ARMSTRONG, Iowa, Oct. 7, 2014 /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, 2014.
In conjunction with the release, the Company has scheduled a
conference call for Thursday, October 9,
2014 at 10:00 AM CT.
J. Ward McConnell, Jr., Chairman of
the Board of Directors of Art's Way Manufacturing, Marc H. McConnell, Vice Chairman of the Board of
Directors of Art's Way Manufacturing, and Carrie Majeski, President, Chief Executive
Officer and interim Chief Financial Officer will be leading the
call to discuss the third quarter financial results and will also
provide an outlook for the balance of 2014.
What: Art's Way Manufacturing Third Quarter and Year to
Date 2014 Financial Results.
When: Thursday, October 9,
2014 10:00 AM CT.
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. 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,
2014
|
August 31,
2013
|
Change
|
Net Sales
|
$
|
11,585,000
|
$
|
9,350,000
|
23.9%
|
Operating
Income
|
$
|
908,000
|
$
|
54,000
|
1581.5%
|
Net Income
|
$
|
558,000
|
$
|
26,000
|
2046.2%
|
EPS
(Basic)
|
$
|
0.14
|
$
|
0.01
|
1300.0%
|
EPS
(Diluted)
|
$
|
0.14
|
$
|
0.01
|
1300.0%
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
|
Basic
|
|
4,048,552
|
|
4,041,682
|
|
Diluted
|
|
4,053,129
|
|
4,057,773
|
|
|
For the Nine
Months Ended
(Consolidated)
|
|
|
August 31,
2014
|
August 31,
2013
|
Change
|
Net Sales
|
$
|
27,291,000
|
$
|
27,016,000
|
1.0%
|
Operating
Income
|
$
|
1,057,000
|
$
|
1,566,000
|
-32.5
|
Net Income
|
$
|
553,000
|
$
|
1,360,000
|
-59.3%
|
EPS
(Basic)
|
$
|
0.14
|
$
|
0.34
|
-58.8%
|
EPS
(Diluted)
|
$
|
0.14
|
$
|
0.34
|
-58.8%
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
|
Basic
|
|
4,047,544
|
|
4,038,118
|
|
Diluted
|
|
4,053,152
|
|
4,050,819
|
|
Net Sales:
Our consolidated corporate sales for the three- and nine-month
periods ended August 31, 2014 were
$11,585,000 and $27,291,000, respectively, compared to
$9,350,000 and $27,016,000 during the same respective periods in
2013, a $2,234,000 or 23.9%, increase
for the quarter and a $275,000 or
1.0% increase year-to-date. The increase in revenue for the
three month period ended August 31,
2014 was primarily due to increases in revenue at
Manufacturing and revenues generated from our new tools segment,
formed following the acquisition of Ohio Metals in the fourth
quarter of 2013. For the nine-month period ended August 31, 2014, Manufacturing, Vessels and
Scientific each experienced a decline in revenue, which was offset
by the addition of revenue generated from Metals.
Consolidated gross profit margin for the three- and nine-month
periods ending August 31, 2014 was
23.3% and 23.3% compared to 18.5% and 24.7% during the same periods
of 2013.
Manufacturing:
Our third quarter sales at Manufacturing were $9,362,000, compared to $8,005,000 during the same period of 2013, an
increase of $1,357,000, or
17.0%. The nine-month sales for 2014 at Manufacturing were
$21,366,000, compared to $22,727,000 for the same period in 2013, a 6.0%
decrease. The decrease in revenue year to date is primarily due to
decreased demand for the Universal Harvester reels and reduced
sugar beet harvester sales in fiscal 2014 as compared to 2013, but
was offset somewhat by sales from our acquisition of certain
Canadian assets from Agro Trend and
increased demand for our grinder mixers. Manufacturing's
gross margin for the quarter ended August
31, 2014 was 25.0%, compared to 19.4% for the same period in
2013. For the year to date period ending August 31, 2014 gross margin was 24.8% as
compared to 24.3% in the same period for 2013.
Vessels:
Our three- and nine-months sales at Vessels were $606,000 and $1,504,000, respectively, compared to
$635,000 and $1,671,000 for the same periods in 2013, a
decrease of $29,000, or 4.5% and
$166,000, or 9.9%. Gross margin
for the quarter ended August 31, 2014
was 6.8% compared to 16.4% for the same period in 2013. Gross
margin for the nine-months ended August 31,
2014 was 6.4% as compared to 10.0% for the first nine-months
of fiscal 2013.
Scientific:
Our third fiscal quarter and year-to-date sales at Scientific
were $820,000 and $1,818,000, respectively, compared to
$710,000 and $2,618,000 for the same periods in fiscal 2013,
an increase of $111,000, or 15.6% and
a decrease of $800,000, or 30.5%,
respectively. The year to date decrease was primarily
attributable to the 2013 first quarter finalization of an
approximately $7 million fabrication
and delivery contract executed in January
2012 and an approximately $1.7
million installation contract executed in April 2012.
Scientific was hired to design, fabricate, and install twenty-four
modular units over the course of approximately one year for one of
the world's leading research and teaching institutions.
Scientific uses the percentage of completion accounting method to
calculate revenue and gross margins for all contracts. Gross
margin for the quarter ended August 31,
2014 was 20.2% compared to 10.1% for the same period in
2013, while gross margin for the nine-month period ended
August 31, 2014 was 15.5% as compared
to 37.3% for the same period in 2013. The margins reported in
first two quarters of 2013 were a result of the finalization of
costs as compared to estimates on the major projects described
above and did not reflect normal operating margin for the
business. The lower margin year to date for 2014 is primarily
attributable to the lower revenue relative to steady overhead
costs.
Metals:
Metals had sales of $797,000 and
$2,603,000 for the three- and
nine-months ended August 31, 2014,
respectively. Gross margin at Metals was 19.8% for the third
fiscal quarter, and 26.9% for the nine months ended August 31, 2014.
Income:
Consolidated net income was $558,000 for the three-month period ended
August 31, 2014, compared to a net
income of $26,000 for the same
respective period in 2013. This increase is due to increased
operating income of $889,000 at our
Manufacturing segment, but was offset by operating losses at our
Vessels and Metals divisions. Our consolidated net income for
the nine-month period ended August 31,
2014 was $553,000 as compared
to $1,360,000 for the same period in
2013. The sale of land described previously and the 2014
year-to-date decrease in revenue at Scientific and Vessels account
for the majority of this reduction, but were partially offset by
incremental revenues at our new Metals entity.
Earnings per Share:
Earnings per basic and diluted share during the third fiscal
quarter ended August 31, 2014 were
$0.14 compared to $0.01 for the same period during 2013.
Earnings per basic and diluted share during the nine months ended
August 31, 2014 were $0.14 compared to $0.34 for the same period in 2013. These
changes were attributable to the changes in net income discussed
above.
Chairman of the Art's Way Board of Directors, J. Ward McConnell Jr., reports, "After a
challenging first two quarters in fiscal 2014, we are pleased to
show an increase in revenues on both a quarterly and year to date
basis over the prior year. Our agricultural sales are strong,
and we've seen an increase in backlog over last year in every
segment. Our products serving the livestock and dairy sectors
have been very strong and are providing the counter-cyclical
strength and stability we seek during times of weak row-crop
commodity prices."
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, 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. Aftermarket 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: (i) our expectations regarding the benefits of our
recent acquisitions; (ii) our beliefs regarding the strength of our
agricultural sales and benefits of our product mix; and (iii)
expectations regarding the fulfillment of backlog orders and future
results 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 and integration of acquired
assets; 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.
SOURCE Art's Way Manufacturing, Inc.