Exhibit 99.1
NEWS RELEASE
Art's-Way Manufacturing Co., Inc.
P.O. Box 288
Armstrong, Iowa 50514
NASDAQ:ARTW CONTACT: John Breitung (712) 864-3131
Email adress: artsway@ncn.net
ART'S-WAY FOURTH QUARTER AND 12 MONTHS RESULTS
ARMSTRONG, IOWA Art's-Way Manufacturing Co., Inc. (the Company) today
(January 28, 2004) released the following results for the fiscal fourth quarter
and twelve months ended November 30, 2003.
Highlights:
Increased Income from Operations by 29.8% for 2003 to $1,041,000
Acquired assets and formed new subsidiary for manufacture of truck bodies
Developed a new sugar beet harvester which will improve our customers
productivity
Put long term financing in place and improved shareholders equity
(All figures in thousands of dollars except per share amounts)
Quarter Ended
November 30, 2003 November 30, 2002
Net Sales $ 2,743 $ 2,778
Gross Profit 920 710
Income from Operations 220 345
Income before Income Tax 163 322
Income Tax Expense (Benefit) (803) --
Net Income 965 322
Basic Income Per Share (a) $ 0.50 $ 0.17
Diluted Income Per Share (b) $ 0.49 $ 0.17
Twelve Months Ended
November 30, 2003 November 30, 2002
Net Sales $ 11,411 $ 10,900
Gross Profit 3,376 2,770
Income from Operations 1,041 802
Income before Income Tax 863 573
Income Tax Expense (Benefit) (801) 4
Net Income 1,664 569
Basic Income Per Share (a) $ 0.86 $ 0.31
Diluted Income Per Share (b) $ 0.85 $ 0.31
Basic income (loss) per share based on the weighted average number of shares
outstanding 1,938,176 for the quarter and for the twelve months in 2003 and
1,938,176 for the quarter and 1,808,423 for the twelve months in 2002.
(b) Diluted income (loss) per share based on the weighted average number
of shares outstanding 1,957,784 for the quarter and 1,954,408 for the
twelve months in 2003 and 1,947,108 for the quarter and 1,811,439 for the
twelve months in 2002.
Income before income tax for the year ended November 30, 2003 was $290,000
higher than 2002. This represents a 51% improvement. There was a deferred
tax benefit of $803,000 that was added back as a year end adjustment that
raised Net Income for the year to $1,664,000.
Sales for the 2003 were up $511,000 despite a continuing sluggish
agricultural industry. $471,000 of the increase was due to the addition of
our new subsidiary, Cherokee Truck Bodies, Inc., which was purchased in
July 2003.
We invested in your company's future by putting into the field new
prototype sugar beet harvesters. These harvesters are modular in design,
innovative and introduced the industry's first 12 row harvesting capability.
This advancement in technology was well received by the sugar beet growers
of the U.S. The investment for these harvesters resulted in a 19% increase
in operating expenses for the year. We also invested in a major revision to
our grinder mixer product offering. Capacity was increased and feed batch
cycle time was reduced by 50%. Both of these products will go to market in
mid to late 2004.
We experienced a 22% decline in interest and other expenses in 2003 due to
our long term financing package that was completed in early 2003. We are
positioned to realize continued improvements in revenue and earnings in 2004.
Art's-Way manufactures and distributes farm machinery niche products
including animal feed processing products, sugar beet and potato harvesting
equipment, edible bean equipment, land maintenance equipment, finished mowing
and crop shredding equipment, and seed planting equipment. Art's-Way also
produces tillage and feed processing machinery for several original equipment
manufacturers (OEM's). After market service parts availability is also an
important part of the Company's business. Cherokee Truck Bodies, a subsidiary,
produces and distributes truck bodies in the agricultural, industrial, and
commercial industries.