Art’s Way Reports 2024 Earnings
Agricultural Products segment’s net sales fell 34.7% in fiscal 2024 to $14.66 million, down from $22.47 million in 2023. Lower commodity prices reduced demand, triggering industry-wide layoffs and production cuts. Dealers also had excess inventory from 2023 due to high demand and supply chain issues. In early 2024, rising interest rates and lower commodity prices further pressured farm income. Gross profit margin declined from 29.3% to 28.3% due to inflation, rising steel costs, and increased overhead. However, they anticipated that solid demand, reduced overhead expenses, improved liquidity and reduced interest expense from debt reduction will result in improved profitability and cashflow in fiscal 2025.
Operating income (continuing operations): Our consolidated operating income from continuing operations for the 2024 fiscal year was $461,000 compared to operating income of $1,531,000 for the 2023 fiscal year. Our Agricultural Products segment had an operating loss of $1,510,000, and our Modular Buildings segment had operating income of $1,971,000.
Net income (loss) per share (continuing operations): Loss per basic and diluted share from continuing operations for the 2024 fiscal year was $(0.02), compared to net income of $0.15 per share for the 2023 fiscal year.
Consolidated net income (continuing and discontinued operations): Consolidated net income for the 2024 fiscal year was $307,000 compared to net income of $267,000 in the 2023 fiscal year.
Marc McConnell, Chairman, President and CEO of Art’s Way states, “Fiscal 2024 was a year of considerable challenges and transition at Art’s Way, yet one that demonstrated the benefits of our diversification strategy. Amid a significant down cycle in the farm equipment industry, we experienced a reduction in demand along with our industry peers. Meanwhile we benefited greatly from the tremendous growth and operational performance in our Modular Buildings segment. We responded to challenges in our Agricultural Products segment by focusing closely on cost reductions, reducing debt, and improving cashflow while maintaining our emphasis on quality, innovation, and customer experience. We are confident these measures position the company for improving markets in the future and are pleased to report that our current debt level represents a historical low.
Going forward we have meaningful reason for optimism in both business segments for 2025 and beyond. There are positive indications in the dairy and livestock markets that could drive demand for our products serving those markets. We also carry positive momentum into the new year in our Modular Buildings segment that we believe we can sustain. On a consolidated basis we anticipate that solid demand, reduced overhead expenses, improved liquidity and reduced interest expense from debt reduction will result in improved profitability and cashflow in fiscal 2025.”
ArtsWay-mfg.com| Member since 1961