ARMSTRONG, Iowa, Feb. 1, 2017 /PRNewswire/ -- Art's Way
Manufacturing Co., Inc. (NASDAQ: ARTW), a diversified,
international manufacturer and distributor of equipment serving
agricultural, research and steel cutting needs, announces its
financial results for 2016.
In conjunction with the release, the Company has scheduled a
conference call for Thursday, February 2,
2017 at 10:00 AM CT.
Marc H. McConnell, Chairman of the
Board of Directors of Art's Way Manufacturing, and Carrie Gunnerson, President and Chief Executive
Officer will be leading the call to discuss fiscal 2016 financial
results.
What: Art's Way Manufacturing, Inc. Fiscal 2016 Financial
Results.
When: Thursday, February 2nd,
2017 10:00 AM CT.
How: Live via phone by dialing (877) 358-7309. Code:
Art's Way Manufacturing. Participants to the conference call should
call in at least 5 minutes prior to the start time. A replay
of the call will be archived on the Company's website for 12
months. www.artsway-mfg.com/
|
For the Twelve
Months Ended
(Continuing Operations, Consolidated)
|
|
November 30,
2016
|
November 30,
2015
|
Sales
|
$
|
21,558,000
|
$
|
26,326,000
|
Operating Income
(Loss)
|
$
|
(431,000)
|
$
|
(77,000)
|
Net Income
(Loss)
|
$
|
(426,000)
|
$
|
(310,000)
|
EPS
(Basic)
|
$
|
(0.10)
|
$
|
(0.08)
|
EPS
(Diluted)
|
$
|
(0.10)
|
$
|
(0.08)
|
|
|
|
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
Basic
|
|
4,097,748
|
|
4,058,382
|
Diluted
|
|
4,097,748
|
|
4,058,382
|
Sales: Our consolidated net sales for continuing
operations totaled $21,558,000 for
the fiscal year ended November 30,
2016, which represents an 18.1% decrease from our
consolidated net sales from continuing operations of $26,326,000 in 2015. The decrease in revenue is
primarily due to decreased sales of our Agricultural Products
segment. As expected, in fiscal year 2016 we experienced
decreased demand across the board in Agricultural Products. Our
consolidated gross profit decreased as a percentage of net sales to
24.7% in 2016 from 26.3% of net sales in 2015. Measures taken
during the year to control our costs helped preserve gross profit
but did not completely offset the impact of declining revenues as
compared to relatively stable fixed costs. Our consolidated
operating expenses decreased by 17.7%, from $6,989,000 in 2015 to $5,751,000 in 2016. Selective investment was made
in new product development during the year, and the results of such
efforts are anticipated to contribute to results in 2017. In
addition to our work to reduce expenses, we also had a $618,729 non-cash expense recognized in
August 2015 for the impairment of
goodwill associated with the 2012 acquisition of Universal
Harvester.
Loss from Continuing Operations: Consolidated net
loss for the 2016 fiscal year was $(426,000) for continuing operations, compared to
net loss of $(310,000) in the 2015
fiscal year for continuing operations, an increase of $116,000. This increased loss is primarily a
result of soft demand that resulted in lower net sales, but our
analysis of the realizability of our Canadian net operating loss
tax benefits also contributed to our increased loss. Loss from
operations at our discontinued Pressurized Vessels segment was
$(598,000) in the 2016 fiscal year
compared to $(327,000) in the 2015
fiscal year.
Loss per Share: Loss per basic and diluted share for
continuing operations for fiscal 2016 was $(0.10), compared to loss per share of
$(0.08) for the same period in fiscal
2015. Loss per basic and diluted share for discontinued
operations for fiscal 2016 were $(0.10) compared to $(0.06) for the same period in fiscal 2015.
Total net loss per share in fiscal 2016 was $(0.20) per share compared to $(0.14) per share for the same period in fiscal
2015.
Chairman of the Art's Way Board of Directors, Marc H. McConnell reports, "As evidenced by
disappointing revenue and profitability results, we continued to
face significant headwinds in the industries we serve in the fourth
quarter of fiscal 2016 and full fiscal year. Low demand in
the fall resulted in very low shipments for October and November,
particularly, that could not be overcome by adjustments to our cost
structure.
While our fourth quarter and full fiscal year brought great
challenges, we are pleased to report that we have seen an
improvement in demand since fiscal year end in all business
segments, resulting in a significantly increased backlog that we
anticipate will drive improving performance in fiscal 2017.
We believe this to be driven more by new product introductions,
improvements in our customer service strategy, and new customer
relationships than an indication of a rebound in the markets we
serve. Beet-related equipment demand is increasing and trending
well above last year. We are pleased with this progress and feel
that we are continually improving our position to benefit from
improving markets when that time comes.
We enter fiscal 2017 with equal measures of cautiousness and
optimism and are hopeful that the efforts we've made to improve our
business during these slow times will be rewarded in the new
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, plows, hay
and forage equipment, manure spreaders, reels for combines and
swathers, and top and bottom drive augers, as well as modular
animal confinement buildings and laboratories, and specialty tools
and inserts. After-market service parts are also an important part
of the Company's business. The Company has three reporting
segments: agricultural products; modular buildings; and tools.
For more information, including an archived
version of the conference call, contact: Carrie Gunnerson, Chief Executive Officer
712-864-3131
investorrelations@artsway-mfg.com
Or visit the Company's website at
www.artsway-mfg.com/
Cautionary Statements
This news release includes "forward-looking statements" within
the meaning of the federal securities laws. Statements made in this
release that are not strictly statements of historical facts,
including our expectations regarding: (i) our business position;
(ii) the impact of cost-cutting measures; (iii) product
development; (iv) future product demands and operating results; and
(iv) the benefits of our business model and strategies, are
forward-looking statements. Statements of anticipated future
results are based on current expectations and are subject to a
number of risks and uncertainties, including, but not limited to:
customer demand for our products; credit-worthiness of our
customers; our ability to operate at lower expense levels; our
ability to complete projects in a timely and efficient manner in
accordance with customer specifications; our ability to renew or
obtain financing on reasonable terms; our ability to repay current
debt, continue to meet debt obligations and comply with financial
covenants; domestic and international economic conditions; factors
affecting the strength of the agricultural sector; the cost of raw
materials; unexpected changes to performance by our operating
segments; obstacles related to liquidation of product lines and
segments; unexpected delays or costs in product development and
introductions; and other factors detailed from time to time in our
Securities and Exchange Commission filings. Actual results may
differ markedly from management's expectations. The Company
cautions readers not to place undue reliance upon any such
forward-looking statements. We do not intend to update
forward-looking statements other than as required by law.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/arts-way-manufacturing-announces-fiscal-2016-financial-results-300400656.html
SOURCE Art's Way Manufacturing Co., Inc.