Art’s-Way(ARTW) - 2022 Q1 - Quarterly Report

Financial Performance - Consolidated corporate sales for the three-month period ended February 28, 2022, were $5,613,000, an increase of $212,000, or 3.9% compared to the same period in fiscal 2021[82]. - Consolidated net loss for the three-month period ended February 28, 2022, was $(406,000), compared to a net loss of $(315,000) for the same period in fiscal 2021[89]. - Consolidated gross margin for the three-month period ended February 28, 2022, was 21.2%, up from 19.3% for the same period in fiscal 2021[82]. Sales by Segment - The Agricultural Products segment saw sales of $4,161,000, an increase of $661,000, or 18.9%, driven by demand for grinder mixers, beet equipment, and manure spreaders[83]. - The Tools segment had sales of $584,000, a decrease of $26,000, or 4.3%, due to labor shortages impacting sales[85]. Order Backlog - The consolidated order backlog as of April 8, 2022, was $11,173,000, a 42% increase from $6,483,000 as of April 8, 2021, with significant increases in all segments[90]. Expenses - Selling expenses for the first quarter were $487,000, an increase from $473,000 in the same period of fiscal 2021, with selling expenses as a percentage of sales at 8.7%[87]. - Administrative expenses for the first quarter were $1,008,000, compared to $817,000 for the same period in fiscal 2021, with administrative expenses as a percentage of sales at 18.0%[88]. Funding and Financial Agreements - The company expects to utilize a $500,000 grant for capital equipment, requiring a 25% match, as part of the Iowa Economic Development Authority's Manufacturing 4.0 program[92]. - The company has a $5,000,000 revolving line of credit with an outstanding balance of $3,150,530 as of February 28, 2022, maturing on March 30, 2023[93]. - Art's-Way Manufacturing Co., Inc. filed a Promissory Note with Bank Midwest dated March 28, 2022[106]. - A Common Stock Purchase Agreement was executed on March 29, 2022, between Art's-Way Manufacturing Co., Inc. and Alumni Capital LP[106]. Compliance and Reporting - The report includes condensed consolidated balance sheets, statement of operations, and cash flows formatted in iXBRL[106]. - Certificates of the Chief Executive Officer and Chief Financial Officer were filed pursuant to 17 CFR 13a-14(a) and 18 U.S.C. Section 1350[106]. - The signatures of David A. King (President and CEO) and Michael W. Woods (CFO) were recorded on April 14, 2022[109].