Art's Way Manufacturing
Co., Inc. (NASDAQ: ARTW), a leading manufacturer and distributor of
agricultural machinery, equipment and services is pleased to announce its
financial results for the three months ended February
29, 2012.
In conjunction with the
release, the Company has scheduled a conference call for Thursday, April 12, 2012 at 10:00 AM CT. Carrie Majeski, President and Chief Executive Officer,
and J. Ward McConnell, Jr., Chairman of the
Board of Directors of Art's Way Manufacturing will be leading the call to
discuss the first quarter financial results, and will also provide an outlook
for the balance of 2012.
What: Art's Way Manufacturing
First Quarter Financial Results.
When: Thursday,
April 12, 2012 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.
Financial Highlights
For the Three Months Ended February 29, 2012:
- Net
sales for the three months ended February 29,
2012 increased 35.3% over the same quarter in 2011.
- Operating
income for the three months ended February 29,
2012 increased to $362,000 from
an operating loss of $659,000 during
the same quarter in 2011.
- Net
income for the three months ended February 29,
2012 increased to $193,000 from
a net loss of $485,000 during the
same quarter in 2011.
- Earnings
per basic and diluted share for the three months ended February 29, 2012 were $0.05 per share versus a loss of $0.12 per share for the same quarter in 2011.
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For the Three Months Ended
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Weighted Average
Shares Outstanding:
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Net Sales: Our consolidated corporate sales
for the three-month period ended February 29, 2012 were $6,312,000, compared to $4,664,000 during
the same period in 2011, a $1,648,000 increase
for the quarter, or 35.3%. Art's Way Manufacturing Co., Inc. and Art's
Way Scientific, Inc. increased their three-month revenue by 9.1% and 348.4%,
respectively. These increases were offset by a 41.4% decrease in
revenue for Art's Way Vessels, Inc. during this same time period.
Art's Way
Manufacturing,
our agricultural products segment, had sales for the first fiscal quarter
of $3,988,000, compared to $3,656,000 during the same period in 2011, an
increase of $332,000, or 9.1%. Gross margin
for the quarter ended February 29, 2012 was
26.3% compared to 16.3% for the same period in 2011.
Art's Way Vessels, our pressurized tank segment,
had sales for the first fiscal quarter of $330,000,
compared to $563,000 for the same
period in 2011, a 41.4% decrease. Gross margin for the quarter
ended February 29, 2012 was (12.6%),
compared to (18.8%) for the same period in 2011.
Art's Way Scientific, our modular buildings segment,
had first fiscal quarter sales of $1,994,000,
compared to $445,000 for the same
period in 2011, an increase of $1,549,000,
or 348.4%. During the first fiscal quarter of 2012, Art's Way Scientific
signed a $7.0 million contract to
manufacture twenty-four modular units. The modular units are
expected to be constructed over the course of approximately one year. In
accordance with our accounting policy for revenue recognition, we expect to
recognize revenue related to this contract as the work is performed. Gross
margin for the quarter endedFebruary 29, 2012 was
23.5% compared to (2.9%) for the same period in 2011.
Income: Consolidated operating income
was $362,000 during the three months
ended February 29, 2012 compared to an
operating loss of $659,000for the three
months ended February 28, 2011.
Earnings per Share: We incurred a gain per basic and
diluted share of $0.05 for the three
months ended February 29, 2012 as
compared to a loss per basic and diluted share of $0.12 for
the three months ended February 28, 2011.
The changes in earnings per share were primarily attributable to the changes
to net income.
J.
Ward McConnell Jr., Chairman of the Board of Directors said, "These solid first
quarter results reflect our continued growth in our core manufacturing
business and Art's Way Scientific securing contracts during the fourth
quarter of fiscal 2011 and first quarter of 2012. The hard work and never
give up attitude of the Scientific team has proved to be essential to our
success in this quarter... and we expect ongoing revenue from the contracts
procured this quarter in future quarters as well.
"The Company is
heading into the balance of 2012 with strong momentum which we expect to
allow us to deliver superior results and increased shareholder value."
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 and top and bottom drive augers. After-market
service parts are also an important part of the Company's business. The
Company has 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.
For More Information, Contact: Jim Drewitz,
Investor Relations
830-669-2466
jim@jdcreativeoptions.com
www.jdcreativeoptions.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 beliefs regarding
the growth of our manufacturing segment; (ii) our expectations relating
to contracts for our modular buildings segment; (iii) our belief regarding the
future success of Art's Way Scientific; (iv) our expected results in the
remainder of fiscal 2012, and (v) our expected returns to shareholders, 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, unexpected contract
breaches by us or counter-parties, domestic and international economic conditions,
the cost of raw materials, the management of growth, the availability of
investment opportunities, our ability to implement cost-management and
production initiatives, 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.
The company does not intend to update or publicly revise any forward-looking
statement.