Core Viewpoint - Seneca Foods Corporation reported strong unit volume sales growth of over 16% in the third quarter, but faced margin pressures due to a poor 2024 pack season caused by adverse weather conditions [2][6]. Financial Performance - For the third quarter of fiscal 2025, net sales reached $502.9 million, an increase of $58.4 million from $444.5 million in the same quarter last year, driven by higher sales volumes but offset by lower selling prices [7][13]. - For the nine months ended December 28, 2024, net sales totaled $1,233.0 million, up from $1,150.6 million in the prior year, reflecting a year-over-year increase of $82.4 million primarily due to higher sales volumes [6][13]. - Gross margin for the third quarter was 9.8%, down from 12.2% in the previous year, while for the nine months, it was 10.9%, compared to 14.6% in the same period last year [6][7]. Earnings and Adjustments - Adjusted net earnings for the third quarter were $22.9 million, compared to $26.7 million in the prior year, while for the nine months, adjusted net earnings were $58.0 million, down from $80.3 million [4][13]. - Earnings before income taxes for the third quarter were reported at $19.3 million, down from $23.2 million year-over-year, and for the nine months, it was $52.9 million compared to $86.0 million in the previous year [5][13]. Company Overview - Seneca Foods Corporation is a leading provider of packaged fruits and vegetables in North America, sourcing products from over 1,200 American farms and distributing to approximately 55 countries [3]. - The company holds a significant market share in various segments, including retail private label, food service, and industrial products, and is known for brands such as Libby's®, Green Giant®, and Aunt Nellie's® [3].

Sales Performance - Net sales for the three months ended December 28, 2024, totaled $502.9 million, an increase of $58.4 million or 13.1% compared to $444.5 million for the same period in 2023[79] - For the nine months ended December 28, 2024, net sales reached $1,233.0 million, up $82.4 million or 7.2% from $1,150.6 million in the prior year[82] - Canned vegetables and frozen vegetables net sales increased by a combined $53.0 million, driven by higher sales volumes of $66.3 million, partially offset by lower pricing of $13.3 million[80] Profitability and Margins - Gross margin for the three months ended December 28, 2024, was 9.8%, down from 12.2% in the prior year, primarily due to elevated costs outpacing net sales increases[85] - Net earnings for the three months ended December 28, 2024, were $14,659,000, a decrease of 17.0% compared to $17,675,000 for the same period in 2023[117] - EBITDA for the three months ended December 28, 2024, was $39,623,000, down 12.4% from $45,119,000 in the prior year[117] - FIFO EBITDA for the nine months ended December 28, 2024, was $140,259,000, a decrease of 16.0% compared to $166,569,000 for the same period in 2023[117] - For the nine months ended December 28, 2024, adjusted net earnings were $57.99 million, down from $80.32 million for the same period in 2023[113][114] Expenses and Costs - Selling, general, and administrative expenses as a percentage of net sales decreased to 4.5% for the three months ended December 28, 2024, from 5.2% in the prior year[86] - Interest expense for the three months ended December 28, 2024, was $7.8 million, down from $9.4 million in the prior year, reflecting lower average borrowings[90] - The LIFO charge for the nine months ended December 28, 2024, was $23.0 million, compared to $19.6 million in the prior year, impacting the cost of products sold[91] - Interest expense, net of interest income, increased to $27,199,000 for the nine months ended December 28, 2024, compared to $23,146,000 in the prior year, reflecting a rise of 17.7%[117] Cash Flow and Working Capital - Cash provided by operating activities for the nine months ended December 28, 2024, was $243.6 million, compared to cash used of $128.1 million in the same period of the previous year[103][104] - The company experienced a net cash outflow of $213.7 million in financing activities for the nine months ended December 28, 2024, primarily due to a net paydown of $195.0 million on its revolving credit facility[108] - As of December 28, 2024, the company's working capital balance was $579.2 million, a decrease of $90.7 million from the previous quarter[98] - The company reported a current ratio of 3.38 as of December 28, 2024, down from 4.81 in the previous quarter[98] - Net cash used in investing activities was $28.9 million for the nine months ended December 28, 2024, primarily for capital expenditures[106] Market and Operational Risks - The company experienced material cost increases due to supply chain disruptions and raw material shortages, although some factors have started to stabilize[76] - The company continues to face risks related to rising costs of raw materials, labor shortages, and competition, which could impact future performance[122] - The company anticipates potential impacts from climate and weather on crop yields, which could affect operational performance[122] - Adverse weather conditions during the planting and harvesting seasons have negatively impacted crop yields, leading to a higher-cost seasonal pack[101] - The company faced increased working capital needs due to larger annual pack sizes and inflationary pressures in the steel industry[99] Tax and Equity - The effective tax rate for the nine months ended December 28, 2024, was 23.2%, a decrease from 23.8% in the prior year, influenced by federal credits and interest on a tax refund[97] - The company's total stockholders' equity per common share increased to $89.03 as of December 28, 2024, compared to $83.33 as of December 30, 2023[98] Risk Management - There have been no material changes to the company's exposure to market risk since March 31, 2024, indicating stability in risk management strategies[123] - The company is actively managing interest rate risk through a combination of fixed and variable interest rate debt[123] - The company has not reported any material changes to its critical accounting policies or estimates during the nine months ended December 28, 2024[119] - The company aims to manage costs through short-term supply contracts and by raising sales prices, although competitive pressures may limit price increases[77]

Core Viewpoint - Seneca Foods Corporation reported a significant decline in earnings per share (EPS) for the second quarter of fiscal 2025, alongside mixed revenue performance across its product segments [1][7]. Revenue Performance - Seneca Foods registered revenues of $425.5 million in the fiscal second quarter, reflecting a year-over-year increase of 4.4% due to higher sales volumes, product mix, and increased selling prices [2]. - Canned vegetables revenues were $351.3 million, up 6.9% from the previous year, while frozen vegetables revenues decreased by 9.2% to $39.1 million [3]. - Fruit products revenues were $22.3 million, down 2.1%, snack products revenues were $4 million, down 5.1%, and revenues in the Other category totaled $8.8 million, down 0.3% [4]. Profitability Metrics - The gross margin for the quarter was 10.1%, a decrease from 14.3% in the prior year, primarily due to elevated costs [5]. - Operating income totaled $24.7 million, down 35.8% year over year, and net income was $13.3 million, down 46.3% [7]. - FIFO EBITDA for the quarter was $53.5 million, reflecting a decline of 13.5% from the previous year [7]. Operating Expenses - Selling, general, and administrative expenses decreased by 14.1% year over year to $18.1 million [6]. Liquidity and Debt Management - At the end of the second quarter, cash and cash equivalents were $9.5 million, up from $5.5 million at the end of the first quarter, while total debt decreased to $514.5 million from $580.5 million [8]. - Cumulative net cash provided by operating activities was $125.9 million, compared to a net cash used of $26.3 million a year ago [9]. Overall Assessment - The company showed encouraging top-line results, particularly in the canned vegetables segment, but faced disappointing bottom-line results and lower revenues from most product categories, alongside a contraction in gross margin [10].

Financial Performance - Net sales for the three months ended September 28, 2024, totaled $425.5 million, an increase of $18.0 million or 4.4% compared to $407.5 million for the same period in 2023[76] - Net sales for the six months ended September 28, 2024, reached $730.2 million, reflecting a $24.1 million increase or 3.4% from $706.1 million in the prior year[78] - Net sales of canned vegetables increased by $25.4 million for the six months ended September 28, 2024, driven by higher demand and pricing[79] - Net earnings for the three months ended September 28, 2024, were $13,303,000, a decrease from $24,779,000 for the same period in 2023, representing a decline of approximately 46%[116] - EBITDA for the three months ended September 28, 2024, was $38,481,000, compared to $52,470,000 for the same period in 2023, reflecting a decrease of about 27%[116] - FIFO EBITDA for the six months ended September 28, 2024, was $89,717,000, down from $109,423,000 for the same period in 2023, indicating a decline of approximately 18%[116] - Adjusted net earnings for the six months ended September 28, 2024, were $24.611 million, down from $31.775 million for the same period in 2023[114] Cost and Expenses - Gross margin for the three months ended September 28, 2024, was 10.1%, down from 14.3% in the prior year, primarily due to elevated costs[80] - Selling, general, and administrative expenses as a percentage of net sales decreased to 4.2% for the three months ended September 28, 2024, compared to 5.2% for the same period in 2023[81] - Interest expense increased to $9.0 million for the three months ended September 28, 2024, from $7.2 million in the prior year, representing 2.1% of net sales[87] - The company experienced material cost increases due to supply chain disruptions and raw material shortages, although some factors have started to stabilize[73] - The company anticipates challenges in implementing sales price increases and cost-saving measures to offset rising costs[120] Tax and Equity - The effective tax rate for the six months ended September 28, 2024, was 22.7%, a decrease from 23.8% in the prior year, influenced by federal credits and tax refunds[94] - Total stockholders' equity per common share increased to $86.87 as of September 28, 2024, compared to $80.34 a year prior, indicating a growth of 8.5%[96] Cash Flow and Working Capital - Cash provided by operating activities for the six months ended September 28, 2024, was $125.868 million, a significant increase from $(26.279) million for the same period in 2023[102] - Working capital decreased to $669.978 million as of September 28, 2024, down from $724.694 million a year earlier, reflecting a quarterly change of $(36.194) million[96] - The company has experienced an easing of working capital needs, although adverse weather conditions have impacted crop yields and seasonal pack sizes[99] - The company plans to normalize working capital trends, particularly surrounding inventory, due to higher finished goods inventory levels as of the end of fiscal year 2024[98] Investment and Financing Activities - Net cash used in investing activities was $19.916 million for the six months ended September 28, 2024, primarily for capital expenditures of $17.6 million[105] - Net cash used in financing activities was $100.738 million for the six months ended September 28, 2024, mainly due to a net paydown on the revolving credit facility of $90.8 million[107] Risks and Market Conditions - The company faces risks from rising costs of raw materials, labor shortages, and competition, which could impact future performance[120] - The company has not experienced material changes in its exposure to market risk since March 31, 2024, including interest rate fluctuations related to its credit facilities[123] - Forward-looking statements indicate potential impacts from various factors, including supply chain disruptions and regulatory changes[121] Other Financial Metrics - The current ratio as of September 28, 2024, was 2.64, slightly down from 2.67 a year earlier, indicating stable liquidity[96] - The company expects to maintain sufficient liquidity to retire or refinance long-term debt maturing on June 1, 2025, through operating cash flows and access to capital markets[100] - The company incurred minimal restructuring charges during the three months ended September 28, 2024, compared to higher charges in the prior year[82] - Other non-operating income totaled $1.4 million for the three months ended September 28, 2024, slightly up from $1.3 million in the prior year[86] - The company reported a LIFO charge of $14,977,000 for the three months ended September 28, 2024, compared to $9,316,000 for the same period in 2023, an increase of about 61%[116] - There were no material changes to the company's critical accounting policies or estimates during the six months ended September 28, 2024[118] - The company is focused on managing interest rate risk through a combination of fixed and variable interest rate debt[123]

Core Viewpoint - Seneca Foods Corporation reported a significant decline in earnings per share and net income for the first quarter of fiscal 2025, despite a slight increase in revenues year over year [1][8]. Revenue Details - Revenues for the first quarter reached $304.7 million, reflecting a 2% increase from the previous year, driven by higher sales volumes [2]. - Canned vegetables generated $253.7 million in revenue, up 1.1% year over year, while frozen vegetables saw a more substantial increase of 17.6%, totaling $25.3 million [3][4]. - Fruit products revenues increased by 12.6% to $18.8 million, benefiting from higher pricing and sales volumes, whereas snack products revenues decreased by 7.5% to $2.9 million [4]. - The "Other" category experienced a significant decline of 37.9%, totaling $3.9 million, primarily due to lower demand for ancillary products [5]. Gross Margin and Operating Expenses - The gross margin for the quarter was 14%, down from 18.5% in the same period last year, attributed to elevated costs [6]. - Selling, general, and administrative expenses decreased by 11.9% to $17.5 million [7]. Profitability Metrics - Operating profit fell to $25.4 million, a decrease of 28.3% from the prior year, while net income dropped 45.2% to $12.7 million [8]. - FIFO EBITDA for the quarter was reported at $36.3 million, down 23.9% year over year [8]. Liquidity and Debt Management - At the end of the first quarter, cash and cash equivalents increased to $5.5 million from $4.5 million at the end of fiscal 2024, while total debt decreased to $580.5 million from $615.9 million [9]. - Net cash provided by operating activities improved to $50.3 million compared to $25 million a year ago [9]. Overall Assessment - The company showed encouraging top-line results with strength in most revenue sources, but the bottom-line results were disappointing, with a contraction in gross margin indicating potential challenges ahead [10].

Core Insights - SENEA demonstrated a robust fiscal 2024 performance despite a decline in net sales, with a significant increase in gross margin to 12.9%, up from 6.9% in fiscal 2023, reflecting effective cost management and operational efficiency [1] Company Overview - Seneca Foods, headquartered in Fairport, NY, is a provider of packaged fruits and vegetables, operating 26 main facilities across the United States, with a diverse product portfolio including well-known brands like Libby's and Green Giant [3] Strategic Initiatives - The strategic acquisition of the Green Giant shelf-stable vegetable product line from B&G Foods, Inc. for $55.2 million is expected to bolster market share and operational capabilities [4] - Continued investment in technology and efficiency enhances production processes and logistical support, contributing to the resilience of its brands amid competitive pressures [4] Financial Health - As of March 31, 2024, Seneca Foods operates under a senior revolving credit facility of up to $400 million, with a revolver balance of $237.2 million [7] - The company's stock has significantly outperformed its industry peers and the broader market over the past year, currently trading at low valuation multiples relative to industry standards, presenting a potential opportunity for investors [8] Market Positioning - Zacks Investment Research has initiated coverage of Seneca Foods, assigning a "Neutral" recommendation amid a mixed outlook for the company, which has been making notable strides in the packaged fruits and vegetables space despite industry challenges [6][9]

Core Viewpoint - Seneca Foods reported mixed financial results for Q4 FY24, with higher selling prices offsetting lower sales volume, leading to a net loss of $2.2 million compared to a loss of $33.1 million a year earlier. However, EBITDA decreased by 22.7% year-on-year when using the FIFO method, indicating concerns about the sustainability of high margins [9][12]. Financial Performance - For Q4 FY24, net sales were $308 million, a 7% decrease year-on-year. The operating income was impacted by the LIFO method, which decreased operating income by $2.7 million compared to $52.3 million a year earlier [11][12]. - The company’s net debt increased to $632.6 million from $470.5 million a year earlier, driven by a $201.8 million rise in inventories due to higher raw material costs [3][16]. - Seneca Foods invested $33 million in share buybacks during FY24, but rising debt levels may limit future buybacks [3][16]. Valuation Metrics - Seneca Foods is currently trading at 6.7x EV/EBITDA and a similar level for P/E, with a price to tangible book value of 0.7x, indicating that the company is not expensive based on historical financial multiples [6][15]. - The company’s financial results appear strong under the LIFO method, but the FIFO method presents a less favorable picture, suggesting potential valuation concerns [6][12]. Business Overview - Seneca Foods, founded in 1949, primarily produces canned vegetables, contributing around 80% of its revenues. The company operates 26 facilities across the USA and has a diverse product range including packaged fruits and sauces [10][11]. - The business operates in a highly competitive seasonal market, with peak sales and net earnings typically occurring in the second and third quarters of the fiscal year [11]. Future Outlook - The company is expected to face challenges in FY25, with revenues and EBITDA likely to remain at similar levels to FY24 due to its mature business model. Rising net debt is anticipated to lead to a decrease in net income in the low double-digit percentage range [16][17]. - There are concerns about the sustainability of high margins and the potential for Seneca Foods to be viewed as a value trap, with no positive catalysts on the horizon [6][15].

Core Insights - Seneca Foods reported a full-year earnings per share of $8.56, reflecting a significant increase of 637.9% compared to the fiscal 2023 period [1] - The company experienced a decline in quarterly revenues primarily due to lower sales volumes, although this was partially offset by higher selling prices [2] - For fiscal 2024, domestic sales amounted to $1.37 billion, a decrease of 2.4% from the comparable fiscal 2023 period [3] Revenue Breakdown - Revenues from fruit products and snack products during fiscal 2024 were $87.4 million and $13.4 million, showing a decline of 4.4% and an increase of 5.8% respectively from the fiscal 2023 period [5] - Frozen vegetables sales totaled $120.8 million, down 0.3% from the comparable fiscal 2023 period [9] - Canned vegetables reported revenues of $1.20 billion, down 3.9% from the comparable fiscal 2023 period [17] - Revenues from the Other category were $32.2 million, up 4.6% from the comparable fiscal 2023 period [18] - International sales for fiscal 2024 amounted to $83.8 million, down 16.7% from the comparable fiscal 2023 period [16] Profitability and Margins - Seneca Foods' gross margin for the fiscal fourth quarter was 6.7%, while for fiscal 2024, it was 12.9%, representing an expansion of 599 basis points [19] - The adjusted operating profit for fiscal 2024 totaled $107 million, indicating a 360.3% increase from the comparable fiscal 2023 period, with an adjusted operating margin expansion of 580 basis points to 7.3% [21] - The net loss for the fourth quarter was $2.3 million, an improvement from the net loss of $33.1 million in the prior-year quarter [10] Cash Flow and Debt Management - Seneca Foods exited fiscal 2024 with cash of $4.5 million, down from $5.2 million at the end of fiscal 2023 [12] - Cumulative net cash provided by operating activities at the end of fiscal 2024 was $4.9 million, compared to $63.9 million a year ago [13] - Total debt at the end of fiscal 2024 was $615.9 million, an increase from $458.5 million at the end of fiscal 2023 [22] Overall Performance - Full-year revenues were $1.46 billion, indicating a decline of 3.4% from the comparable fiscal 2023 period [15] - The company’s performance in the reported quarter was disappointing, particularly in the canned vegetables, frozen vegetables, and fruit products categories [23]

Twelve Months Ended March 31, 2024 March 31, 2023 Net sales for the twelve months ended March 31, 2024 totaled $1,458.6 million compared to $1,509.4 million for the twelve months ended March 31, 2023. The year-over-year decrease of $50.8 million was mainly due to lower sales volumes partially offset by higher selling prices. Executive Summary (vs. year-ago, fourth quarter results): Seneca Foods is one of North America's leading providers of packaged fruits and vegetables, with facilities located throughout ...

[Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section details forward-looking statements, their inherent risks, and factors that could cause actual results to differ materially - This Annual Report on Form 10-K contains forward-looking statements addressing future events, developments, and results, identifiable by words like 'will,' 'anticipate,' 'estimate,' 'expect,' and 'project'[13](index=13&type=chunk) - Forward-looking statements are subject to known and unknown risks, uncertainties, and other important factors that could cause actual results to differ materially from expectations[13](index=13&type=chunk) - Key factors that could cause actual results to differ include rising costs of raw materials, distribution, and labor; crude oil prices; labor shortages; climate and weather impacts; ability to implement price increases; loss of significant customers; competition; and the impact of pandemics[14](index=14&type=chunk) PART I [Item 1. Business](index=6&type=section&id=Item%201.%20Business) Seneca Foods Corporation is a leading packaged fruit and vegetable provider, focusing on market share growth, cost efficiency, and strategic acquisitions, with food operations constituting 98% of FY2024 net sales [Overview](index=6&type=section&id=Overview) Seneca Foods Corporation is a leading packaged fruit and vegetable provider, operating 26 facilities across the U.S., with strategies focused on market leadership and efficiency - Seneca Foods Corporation, founded in 1949, is a leading provider of packaged fruits and vegetables, operating **26 main facilities** across the United States[16](index=16&type=chunk) - The Company's business strategies include expanding leadership in the packaged fruit and vegetable industry, providing low-cost, high-quality products through supply chain efficiency and technology investment, focusing on growth opportunities, and pursuing strategic acquisitions[17](index=17&type=chunk) [Available Information](index=6&type=section&id=Available%20Information) The Company's SEC filings and corporate governance information are publicly accessible on its website - The Company's SEC filings (10-K, 10-Q, 8-K) and corporate governance information are available free of charge on its website, www.senecafoods.com[18](index=18&type=chunk)[19](index=19&type=chunk) [Financial Information about Industry Segments](index=6&type=section&id=Financial%20Information%20about%20Industry%20Segments) Seneca manages its business through two primary food packaging segments: Vegetable and Fruit/Snack, with food operations comprising 98% of total net sales - Seneca manages its business primarily through two food packaging segments: Vegetable and Fruit/Snack. Non-food operations are categorized as 'Other'[20](index=20&type=chunk) Fiscal Year 2024 Net Sales by Segment | Segment | Percentage of Total Food Packaging Net Sales | Percentage of Total Net Sales | | :---------------- | :------------------------------------------- | :---------------------------- | | Canned vegetables | 83% | 81.34% (approx) | | Frozen vegetables | 8% | 7.84% (approx) | | Fruit products | 6% | 5.88% (approx) | | Snack products | 1% | 0.98% (approx) | | Food Operations | 98% (of total net sales) | 98% | | Non-food packaging| - | 2% | [Principal Products and Markets](index=6&type=section&id=Principal%20Products%20and%20Markets) The Company offers canned, frozen, and jarred produce, and snack chips, sold under private labels, owned/licensed brands, and to industrial customers - The Company's main product offerings include canned, frozen, and jarred produce, and snack chips[21](index=21&type=chunk) - Products are sold as private label to retailers, private label and branded to foodservice, under owned/licensed brands (e.g., Seneca®, Libby's®, Green Giant®), co-packed for other major brands, and to industrial customers[21](index=21&type=chunk) Net Sales by Major Product Category (in thousands) | Product Category | Fiscal Year 2024 | Fiscal Year 2023 | | :--------------- | :--------------- | :--------------- | | Canned vegetables| $1,204,823 | $1,253,257 | | Frozen vegetables| $120,795 | $121,211 | | Fruit products | $87,435 | $91,495 | | Snack products | $13,400 | $12,661 | | Other | $32,150 | $30,728 | | Total Net Sales | $1,458,603 | $1,509,352 | Domestic and International Sales (in thousands, except percentages) | Sales Type | Fiscal Year 2024 | % of Net Sales 2024 | Fiscal Year 2023 | % of Net Sales 2023 | | :------------ | :--------------- | :------------------ | :--------------- | :------------------ | | Domestic | $1,374,774 | 94.3% | $1,408,710 | 93.3% | | International | $83,829 | 5.7% | $100,642 | 6.7% | | Total Net Sales | $1,458,603 | 100.0% | $1,509,352 | 100.0% | [Source and Availability of Raw Materials](index=7&type=section&id=Source%20and%20Availability%20of%20Raw%20Materials) The Company sources raw materials primarily from American farms and manages cost inflation through various strategies, including price increases - The Company sources high-quality products primarily from over **1,200 American farms** and purchases other raw materials (steel, ingredients, packaging) from various suppliers[23](index=23&type=chunk) - Material cost inflation for raw materials and input costs (labor, fuel, utilities, transportation) continues due to supply chain disruptions, labor shortages, and global conflicts[24](index=24&type=chunk) - Seneca manages cost inflation risks through short-term supply contracts, advance grower agreements, cost-saving measures, and raising sales prices, though price increases may lag behind rising costs due to competitive pressures[24](index=24&type=chunk) [Intellectual Property](index=7&type=section&id=Intellectual%20Property) Seneca holds perpetual and renewable licenses for key brands like Green Giant® and Libby's®, alongside its own registered trademarks - The Company holds a perpetual, royalty-free license for the Green Giant® brand name for shelf-stable vegetable products in the U.S. and certain Caribbean islands[26](index=26&type=chunk) - Seneca holds a renewable trademark license for the Libby's® brand name for shelf-stable, frozen, and thermally packaged vegetables, paying an annual royalty of **$0.1 million** for fiscal year ended March 31, 2024[27](index=27&type=chunk)[29](index=29&type=chunk) - The Company also sells products under its own registered trademarks, including Aunt Nellie's®, CherryMan®, Green Valley®, READ®, and Seneca®[30](index=30&type=chunk) [Seasonality](index=9&type=section&id=Seasonality) The Company's production and sales cycles are seasonal, with peak revenues typically occurring in the second and third fiscal quarters - The Company's production cycle is seasonal, with minimal food packaging in the last fiscal quarter (ending March 31) and peak inventory levels for peas in mid-summer, and for corn and green beans in mid-autumn[31](index=31&type=chunk) - Revenues are typically highest in the second and third fiscal quarters due to increased retail demand during the holiday season and bill-and-hold sales to co-pack customers[32](index=32&type=chunk) Unaudited Quarterly Financial Information (in thousands) | Metric | Q1 FY2024 | Q2 FY2024 | Q3 FY2024 | Q4 FY2024 | Q1 FY2023 | Q2 FY2023 | Q3 FY2023 | Q4 FY2023 | | :------------------------- | :---------- | :---------- | :---------- | :---------- | :---------- | :---------- | :---------- | :---------- | | Net sales | $298,664 | $407,475 | $444,481 | $307,983 | $265,193 | $439,842 | $473,254 | $331,063 | | Gross margin | $55,289 | $58,118 | $54,033 | $20,778 | $22,843 | $41,779 | $53,789 | $(14,092) | | Net earnings (loss) | $23,111 | $24,779 | $17,675 | $(2,247) | $5,103 | $16,131 | $21,054 | $(33,057) | | Revolver outstanding (Q-end)| $52,064 | $134,757 | $258,108 | $237,225 | $78,965 | $229,213 | $313,808 | $180,598 | [Competition](index=9&type=section&id=Competition) The packaged food industry is highly competitive, with Seneca facing numerous national and regional producers, including those with higher sales - The packaged food industry is highly competitive, with brand recognition, promotion, quality, service, and pricing as major determinants of market position[34](index=34&type=chunk) - Seneca is a major producer of canned vegetables, frozen vegetables, and jarred fruit, but faces competition from at least **13 other U.S. producers**, some with higher sales[34](index=34&type=chunk) [Government Regulation](index=9&type=section&id=Government%20Regulation) The Company is subject to extensive federal, state, and local regulations concerning