ARMSTRONG, Iowa, Oct. 13,
2021 /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 third
quarter and year to date fiscal 2021.
|
For the Three
Months Ended
|
(Consolidated)
|
|
August 31,
2021
|
August 31,
2020
|
Sales
|
$
|
6,592,000
|
$
|
6,465,000
|
Operating Income
(Loss)
|
$
|
160,000
|
$
|
(513,000)
|
Net Income
(Loss)
|
$
|
56,000
|
$
|
(424,000)
|
EPS
(Basic)
|
$
|
0.01
|
$
|
(0.10)
|
EPS
(Diluted)
|
$
|
0.01
|
$
|
(0.10)
|
|
|
|
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
Basic
|
|
4,529,026
|
|
4,426,850
|
Diluted
|
|
4,529,026
|
|
4,426,850
|
|
For the Nine
Months Ended
|
(Consolidated)
|
|
August 31,
2021
|
August 31,
2020
|
Sales
|
$
|
17,703,000
|
$
|
16,937,000
|
Operating
Loss
|
$
|
(60,000)
|
$
|
(1,908,000)
|
Net Loss
|
$
|
(195,000)
|
$
|
(1,663,000)
|
EPS
(Basic)
|
$
|
(0.04)
|
$
|
(0.38)
|
EPS
(Diluted)
|
$
|
(0.04)
|
$
|
(0.38)
|
|
|
|
|
|
Weighted Average
Shares Outstanding:
|
|
|
|
|
Basic
|
|
4,508,986
|
|
4,358,982
|
Diluted
|
|
4,508,986
|
|
4,358,982
|
Sales: Our consolidated corporate sales for the three-
and nine-month periods ended August 31,
2021 were $6,592,000 and
$17,703,000, respectively, compared
to $6,465,000 and $16,937,000 during the same respective periods in
fiscal 2020, a $127,000, or a 2.0%,
increase for the three months and a $766,000, or 4.5%, increase for the nine months.
We saw sales growth of over 26% in both our Agricultural Products
and Tools segments, respectively, while we saw approximately a 43%
decrease in our Modular Buildings segment for Q3 of fiscal 2021.
Year to date our Agricultural Products and Tools segments both saw
increased sales from a year ago while the Modular Buildings segment
was down approximately 32%. Consolidated gross margin for the
three-month period ended August 31,
2021 was 26.4% compared to 14.3% for the same period in
fiscal 2020.
Our third quarter sales in the Agricultural Products segment
were $4,660,000 compared to
$3,671,000 during the same period of
fiscal 2020, an increase of $989,000,
or 26.9%. Our year-to-date Agricultural Product sales were
$12,017,000 compared to $9,695,000 during the same period in fiscal 2020,
an increase of $2,322,000, or 24.0%.
We attribute the large increase in revenue to a strengthening
agricultural economy that is producing five to ten year highs in
commodity and livestock prices along with government assistance
programs that provided farmers with much needed government
assistance during the COVID-19 pandemic. We saw a 71% increase in
our grinder mixer sales year on year, a 60% increase in beet
equipment and are showing a 13% increase in manure spreader sales
year on year. We are seeing continued demand in the fourth quarter
with our current ag backlog up 269% from a year ago. Supplier
delays have improved but are not gone completely. We also continue
to receive price increases from our suppliers regularly. Further
price increases before our early order program will be necessary to
maintain strong margins on our products. We are still struggling to
get new production hires on board with the lack of available
workforce in our community and a highly competitive job market. We
are taking steps to automate production tasks with the use of
robotic welding and other new equipment to help us increase
efficiency and output.
Our third quarter sales in the Modular Buildings segment were
$1,313,000 compared to $2,319,000 for the same period in fiscal 2020, a
decrease of $1,006,000, or
43.4%. Our year-to-date sales in our Modular Buildings
segment were $3,798,000 compared to
$5,575,000 for the same period in
fiscal 2020, a decrease of $1,777,000, or 31.9%. The decrease in sales for
the quarter and the year is largely due to the completion of a
large laboratory project. While revenue is down, the quality of our
revenue has improved.
Our Tools segment had sales of $619,000 and $1,888,000 during the three- and nine-month
periods ended August 31, 2021,
respectively, compared to $475,000
and $1,667,000 for the same
respective periods in fiscal 2020, a 30.3% increase and a 13.3%
increase, respectively. The increase in sales for the quarter and
year to date fiscal 2021 is due to better economic conditions than
existed a year ago during the height of the COVID-19 pandemic.
While the oil and gas industry demand has not returned to its
pre-pandemic levels, it is improved from over a year ago.
Net Income (Loss): Consolidated net income was
$56,000 for the three-month period
ended August 31, 2021 compared to net
loss of $(424,000) for the same
period in fiscal 2020. Our consolidated net loss for the nine
months ended August 31, 2021 was
$(195,000) compared to $(1,663,000) for the same period in fiscal 2020.
We have now reported two straight quarters with net income. The
overall health of the agricultural economy has stabilized our
primary business segment while operational improvements have
increased our productivity in this time of high demand. We have
combated labor shortages, rising material costs and supply chain
delays well to this point, but believe the economic effects of
COVID-19 have hampered greater earnings potential. We are set up
well in regards to backlog to have a strong finish to fiscal
2021.
Net Income (Loss) per Share: Net income per basic and
diluted share for the third quarter of fiscal 2021 was $0.01, compared to loss per basic and diluted
share of $(0.10) for the same period
in fiscal 2020. Net (loss) per basic and diluted share for the
first nine months of fiscal 2021 was $(0.04), compared to loss per basic and diluted
share of $(0.38) for the same period
in fiscal 2020.
President and CEO of Art's-Way, David
King reports, "I am very pleased with our third quarter
performance as we continue to see positive results from our
operational improvements. Our team continues to show impressive
execution despite the challenges of supply chain disruptions,
shortages of skilled labor and inflationary pressures. To address
these ongoing issues our team is working closely with suppliers to
ensure delivery of critical parts, deploying industrial robots to
alleviate labor shortages and implementing new pricing to offset
escalating costs. Favorable market conditions, increased
sales and a strong backlog support our positive outlook for the
fourth quarter of 2021 and the first half of 2022."
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, as well as modular animal
confinement buildings and laboratories, and specialty tools and
inserts. After-market service parts are also an important part of
Art's-Way's business. Art's-Way has three reporting segments:
agricultural products; modular buildings; and tools.
For more information, contact: David
King, Chief Executive Officer
712-864-3131
investorrelations@artsway-mfg.com
Or visit our website at www.artsway-mfg.com/
Cautionary Statements
This 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) potential growth in our business segments; (iii) future
results, including the potential of increased performance and
expectations with respect to backlog, market conditions and sales;
(iv) the benefits of our business model and strategy; and (v)
expected supply chain trends, 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; the ongoing COVID-19
outbreak; 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.
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SOURCE Art's-Way Manufacturing Co., Inc.