Arts Way Reports 18% Increase In Earnings for First Half
Art’s Way Manufacturing Co., Inc., Armstrong, IA, announced its financial results for the three and six months ended May 31, 2013.
Net Income: The company said that net income of $1,334,000 for the six months ended May 31, 2013, a 18.2% increase.
Net Sales: For the three and six month period, net sales were at $9,250,000 and $17,665,000, respectively, compared to $11,685,000 and $17,997,000 during the same respective periods in 2012, a $2,435,000, or 20.8%, decrease for the quarter and a $332,000, or 1.8%, decrease year-to-date.
Consolidated gross profit margin for the second fiscal quarter was 27.7% compared to 27.0% during the same quarter of 2012. Gross profit margin year-to-date of 2013 was 27.9% compared to 25.7% for year-to-date of 2012.
Manufacturing: The company’s second fiscal quarter sales were at $7,716,000, compared to $8,006,000 during the same period of 2012, a decrease of $290,000, or 3.6%. Year-to-date sales were up to $14,720,000, from $11,994,000 as of May 31, 2012, an increase of $2,726,000, or 22.7%. The year over year increase in revenue was due primarily to additional sales of $2,917,000 attributable to the acquisition of Universal Harvester Co., Inc. in May 2012. Gross margin for the quarter ended May 31, 2013 was 26.0%, compared to 30.7% for the same period in 2012. The year-to-date gross margin was 26.9% compared to 29.2% in 2012. The decrease is primarily attributable to the timing of beat harvester deliveries.
Income: Consolidated net income was $514,000 and $1,334,000 for the three and six months period, compared to $936,000 and $1,129,000 for the same respective periods in 2012. The changes to net income for the six month period were primarily attributable to the timing in net sales, offset by the first fiscal quarter net gain realized from the sale of certain land near Armstrong, IA.
J. Ward McConnell Jr., Chairman of the Board of Directors said, “The three and six months quarterly financial results are not as robust as we would like due to the cyclicality of our business and the timing of key beet harvester sales being primarily in June. Growth at times can be somewhat uneven. Additionally, we have launched a national marketing and advertising campaign to the hog industry with our hog care AG buildings to define the Art’s Way brand more clearly, expand market awareness and grow our customer base.”
Art’s Way, Association member since 1961; artsway-mfg.com.