ARMSTRONG, Iowa, March 31, 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 first quarter of fiscal 2017.
In conjunction with the release, the Company has scheduled a
conference call for Friday, March 31,
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 first quarter
fiscal 2017 financial results.
What: Art's Way Manufacturing, Inc. First Quarter and
Year to Date Fiscal 2017 Financial Results.
When: Friday, March 31,
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)
|
|
February 28,
2017
|
February 29,
2016
|
Sales
|
$
|
4,421,000
|
$
|
5,713,000
|
Operating Income
(Loss)
|
$
|
(352,000)
|
$
|
221,000
|
Net Income
(Loss)
|
$
|
(254,000)
|
$
|
134,000
|
EPS
(Basic)
|
$
|
(0.06)
|
$
|
0.03
|
EPS
(Diluted)
|
$
|
(0.06)
|
$
|
0.03
|
|
|
|
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
Basic
|
|
4,126,012
|
|
4,074,338
|
Diluted
|
|
4,126,012
|
|
4,074,338
|
Sales: Our consolidated corporate sales of
continuing operations for the three month period ended February 28, 2017 was $4,421,000 compared to $5,713,000 during the same period in 2016, a
decrease of $1,292,000, or 22.6%. The
quarterly decrease in revenue was primarily due to a continuation
of the decreased demand for agricultural products that the industry
has been experiencing over the last year. Quarterly revenue
increased by 16.3% at Metals, while Manufacturing and Scientific
revenues were down 19.8% and 58.9%, respectively. Consolidated
gross margin for the three month period ended February 28, 2017 was 25.2%, compared to 28.5%
for the same period in fiscal 2016.
Income (Loss) from Continuing Operations:
Consolidated net (loss) from continuing operations was $(254,000) for the three month period ended
February 28, 2017, compared to net
income from continuing operations of $134,000 for the same period in 2016. The
increased loss was primarily due to the decreased sales in our
Manufacturing and Scientific segments.
Earnings (Loss) per Share from Continuing Operations:
Loss per basic and diluted share from continuing operations for the
first quarter of fiscal 2017 was ($0.06), compared to earnings per share from
continuing operations of $0.03 for
the same period in fiscal 2016.
Chairman of the Art's Way Board of Directors, Marc H. McConnell reports, "While the results of
our fiscal first quarter demonstrate the persistence of the
historic headwinds our business has faced in the past two years, we
are pleased to report that business appears to be on the upswing at
Art's Way. During the first quarter we experienced low levels
of revenue due to slow incoming orders during the fourth quarter of
2016. We are pleased to have seen an increase of 27% in
backlog compared to the prior year due to new product launches and
other initiatives we have pursued over the past year. As
such, we incurred additional engineering expenses, labor expenses,
and other costs associated with growth in the first quarter while
the corresponding revenue will come in the second and third
quarters when new products are available to ship.
At this time, we are hiring in all reporting segments and while
we have not yet felt the positive financial impact, we have managed
to fundamentally improve our business amid weakness in the markets
we serve by focusing intently on product quality, customer service,
and new product development. We remain committed to improving
our balance sheet by reducing inventory, borrowings, and parting
with assets not associated with our future growth. We are
pleased with the progress we are making on these fronts, and are
optimistic for results in the upcoming quarters."
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, 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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visit:http://www.prnewswire.com/news-releases/arts-way-manufacturing-announces-first-quarter-fiscal-2017-financial-results-300432365.html
SOURCE Art's Way Manufacturing Co., Inc.