ARMSTRONG, Iowa, Sept. 30, 2015 /PRNewswire/ -- Art's Way
Manufacturing Co., Inc. (NASDAQ: ARTW), a diversified,
international manufacturer and distributor of equipment serving
agricultural, research, water treatment and steel cutting needs,
announces its financial results for the three and nine months ended
August 31, 2015.
In conjunction with the release, the Company has scheduled a
conference call for Thursday, October 1,
2015 at 10:00 AM CT.
Marc H. McConnell, Chairman of the
Board of Directors of Art's Way Manufacturing, J. Ward McConnell, Jr., Vice Chairman of the
Board of Directors of Art's Way Manufacturing, and Carrie Majeski, President and Chief Executive
Officer of Art's Way Manufacturing will be leading the call to
discuss the third quarter of 2015 financial results and will also
provide an outlook for the balance of 2015.
What: Art's Way Manufacturing Third Quarter and Year to
Date 2015 Financial Results.
When: Thursday, October 1,
2015 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
(Consolidated)
|
|
|
August 31,
2015
|
August 31,
2014
|
Change
|
Sales
|
$
|
6,886,000
|
$
|
11,585,000
|
-40.6%
|
Operating Income
(Loss)
|
$
|
(1,004,000)
|
$
|
908,000
|
|
Net Income
(Loss)
|
$
|
(796,000)
|
$
|
558,000
|
|
EPS
(Basic)
|
$
|
(0.20)
|
$
|
0.14
|
|
EPS
(Diluted)
|
$
|
(0.20)
|
$
|
0.14
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
|
Basic
|
|
4,061,052
|
|
4,048,552
|
|
Diluted
|
|
4,061,052
|
|
4,053,129
|
|
|
For the Nine
Months Ended
(Consolidated)
|
|
|
August 31,
2015
|
August 31,
2014
|
Change
|
Sales
|
$
|
21,979,000
|
$
|
27,291,000
|
-19.5%
|
Operating Income
(Loss)
|
$
|
(260,000)
|
$
|
1,057,000
|
|
Net Income
(Loss)
|
$
|
(396,000)
|
$
|
553,000
|
|
EPS
(Basic)
|
$
|
(0.10)
|
$
|
0.14
|
|
EPS
(Diluted)
|
$
|
(0.10)
|
$
|
0.14
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
|
Basic
|
|
4,057,496
|
|
4,047,544
|
|
Diluted
|
|
4,057,496
|
|
4,053,152
|
|
Sales: Our consolidated corporate sales for the
three- and nine-month periods ended August
31, 2015 were $6,886,000 and
$21,979,000, respectively, compared
to $11,585,000 and $27,291,000 during the same respective periods in
2014, a $4,699,000, or 40.6%,
decrease for the quarter and a $5,312,000 or 19.5% decrease year-to-date. The
decreases in revenue are primarily due to decreased sales of our
agricultural products segments. We are experiencing decreased
demand for nearly all agricultural products, but our Universal
Harvester reel sales were down nearly 70% during the year-to-date
as compared to the prior year. Consolidated gross margin for
the three- and nine-month periods ended August 31, 2015 was 18.4% and 25.1%,
respectively, compared to 23.3% and 23.4% for the same respective
periods in fiscal 2014. The decreased revenue amounts coupled
with relatively static fixed costs has put negative pressure on our
gross margins both quarterly and year-to-date.
Income: Consolidated net income (loss) was
$(796,000) for the three-month period
ended August 31, 2015, compared to
net income of $558,000 for the same
period in 2014. The decrease was primarily due to the
decreases in revenue described above and a noncash charge for
impairment of the goodwill from our UHC subsidiary, part of the
Agricultural Products segment. During the third quarter of fiscal
2015, we evaluated our goodwill for impairment based on economic
factors related to that particular product line. As a result
of our evaluation, we incurred a noncash impairment charge for the
full amount of goodwill associated with our acquisition of the UHC
product line of $618,729. The
remaining portion of the decreased net income is directly
attributable to our decreased sales volume. Consolidated net
income (loss) for the nine-month period ended August 31, 2015 was $(396,000) compared to a net income of
$553,000 in the same period of
2014. This decrease in income reflects the noncash impairment
charge along with decreased operating income across all our
segments.
Earnings per Share: Earnings per basic and diluted share
for the third quarter ended August 31,
2015 were ($0.20), down from
$0.14 from the third quarter of 2014.
Earnings per basic and diluted share for the nine months ended
August 31, 2015 were ($0.10), compared to $0.14 from the same period in 2014.
Chairman of the Art's Way Board of Directors, Marc H. McConnell commented, "Our third fiscal
quarter of 2015 was challenging to say the least.
Several of our business units are experiencing poor market
conditions, but most notably in our agricultural products
segment. We have implemented various cost cutting measures
aimed at scaling our operational size to match the current market
conditions. We will continue being proactive in managing
through this difficult time. Fortunately, our capital
position remains very strong, and we are in the process of
adjusting our cost structure in such a way that we will be able to
weather the broader agricultural economy's down cycle without
significant degradation of capital until the market improves,
however long that may take.
In the meantime, we continue to seek opportunities in the
various markets we serve, and have a lot of reason for optimism
about projects that may come forth in the months ahead."
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, reels for combines and swathers, and
top and bottom drive augers, as well as pressurized tanks and
vessels, 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 four
reporting segments: agricultural products; pressurized tanks and
vessels; modular buildings; and tools.
For more information, including an archived
version of the conference call, contact: Carrie Majeski, 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 the impact of our management
initiatives and cost-cutting measures, 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 our products; domestic
and international economic conditions; factors affecting the
strength of the agricultural sector; the cost of raw materials; the
management of growth; the availability of investment opportunities;
unexpected changes to performance by our operating 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/arts-way-manufacturing-announces-third-quarter-2015-revenue-and-earnings-300152042.html
SOURCE Art\'s Way Manufacturing Co., Inc.