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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000007623-07-000003.txt : 20070227
<SEC-HEADER>0000007623-07-000003.hdr.sgml : 20070227
<ACCEPTANCE-DATETIME>20070226182452
ACCESSION NUMBER:		0000007623-07-000003
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20061130
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20070227
DATE AS OF CHANGE:		20070226

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ARTS WAY MANUFACTURING CO INC
		CENTRAL INDEX KEY:			0000007623
		STANDARD INDUSTRIAL CLASSIFICATION:	FARM MACHINERY & EQUIPMENT [3523]
		IRS NUMBER:				420920725
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0531

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-05131
		FILM NUMBER:		07650651

	BUSINESS ADDRESS:	
		STREET 1:		P O BOX 288
		CITY:			ARMSTRONG
		STATE:			IA
		ZIP:			50514
		BUSINESS PHONE:		7128643131

	MAIL ADDRESS:	
		STREET 1:		P O BOX 288
		CITY:			ARMSTRONG
		STATE:			IA
		ZIP:			50514
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>press8ka.txt
<TEXT>
                                UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                           Washington, D. C. 20549

                                  FORM 8-K

                                CURRENT REPORT
                        PURSUANT TO SECTION 13 OR 15(d)
                   OF THE SECURITIES EXCHANGE ACT OF 1934

      Date of Report (Date of earliest event reported) February 26, 2007

                    ART'S-WAY MANUFACTURING CO., INC.
          (Exact Name of Registrant As Specified In Its Charter)

                                 Delaware
              State or Other Jurisdiction of Incorporation

                     0-05131                     42-0920725
	           (Commission File No.)        (IRS Employer
                                             Identification Number)

                                 P.O. Box 288
                            Armstrong, Iowa 50514
            (Address of Principal Executive Offices) (Zip Code)

                             (712) 864-3131
            (Registrant's Telephone Number Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see General Instructions A.2 below):

___ Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)

___ Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)

___ Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))

___ Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CRF 240.13e-4 (c))

                               Form 8-K

     Item 2.02   Results of Operations and Financial Condition

Art's-Way Manufacturing Co., Inc (the "Company") issued a press release on
February 26, 2007 with earnings information on the Company's quarter ended
November 30, 2006.  The press release is furnished with this Form 8-K as
Exhibit 99.1

Item 9.01     Financial Statements and Exhibits

Exhibit 99.1 Press Release, dated February 26, 2007, issued by the Company.

The information contained in this Current Report under Item 2.02,
including the exhibit referenced in Item 9.01, is being "furnished' pursuant
to "Item 2.02 Results of Operations and Financial Condition" of Form 8-K and,
as such, shall not be deemed to be "filed" for the purposes of Section 18 of
the Securities and Exchange Act of 1934, as amended, or otherwise subject to
the liabilities of the Section. The information in Item 2.02 of this Current
Report shall not be incorporated by reference into any registration statement
or other document pursuant to the Securities Act of 1933, as amended, except
as shall be expressly set forth by specific reference in such filing.

                           SIGNATURE mation cont

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                     ART'S-WAY MANUFACTURING CO., INC.

Date: February 26, 2007                  By: /s/ Carrie L. Majeski
                                         Carrie L. Majeski
                                         Chief Financial Officer



                          Exhibit Index

                           Description

Exhibit No. 99.1     Press Release, dated February 26, 2007, issued by the
                     Company.
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>2
<FILENAME>exhbt99t.txt
<TEXT>

                        Exhibit No. 99.1

         ART'S-WAY FOURTH QUARTER AND 12 MONTH RESULTS

ARMSTRONG, IOWA - Art's-Way Manufacturing Co., Inc., today (February 26,
2007) released the following results for the fiscal fourth quarter and
twelve months ended November 30, 2006.

Highlights:
   "   Fiscal Year 2006 sales exceeded 2005 by 36%
   "   Earnings per share for the fourth quarter increase .04 over the
       same period in 2005
   "   Year to date earnings per share are down .03 over the same period in
       2005, of that decrease .07 per share is due directly to a one
       time change in our bonus accrual method
   "   As of February 2006 order backlogs increased to $11,792,000 compared
       to $7,158,000 a year ago, newly acquired Art's-Way Scientific, Inc.
       attributed $5,715,000 of the overall increase

                              (All figures in thousands of dollars except
                                         per share amounts)
                                            Quarter Ended
                                November 30, 2006    November 30, 2005

Net Sales. . . . . . . . . .         $ 5,384              $ 3,037
Gross Profit. . . . . . . .            1,640                1,059
Income from Operations. . .              556                  382
Interest and Other Expense.              133                   68
Income before Income Taxes .             423                  314
Income Tax Expense (Benefit)              95                   88
Net Income . . . . . . . . .             328                  226
Basic Income Per Share (a). .         $ 0.16               $ 0.12
Diluted Income Per Share (b)          $ 0.16               $ 0.11

                                           Twelve Months Ended
                                November 30, 2006    November 30, 2005

Net Sales . . . . . . . . .         $ 19,854             $ 14,619
Gross Profit . . . . . . .             5,705                4,405
Income from Operations. . .            1,773                1,690
Interest and Other Expense .             356                  215
Income before Income Taxes .           1,417                1,474
Income Tax Expense (Benefit)             483                  497
Net Income . . . . . . . . .             934                  977
Basic Income Per Share (a) .          $ 0.47               $ 0.50
Diluted Income Per Share (b)          $ 0.47               $ 0.50

(a)  Basic income per share based on the weighted average number of
     shares outstanding 1,973,890 and 1,963,176 for the quarter and 1,970,998
     and 1,951,108 for the twelve months ended November 2006 and 2005,
     respectively.

(b)  Diluted income per share based on the weighted average number of shares
     outstanding 1,979,827 and 1,972,666 for the quarter; and 1,978,430 and
     1,970,221 for the twelve months ended November 2006 and 2005 respectively.

Our consolidated revenue of $19,854,000 for 2006 represents a 36%
increase when compared to $14,619,000 for 2005. Art's-Way Vessels had
revenues of $3,797,000, compared to $358,000 in 2005, the year in which
we acquired the assets. Art's-Way Scientific had revenues of $1,032,000,
for the period from its acquisition in August 2006 through November
2006. Art's-Way Manufacturing had revenues totaling $15,025,000.
Art's-Way Manufacturing's branded products increased by $992,000 while
OEM sales increased by $228,000.

Gross profit as a percent of sales was 29% for 2006 compared to 30% for
2005. While we worked to retain and improve our profit margins with
pricing, we have also experienced some disruption due to the acquisition
and integration of Art's-Way Vessels and Art's-Way Scientific.
Furthermore, we have made some significant changes to our manufacturing
methods in our Armstrong facility that had caused inefficiencies during
the transition from a batch build to a more lean continuous flow for the
production of our grinder mixer line. We also had a number of products
that went from the design stage into production; this seems to hurt our
efficiencies for a certain amount of time. We do believe that we have
instilled new disciplines and expect to regain our gross profit in 2007.

Consolidated operating expenses in 2006 increased $1,217,000 from 2005.
Art's-Way Vessels represents $736,000 of that increase, Art's-Way
Scientific represents $269,000 while Art's-Way Manufacturing represents
$230,000 of the total. As a percent of sales, operating expenses were
20% and 19%, respectively, when comparing 2006 and 2005.

Consolidated engineering expenses for Art's-Way Manufacturing decreased
by $56,000. This was due to a decrease in research and development from
2005 when we were developing an exportable beet harvester, defoliator
and a new domestic defoliator.

Consolidated selling expenses for Art's-Way Manufacturing increased
$141,000 from 2005 to 2006. The newly acquired Art's-Way Scientific,
accounts for $71,000. Art's-Way Manufacturing selling costs increased
$70,000 as this segment increased its marketing efforts to better
penetrate our customers and markets.

Consolidated general and administrative expenses increased by
$1,131,000. The addition of Art's-Way Scientific resulted in an increase
of $198,000. Art's-Way Vessels resulted in an increase of $737,000.
Art's-Way Manufacturing accounted for an increase of $215,000. In 2006
we accrued for bonuses paid out in 2007 based on the results of 2006.
This was the first year that we accrued for bonuses, as in the past
bonus amounts were not known until after the reporting period was
closed. This change in accounting resulted in an increase in general and
administrative expenses of $133,000 compared to 2005. Other cost
increases for Art's-Way Manufacturing included on-going expenses to
implement a new Enterprise Resource Planning system, costs related to
our 50th anniversary milestone and normal inflationary increases.

Art's-Way Manufacturing experienced a 65% increase in consolidated
interest and other expenses in 2006 compared to 2005. Interest expense
accounted for substantially all of the increase and was due to higher
average loan balances, as we borrowed an additional $1,500,000 to
finance acquisitions and equipment purchases, and increased interest
rates.

Income before tax in 2006 was down slightly to $1,417,000 compared to
$1,474,000 in 2005. Net income of $934,000 for 2006 compared to $977,000
in 2005.

We continue to strive to reduce costs, and continue our move to a lean
manufacturing environment. We also continue to invest in our future
through research and development as well as new equipment and
acquisitions. We believe that as of the end of fiscal 2006, our overall
company has strengthened through new product offerings and the
acquisition of Art's-Way Scientific. The backlog of orders booked in
February 2007, totaled approximately $11,792,000 compared $7,158,000 in
consolidated backlog a year ago. Overall, we are looking forward to
another strong year in 2007.

Art's-Way manufactures and distributes farm machinery niche products
including animal feed processing equipment, sugar beet and potato
harvesting equipment, edible bean equipment, land maintenance equipment,
finished mowing, crop shredding equipment and seed planting equipment.
Art's-Way also produces haylage machinery for several original equipment
manufacturers (OEM's). Starting in fiscal 2004, the Company is
manufacturing moldboard plows under its own label under a license
agreement with CNH. After market service parts are also an important
part of the Company's business. Our wholly owned subsidiary Art's-Way
Vessels Inc. manufactures pressurized tanks and vessels. Our wholly
owned subsidiary Art's-Way Scientific Inc. manufactures modular
buildings.

This news release includes "forward-looking statements" within the
meaning of the federal securities laws. Statements of anticipated future
results are based on current expectations and are subject to a number of
risks and uncertainties, including but not limited to, quarterly
fluctuations in results, customer demand for the Company's products,
domestic and international economic conditions, the management of growth
and other risks detailed from time to time in the Company's Securities
and Exchange Commission filings. Actual results may differ markedly from
management's expectations. The Company cautions readers not to place
undue reliance upon any such forward-looking statements.

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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