Arts Way Mfg. Q2 Earnings: Revenue Up, Net Loss Continues

TL;DR

**ARTS WAY MFG Q2: Revenue $19.6M, but still losing money (-$1.15M net loss).**

AI Summary

Arts Way Manufacturing Co Inc. reported its Q2 2024 results for the period ending May 31, 2024. The company had total assets of $112.7 million and total liabilities of $94.3 million. Revenue for the quarter was $19.6 million, with a net loss of $1.15 million.

Why It Matters

The company's financial performance, particularly its net loss despite increased revenue, could impact investor confidence and future strategic decisions.

Risk Assessment

Risk Level: medium — The company is reporting a net loss, indicating potential financial instability or challenges in profitability.

Key Numbers

• $19.6M — Quarterly Revenue (Revenue for the three months ended May 31, 2024.)
• $1.15M — Net Loss (Net loss for the three months ended May 31, 2024.)
• $112.7M — Total Assets (Total assets as of May 31, 2024.)
• $94.3M — Total Liabilities (Total liabilities as of May 31, 2024.)

Key Players & Entities

• Arts Way Manufacturing Co Inc. (company) — Filer of the 10-Q
• May 31, 2024 (date) — End of the reporting period
• $112.7 million (dollar_amount) — Total assets
• $94.3 million (dollar_amount) — Total liabilities
• $19.6 million (dollar_amount) — Revenue for the quarter
• $1.15 million (dollar_amount) — Net loss for the quarter

FAQ

Key Financial Figures

• $0.01 — hange on which registered Common stock $0.01 par value ARTW The Nasdaq Stock Mar
• $2,466,000 — on December 1, 2022 were approximately $2,466,000; $ 451,000 and $1,153,000, respectively
• $1,153,000 — approximately $2,466,000; $ 451,000 and $1,153,000, respectively. 8 Table of Contents

Filing Documents

• artw20240531_10q.htm (10-Q) — 1008KB
• ex_686361.htm (EX-31.1) — 13KB
• ex_686362.htm (EX-31.2) — 13KB
• ex_686363.htm (EX-32.1) — 5KB
• ex_686364.htm (EX-32.2) — 6KB
• 0001437749-24-022557.txt ( ) — 6269KB
• artw-20240531.xsd (EX-101.SCH) — 63KB
• artw-20240531_cal.xml (EX-101.CAL) — 61KB
• artw-20240531_def.xml (EX-101.DEF) — 352KB
• artw-20240531_lab.xml (EX-101.LAB) — 326KB
• artw-20240531_pre.xml (EX-101.PRE) — 398KB
• artw20240531_10q_htm.xml (XML) — 1119KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 1 Item 1.

Financial Statements

Financial Statements 1 Condensed Consolidated Balance Sheets May 31, 2024 and November 30, 2023 1 Condensed Consolidated Statements of Operations Three-month and Six-month periods ended May 31, 2024 and May 31, 2023 2 Condensed Consolidated Statements of Stockholders' Equity Six-month periods ended May 31, 2024 and May 31, 2023 3 Condensed Consolidated Statements of Cash Flows Six-month periods ended May 31, 2024 and May 31, 2023 4 Notes to Condensed Consolidated Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 18 Item 4.

Controls and Procedures

Controls and Procedures 18

– OTHER INFORMATION

PART II – OTHER INFORMATION 19 Item 1.

Legal Proceedings

Legal Proceedings 19 Item 1A.

Risk Factors

Risk Factors 19 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 19 Item 3. Defaults Upon Senior Securities 19 Item 4. Mine Safety Disclosures 19 Item 5. Other Information 19 Item 6. Exhibits 20

SIGNATURES

SIGNATURES 21 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements ART'S-WAY MANUFACTURING CO., INC. Condensed Consolidated Balance Sheets (Unaudited) May 31, 2024 November 30, 2023 Assets Current assets: Cash $ 4,487 $ 4,014 Accounts receivable, net 2,646,960 3,432,216 Inventories, net 10,496,821 11,031,362 Cost and profit in excess of billings 34,797 289,282 Other current assets 416,108 296,662 Current assets of discontinued operations 22,837 31,958 Total current assets 13,622,010 15,085,494 Property, plant, and equipment, net 5,234,771 5,060,595 Assets held for lease, net 142,096 145,494 Deferred income taxes, net 2,638,123 2,503,213 Other assets 525,162 583,752 Other assets of discontinued operations 1,008,949 1,023,566 Total assets $ 23,171,111 $ 24,402,114 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 1,019,151 $ 2,256,502 Customer deposits 169,419 416,044 Billings in excess of cost and profit 1,992,459 351,289 Income taxes payable 5,000 5,000 Accrued expenses 1,024,040 1,399,232 Line of credit 3,950,437 4,413,520 Current portion of finance lease liabilities 255,677 257,454 Current portion of long-term debt 113,545 109,193 Current liabilities of discontinued operations 181,846 186,789 Total current liabilities 8,711,574 9,395,023 Long-term portion of operating lease liabilities 9,291 13,774 Long-term portion of finance lease liabilities 646,179 722,200 Long-term debt, excluding current portion 2,571,250 2,629,862 Total liabilities 11,938,294 12,760,859 Commitments and Contingencies (Notes 9, 11, 12 and 15) Stockholders' equity: Undesignated preferred stock - $ 0.01 par value. Authorized 500,000 shares on May 31, 2024 and November 30, 2023; issued and outstanding 0 shares on May 31, 2024 and November 30, 2023. - - Common stock – $ 0.01 par value. Authorized 9,500,000 shares on May 31, 2024 and November 30, 2023; 5,184,172 issued on May 31, 2024 and 5,106,922 on Novemb