Art’s Way reports over 30 percent increase in net sales
Art’s Way reports over 30 percent increase in net sales
Art's Way Manufacturing Co. Inc., a leading manufacturer and distributor of farm machinery, has announced its financial results for the fiscal year ended Nov. 30, 2012.
"A very healthy farm income has encouraged farmers to purchase new equipment and to expand operations, and this bodes well for Art's Way Manufacturing in the coming quarters,” stated J. Ward McConnell Jr., chairman of the board. “Art's Way's performance in 2012 was outstanding, and we look forward to executing our 2013 growth strategy to return greater shareholder value.
“"I want to thank all of our dedicated and hardworking employees and our loyal shareholders for their support," he added.
Art’s Way’s total net sales increased 31.9 percent, from $27.6 million in fiscal year 2011 to $36.5 million in fiscal year 2012. This was mainly due to increased revenues from the company’s modular buildings segment. In late 2011 the company secured a large job with Whiting Turner to produce a facility for Stanford University for approximately $9 million. That project significantly increased net sales in 2012.
Total operating income increased from $1.93 million in fiscal year 2011 to $4.328 million in fiscal year 2012. Meanwhile, net income for the fiscal year ended Nov. 30, 2012, increased from $1.249 million to $2.665 million an increase of 113.4 percent. The increase was primarily attributable to higher net sales and operating income in our modular buildings segment.
"We are delighted with our 2012 results. Our year-end results were exceptional and capped off a year during which we produced outstanding top- and bottom-line results every quarter. Full-year earnings per share grew 112.9 percent over 2011, and we returned over $400,000 in dividends to our shareholders.
"Net sales for our agricultural products segment were up nearly 9.3 percent due primarily to the acquisition of Universal Harvester Co. Inc.,” he added. “Our pressurized vessels segment's net sales were up 16.4 percent. I am delighted to report that our agricultural products and pressurized vessels segments continued to show revenue improvements, and we have made solid progress with customer growth initiatives at our pressurized vessels segment.
“Although we can not expect to maintain our sales levels from 2012 in the coming year, we do expect new growth as a result of our relationship with Whiting Turner Contracting Co. and Stanford University, as well as expanding our modular building offerings into new and growing markets.
"Our consolidated balance sheet indicates a strong financial position. To punctuate that, during fiscal year 2012, we were able to pay off our line of credit.
Art's Way manufactures and distributes farm machinery niche products, including animal feed processing equipment, sugar beet defoliators and harvesters, land maintenance equipment, crop-shredding equipment, round hay balers, plows, hay and forage equipment, manure spreaders, reels for combines and swathers, and top- and bottom-drive augers, as well as pressurized tanks and vessels, and modular animal confinement buildings and laboratories.
After-market service parts are also an important part of the company's business. The company has three reporting segments: agricultural products; pressurized tanks and vessels; and modular buildings.
Art's Way purchased the former Atwood facility in West Union in 2010. This allowed room for the continued expansion of the Art’s Way farm equipment product offering.