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Art's Way Manufacturing Announces 7.5 Percent Increase in Revenue
Iowa Ag Connection - 04/08/2021

Art's Way Manufacturing Co., Inc., Armstrong, Iowa, a diversified, international manufacturer and distributor of equipment serving agricultural, research and steel cutting needs, announces its financial results for the first quarter of fiscal 2021.

Sales: Consolidated corporate sales for the three-month period ended February 28, 2021 were $5,401,000 compared to $5,026,000 during the same period in fiscal 2020, an increase of $375,000, or 7.5%. The increase in consolidated revenue is due to increased sales in our Agricultural Products segment.

First-quarter sales in Agricultural Products segment were $3,500,000 compared to $2,953,000 for the same period in fiscal 2020, an increase of $547,000, or 18.5%. The increase in revenue is due to increased demand for grinder mixers, beet equipment and service parts. Art's Way had a very successful early order program last fall producing the strongest backlog we have seen in the last five years, setting us up for a strong first half of the year. The company attributes the increased backlog to the government payments farmers received last year coupled with recent years of conservative spending during times of agriculture downturn.

First-quarter sales in the Modular Buildings segment were $1,291,000 compared to $1,457,000 for the same period in fiscal 2020, a decrease of $166,000, or 11.4%. The decrease in revenue is due largely to the progress on a large construction contract that neared completion at the end of the first quarter of fiscal 2021. Quoting activity for modular buildings increased greatly during the first quarter of fiscal 2021 compared to activity during fiscal 2020. Art's Way believes this bodes well for this business segment going forward.

The company's Tools segment had sales of $610,000 during the first quarter compared to $616,000 for the same period in fiscal 2020, a decrease of $6,000, or 1.0%. While the sales volume for the first quarter of fiscal 2021 is comparable to that of the first quarter of fiscal 2020, the company believe sthis segment has the potential to grow as gas prices increase and as it is fully able to handle the volume of our OEM customer.

Net Loss: Consolidated net loss was $(315,000) for the three-month period ended February 28, 2021 compared to net loss of $(437,000) for the same period in fiscal 2020. The decreased net loss is due to increased sales in our Agricultural Products segment and a decrease in consolidated administrative costs. The company is carrying strong backlogs into the second quarter in two of three segments and are expecting improved results for the second quarter of fiscal 2021.

Loss per Share: Loss per basic and diluted share for the first quarter of fiscal 2021 was ($0.07), compared to loss per basic and diluted share of $(0.10) for the same period in fiscal 2020.

President and CEO of Art's Way Manufacturing, David King reports, "We are pleased to report top-line growth in the first quarter due to the increased revenue in our Agricultural Products segment. With strong backlogs for the Agricultural Products and Tools segments, as well as increased quoting activity for Modular Buildings, we are optimistic about continued revenue growth for the remainder of the year."

"While our outlook for the year is positive, we continue to navigate challenges related to increased prices for steel, building materials and purchased components along with availability issues. As such, we have raised prices where necessary and are diligently working with suppliers to ensure delays do not negatively affect our ability to deliver products."

King also states, "We are excited to announce the launch of a new logo and branding initiative for the Agricultural Products segments during the second quarter that will position the company as a forward-thinking power player in the agricultural equipment manufacturing industry. We're not only updating the brand; we're recommitting our efforts to better serve dealers and operators."


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