactures and distributes farm machinery niche products including animal feed
processing equipment, sugar beet defoliators and harvesters, land maintenance
equipment, crop shredding equipment, plows, hay and forage equipment, manure
spreaders and top and bottom drive augers. After-market service parts are also
an important part of the Company's business. We have two wholly-owned
subsidiaries. Art's Way Vessels, Inc. manufactures pressurized tanks and
vessels; Art's Way Scientific, Inc. manufactures modular animal confinement
buildings and modular laboratories.
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For
More Information, Contact:
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Jim
Drewitz, Investor Relations
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830-669-2466 jim@jdcreativeoptions.com
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Or visit
the Company's website at www.artsway-mfg.com/
This news
release includes "forward-looking statements" within the meaning of the federal
securities laws. Statements made in this release that are not strictly
statements of historical facts, including: (i) our ability to meet our
production schedule; (ii) the increase in demand for agricultural machinery and
modular science laboratories; and (iii) our continued efforts to grow sales,
improve execution and profitability, manage variable costs, and make investments
designed to fuel future growth, are forward-looking statements. Statements of
anticipated future results are based on current expectations and are subject to
a number of risks and uncertainties, including but not limited to, quarterly
fluctuations in results, customer demand for the Company's products, domestic
and international economic conditions, the cost of raw materials, the management
of growth, the availability of investment opportunities, and other factors
detailed from time to time in the Company's Securities and Exchange Commission
filings. Actual results may differ markedly from management's expectations. The
Company cautions readers not to place undue reliance upon any such
forward-looking statements.
-END-