Exhibit 99.1
NASDAQ:ARTW CONTACT: Carrie Majeski
(712) 864-3131
Email address: artsway@ncn.net
ART'S-WAY FIRST QUARTER AND 3 MONTHS RESULTS
ARMSTRONG, IOWA - Art's-Way Manufacturing Co., Inc. today (April 16,
2007) released the following results for the fiscal first quarter and
three months ended February 28, 2007.
Highlights:
" Net sales increased $973,000 compared to the same period a
year ago.
" Gross profit increased $123,000 compared to the same
period a year ago.
" As of March 2006 order backlog increased to $12,112,000
compared to $5,436,000 a year ago. Newly acquired Art's-Way
Scientific, Inc. attributed $6,064,000 of the overall increase.
(All figures in thousands of dollars except per share amounts)
Quarter Ended
February 28, 2007 February 28, 2006
Net Sales . . . . . . . . . $ 5,275 $ 4,302
Gross Profit . . . . . . . . 1,498 1,375
Income from Operations . . . 507 491
Interest and Other Expense(Income) (77) 66
Income before Income Tax . . 584 425
Income Tax Expense . . . . . 203 153
Net Income . . . . . . . . . 380 272
Basic Income Per Share (a) . $ 0.19 $ 0.14
Diluted Income Per Share (b) $ 0.19 $ 0.14
(a) Basic income per share based on the weighted average number of
shares outstanding 1,978,176 and 1,964,009 for the quarters ended
February 28, 2007 and 2006, respectively.
(b) Diluted income per share
based on the weighted average number of shares outstanding 1,982,502 and
1,976,443 for the quarters ended February 28, 2007 and 2006,
respectively.
Our consolidated net sales for the first quarter of 2007 increased 23%
to $5,275,000 as compared to $4,302,000 for 2006. A majority of this
increase was due to the inclusion of Art's-Way Scientific, Inc. with net
sales of $950,000, for the first quarter which was acquired in August of
2006 and therefore was not included in last year's first quarter.
Art's-Way Manufacturing had revenues totaling $3,273,000 for the first
quarter, compared to $3,629,000 for the same period in 2006. This
decrease was due to a reduction in sales to our OEM dealers for blowers.
Art's-Way Vessels had revenues totaling $1,052,000 for the first
quarter, compared to $674,000 for the same period in 2006.
Art's-Way Manufacturing's gross profit decreased in the quarter to 28%
as compared to 32% in 2006. The decrease was due primarily to the addition of
Art's-Way Scientific. When we purchased Art's-Way Scientific we also
purchased their backlog and had to honor pricing from the prior owners.
Art's-Way Scientific's gross profit was 20% for the first quarter of
2007. Art's-Way Manufacturing's gross profit was 30% while Art's-Way
Vessel's was 32%.
Operating expenses for the quarter increased $107,000 compared to 2006.
However, as a percent of sales, operating expenses decreased by two
percentage points - 19% in 2007 compared to 21% in 2006. Art's-Way
Manufacturing's operating expense as a percentage of sales decreased
from 20% in 2005 to 18% in 2006. Art's-Way Vessel operating expenses as
a percentage of sales were 12%.
General and administrative expenses for the quarter increased $78,000 as
compared to 2006. Substantially all of the increase was due to the
addition of Art's-Way Scientific.
Engineering expenses are down $12,000 for the first quarter of 2007 as
compared to 2006.
Selling expenses were up for the first quarter of 2007 by $40,000. This
is almost entirely due to the addition of Art's-Way Scientific, which
had selling expenses of $38,000.
We experienced an increase in interest expense of $24,000 in the first
quarter of 2007 as a result of a rise in the prime interest rate from
the first quarter of 2006. Other income increased by $166,053 in 2007
compared to 2006. This is the result of accounting for the fire and
insurance in Monona, Iowa.
On January 16th, 2007, one of our buildings in Monona, Iowa, was
completely destroyed by fire. The building housed the production and
offices for Art's-Way Scientific. The 36,000 square foot building was a
stick built structure with steel siding. We were insured for the loss of
the building, its contents as well as the disruption in business. We are
currently working with our insurance company to settle the claim. At
this time we have received $250,000 towards the claim and we have booked
a receivable for the estimated loss of the building of $871,000. We have
incurred costs in excess of $900,000 related to the fire, to include
$334,000 in loss of fixed assets. We are currently working from one of
our other buildings in Monona, Iowa. We are in the process of
determining where we will be rebuilding. It is our intent to be in a new
building by September 2007. We continue to manufacture buildings and
have not lost any orders to date.
The order backlog as of March 31, 2007 is $12,112,000 compared to
$5,436,000 one year ago. Art's-Way Manufacturing's order backlog as of
March is $3,899,000, Art's-Way Vessels is $2,149,000 and Art's-Way
Scientific is $6,064,000.
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, crop shredding equipment and seed planting equipment.
Art's-Way also produces haylage machinery for several original equipment
manufacturers (OEM's). Starting in fiscal 2004, the Company is
manufacturing moldboard plows under its own label under a license
agreement with CNH. Art's-Way also manufactures and distributes truck
bodies used in the agricultural, industrial and commercial industries.
After market service parts are also an important part of the Company's
business. Our wholly owned subsidiary Art's-Way Vessels Inc.
manufactures pressurized tanks and vessels.
This news release includes "forward-looking statements" within the
meaning of the federal securities laws. Statements of anticipated future
results are based on current expectations and are subject to a number of
risks and uncertainties, including but not limited to, quarterly
fluctuations in results, customer demand for the Company's products,
domestic and international economic conditions, the management of growth
and other risks detailed from time to time in the Company's Securities
and Exchange Commission filings. Actual results may differ markedly from
management's expectations. The Company cautions readers not to place
undue reliance upon any such forward-looking statements.