Financial Performance - Consolidated corporate sales for the three-month period ended February 29, 2024, were $5,723,000, a decrease of $1,364,000, or 19.2%, compared to the same period in fiscal 2023[86]. - Consolidated net loss from continuing operations was $424,000 for the three-month period ended February 29, 2024, compared to net income of $350,000 for the same period in fiscal 2023[93]. - Consolidated administrative expenses increased to $1,230,000, or 21.5% of sales, compared to $984,000, or 13.9% of sales, in the same period last year[91]. - Engineering expenses rose to $160,000, or 2.8% of sales, compared to $128,000, or 1.8% of sales, in the prior year[90]. Segment Performance - Agricultural Products segment sales were $4,236,000, down $1,209,000, or 22.2%, due to decreased demand and lower commodity prices[87]. - Modular Buildings segment sales were $1,487,000, a decrease of $155,000, or 9.4%, despite a larger backlog[88]. - The company anticipates strong sales in the Modular Buildings segment for the remainder of fiscal 2024 due to a large backlog[93]. Order Backlog - Consolidated order backlog as of April 3, 2024, was $11,416,000, a 4.9% decrease from $12,007,000 in the previous year[94]. - Agricultural Products segment order backlog decreased by 68.2% to $2,476,000, while Modular Buildings segment backlog increased by 112.4% to $8,940,000[94]. Shareholder Activities - In the first quarter of fiscal 2024, the company purchased a total of 18,458 shares at an average price of $2.04 per share[103]. - There are no announced publicly plans or programs for additional share purchases at this time[103]. - The company’s stock repurchase reflects shares withheld for tax obligations related to restricted stock awards[103]. Legal and Compliance - The company is not currently involved in any material pending legal proceedings[102]. - The company has not disclosed any risk factors as it qualifies as a smaller reporting company[102]. - The company has filed various certificates and notes related to its financial reporting and compliance with the Securities Exchange Act of 1934[106]. - The financial statements include condensed consolidated balance sheets and statements of operations, cash flows, and notes[106]. - The company has a promissory note dated March 4, 2024, with Bank Midwest[106]. - The company has not reported any unregistered sales of equity securities during the period[102]. - The company’s financial reporting is compliant with 17 CFR 13a-14(a) and 18 U.S.C. Section 1350 requirements[106]. Future Outlook - The company expects to rely on brand reputation and product availability to drive sales activity for fiscal 2024[94].
Art’s-Way(ARTW) - 2024 Q1 - Quarterly Report