ARMSTRONG, Iowa, March 29, 2018 /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 2018.
In conjunction with the release, the Company has scheduled a
conference call for Friday, March 30,
2018 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 2018 financial results.
What: Art's Way Manufacturing, Inc. First Quarter Fiscal
2018 Financial Results.
When: Friday, March 30,
2018 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,
2018
|
February 28,
2017
|
Sales
|
$
|
5,366,000
|
$
|
4,421,000
|
Operating
(Loss)
|
$
|
(309,000)
|
$
|
(352,000)
|
Net (Loss)
|
$
|
(527,000)
|
$
|
(254,000)
|
EPS
(Basic)
|
$
|
(0.13)
|
$
|
(0.06)
|
EPS
(Diluted)
|
$
|
(0.13)
|
$
|
(0.06)
|
|
|
|
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
Basic
|
|
4,170,818
|
|
4,126,012
|
Diluted
|
|
4,170,818
|
|
4,126,012
|
Sales: Our consolidated corporate sales for
continuing operations for the three-month period ended February 28, 2018 were $5,366,000 compared to $4,421,000 during the same period in fiscal 2017,
an increase of $945,000, or 21.4%.
The increase in consolidated revenue is primarily due to increased
demand for our agricultural products and increased revenues in our
modular buildings segment. Consolidated gross margin for the
three-month period ended February 28,
2018 was 20.9% compared to 25.2% for the same period in
fiscal 2017. Our quarterly revenue increased by 16.7% for our
agricultural products segment, by 4.8% for our tools segment, and
by 90.5% for our modular buildings segment.
Income (Loss) from Continuing Operations:
Consolidated net (loss) from continuing operations was $(527,000) for the three-month period ended
February 28, 2018 compared to net
(loss) from continuing operations of $(254,000) for the same period in fiscal
2017. The increased net (loss) from continuing operations was
largely due to the revaluing of our deferred tax asset at the new
income tax rates for the 2018 tax year.
Earnings (Loss) per Share from Continuing Operations:
(Loss) per basic and diluted share from continuing operations for
the first quarter of fiscal 2018 was ($0.13), compared to (loss) per basic and diluted
share from continuing operations of $(0.06) for the same period in fiscal
2017.
Chairman of the Art's Way Board of Directors, Marc H. McConnell reports, "As reported a
quarter ago we are starting to see improved positioning of our
company coupled with modest improvement in market conditions, as
demonstrated by the significant increase in revenue for the first
quarter. Orders and backlog are strong throughout the company
and we feel that momentum is building for each of our entities,
largely as a result of new products, an improved sales network, and
creative methods of going to market such as leases. Our
customers are taking notice and are responding quite positively to
the actions we've undertaken.
"Affecting profitability for the quarter were numerous expenses
related to balance sheet improvement, lower margins due to
aggressive pricing used to dispose of non-strategic inventory, and
a significant change in the value of our deferred tax asset. While
these negatively affected our earnings, we made strides to increase
cash flow and reduce debt by successfully exiting the snow blower
business, signing a contract to sell the former Vessels building,
and continuing to reduce inventory.
"As we look ahead, we are poised to keep pace on simplifying the
business and improving our balance sheet while putting resources
toward quality, customer service, product development, and
continuous improvement. We still have a lot of work to do on
these fronts but are confident that we are doing the right things
to position the business for long-term, sustainable
profitability. When the commodity markets rebound, we plan to
be ready to react with a fresh offering of innovative quality
products, industry-leading customer support, a clean and liquid
balance sheet, and a very capable and energetic team poised for
growth."
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 development and launch of new products; (iii) future
results; (iv) future operational changes; (v) the timing of
increased performance; and (vi) 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. We caution 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.
View original
content:http://www.prnewswire.com/news-releases/arts-way-manufacturing-announces-first-quarter-fiscal-2018-financial-results-300621325.html
SOURCE Art's Way Manufacturing Co., Inc.