ARMSTRONG, Iowa, July 13, 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 the second quarter and year to date of fiscal
2017.
In conjunction with the release, the Company has scheduled a
conference call for Friday, July 14,
2017 at 10:00 AM CT.
Marc H. McConnell, Chairman of the
Board of Directors of Art's Way Manufacturing, and Carrie Gunnerson, President and Chief Executive
Officer will be leading the call to discuss the second quarter and
year to date fiscal 2017 financial results.
What: Art's Way Manufacturing, Inc. Second Quarter and
Year to Date Fiscal 2017 Financial Results.
When: Friday, July 14, 2017
10:00 AM CT.
How: Live via phone by dialing (877) 358-7309. Code:
Art's Way Manufacturing. Participants to the conference call should
call in at least 5 minutes prior to the start time. A replay
of the call will be archived on the Company's website for 12
months. www.artsway-mfg.com/
|
For the Three
Months Ended
(Continuing Operations, Consolidated)
|
|
May 31,
2017
|
May 31,
2016
|
Sales
|
$
|
4,689,000
|
$
|
5,298,000
|
Operating Income
(Loss)
|
$
|
(721,000)
|
$
|
64,000
|
Net Income
(Loss)
|
$
|
(509,000)
|
$
|
17,000
|
EPS
(Basic)
|
$
|
(0.12)
|
$
|
0.00
|
EPS
(Diluted)
|
$
|
(0.12)
|
$
|
0.00
|
|
|
|
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
Basic
|
|
4,158,969
|
|
4,101,810
|
Diluted
|
|
4,158,969
|
|
4,101,810
|
|
For the Six Months
Ended
(Continuing Operations, Consolidated)
|
|
May 31,
2017
|
May 31,
2016
|
Sales
|
$
|
9,111,000
|
$
|
11,011,000
|
Operating Income
(Loss)
|
$
|
(1,074,000)
|
$
|
285,000
|
Net Income
(Loss)
|
$
|
(763,000)
|
$
|
150,000
|
EPS
(Basic)
|
$
|
(0.18)
|
$
|
0.04
|
EPS
(Diluted)
|
$
|
(0.18)
|
$
|
0.04
|
|
|
|
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
Basic
|
|
4,142,672
|
|
4,088,073
|
Diluted
|
|
4,142,672
|
|
4,088,073
|
Sales: Our consolidated sales for continuing
operations for the three and six-month periods ended May 31, 2017 were $4,689,000 and $9,111,000 compared to $5,298,000 and $11,011,000 during the same respective periods in
2016, a $609,000 or 11.5%, decrease
for the second fiscal quarter and a $1,900,000 or 17.3% decrease for the six months.
The decreases in revenue are primarily due to the decreased demand
for our agricultural products and modular buildings. Consolidated
gross margin for the three-month period ended May 31, 2017 was 17.3% compared to 28.0% in the
same period in fiscal 2016. Consolidated gross margin for the
six-month period ended May 31, 2017
was 21.1% compared to 28.3% for the same period in fiscal 2016.
These decreased gross margins are largely attributable to our
agricultural products segment.
Income (Loss) from Continuing Operations:
Consolidated net (loss) from continuing operations was $(509,000) for the three months and $(763,000) for the six months ended May 31, 2017 compared to net income of
$17,000 and $150,000 for the same respective periods in
2016. The decreased income from continuing operations was
largely due to the decreased revenues for the first half of
2017.
Earnings (Loss) per Share from Continuing Operations:
Loss per basic and diluted share from continuing operations for the
second quarter of fiscal 2017 was ($0.12), compared to earnings per share from
continuing operations of $0.00 for
the same period in fiscal 2016. Loss per basic and diluted share
from continuing operations for the six-month period ended
May 31, 2017 was ($0.18), compared to earnings per share from
continuing operations of $0.04 for
the same period in fiscal 2016.
Chairman of the Art's Way Board of Directors, Marc H. McConnell reports, "The results of our
fiscal second quarter clearly demonstrate that we remain in very
challenging times brought on by the downturn in the agricultural
economy. While we have been working from a higher backlog than a
year ago, we have also experienced delays in deliveries of certain
products, a shift in our sales mix toward lower margin products,
and elevated manufacturing expenses associated with launching new
products that impacted our second quarter unfavorably.
Since the end of the second quarter, we have made significant
changes to our cost structure and have continued to work toward
putting ourselves in the best position to have a more successful
second half of the year. Despite our lack of profitability, we have
continued to improve our business by maintaining focus on product
development, product quality, and customer service—cornerstones of
our strategy that we are confident will benefit the company
long-term. Additionally, we remain very committed to further
improving our balance sheet and positioning ourselves to overcome
the headwinds facing the industries we serve.
We are working to improve our operations and are also seeing
improvement in some of the markets we serve but remain cautious in
our optimism for improving results in the near term."
About Art's Way Manufacturing Co., Inc.
Art's Way manufactures and distributes farm machinery niche
products including animal feed processing equipment, sugar beet
defoliators and harvesters, land maintenance equipment, plows, hay
and forage equipment, manure spreaders, reels for combines and
swathers, and top and bottom drive augers, as well as modular
animal confinement buildings and laboratories, and specialty tools
and inserts. After-market service parts are also an important part
of the Company's business. The Company has three reporting
segments: agricultural products; modular buildings; and tools.
For more information, including an archived
version of the conference call, contact:
Carrie Gunnerson, Chief Executive
Officer
712-864-3131
investorrelations@artsway-mfg.com
Or visit the Company's website at
www.artsway-mfg.com/
Cautionary Statements
This news release includes "forward-looking statements" within
the meaning of the federal securities laws. Statements made in this
release that are not strictly statements of historical facts,
including our expectations regarding: (i) our business position;
(ii) the impact of cost-cutting measures; (iii) future results; and
(iv) the timing of possible increases to revenues; and (v) the
benefits of our business model and strategy, are forward-looking
statements. Statements of anticipated future results are
based on current expectations and are subject to a number of risks
and uncertainties, including, but not limited to: customer demand
for our products; credit-worthiness of our customers; our ability
to operate at lower expense levels; our ability to complete
projects in a timely and efficient manner in accordance with
customer specifications; our ability to renew or obtain financing
on reasonable terms; our ability to repay current debt, continue to
meet debt obligations and comply with financial covenants; domestic
and international economic conditions; factors affecting the
strength of the agricultural sector; the cost of raw materials;
unexpected changes to performance by our operating segments;
obstacles related to liquidation of product lines and segments; and
other factors detailed from time to time in our Securities and
Exchange Commission filings. Actual results may differ markedly
from management's expectations. The Company cautions readers not to
place undue reliance upon any such forward-looking
statements. We do not intend to update forward-looking
statements other than as required by law.
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SOURCE Art's Way Manufacturing Co., Inc.