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 April 7, 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 AMENDED PRESS RELEASE, PRIOR RELEASE HAD ERRORS, THAT HAVE BEEN
CORRECTED.
ART'S-WAY FIRST QUARTER AND 3 MONTHS RESULTS
ARMSTRONG, IOWA - Art's-Way Manufacturing Co., Inc. today (April 7,
2005) released the following results for the fiscal first quarter and
three months ended February 28, 2005.
Highlights:
" Net sales increased $968,000 compared to the same period a year ago.
" Gross profit increased $621,000 compared to the same period a year ago.
" Net income before tax increases $496,000.
" Our revolving line of credit agreement was renewed in March 2005 to
extend the due date to March 2006 and increase the available balance
by one million dollars.
(All figures in thousands of dollars except
per share amounts) Quarter Ended February 28,
2005 February 29, 2004
Net Sales. . . . . . . . . . . . $ 3,592 $ 2,624
Gross Profit . . . . . . . . . . 1,255 634
Income from Operations . . . . . 531 57
Interest and Other Expense . . . 12 33
Income before Income Tax . . . . 520 24
Income Tax Expense . . . . . . . 177 -
Net Income . . . . . . . . . . . 343 24
Basic Income Per Share (a) . . . $ 0.18 $ 0.01
Diluted Income Per Share (b) . . $ 0.17 $ 0.01
(a) Basic income per share based on the weighted average number of
shares outstanding 1,938,176 for the quarter ended February 28, 2005 and
2004.
(b) Diluted income per share based on the weighted average number of
shares outstanding 1,964,784 and 1,958,196 for the quarters ended
February 28, 2005 and 2004, respectively.
Sales for the quarter ended February 28, 2005 were increased $968,000
compared to the same period in 2004, principally due to the significant
increase in Art's-Way branded products. Our new grinder mixers and land
planes were two of the product lines showing increases in the first
quarter. As a result of increase in sales of Art's-Way branded whole
goods, we pushed our production of OEM manufactured blowers into the
later part of the first quarter and second quarter. This resulted in a
decrease in OEM sales for the first quarter of $533,000. We expect to
see OEM sales rebound in the second quarter.
Our gross profit percentage for the first quarter of 2005 was up 10.8%,
from 24.1% in fiscal 2004 to 34.9% in fiscal 2005. We saw steel prices
starting to rise in the first quarter of 2004, but at that time we were
unable to pass the price increase along to our customers. The profit
number from the first quarter of 2005 reflects the impact of passing on
the price increase experienced throughout 2004. The swing in product mix
discussed above also impacted our gross profit. Those issues, coupled
with the consolidation of our two manufacturing facilities impacted on
our gross profit percentage.
Our net income increased by $319,000 despite the fact that we
had to start recognizing income tax expense due to the recognition of
all our deferred tax asset 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 out those expenses in cash
until we deplete our net operating loss carry forward, which is
currently at approximately $3,120,000.
The order backlog as of February 28, 2005 remains strong at $4,104,000
compared to $4,060,000 one year ago.
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.
The information in this Current Report on Form 8-K shall not be deemed
filed for the purposes of Section 18 of the Securities Exchange Act of
1934, as amended, or otherwise subject to the liabilities of that
section, nor shall it be deemed incorporated by reference in any filing
under the Securities Act of 1933, as amended, except as expressly set
forth by specific reference in such a filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Art's-Way Manufacturing Co., Inc.
(Registrant)
Date: April 7, 2005 By: /s/ John C. Breitung
John C. Breitung, President and CEO