Art's Way Manufacturing Co., (NASDAQ: ARTW), a diversified manufacturer and distributor of equipment serving agricultural, research and steel cutting needs, announces its financial results for the second quarter and year to date fiscal 2019.
|($ in thousands)||3 Months Ended
May 31, 2019
|3 Months Ended
May 31, 2018
Consolidated corporate sales for continuing operations for the three- and six-month periods ended May 31, 2019 were $5,747,000 and $9,871,000, respectively, compared to $5,294,000 and $10,660,000 during the same respective periods in fiscal 2018, a $453,000, or 8.6%, increase for the three months and a $789,000, or 7.4%, decrease for the six months. The three-month increase in revenue is due largely to an $8.4 million project in the modular buildings segment that began in the second quarter of fiscal 2019. We expect this project to be substantially completed by the end of September 2019. The tools segment also saw increased demand during the three months ended May 31, 2019 compared to the same period in fiscal 2018. The six-month consolidated decrease in revenue was driven by a difficult sales climate in agricultural products segment due to spring flooding across the United States, with many farmers planting on historically late dates and some concern that the crops may not be planted at all.
Consolidated gross margin for the three-month period ended May 31, 2019 was 16.7% compared to 20.9% for the same period in fiscal 2018. Consolidated gross margin for the six-month period ended May 31, 2019 was 15.8% compared to 21.2% for the same period in fiscal 2018. This overall decreased gross margin is attributable to decreased gross margin in both agricultural products and modular buildings segments.
Consolidated net (loss) from continuing operations before income taxes was $(459,000) for the three-month period and $(1,240,000) for the six-month period ended May 31, 2019 compared to net (loss) from continuing operations before income taxes of $(780,000) and $(1,085,000) for the same respective periods in fiscal 2018. The decreased net (loss) from continuing operations before income taxes for the three months ended May 31, 2019 is due to increased revenue in modular buildings segment related to the $8.4 million project, cuts made to our selling expenses and reduction of indirect labor in fiscal 2019.
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