Financial Performance - Sales for the year ended November 30, 2024, were $24,499,371, a decrease of 19.5% compared to $30,280,957 in 2023[118] - Gross profit for the year ended November 30, 2024, was $7,309,865, down 14.9% from $8,583,882 in 2023[118] - Income from operations decreased significantly to $460,697 in 2024 from $1,531,241 in 2023, representing a decline of 69.9%[118] - Net income for the year ended November 30, 2024, was $307,375, an increase of 15.1% compared to $266,969 in 2023[118] - The company reported a net loss from continuing operations of $(94,466) for 2024, compared to a profit of $762,789 in 2023[124] - Revenue from the Agricultural Products segment for the twelve months ended November 30, 2024 was $14,663,000, compared to $19,188,000 for the same period in 2023, a decrease of approximately 23.5%[160] - Revenue from the Modular Buildings segment for the twelve months ended November 30, 2024 was $9,836,000, compared to $7,590,000 for the same period in 2023, an increase of approximately 29.6%[160] - The Company recognized revenues of approximately $1,073,000 and $3,110,000 at the completion of production in fiscal years 2024 and 2023, respectively, indicating a decrease of about 65.5%[155] - Consolidated gross profit decreased to $7,310,000 in FY 2024 from $8,584,000 in FY 2023, a decline of approximately 15%[228] Assets and Liabilities - Total current assets decreased from $15,085,494 in 2023 to $13,124,309 in 2024, representing a decline of approximately 13%[116] - Total assets decreased from $24,402,114 in 2023 to $21,240,684 in 2024, a reduction of about 13%[116] - Total current liabilities decreased from $9,395,023 in 2023 to $6,632,493 in 2024, a decrease of approximately 29%[116] - Long-term debt, excluding current portion, decreased from $2,629,862 in 2023 to $1,975,232 in 2024, a reduction of about 25%[116] - Cash at the end of the period was $1,860, down from $4,014 at the end of the previous year[124] - Contract receivables decreased from $3,432,000 in November 30, 2023 to $2,373,000 in November 30, 2024, reflecting a decrease of approximately 30.9%[164] - Total term debt as of November 30, 2024, is $2,094,966, a decrease of 27.8% from $2,899,654 in 2023[210] - Total assets decreased to $21,241,000 in FY 2024 from $23,347,000 in FY 2023, a decline of approximately 9%[228] Equity and Stockholder Information - Stockholders' equity increased from $11,641,255 in 2023 to $12,093,823 in 2024, reflecting an increase of approximately 4%[116] - The net shares issued under the 2020 Equity Incentive Plan were 42,251 in 2024, a decrease of 54.7% from 93,251 in 2023[215] Expenses and Costs - The Company reported stock-based compensation of $182,847 for the year ended November 30, 2024, compared to $292,185 in 2023[124] - The total income tax expense for fiscal year 2024 was $74,305, down 34.5% from $113,466 in 2023[220] - Advertising costs decreased significantly from $229,000 in fiscal year 2023 to $153,000 in fiscal year 2024, a reduction of about 33.2%[173] - Research and development costs increased to $216,000 in fiscal year 2024 from $204,000 in fiscal year 2023, representing a growth of approximately 5.9%[172] - The Company recognized $15,193 in expenses from related party transactions in fiscal year 2024, down from $16,102 in 2023[211] Operational Changes and Strategy - The company is focused on managing warranty costs and order backlog as part of its operational strategy[14] - The company has implemented expense savings measures due to recent layoffs and strategic terminations[14] - The company ceased operations of its Tools business during the third quarter of fiscal 2023, which was reported as a discontinued operation[129] - The Tools segment was discontinued, with a reported net income from discontinued operations of $401,841 for the twelve months ended November 30, 2024, compared to a loss of $495,820 in the prior year[182] - The Company recorded a gain of $683,685 on the disposal of real estate from the Tools segment, included in income from discontinued operations[182] Credit and Risk Management - The company reported an allowance for expected credit losses of $108,636 as of November 30, 2024[116] - The company anticipates increased credit risk over the next year due to current economic conditions affecting the agricultural sector[134] - The allowance for expected credit losses increased from $32,137,000 at the beginning of the year to $108,636,000 by November 30, 2024, reflecting a provision charged to expense of $67,170,000[187] Lease and Asset Management - Operating lease right-of-use assets decreased from $22,427,000 in November 30, 2023 to $13,774,000 in November 30, 2024, a decline of approximately 38.5%[146] - The total operating lease liabilities also decreased from $22,427,000 in November 30, 2023 to $13,774,000 in November 30, 2024, reflecting a reduction of about 38.5%[146] - The Company recorded $10,199,000 in operating lease expense for the year ended November 30, 2024, down from $17,459,000 in the same period of fiscal 2023, representing a decrease of approximately 41.5%[146] - Finance lease right-of-use assets decreased from $511,367,000 in November 30, 2023 to $377,753,000 in November 30, 2024, a reduction of about 26.1%[147] - Total finance lease liabilities decreased from $979,654,000 in November 30, 2023 to $755,344,000 in November 30, 2024, a decline of approximately 22.9%[147] - The Company incurred $171,830,000 of amortization expense from ROU assets related to finance leases in fiscal 2024, compared to $129,891,000 in fiscal 2023, an increase of about 32.2%[148] Future Projections and Plans - The company anticipates continued expansion into international markets as part of its future operations[14] - Future minimum lease receipts from assets held for lease are projected at $79,720 for the year ending November 30, 2025[195] - The Company maintains a $5,500,000 revolving line of credit, with a balance of $1,928,437 as of November 30, 2024, leaving $3,571,563 available[200] - The term loan with Bank Midwest amounts to $2,600,000, requiring monthly payments of $19,648, with an interest rate of 7.00%[201] - The Company has a minimum maturity of term debt of $119,734 due in 2025, increasing to $1,408,222 in 2030 and thereafter[210] Compliance and Governance - The company reported no subsequent events that would require recognition or disclosure in the financial statements[229] - There were no disagreements with accountants on accounting and financial disclosure[230]

Financial Performance - Fiscal 2024 net sales decreased to $24,499,000 from $30,281,000 in fiscal 2023, a decline of 19.3%[2] - Consolidated operating income from continuing operations dropped to $461,000 from $1,531,000 in the previous year[6] - Loss per share from continuing operations was $(0.02), compared to net income of $0.15 per share in fiscal 2023[7] - Consolidated net income for fiscal 2024 was $307,000, up from $267,000 in fiscal 2023[7] Segment Performance - Agricultural Products segment net sales fell by $7,804,000, or 34.7%, to $14,663,000 due to lower commodity prices and excess inventory[2][4] - Modular Buildings segment net sales increased by $2,022,000, or 25.9%, to $9,836,000, driven by a 124% increase in research sales[4] - The Agricultural Products segment backlog decreased to approximately $3,486,000 from $4,364,000 year-over-year[8] - Modular Buildings segment backlog also declined to approximately $2,393,000 from $6,170,000 in the previous year[8] Future Outlook - The company anticipates improved profitability and cash flow in fiscal 2025 due to solid demand and reduced overhead expenses[10] - The company reported a historical low in current debt levels, positioning it for future market improvements[9]

Sales Performance - Consolidated corporate sales for the three months ended August 31, 2024 decreased by $2,241,000 (27.6%) compared to the same period in fiscal 2023[99] - Agricultural Products segment sales for the three months ended August 31, 2024 decreased by $2,542,000 (46.0%) compared to the same period in fiscal 2023[100] - Modular Buildings segment sales for the three months ended August 31, 2024 increased by $301,000 (11.6%) compared to the same period in fiscal 2023[101] Financial Results - Consolidated net loss for the nine months ended August 31, 2024 was $427,000 compared to net income of $921,000 for the same period in fiscal 2023[106] - Consolidated gross margin for the three months ended August 31, 2024 was 28.9% compared to 28.3% for the same period in fiscal 2023[99] - Modular Buildings segment gross margin for the three months ended August 31, 2024 was 30.7% compared to 33.4% for the same period in fiscal 2023[101] Order Backlog - Agricultural Products segment order backlog as of October 3, 2024 decreased by 82.9% compared to fiscal 2023[107] - Modular Buildings segment order backlog as of October 3, 2024 increased by 234.6% compared to fiscal 2023[107] Cash Flow and Financing - The sale of real estate from the Tools segment in October 2024 is expected to net close to $1.7 million in cash after closing expenses[108] - The company expects $1.2 million of net Employer Retention Credit refunds to provide a material inflow of cash, although the timing is unknown[108] - The company has a revolving line of credit of $5,500,000 with Bank Midwest, with an outstanding principal balance of $3,867,437 as of August 31, 2024[109] - The revolving line of credit was renewed on March 4, 2024, and is scheduled to mature on March 30, 2025[109] - The company believes its current financing arrangements will provide sufficient cash to finance operations and pay debt when due during the next twelve months[109] - The company expects to continue to be able to procure financing upon reasonable terms[109] Financial Reporting and Controls - The company's disclosure controls and procedures were effective as of August 31, 2024[111] - The company's consolidated financial statements present fairly its financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States[111] - There were no changes in the company's internal controls over financial reporting that materially affected or are reasonably likely to materially affect its internal controls over financial reporting during the period covered by the report[112] - The company's condensed consolidated financial statements include balance sheets, statements of operations, cash flows, and notes to the financial statements[118] Legal and Stock Transactions - The company is not currently a party to any material pending legal proceedings[114] - The company did not make any purchases of its common stock during the third quarter of fiscal 2024[115]

Sales Performance - Consolidated sales for Q3 2024 were $5,876,000, a decrease of $2,241,000 or 27.6% compared to $8,117,000 in Q3 2023[6] - For the nine months ended August 31, 2024, consolidated sales were $18,329,000, down $5,100,000 or 21.8% from $23,429,000 in the same period of 2023[6] - Agricultural Products segment sales in Q3 2024 were $2,988,000, a decrease of $2,542,000 or 46.0% from $5,530,000 in Q3 2023[7] - Modular Buildings segment sales increased to $2,888,000 in Q3 2024, up $301,000 or 11.6% from $2,587,000 in Q3 2023[8] Net Income and Loss - Consolidated net income for Q3 2024 was $2,000, compared to a net income of $241,000 in Q3 2023, resulting in a net loss of $427,000 for the nine months ended August 31, 2024[9] - Loss per share for Q3 2024 was $0.00, compared to earnings of $0.05 per share in Q3 2023; for the nine months, loss per share was $0.08 compared to earnings of $0.18 in the same period of 2023[10] Future Outlook - The company anticipates it may take another twelve months for sales stabilization in the Agricultural Products segment due to ongoing market conditions[9] - The company expects continued positive performance from the Modular Buildings segment, driven by large research projects and growing market opportunities[9] Cost Management - The company has implemented cost-cutting measures, including layoffs and early retirement incentives, to mitigate cash flow impacts from decreased sales[7] Leadership Changes - Marc McConnell has been appointed as the new President and CEO effective October 1, 2024, following the mutual separation agreement with former CEO David King[11]

Financial Performance - Consolidated corporate sales for the three months ended May 31, 2024, were $6,730,000, an 18.2% decrease from $8,224,000 in the same period of fiscal 2023[99]. - Agricultural Products segment sales decreased by 28.5% to $4,555,000 for the second quarter of fiscal 2024, compared to $6,368,000 in fiscal 2023[100]. - Modular Buildings segment sales increased by 17.2% to $2,175,000 for the second quarter of fiscal 2024, compared to $1,856,000 in fiscal 2023[101]. - Consolidated net loss from continuing operations was $5,000 for the three months ended May 31, 2024, compared to net income of $330,000 for the same period in fiscal 2023[106]. Order Backlog - Consolidated order backlog as of July 8, 2024, was $7,867,000, a 23.1% decrease from $10,236,000 in July 2023[107]. - Agricultural Products segment order backlog decreased by 80.1% to $1,348,000 as of July 8, 2024, compared to $6,764,000 in fiscal 2023[107]. - Modular Buildings segment order backlog increased by 87.8% to $6,519,000 as of July 8, 2024, compared to $3,472,000 in fiscal 2023[107]. Expenses - Consolidated selling expenses for the six months ended May 31, 2024, were $860,000, a decrease of 17.5% from $1,042,000 in the same period of fiscal 2023[102]. - Administrative expenses increased to 19.8% of sales for the six months ended May 31, 2024, compared to 13.6% for the same period in fiscal 2023[104]. Future Outlook - The company expects to rely on inventory reduction, debt retirement, and cost-cutting measures to minimize losses and generate net income moving forward[106]. Compliance and Reporting - There were no changes in internal controls over financial reporting that materially affected the company during the reporting period[113]. - The company is not currently a party to any material pending legal proceedings[115]. - As a smaller reporting company, the company is not required to disclose risk factors[115]. - The company did not report any unregistered sales of equity securities during the period[117]. - The company has not made any purchases of its common stock during the second quarter of fiscal 2024[116]. - The company has filed condensed consolidated balance sheets and statements of operations and cash flows as part of its financial reporting[119]. - The report includes certifications from the Chief Executive Officer and Chief Financial Officer as required by regulations[120]. - The company has not disclosed any new strategies or market expansions in the current report[115]. - There are no defaults upon senior securities reported by the company[117]. - The company has not reported any mine safety disclosures as they are not applicable[117].

Sales Performance - Consolidated sales for Q2 2024 were $6,730,000, a decrease of $1,494,000 or 18.2% compared to $8,224,000 in Q2 2023[5] - For the six months ended May 31, 2024, consolidated sales were $12,454,000, down $2,857,000 or 18.7% from $15,311,000 in the same period of 2023[5] - Agricultural Products segment sales in Q2 2024 were $4,555,000, a decrease of $1,813,000 or 28.5% from $6,368,000 in Q2 2023[6] - Modular Buildings segment sales increased to $2,175,000 in Q2 2024, up $319,000 or 17.2% from $1,856,000 in Q2 2023[7] Financial Results - Consolidated net loss for Q2 2024 was $5,000, compared to net income of $330,000 in Q2 2023[8] - Loss per share for Q2 2024 was $0.00, compared to earnings of $0.07 per share in Q2 2023[9] Strategic Focus - The company anticipates continued positive performance in the Modular Buildings segment due to a strong backlog[8] - Cost-cutting measures have been implemented, including layoffs and early retirement incentives, to mitigate cash flow impacts from decreased sales[6] - The company is focusing on operational efficiency and prudent fiscal management to navigate challenging market conditions in the Agricultural Products segment[9] Market Outlook - The USDA has projected a 25% decline in farm income for 2024, impacting sales in the Agricultural Products segment[6]

Financial Performance - Consolidated corporate sales for the three-month period ended February 29, 2024, were $5,723,000, a decrease of $1,364,000, or 19.2%, compared to the same period in fiscal 2023[86]. - Consolidated net loss from continuing operations was $424,000 for the three-month period ended February 29, 2024, compared to net income of $350,000 for the same period in fiscal 2023[93]. - Consolidated administrative expenses increased to $1,230,000, or 21.5% of sales, compared to $984,000, or 13.9% of sales, in the same period last year[91]. - Engineering expenses rose to $160,000, or 2.8% of sales, compared to $128,000, or 1.8% of sales, in the prior year[90]. Segment Performance - Agricultural Products segment sales were $4,236,000, down $1,209,000, or 22.2%, due to decreased demand and lower commodity prices[87]. - Modular Buildings segment sales were $1,487,000, a decrease of $155,000, or 9.4%, despite a larger backlog[88]. - The company anticipates strong sales in the Modular Buildings segment for the remainder of fiscal 2024 due to a large backlog[93]. Order Backlog - Consolidated order backlog as of April 3, 2024, was $11,416,000, a 4.9% decrease from $12,007,000 in the previous year[94]. - Agricultural Products segment order backlog decreased by 68.2% to $2,476,000, while Modular Buildings segment backlog increased by 112.4% to $8,940,000[94]. Shareholder Activities - In the first quarter of fiscal 2024, the company purchased a total of 18,458 shares at an average price of $2.04 per share[103]. - There are no announced publicly plans or programs for additional share purchases at this time[103]. - The company’s stock repurchase reflects shares withheld for tax obligations related to restricted stock awards[103]. Legal and Compliance - The company is not currently involved in any material pending legal proceedings[102]. - The company has not disclosed any risk factors as it qualifies as a smaller reporting company[102]. - The company has filed various certificates and notes related to its financial reporting and compliance with the Securities Exchange Act of 1934[106]. - The financial statements include condensed consolidated balance sheets and statements of operations, cash flows, and notes[106]. - The company has a promissory note dated March 4, 2024, with Bank Midwest[106]. - The company has not reported any unregistered sales of equity securities during the period[102]. - The company’s financial reporting is compliant with 17 CFR 13a-14(a) and 18 U.S.C. Section 1350 requirements[106]. Future Outlook - The company expects to rely on brand reputation and product availability to drive sales activity for fiscal 2024[94].

Financial Performance - Consolidated sales for Q1 fiscal 2024 were $5,723,000, a decrease of $1,364,000 or 19.2% compared to $7,087,000 in Q1 fiscal 2023[3] - Consolidated net loss for Q1 fiscal 2024 was $424,000, compared to net income of $350,000 in Q1 fiscal 2023[7] - Loss per share for continuing operations was $0.09, compared to income of $0.07 per share in the same period last year[8] Segment Performance - Agricultural Products segment sales fell to $4,236,000, down $1,209,000 or 22.2% from $5,445,000 in the same period last year[4] - Modular Buildings segment sales decreased to $1,487,000, a decline of $155,000 or 9.4% compared to $1,642,000 in Q1 fiscal 2023[6] Order Backlog - Consolidated order backlog as of April 3, 2024, was $11,416,000, a 4.9% decrease from $12,007,000 a year earlier[8] - Agricultural Products segment backlog dropped to $2,476,000, a significant decrease of 68.2% from $7,798,000 in fiscal 2023[8] - Modular Buildings segment backlog increased to $8,940,000, a 112.4% rise from $4,209,000 in fiscal 2023, with expectations of nearly 48% revenue growth[9] Strategic Initiatives - The company is implementing cost-cutting measures and focusing on operational improvements, including new product development and dealer network expansion[10] - The USDA projects a 25.5% decrease in net farm income, impacting demand in the Agricultural Products segment[8]

Revenue Segments - Agricultural Products segment accounted for 74.2% of net revenue in fiscal 2023, down from 81.5% in fiscal 2022[14] - Modular Buildings segment contributed 25.8% to net revenue in fiscal 2023, up from 18.5% in fiscal 2022[15] - Total revenue for the Agricultural Products segment was $22,467,000, while the Modular Buildings segment generated $7,814,000, leading to a combined total revenue of $30,281,000[136] - Revenue from external customers for the Agricultural Products segment was $22,467,000, while the Modular Buildings segment generated $7,814,000, leading to consolidated revenue of $30,281,000[218] - Revenue from external customers for Agricultural Products was $20,912,000, and for Modular Buildings was $4,734,000, totaling consolidated revenue of $25,646,000[219] Backlog and Sales - The Agricultural Products segment's backlog was approximately $4,364,000 as of February 1, 2024, a decrease from $9,366,000 on February 1, 2023[22] - The Modular Buildings segment's backlog increased to approximately $6,170,000 as of February 1, 2024, compared to $4,985,000 in 2023[22] - International sales accounted for 3.1% of consolidated sales in fiscal 2023, down from 4.5% in fiscal 2022[21] - Sales for the year ended November 30, 2023, increased to $30,280,957, up 18.5% from $25,646,152 in 2022[92] Profit and Income - Gross profit rose to $8,583,882, representing a 23.7% increase compared to $6,938,656 in the previous year[92] - Income from operations significantly improved to $1,531,241, up 153.5% from $604,718 in 2022[92] - Net income for the year was $266,969, compared to $97,797 in 2022, marking a 172.5% increase[92] - Basic net income per share from continuing operations was $0.15, up from $0.08 in the prior year[92] - The company reported a net income from continuing operations of $762,789 in 2023, compared to $374,121 in 2022, showing a significant improvement[151] Expenses and Liabilities - Total expenses increased to $7,052,641, a rise of 11.3% from $6,333,938 in 2022[92] - Total liabilities decreased slightly to $12,760,859 in 2023 from $12,797,677 in 2022[89] - The total term debt as of November 30, 2023, is $2,899,654, a decrease from $3,001,919 in the previous year[189] Inventory and Assets - As of November 30, 2023, the gross inventories balance was $12,614,410, with a net balance of $11,031,362 after reserves[84] - Total current assets increased to $15,085,494 as of November 30, 2023, up from $14,133,429 in 2022[89] - The total assets of the company amounted to $23,347,000, with $20,754,000 from the Agricultural Products segment and $2,593,000 from Modular Buildings[218] Research and Development - The company contracted a $5,300,000 research project in December 2023, expected to be mostly completed in fiscal 2024[22] - Recent product developments included improvements to manure spreaders and grinder mixers for manufacturability and cost savings[23] - Research and development costs for fiscal years 2023 and 2022 were $204,000 and $193,000, respectively, indicating a year-over-year increase of approximately 5.7%[148] Discontinued Operations - The company ceased operations of its Tools business during the third quarter of fiscal 2023, now reported in discontinued operations[13] - The Tools segment was discontinued on June 7, 2023, to focus on more successful business segments, with liquidation expected to complete over the next two fiscal quarters[156] Financing and Credit - The Company maintains a $5,000,000 revolving line of credit and a $500,000 reserve line of credit, with a combined balance of $4,413,520 as of November 30, 2023, leaving $1,086,480 available[179] - The Company carries a $2,600,000 term loan with an interest rate of 7.00%, requiring monthly payments of $19,648, due October 1, 2037[180] - The Company must maintain a minimum of $4,000,000 in monthly working capital as per the loan agreements with Bank Midwest[186] Tax and Compliance - The total income tax expense for the fiscal year 2023 was $113,466, significantly higher than $19,203 in 2022, driven by an increase in deferred tax expenses[210] - The effective tax rate increased to 29.8% in 2023 from 16.4% in 2022, primarily due to differences in restricted stock values and non-deductible expenses[211] - The Company was out of compliance with its debt to worth ratio by ten percentage points as of November 30, 2023, but received a waiver from Bank Midwest[186] Employee and Stock Information - The company employed 93 employees in the Agricultural Products segment and 31 in the Modular Buildings segment as of November 30, 2023[33] - A total of 93,251 shares were issued under the 2020 Equity Incentive Plan for the year ended November 30, 2023, down from 110,167 shares in 2022[196] - Stock-based compensation expense for the twelve months ended November 30, 2023, was $292,185, compared to $287,721 for the same period in 2022, reflecting a slight increase[197]

Exhibit 99.1 FOR IMMEDIATE RELEASE February 9, 2024 ART'S WAY ANNOUNCES 18% REVENUE INCREASE, 104% INCREASE IN INCOME FROM CONTINUING OPERATIONS ARMSTRONG, IOWA, February 9, 2024 – Art's Way Manufacturing Co., Inc. (Nasdaq: ARTW), a diversified, international manufacturer and distributor of equipment serving agricultural and research needs, announces its financial results for fiscal 2023. | --- | --- | --- | |--------------------------------------------|------------------------------------------------------ ...