Inscape Announces Fourth Quarter and Full Year 2022 Financial Results
Inscape today announced its results of operations for the fourth quarter and full year ended April 30, 2022 and announces the addition of a new Board Member.
“Fourth quarter fiscal 2022 sales levels represented our third successive quarter over quarter sales improvement since the beginning of the fiscal year. This remains an encouraging trend but must materially improve to higher quarterly sales levels ongoing to sustain the business over the long term. We are seeing sales pipeline levels build momentum quarter over quarter in line with management’s expectations given the continued relative strength of the U.S. economy. During the fiscal year, management completed its efforts to monetize non-core assets, raise cash and retire debt in order to allow us to continue our work improving the efficiency of the Company’s operations and improve core profitability once our sales levels return to pre-pandemic levels,” said Eric Ehgoetz, CEO.
Total sales for the fourth quarter of fiscal 2022 were $11.0 million, compared to $8.1 million for the same period of fiscal 2021. During the fiscal year, the Company experienced quarter on quarter revenue growth at an annualized growth rate of 11.8% as the economic recovery from the COVID-19 pandemic continued.
Total sales for the full year 2022 were relatively flat at $38.7 million, compared to $38.2 million for fiscal 2021. The Company’s performance during fiscal 2022 was impacted by the continued effects of the pandemic on supply chain which triggered shortage of production materials, such as height adjustable bases and medium density fibre board, resulting in customer project delays and lower margins. The Company also experienced input cost increases for steel, aluminium, petroleum-based products and freight.
“During the fourth quarter, management continued its efforts to improve the business and its cost base. The successful renewal of the collective bargaining agreement with our unionized hourly furniture plant employees for a three-year term and elimination of both an incentive-based compensation system and a defined benefit pension plan will result in material operational savings in the current and future fiscal years. Coupled with the existing labour agreement secured with our unionized hourly walls plant workers last June 2021, the Company is now assured of stability for both of its manufacturing operations for the next three years. We wish to thank our valued hourly plant employees for their important contributions to the Company’s success and their commitment to our business,” said Eric Ehgoetz, CEO.