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]
Art’s-Way(ARTW) - 2023 Q4 - Annual Report