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1ST QUARTER: ART'S WAY'S REVENUERS UP 41%, RETURNS TO PROFITABILITY: $342K
Apr. 15, 2024
Source: Art's Way news release
ARMSTRONG, IOWA - Art's Way Manufacturing Co., Inc. (Nasdaq: ARTW) (the "Company"), 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 2023.
Sales: The Company's consolidated corporate sales for the three-month period ended February 28, 2023 were $7,895,000 compared to $5,613,000 during the same period in fiscal 2022, an increase of $2,282,000, or 40.7%. The Company had increased sales across all three of its business segments for the three months ended February 28, 2023 compared to the same period of fiscal 2022.
The Company's first fiscal quarter sales in its Agricultural Products segment were $5,445,000 compared to $4,161,000 for the same period in fiscal 2022, an increase of $1,284,000, or 30.9%. Because of strong demand and continued manufacturing efficiency improvements, this segment was able to build on recent success and significantly increase sales. This included increased first fiscal quarter sales in its portable feed, manure spreader, land maintenance, top spread and defoliator products. The availability of its products allowed the Company to successfully capitalize on a recent period of heightened demand, a testament to the manufacturing improvements it recently made. In addition, the Company believes its rebranding efforts and improved customer experience processes are being noticed within the industry.
The Company's first quarter sales in its Modular Buildings segment were $1,642,000 compared to $868,000 for the same period in fiscal 2022, an increase of $774,000, or 89.2%. This segment had a light first quarter of fiscal 2022 as the approval process for some large research projects extended beyond initial expectations. The first quarter of fiscal 2023 was met with a steady stream of project work in both the agriculture and research sectors and led to the increase in sales. The Company's fiscal 2022 revenue was dominated by agricultural buildings, while its fiscal 2023 backlog is being filled with research buildings that typically carry better margins.
The Company's Tools segment had sales of $808,000 during the first quarter compared to $584,000 for the same period in fiscal 2022, an increase of $224,000, or 38.4%. The sales increase for the first quarter of fiscal 2023 was due to a more stable workforce than the Company experienced over the past fiscal year coupled with automation equipment that was put in place. The Company believes this segment's demand remains steady and expects price increases that were put into place last fiscal year to continue to help with sales increases and improved margins.
Net Income (Loss): Consolidated net income was $342,000 for the three-month period ended February 28, 2023 compared to net loss of $(406,000) for the same period in fiscal 2022. The Company reported net income in two of its three segments for the first fiscal quarter of 2023 and operating income in all three segments. Despite the first fiscal quarter historically being the slowest for the Company's Agricultural Products segment, the Company was able to meet its customers' inventory demands to finish out with a solid first quarter in fiscal 2023. The Company's Modular Buildings segment started to ramp its production up with research buildings at the end of first quarter of fiscal 2023 and the Company believes it is poised for a strong year. The Tools segment has had steady revenue and production so far in fiscal 2023 and the Company believes this is likely to continue based on current backlog.
Income (Loss) per Share: Income per basic and diluted share for the first quarter of fiscal 2023 was $0.07, compared to loss per basic and diluted share of $(0.09) for the same period in fiscal 2022.
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