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 July 13, 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 SECOND QUARTER AND 6 MONTH RESULTS
ARMSTRONG, IOWA - Art's-Way Manufacturing Co., Inc., today (July 13,
2005) released the following results for the fiscal second quarter and
six months ended May 31, 2005.
Highlights:
" Year to date income before tax increased 217%.
" Year to date sales were 27% ahead of the same period in 2004.
" Gross profit as percent of sales is up 3 percentage points year to date.
(all figures in thousands of dollars except per share amounts)
Quarter Ended
May 31, 2005 May 31, 2004
Net Sales . . . . . . . . . . . . . . $ 3,800 $ 3,185
Gross Profit . . . . . . . . . . . . 1,023 987
Income from Operations . . . . . . . 322 251
Interest and Other Expense. . . . . . 74 33
Income before Income Taxes . . . . . 249 218
Income Tax Expense (Benefit). . . . . 99 (100)
Net Income . . . . . . . . . . . . . 150 318
Basic Income Per Share (a). . . . . . $ .08 $ .16
Diluted Income Per Share (b) . . . . .08 .16
Six Months Ended
May 31, 2005 May 31, 2004
Net Sales . . . . . . . . . . . . . $ 7,392 $ 5,809
Gross Profit . . . . . . . . . . . . 2,278 1,622
Income from Operations . . . . . . . 853 308
Interest and Other Expense . . . . . 85 66
Income before Income Taxes . . . . . 768 242
Income Tax Expense (Benefit) . . . . 275 (100)
Net Income . . . . . . . . . . . . . 493 342
Basic Income Per Share (a) . . . . . $ .25 $ .18
Diluted Income Per Share (b) . . . . .25 .17
(a) Basic income per share based on the weighted average number of
shares outstanding 1,944,385 and 1,938,176 for the quarter; and
1,941,280 and 1,938,176 for the six months ended May 2005 and 2004,
respectively.
(b) Diluted income per share based on the weighted average number of
shares outstanding 1,966,405 and 1,959,639 for the quarter; and
1,965,566 and 1,958,896 for the six months ended May 2005 and 2004,
respectively.
Fiscal year 2005, second quarter and year to date net sales were 19% and
27%, respectively, higher than for the comparable periods one-year ago.
Our new grinder mixer has generated considerable interest in the
industry. Changes in our sales force also had an impact.
Gross profit, as a percent of sales, was 27% for the quarter ended May
31, 2005, as compared to 31% for the same period in 2004; this was due
to a product mix shift. Gross profit as a percent of sales in the first
quarter was 34% as compared to 24% in first quarter 2004. In the first
quarter of our fiscal year we typically bill out a high percent of OEM
equipment at lower margins. In 2005 a majority of those sales were
pushed back into the second quarter; bringing our gross profit as a
percent of sales down slightly for the quarter. Year to date gross
profit as a percent of sales is 31% which is a 3% increase over the same
period in 2004.
Our income before tax, year to date, is at $768,000, a $526,000 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 up $151,000, compared to a year ago, despite the
fact that we 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 out
those expenses in cash until we deplete our net operating loss carry
forward, which is currently at approximately $1,090,000.
We continue our research and development of new products, with total
spending year to date of $184,000. It is our belief that continuing to
bring new products to market will enhance our future.
The order backlog as of May 31, 2005 is $3,042,000 compared to
$3,936,000 one year ago. In 2004 our backlog started increasing
significantly 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 cyclical
trend. We will have two new product offerings in 2006 and expect the
backlog to peak again at that time. Our current order backlog consists
primarily of sugar beet 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.
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: July 13, 2005 By: /s/ John C. Breitung
John C. Breitung, President and CEO