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, 2004
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, 2004
ARMSTRONG, IOWA - Art's-Way Manufacturing Co., Inc., today (October 14,
2004) released the following results for the fiscal third quarter and
nine months ended August 31, 2004.
Highlights:
*Order backlogs are up to $2,564,000, compared to $782,000 a year ago
*Year to date sales continue to exceed 2003, by 4%
*Net income year to date shows a growth of 18%,
due to deferred tax realization
(all figures in thousands of dollars except per share amounts)
Quarter Ended
August 31, 2004 August 31, 2003
Net Sales $3,399 $3,808
Gross Profit 914 953
Income from Operations 301 380
Interest and Other Expense 16 56
Income before Income Taxes 285 323
Income tax expense (benefit) (200) 0
Net Income 485 323
Basic Income Per Share (a) $0.25 $0.17
Diluted Income Per Share (b) $0.25 $0.17
Nine Months Ended
August 31, 2004 August 31, 2003
Net Sales $9,208 $8,876
Gross Profit 2,536 2,296
Income from Operations 609 822
Interest and Other Expense 81 121
Income before Income Taxes 527 700
Income tax expense (benefit) (300) 2
Net Income 827 698
Basic Income Per Share (a) $0.43 $0.36
Diluted Income Per Share (b) $0.42 $0.36
(a) Basic income per share based on the weighted average number of
shares outstanding 1,938,176 for all periods presented.
(b) Diluted income per share based on the weighted average number of
shares outstanding: 1,958,243 for the quarter and 1,958,574 for the nine
months in 2004 and 1,954,279 for the quarter and 1,950,712 for the nine
months in 2003
Fiscal year 2004, third quarter, net sales decreased by 10.8%, due to
the timing of sales. We are expecting a spike in sales in the fourth
quarter compared to 2003, due to carry over sales of beet equipment and
increased sales of feed grinding equipment. Year to date sales remain
3.7% ahead of last year.
Gross profit, as a percent of sales was 27% for the quarter ended August
31, 2004, as compared to 25% a year ago. Year to date through August 31,
2004, gross profit was 28% compared to 26% for the prior year. Our 2004
beet equipment was sold on a contractual basis prior to the steel price
increases, consequently our gross profit suffered, as we had to absorb
price increases of approximately $225,000. Increasing steel prices
are now being offset through Art's-Way product price increases.
Net income of $485,000 for the third quarter of 2004, compares to
$323,000 for the prior year third quarter. Net income was positively
affected by a $200,000 tax benefit recorded due to a decrease in the
valuation allowance for deferred tax assets in the third quarter, and
$300,000 year to date. Year to date net income of $827,000 compares to
$698,000 one year ago, representing a 18% increase.
During the fiscal year our overall company has strengthened
significantly, through the consolidation of manufacturing facilities and
new product offerings. Orders as of August 31, 2004 are up to
$2,564,000, representing a 228% increase over the same period a year
ago. The increase is driven primarily from orders of sugar beet
equipment, and feed grinders. We are expecting a positive fourth quarter
due to these increased backlog numbers.
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: October 14, 2004 By: /s/ John C. Breitung
John C. Breitung, President and CEO