U.S. SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report October 14, 2005
ART'S-WAY MANUFACTURING CO., INC.
(Exact Name of Registrant As Specified In Its Charter)
Delaware 0-05131 42-0920725
(State Or Other Jurisdiction of (Commission (IRS Employer
Incorporation or Organization) File No.) Identification
Number)
P.O. Box 288
Armstrong, IA 50514
(Address of Principal Executive Offices) (Zip Code)
(712) 864-3131
(Telephone Number)
Not Applicable
(Former name or former address, if changed since last report.)
ITEM 8.01 FINANCIAL INFORMATION ON COMPANY'S QUARTER ENDED AUGUST 31, 2005
NASDAQ:ARTW CONTACT: John Breitung (712) 864-3131
ART'S-WAY THIRD QUARTER AND 9 MONTH RESULTS
ARMSTRONG, IOWA - Art's-Way Manufacturing Co., Inc., today (October 14,
2005) released the following results for the fiscal third quarter and
nine months ended August 31, 2005.
Highlights:
" Year to date income before tax increased 123%.
" Year to date sales were 26% ahead of the same period in 2004.
(all figures in thousands of dollars
except per share amounts)
Quarter Ended
August 31, 2005 August 31, 2004
Net Sales . . . . . . . . . . . . . . . $ 4,190 $ 3,399
Gross Profit . . . . . . . . . . . . . . 1,069 914
Income from Operations . . . . . . . . . 454 301
Interest and Other Expense. . . . . . . 62 16
Income before Income Taxes . . . . . . . 392 285
Income Tax Expense (Benefit). . . . . . 133 (200)
Net Income . . . . . . . . . . . . . . . 259 485
Basic Income Per Share (a). . . . . . . $ .13 $ .25
Diluted Income Per Share (b) . . . . . .13 .25
Nine Months Ended
August 31, 2005 August 31, 2004
Net Sales . . . . . . . . . . . . . . $ 11,582 $ 9,208
Gross Profit . . . . . . . . . . . . . 3,346 2,536
Income from Operations . . . . . . . . 1,308 608
Interest and Other Expense . . . . . . 147 81
Income before Income Taxes . . . . . . 1,160 527
Income Tax Expense (Benefit) . . . . . 409 (300)
Net Income . . . . . . . . . . . . . . 751 827
Basic Income Per Share (a) . . . . . . $ .39 $ .43
Diluted Income Per Share (b) . . . . . .38 .42
(a) Basic income per share based on the weighted average number of
shares outstanding 1,958,611 and 1,938,176 for the quarter; and
1,947,009 and 1,938,176 for the nine months ended August 2005 and 2004,
respectively.
(b) Diluted income per share based on the weighted average number of
shares outstanding 1,974,656 and 1,958,243 for the quarter; and
1,968,595 and 1,958,574 for the nine months ended August 2005 and 2004,
respectively.
Fiscal year 2005, third quarter and year to date net sales were 23% and
26%, respectively, higher than for the comparable period one-year ago.
Our new grinder mixer has generated considerable interest in the
industry. Changes in our sales force also had a favorable impact in
shredder sales.
Gross profit, as a percent of sales, was 26% for the quarter ended
August 31, 2005. This is comparable to the same period in 2004. Year to
date, gross profit as a percent of sales was 29% compared to 28% in the
same period in 2004.
Our income before tax, year to date, is at $1,160,000, a $633,000
increase over the same period in 2004. The consolidation of our
manufacturing locations has had a positive impact on our bottom line.
Year to date our net income after tax is down $76,000, compared to a
year ago, however we have started recognizing income tax expense due to
the recognition of all our deferred tax assets in prior periods. We
expect to record income tax expense each quarter as we earn profits
going forward. While we are recording income tax expense we will not pay
those expenses in cash until we deplete our net operating loss
carryforward, which is currently at approximately $684,000.
We continue our research and development of new products, with total
spending year to date of $238,000. It is our belief that continuing to
bring new products to market will enhance our future.
The order backlog as of September 28, 2005 is $2,629,000 compared to
$3,323,000 one year ago. In 2004 our backlog started increasing due to
the introduction of our new 6812 sugar beet harvester. The introduction
of the 6812 was soon followed by our new 5165 grinder mixer and we were
able to maintain the order backlog for about a year. Now we are seeing
our backlog fall back into our normal cyclical trend. We intended to
have two new product offerings in 2006 and expect the backlog to peak
again at that time. Our current order backlog consists primarily of OEM
equipment.
Art's-Way manufactures and distributes farm machinery niche products
including animal feed processing equipment, sugar beet and potato
harvesting equipment, edible bean equipment, land maintenance equipment,
finished mowing and crop shredding equipment, seed planting equipment.
Art's-Way also produces haylage machinery for several original equipment
manufacturers (OEM's). Art's-Way also manufactures and distributes truck
bodies used in the agricultural, industrial and commercial industries.
After market service parts availability is also an important part of the
Company's business.
This news release may include "forward-looking statements" within the
meaning of the federal securities laws. These statements as to
anticipated future results are based on current expectations and are
subject to a number of risks and uncertainties such as quarterly
fluctuations in results, customer demand for our products, the actions
of our competitors, economic conditions, and management of growth. We
caution readers not to place undue reliance upon any such
forward-looking statements, as actual results may differ materially from
expectations. More information about potential factors that could affect
our business and financials results is included in our filings with the
SEC.