ARTS WAY MANUFACTURING CO INC Segments Disclosure
| (17) | Segment Information |
There are two reportable segments: Agricultural Products and Modular Buildings. The Agricultural Products segment fabricates and sells farming products as well as replacement parts for these products in the United States and worldwide. The Modular Buildings segment produces modular buildings for animal containment and various laboratory uses.
The accounting policies applied to determine the segment information are the same as those described in the summary of significant accounting policies. Management evaluates the performance of each segment based on profit or loss from operations before income taxes.
Approximate financial information with respect to the reportable segments is as follows.
| Twelve Months Ended November 30, 2025 | ||||||||||||
| Agricultural Products | Modular Buildings | Consolidated | ||||||||||
| Revenue from external customers | $ | 12,749,000 | $ | 10,226,000 | $ | 22,975,000 | ||||||
| Gross profit | 2,977,000 | 3,290,000 | 6,267,000 | |||||||||
| Operating Expense | 4,439,000 | 1,539,000 | 5,978,000 | |||||||||
| Income (loss) from operations | (1,462,000 | ) | 1,751,000 | 289,000 | ||||||||
| Income (loss) before tax | (459,000 | ) | 1,896,000 | 1,437,000 | ||||||||
| Income tax expense (benefit) | $ | (118,000 | ) | $ | 520,000 | $ | 402,000 | |||||
| Total Assets | $ | 19,204,000 | $ | 3,274,000 | $ | 22,478,000 | ||||||
| Capital expenditures (1) | 544,000 | 222,000 | 766,000 | |||||||||
| Depreciation & Amortization | 617,000 | 251,000 | 868,000 | |||||||||
| Interest expense | 307,000 | 59,000 | 366,000 | |||||||||
| Engineering | 344,000 | - | 344,000 | |||||||||
| Selling | 819,000 | 621,000 | 1,440,000 | |||||||||
| General and administrative (G&A) | 3,276,000 | 918,000 | 4,194,000 | |||||||||
| Corporate expense (included in G&A) | $ | 420,000 | $ | 180,000 | $ | 600,000 | ||||||
| Twelve Months Ended November 30, 2024 | ||||||||||||
| Agricultural Products | Modular Buildings | Consolidated | ||||||||||
| Revenue from external customers | $ | 14,663,000 | $ | 9,836,000 | $ | 24,499,000 | ||||||
| Gross profit | 4,155,000 | 3,155,000 | 7,310,000 | |||||||||
| Operating Expense | 5,665,000 | 1,184,000 | 6,849,000 | |||||||||
| Income (loss) from operations | (1,510,000 | ) | 1,971,000 | 461,000 | ||||||||
| Income (loss) before tax | (2,065,000 | ) | 1,930,000 | (135,000 | ) | |||||||
| Income tax expense (benefit) | $ | (471,000 | ) | $ | 430,000 | $ | 41,000 | |||||
| Total Assets | $ | 18,372,000 | $ | 2,869,000 | $ | 21,241,000 | ||||||
| Capital expenditures (2) | 587,000 | 176,000 | 763,000 | |||||||||
| Depreciation & Amortization | 617,000 | 251,000 | 868,000 | |||||||||
| Interest expense | 556,000 | 43,000 | 599,000 | |||||||||
| Engineering | 431,000 | 1,000 | 432,000 | |||||||||
| Selling | 1,269,000 | 366,000 | 1,635,000 | |||||||||
| General and administrative (G&A) | 3,965,000 | 816,000 | 4,781,000 | |||||||||
| Corporate expense (included in G&A) | $ | 629,000 | $ | 120,000 | $ | 749,000 | ||||||
| (1) | FY 2025 capital expenditures include finance leased assets of $97,000 in the Agricultural Products segment and $42,000 in the Modular Buildings segment. | |
| (2) | FY 2024 capital expenditures include finance leased assets of $39,000 in the Agricultural Products segment. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 9, 2021 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.