Arts Way Announces First Quarter Results
Art’s Way Manufacturing Co., Inc., Armstrong, IA, announced its financial results for the three months ended February 28, 2013.
The company’s consolidated net sales for the three-month period ended February 28, 2013 were $8,415,000 compared to $6,312,000 during the same respective period in 2012, a $2,103,000, or 33.3%, increase for the quarter. Consolidated gross profit margin for the first fiscal quarter and year-to-date of 2013 was 28.2% compared to 23.4% during the first fiscal quarter and year-to-date of 2012.
Company sales were $7,004,000, compared to $3,988,000 during the same period of 2012, an increase of $3,016,000, or 75.6%. The year over year increase in revenue was primarily due to the additional sales of $1,221,000 attributable to the acquisition of Universal Harvester Co., Inc. in May 2012 and the timing of sales of $1,177,000 attributable to Original Equipment Manufacturing.
Gross margin for the quarter ended February 28, 2013 was 28.0%, compared to 26.3% for the same period in 2012. The additional sales provided more volume in which to spread the fixed portion of manufacturing expenses.
Consolidated operating income was $713,000 during the three months ended February 28, 2013 compared to our operating income of $362,000 for the three months ended February 29, 2012. The increase was primarily due to higher net sales. Consolidated net income was $819,000 for the three months ended February 28, 2013, compared to $193,000 for the same respective period in 2012. The changes to net income for the three-month period were primarily attributable to the net gain realized from the sale of the land near Armstrong.
J. Ward McConnell Jr., Chairman of the Board of Directors said, “I am very pleased with first quarter results. Net sales, net income and diluted earnings per share all increased significantly. The solid financial performance in the first quarter demonstrates the continued strength of not only our core business but also the agricultural sector in general.”
“As we head into the balance of 2013 we intend to continue our commitment to strengthening our balance sheet, looking for meaningful and growth oriented acquisitions, and delivering superior results including customer service and increased shareholder value,” McConnell Jr. added.
Art’s Way, Association member since 1961; artsway-mfg.com.