Art’s Way Manufacturing Announces 18.9% Increase in Agricultural Products Segment Revenue Year-Over-Year for the First Quarter of Fiscal 2022, 3.9% Increase for Consolidated Operations
ARMSTRONG, IA/ACCESSWIRE/April 4, 2022/ Art’s Way Manufacturing Co., Inc. (NASDAQ: ARTW), a diversified international manufacturer and marketer of equipment serving the needs of agriculture, research and steel cutting, announces its financial results for the first quarter of fiscal year 2022.
|For the three months ended|
|February 28, 2022||February 28, 2021|
Weighted average shares outstanding:
Sales: Our consolidated corporate sales for the three-month period ended February 28, 2022 amounted to $5,613,000 compared to $5,401,000 during the same period of fiscal 2021, an increase of $212,000, or 3.9%. The increase in consolidated revenues is attributable to the increase in sales of our Agricultural Products sector.
Our first quarter sales in our Agricultural Products segment amounted to $4,161,000 compared to $3,500,000 for the same period of fiscal 2021, an increase of $661,000 or 18.9%. The increase in revenue is due to increased demand for our mixer grinders, beet equipment and manure spreaders. For the second year in a row, we have had historic success under the advance order program and we have a record order backlog. High commodity prices have created hard to meet demand within the agricultural industry due to labor and supply chain shortages, which has in turn increased the number of advance orders we see. We have taken steps to address labor shortages, including installing robotic welding cells and other new equipment that makes our existing workforce more efficient and increases production. workshop.
Our first quarter sales in our modular buildings segment were $868,000 compared to $1,291,000 for the same period of fiscal 2021, a decrease of $423,000 or 32.8%. The decline in our revenue is largely due to the advancement of a major construction contract that was nearing completion at the end of the first quarter of fiscal 2021. We continue to see strong business demand in this sector despite the slow start to the 2022 financial year.
Our Tools segment recorded sales of $584,000 during the first quarter compared to $610,000 for the same period of fiscal 2021, a decrease of $26,000 or 4.3%. The Tools segment experienced labor shortages in the first month of fiscal 2022, leading to disappointing sales in December. While labor shortages continued through the first quarter of fiscal 2022, production was flat in the 2n/a and 3rd months of fiscal 2022 to mitigate further losses. As the labor market continues to be very competitive in Canton, OH, we are working on automated solutions to address labor issues in the second quarter of fiscal 2022. Demand has increased in this segment in fiscal year 2022 and we currently have the largest backlog ever.
Net loss: Consolidated net loss was $(406,000) for the three-month period ended February 28, 2022, compared to a net loss of $(315,000) for the same period of fiscal 2021. Although we After showing improved results from our Agricultural Products segment, our Modular Buildings and Tools segments struggled during the first fiscal quarter of 2022. The first quarter of our fiscal year is typically our worst performing quarter of the year. year due to the timing of orders and production in our agricultural products segment. Our production increases in the spring and summer in this segment and slows down again during the winter months. Our Tools segment manages the backlog for success for the remainder of the fiscal year as we address labor shortages through automation. The modular buildings segment will work on securing additional contracts to stabilize revenues for the remainder of the year.
Loss per share: Basic and diluted loss per share for the first quarter of fiscal 2022 was ($0.09), compared to a basic and diluted loss per share of ($0.07) for the same period of fiscal year 2021.
President and CEO of Art’s Way Manufacturing, reports David King,
“I am very pleased to see our growth strategy delivering revenue increases for consecutive quarters. Although our outlook for the year is positive, we remain focused on investing in capital equipment that helps us improve our efficiency and overcome labor shortages at all of our facilities.
“Supply chain issues and inflation continue to create product availability challenges and put pressure on our margins. I am very proud of the extraordinary efforts our team and suppliers have made to manage the situation and to persevere in this difficult environment.
King also said, “Continued strong demand for our products has led to the highest backlog levels in recent company history and we expect favorable market conditions to continue to drive interest. for the Agricultural Products and Implements divisions. In our modular building segment, we expect increased activity in the second and third quarters as we finalize ongoing projects. »
About Art’s Way Manufacturing Co., Inc.
Art’s Way manufactures and distributes niche agricultural machinery products including animal feed processing equipment, sugar beet strippers and harvesters, land care equipment, forage equipment, manure spreaders , as well as modular animal containment buildings and laboratories, and specialized tools and inserts. Aftermarket spare parts are also an important part of Art’s-Way’s business. Art’s-Way has three reporting segments: agricultural products; modular buildings; and tools.
For more information, contact: David King, Managing Director
Or visit our website at www.artsway-mfg.com/
This press release contains “forward-looking statements” within the meaning of the federal securities laws. Statements made in this release that are not strictly statements of historical facts, including our expectations regarding: (i) our business position; (ii) the potential growth of our businesses; (iii) future results, including timing of enhanced performance; and (iv) the benefits of our business model and strategy, are forward-looking statements. 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: customer demand for our products; the creditworthiness of our customers; our ability to operate at lower expense levels; our ability to complete projects in a timely and efficient manner in accordance with customer specifications; our ability to renew or obtain financing on reasonable terms; our ability to repay current indebtedness, continue to service our indebtedness and meet financial covenants; national and international economic conditions; the ongoing COVID-19 outbreak; factors affecting the strength of the agricultural sector; the cost of raw materials; unexpected changes in the performance of our operating segments; obstacles related to the liquidation of product lines and segments; and other factors detailed from time to time in our filings with the Securities and Exchange Commission. Actual results may differ materially from management’s expectations. We caution readers not to place undue reliance on these forward-looking statements. We do not intend to update forward-looking statements other than as required by law.
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