Thu, Apr 10, 3:13 PM (17 days ago)
**Art’s-Way Manufacturing Co., Inc. (ARTW) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $5,141,000 (down 10.2% YoY from $5,723,000). - **Gross Profit:** $1,496,509 (29.1% margin, up from 25.7% in Q1 2024). - **Net Loss:** $55,757 (improved from a $465,040 loss in Q1 2024). - **Cash Flow:** Net cash used in operating activities was $101,805 (improved from $99,274 in Q1 2024). - **Earnings Changes:** Improved net loss from continuing operations ($55,757 vs. $424,259 in Q1 2024). **Segment Performance:** - **Agricultural Products:** Revenue down 30.4% to $2,948,000; gross margin steady at 26.7%. - **Modular Buildings:** Revenue up 47.5% to $2,193,000; gross margin increased to 32.3% from 22.3%. **Trends and Uncertainties:** - **Agricultural Products:** Decline in demand due to high interest rates and low commodity prices; expecting destocking to boost demand. - **Modular Buildings:** Strong demand and backlog; focusing on converting engineering projects to construction contracts. - **Economic Factors:** Anticipating interest rate cuts and improved economic conditions; monitoring steel tariffs and commodity prices. **Future Operations Impact:** - **Cost Management:** Continued focus on reducing manufacturing and overhead expenses. - **Financing:** Renewed revolving line of credit with Bank Midwest; expecting sufficient cash flow to meet debt obligations. - **Order Backlog:** Decreased by 45.7% to $6,201,000; expecting stable demand due to dealer destocking. **Key Metrics:** - **Cash Position:** $4,133,000 (up from $1,860,000 in Q1 2024). - **Debt:** Outstanding principal on revolving credit line is $2,199,437; term debt of $2,066,284. - **Inventory:** $10,881,082 (up from $10,327,913 in Q1 2024). **Conclusion:** Art’s-Way Manufacturing Co., Inc. showed improved financial health in Q1 2025, with reduced net losses and stable gross margins despite a decline in revenue. The company is focusing on cost management, destocking, and converting engineering projects to boost future performance. Economic factors and financing arrangements are expected to support continued operations and debt repayment.