Seneca Foods Corp 10-K/A

Item 1. Business   Seasonality   While individual vegetables have seasonal cycles of peak production and sales, the different cycles are somewhat offsetting. Minimal food packaging occurs in the Company's last fiscal quarter ending March 31, which is the optimal time for maintenance, repairs and equipment changes in its packaging plants. The supply of commodities, current pricing, and expected new crop quantity and quality affect the timing and amount of the Company’s sales and earnings. When the seasonal harvesting periods of the Company's major vegetables are newly completed, inventories for these packaged vegetables are at their highest levels. For peas, the peak inventory time is mid-summer and for corn and green beans, the Company's highest volume vegetables, the peak inventory is in mid-autumn. The seasonal nature of the Company’s production cycle results in inventory and accounts payable reaching their lowest point late in the fourth quarter/early in the first quarter prior to the new seasonal pack commencing. As the seasonal pack progresses, these components of working capital both increase until the pack is complete.   The Company’s revenues typically are highest in the second and third fiscal quarters. This is due, in part, because the Company’s fruit and vegetable sales exhibit seasonal increases in the third fiscal quarter due to increased retail demand during the holiday season. In addition, the Company sells canned and frozen vegetables to a co-pack customer on a bill and hold basis at the end of each pack cycle, which typically occurs during these quarters.   These seasonal fluctuations are illustrated in the following table, which presents certain unaudited quarterly financial information for the periods indicated (in thousands):       First Quarter     Second Quarter     Third Quarter     Fourth Quarter                               (Restated)   Fiscal Year 2023:                               Net sales   $ 265,193     $ 439,842     $ 473,254     $ 331,063   Gross margin     22,843       41,779       53,789       (14,092 ) Net earnings     5,103       16,131       21,054       (33,057 )                                   Fiscal Year 2022:                                 Net sales   $ 235,042     $ 372,256     $ 445,593     $ 332,389   Gross margin     33,623       42,728       44,985       20,260   Net earnings     14,136       11,654       18,664       1,746