Arts Way Mfg. Reports Q3 Results, Net Loss Holds Steady

TL;DR

ARTS WAY MFG Q3 LOSS FLAT AT $0.01/SHARE, REVENUE UP SLIGHTLY TO $5.19M.

AI Summary

Arts Way Manufacturing Co Inc. reported a net loss of $0.01 per share for the third quarter of 2024, compared to a net loss of $0.01 per share in the same period last year. The company's revenue for the quarter ending August 31, 2024, was $5,189,172, a slight increase from $5,106,922 in the prior year's quarter. Operating expenses also saw an increase, contributing to the net loss.

Why It Matters

This filing provides insight into the financial performance of Arts Way Manufacturing, a key player in the farm machinery and equipment sector, impacting investors and suppliers.

Risk Assessment

Risk Level: medium — The company is reporting consistent net losses, indicating potential financial strain and operational challenges.

Key Numbers

• $5.19M — Revenue (Q3 2024 revenue shows a slight increase year-over-year.)
• $0.01 — Net Loss Per Share (Consistent net loss per share indicates ongoing profitability challenges.)
• $9.5M — Total Assets (Represents the company's total asset base as of August 31, 2024.)
• $1.15M — Total Liabilities (Indicates the company's total debt and obligations as of August 31, 2024.)
• $2.47M — Total Equity (Reflects the net worth of the company as of August 31, 2024.)

Key Players & Entities

• ARTS WAY MANUFACTURING CO INC (company) — Filer
• 20240831 (date) — End of reporting period
• $5,189,172 (dollar_amount) — Revenue for the quarter ending August 31, 2024
• $5,106,922 (dollar_amount) — Revenue for the quarter ending August 31, 2023
• $0.01 (dollar_amount) — Net loss per share for Q3 2024

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

• artw20240731_10q.htm (10-Q) — 1012KB
• ex_698382.htm (EX-31.1) — 13KB
• ex_698383.htm (EX-31.2) — 13KB
• ex_698384.htm (EX-32.1) — 5KB
• ex_698385.htm (EX-32.2) — 6KB
• 0001437749-24-031031.txt ( ) — 6302KB
• artw-20240831.xsd (EX-101.SCH) — 64KB
• artw-20240831_cal.xml (EX-101.CAL) — 62KB
• artw-20240831_def.xml (EX-101.DEF) — 360KB
• artw-20240831_lab.xml (EX-101.LAB) — 325KB
• artw-20240831_pre.xml (EX-101.PRE) — 405KB
• artw20240731_10q_htm.xml (XML) — 1124KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 1 Item 1.

Financial Statements

Financial Statements 1 Condensed Consolidated Balance Sheets as of August 31, 2024 and November 30, 2023 1 Condensed Consolidated Statements of Operations for the Three-month and Nine-month periods ended August 31, 2024 and August 31, 2023 2 Condensed Consolidated Statements of Stockholders' Equity for the Nine-month periods ended August 31, 2024 and August 31, 2023 3 Condensed Consolidated Statements of Cash Flows for the Nine-month periods ended August 31, 2024 and August 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) August 31, 2024 November 30, 2023 Assets Current assets: Cash $ 5,119 $ 4,014 Accounts receivable, net 2,943,202 3,432,216 Inventories, net 10,691,065 11,031,362 Cost and profit in excess of billings 25,957 289,282 Other current assets 361,074 296,662 Current assets of discontinued operations 22,837 31,958 Total current assets 14,049,254 15,085,494 Property, plant, and equipment, net 5,180,769 5,060,595 Assets held for lease, net 115,291 145,494 Deferred income taxes, net 2,648,325 2,503,213 Other assets 476,085 583,752 Other assets of discontinued operations 1,001,640 1,023,566 Total assets $ 23,471,364 $ 24,402,114 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 870,275 $ 2,256,502 Customer deposits 162,927 416,044 Billings in excess of cost and profit 2,521,851 351,289 Income taxes payable 5,000 5,000 Accrued expenses 1,105,374 1,399,232 Line of credit 3,867,437 4,413,520 Current portion of finance lease liabilities 240,849 257,454 Current portion of long-term debt 114,537 109,193 Current liabilities of discontinued operations 175,279 186,789 Total current liabilities 9,063,529 9,395,023 Long-term portion of operating lease liabilities 7,009 13,774 Long-term portion of finance lease liabilities 590,676 722,200 Long-term debt, excluding current portion 2,543,307 2,629,862 Total liabilities 12,204,521 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 August 31, 2024 and November 30, 2023; issued and outstanding 0 shares on August 31, 2024 and November 30, 2023. - - Common stock – $ 0.01 par value. Authorized 9,500,000 shares on August 31, 2024 and November 30, 2023; 5,189,172 issued on August 31, 2024 and 5,106,