Art's Way Manufacturing Announces Second Quarter And Year To Date Fiscal 2016 Financial Results

ARMSTRONG, Iowa, July 15, 2016 /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 second quarter and year to date of fiscal 2016.

In conjunction with the release, the Company has scheduled a conference call for Monday, July 18th, 2016 at 10:00 AM CT.  Marc H. McConnell, Chairman of the Board of Directors of Art's Way Manufacturing, and Carrie Majeski, President and Chief Executive Officer will be leading the call to discuss the second quarter and year to date fiscal 2016 financial results.

What: Art's Way Manufacturing, Inc. Second Quarter and Year to Date Fiscal 2016 Financial Results.

When: Monday, July 18th, 2016 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/

Sales:  Our consolidated corporate sales for the three and six-month period ended May 31, 2016 were $5,741,000 and $12,133,000 compared to $7,804,000 and $15,093,000 during the same respective periods in 2015, a $2,063,000 or 26.4% decrease for the second fiscal quarter, and a $2,960,000 or 19.6% decrease year-to-date. The decreases in revenue are primarily due to the decreased demand for our agricultural products that we have been experiencing for the last year, but is somewhat offset by increases in revenues in our modular buildings segment. Consolidated gross margin for the three and six-month periods ended May 31, 2016 was 26.1% and 26.4% compared to 28.3% and 28.2% for the same respective period in fiscal 2015.  Our efforts to decrease fixed costs and more closely match our expense load with our current demand have helped to minimize the negative pressures on our gross margins with the decreased revenue levels in 2016 compared to the same periods in 2015.

Income:  Consolidated net income (loss) was $(57,000) for the three-month period ended May 31, 2016, compared to $232,000 for the same period in 2015.  Consolidated net income for the six-month period ended May 31, 2016 was $24,000 compared to $400,000 for the same period in 2015.  The decreases are primarily due to the decreases in revenue described above.

Earnings per Share: Loss per basic and diluted share for the second quarter of fiscal 2016 was ($0.01), compared to earnings per share of $0.06 for the same period in fiscal 2015.  Earnings per basic and diluted share for the first six-months of fiscal 2016 were $0.01 compared to $0.10 for the same period in fiscal 2015.

Chairman of the Art's Way Board of Directors, Marc H. McConnell reports, "The continued weakness in the agricultural economy has resulted in decreased demand for products manufactured by us and our peers over the last several quarters.  While we have made very significant adjustments to our cost structure and business overall this year, generating adequate revenue to produce profitability has proven to be quite difficult.  We have, however, continued to improve our balance sheet, reduce borrowings, and ultimately further prepare our business for both a longer period of weakness in the agricultural sector and to better position us for opportunity we see ahead of us thereafter.  We continue to focus every day on the initiatives that will improve both our company and its enduring profitability going forward."

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. After-market 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

[email protected]

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 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; 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; 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 Co., Inc.

Related Links

http://www.artsway-mfg.com