Art's Way Manufacturing Co., Inc., a diversified, international manufacturer and distributor of equipment serving agricultural, research, water treatment and steel cutting needs, announces its financial results for the three and six months ended May 31, 2015.

Financial Highlights for the Three and Six Months Ended May 31, 2015

  • Gross margin improved to 28.3% in the second quarter of 2015 from 24.6% in the same period in 2014.
  • Earnings per share for the first six months of 2015 increased $0.10 over the same period in 2014.

 

 

 

For the Three Months Ended
(Consolidated)

  
 

May 31, 2015

May 31, 2014

Change

Sales

$

7,804,000

$

9,469,000

-17.6%

Operating Income

$

414,000

$

444,000

-6.8%

Net Income

$

232,000

$

253,000

-8.3%

EPS (Basic)

$

0.06

$

0.06

0.0%

EPS (Diluted)

$

0.06

$

0.06

0.0%

Weighted Average Shares Outstanding:

          

Basic

  

4,060,775

  

4,047,487

  

Diluted

  

4,062,294

  

4,053,747

  

 

 

For the Six Months Ended
(Consolidated)

  
 

May 31, 2015

May 31, 2014

Change

Sales

$

15,093,000

$

15,706,000

-3.9%

Operating Income

$

743,000

$

149,000

398.7%

Net Income (Loss)

$

400,000

$

(5,000)

  

EPS (Basic)

$

0.10

$

0.00

  

EPS (Diluted)

$

0.10

$

0.00

  

Weighted Average Shares Outstanding:

          

Basic

  

4,055,698

  

4,047,025

  

Diluted

  

4,057,073

  

4,047,025

  

 

Sales: Consolidated corporate sales for the three- and six-month periods ended May 31, 2015 were $7,804,000 and $15,093,000, respectively, compared to $9,469,000 and $15,706,000 during the same respective periods in 2014, a $1,665,000, or 17.6%, decrease for the quarter and a $613,000 or 3.9% decrease year-to-date. The decreases in revenue are primarily due to decreased sales of our Universal Harvester line of reels and at our tools segment.  Consolidated gross margin for the three- and six-month periods ended May 31, 2015 was 28.3% and 28.2%, respectively, compared to 24.6% and 23.4% for the same respective periods in fiscal 2014.

Income:  Consolidated net income was $232,000 for the three-month period ended May 31, 2015, compared to $253,000 for the same period in 2014.  This decrease is due to the decreased revenue levels in the second quarter of fiscal 2015.  Consolidated net income for the six-month period ended May 31, 2015 was $400,000 compared to a net loss of $5,000 in the same period of 2014.  This increase in income is due to a $622,000 increase in operating income in our agricultural products segment in the first six months of 2015 compared to 2014, but was offset by operating losses at our tools and modular buildings segments. 

Earnings per Share:Earnings per basic and diluted share for the second quarter ended May 31, 2015 were $0.06, unchanged from the second quarter of 2014. Earnings per basic and diluted share for the six months ended May 31, 2015 were $0.10, compared to $0.00 from the same period in 2014.

Chairman of the Art's Way Board of Directors, Marc H. McConnell commented, "We are pleased to report another healthy and profitable quarter to our shareholders. With several of our business units experiencing challenging market conditions, we have focused on managing our way through the down-cycle profitably.  While expense control is a key part of this effort we continue to make decisions and investments for the long term to enhance our position as the cycle progresses.  We are not in a position to predict with any accuracy how the quarters ahead will play out but will continue being proactive and aggressive on all fronts to continue our profitable performance."