Art’s Way Releases Fiscal 2024 Q1 Results

Art’s Way Manufacturing, a diversified manufacturer and distributor of equipment serving agricultural and research, announced its financial results for the first quarter of fiscal 2024.

art's way

Sales: Consolidated corporate sales from continuing operations for the 3-month periods ended February 29, 2024 were $ 5,723,000 compared to $7,087,000 during the same respective period in fiscal 2023, a $1,364,000, or 19.2%, decrease for the three months.

First quarter sales in our Agricultural Products segment were $4,236,000 compared to $5,445,000 during the same period of fiscal 2023, a decrease of $1,209,000, or 22.2%. They experienced a decrease in demand on their fall 2023 early order program for the first time in 3 years.

With the softening of the agriculture economy, they are expecting decreases in farm income levels from the past two fiscal years and expect that and will continue to affect sales in our Agricultural Products segment. They are also seeing increased inventory on dealer lots compared to a year ago and in turn have seen a slowdown in orders. They have put cost-cutting measures in place to partially mitigate the effect on cash flow from decreased sales. From a sales standpoint, they are working with dealers to help move field inventory to generate more sales opportunities for their products. They are also focused on new dealer acquisitions to penetrate geographic markets that their competitors have a stronghold on.

Net Income (Loss): Consolidated net loss from continuing operations was $424,000 for the 3-month period ended February 29, 2024, compared to net income of $350,000 for the same period in fiscal 2023.

Income (Loss) per Share: Loss per basic and diluted share for continuing operations in the first quarter of fiscal 2024 was $0.09, compared to income per basic and diluted share of $0.07 for the same period in fiscal 2023.

Backlog: The consolidated order backlog net of discounts for continuing operations as of April 3, 2024 was $11,416,000 compared to $12,007,000 as of April 3, 2023, a 4.9% decrease.

David King, Chief Executive Officer King remarked, “While the challenges posed by reduced commodity prices and diminished farm income projections impacted first-quarter revenue within our Agriculture Products segment, we remain steadfast in our pursuit of strategic initiatives fostering growth and operational efficiency. Our emphasis remains on cost reduction through our realignment program, while concurrently positioning ourselves for progressive enhancement via new product launches, integration of technology, and continual expansion of our dealer network.”|Member since 1961