Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Nov. 30, 2013 | Jan. 30, 2014 | 31-May-13 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'ARTS WAY MANUFACTURING CO INC | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--11-30 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 4,046,552 | ' |
Entity Public Float | ' | ' | $15,042,860 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0000007623 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Period End Date | 30-Nov-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Nov. 30, 2013 | Nov. 30, 2012 | |
Current assets: | ' | ' | |
Cash | $207,950 | $1,546,609 | |
Accounts receivable-customers, net of allowance for doubtful accounts of $35,474 and $27,958 in 2013 and 2012, respectively | 2,999,903 | 2,778,007 | |
Inventories, net | 14,922,525 | 14,327,482 | |
Deferred taxes | 1,228,097 | 1,061,806 | |
Cost and Profit in Excess of Billings | 42,238 | 102,058 | |
Income taxes receivable | 108,513 | ' | |
Other current assets | 242,146 | 309,800 | |
Total current assets | 19,751,372 | 20,125,762 | |
Property, plant, and equipment, net | 11,900,202 | [1] | 9,562,698 |
Assets held for lease, net | 122,318 | 340,979 | |
Assets held for sale, net | ' | 205,508 | |
Goodwill | 993,729 | 993,729 | |
Total assets | 32,767,621 | 31,228,676 | |
Current liabilities: | ' | ' | |
Line of credit | 3,350,000 | ' | |
Current portion of term debt | 1,228,964 | 1,165,177 | |
Accounts payable | 806,207 | 654,322 | |
Customer deposits | 147,505 | 232,300 | |
Billings in Excess of Cost and Profit | 17,721 | 1,125,666 | |
Accrued expenses | 1,718,475 | 1,960,240 | |
Income taxes payable | ' | 821,300 | |
Total current liabilities | 7,268,872 | 5,959,005 | |
Deferred taxes | 952,645 | 897,492 | |
Long Term debt, excluding current portion | 6,251,959 | 7,300,957 | |
Total liabilities | 14,473,476 | 14,157,454 | |
Stockholders’ equity: | ' | ' | |
Undesignated preferred stock - $0.01 par value. Authorized 500,000 shares in 2013 and 2012; issued and outstanding 0 shares in 2013 and 2012. | 0 | 0 | |
Common stock – $0.01 par value. Authorized 9,500,000 shares in 2013 and 2012; issued and outstanding 4,046,552 in 2013 and 4,035,052 in 2012 | 40,466 | 40,351 | |
Additional paid-in capital | 2,616,407 | 2,540,320 | |
Retained earnings | 15,637,272 | 14,490,551 | |
Total stockholders’ equity | 18,294,145 | 17,071,222 | |
Total liabilities and stockholders’ equity | $32,767,621 | $31,228,676 | |
[1] | includes assets purchased with Ohio Metal and Agro Trend acquisitions |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Nov. 30, 2013 | Nov. 30, 2012 |
Allowance for doubtful accounts (in Dollars) | $35,474 | $27,958 |
Undesignated preferred stock - par value (in Dollars per share) | $0.01 | $0.01 |
Undesignated preferred stock - authorized shares | 500,000 | 500,000 |
Undesignated preferred stock - issued shares | 0 | 0 |
Undesignated preferred stock - outstanding shares | 0 | 0 |
Common stock – par value (in Dollars per share) | $0.01 | $0.01 |
Common stock – authorized shares | 9,500,000 | 9,500,000 |
Common stock – issued shares | 4,046,552 | 4,035,052 |
Common stock – outstanding shares | 4,046,552 | 4,035,052 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Net sales | $34,226,553 | $36,456,830 |
Cost of goods sold | 25,860,107 | 26,424,567 |
Gross profit | 8,366,446 | 10,032,263 |
Expenses: | ' | ' |
Engineering | 514,086 | 331,061 |
Selling | 2,155,640 | 1,611,215 |
General and administrative | 3,879,580 | 3,762,162 |
Total expenses | 6,549,306 | 5,704,438 |
Income from operations | 1,817,140 | 4,327,825 |
Other income (expense): | ' | ' |
Interest expense | -296,640 | -413,594 |
Other | 685,344 | 73,796 |
Total other income (expense) | 388,704 | -339,798 |
Income before income taxes | 2,205,844 | 3,988,027 |
Current tax expense | 654,468 | 1,322,940 |
Net income | $1,551,376 | $2,665,087 |
Net income per share: | ' | ' |
Basic net income per share (in Dollars per share) | $0.38 | $0.66 |
Diluted net income per share (in Dollars per share) | $0.38 | $0.66 |
Weighted average outstanding shares used to compute basic net income per share (in Shares) | 4,039,530 | 4,032,643 |
Weighted average outstanding shares used to compute diluted net income per share (in Shares) | 4,049,791 | 4,049,516 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Cash flows from operations: | ' | ' |
Net income | $1,551,376 | $2,665,087 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Stock based compensation | 29,812 | 34,519 |
Impairment of Asset Available for Sale | ' | 94,647 |
Gain on disposal of property, plant, and equipment | -601,678 | ' |
Depreciation expense | 704,457 | 792,910 |
Amortization expense | 0 | 60,000 |
Bad debt expense (recovery) | 7,516 | -7,654 |
Deferred income taxes | -111,138 | -41,721 |
(Increase) decrease in: | ' | ' |
Accounts receivable | -229,412 | -739,984 |
Inventories | 769,641 | -130,617 |
Income taxes receivable | -108,513 | ' |
Other current assets | 67,652 | -110,870 |
Increase (decrease) in: | ' | ' |
Accounts payable | 151,885 | 312,584 |
Contracts in progress, net | -1,048,125 | 1,114,286 |
Customer deposits | -84,795 | -106,184 |
Income taxes payable | -821,301 | 470,304 |
Accrued expenses | -279,721 | 596,964 |
Net cash provided by (used in) operating activities | -2,344 | 5,004,271 |
Cash flows from investing activities: | ' | ' |
Purchases of property, plant, and equipment | -842,124 | -799,598 |
Return of asset held for lease | 146,902 | ' |
Net cash (used in) investing activities | -3,342,839 | -3,803,163 |
Proceeds from sale of Armstrong, IA land and Salem, SD building | 835,534 | ' |
Cash flows from financing activities: | ' | ' |
Net change in line of credit | 3,350,000 | -1,388,965 |
Proceeds from term debt | 228,339 | 2,880,000 |
Repayment of term debt | -1,213,550 | -869,987 |
Proceeds from the exercise of stock options | 46,390 | 9,110 |
Dividends paid to stockholders | -404,655 | -403,585 |
Net cash provided by financing activities | 2,006,524 | 226,573 |
Net increase/(decrease) in cash | -1,338,659 | 1,427,681 |
Cash at beginning of period | 1,546,609 | 118,928 |
Cash at end of period | 207,950 | 1,546,609 |
Interest | 296,640 | 411,737 |
Income taxes | 1,644,520 | 1,045,614 |
Universal Harvester [Member] | ' | ' |
Cash flows from investing activities: | ' | ' |
Purchase of assets | ' | -3,003,565 |
Ohio Metal Working Products [Member] | ' | ' |
Cash flows from investing activities: | ' | ' |
Purchase of assets | -3,171,805 | ' |
Argo Trend [Member] | ' | ' |
Cash flows from investing activities: | ' | ' |
Purchase of assets | ($311,346) | ' |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | 12 Months Ended | ||
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 | |
Balance, November 30 | $18,294,145 | $17,071,222 | $14,730,541 |
Balance, November 30 (in Shares) | 4,046,552 | 4,035,052 | ' |
Exercise of stock options | 46,390 | 9,110 | ' |
Exercise of stock options (in Shares) | 9,000 | 2,000 | ' |
Stock based compensation | 29,812 | 34,519 | ' |
Shares issued for purchase of UHC | ' | 35,550 | ' |
Dividends paid, $0.10/$0.10 per share | -404,655 | -403,585 | ' |
Net income | 1,551,376 | 2,665,087 | ' |
Common Stock [Member] | ' | ' | ' |
Balance, November 30 | 40,466 | 40,351 | 40,259 |
Balance, November 30 (in Shares) | 4,046,552 | 4,035,052 | 4,025,852 |
Exercise of stock options | 90 | 20 | ' |
Exercise of stock options (in Shares) | 9,000 | 2,000 | ' |
Stock based compensation | 25 | 22 | ' |
Stock based compensation (in Shares) | 2,500 | 2,200 | ' |
Shares issued for purchase of UHC | ' | 50 | ' |
Shares issued for purchase of UHC (in Shares) | ' | 5,000 | ' |
Additional Paid-in Capital [Member] | ' | ' | ' |
Balance, November 30 | 2,616,407 | 2,540,320 | 2,461,233 |
Exercise of stock options | 46,300 | 9,090 | ' |
Stock based compensation | 29,787 | 34,497 | ' |
Shares issued for purchase of UHC | ' | 35,500 | ' |
Retained Earnings [Member] | ' | ' | ' |
Balance, November 30 | 15,637,272 | 14,490,551 | 12,229,049 |
Dividends paid, $0.10/$0.10 per share | -404,655 | -403,585 | ' |
Net income | $1,551,376 | $2,665,087 | ' |
Note_1_Summary_of_Significant_
Note 1 - Summary of Significant Account Policies | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||
(1) Summary of Significant Accounting Policies | |||||||||
(a) Nature of Business | |||||||||
Art’s-Way Manufacturing Co., Inc. is primarily engaged in the fabrication and sale of specialized farm machinery in the agricultural sector of the United States. Primary product offerings include: portable and stationary animal feed processing equipment; hay and forage equipment; sugar beet harvesting equipment; land maintenance equipment; a line of portable grain augers; a line of manure spreaders; moldboard plows and a line of reels. The Company sells its labeled products through independent farm equipment dealers throughout the United States. In addition, the Company manufactures and supplies hay blowers to original equipment manufacturers (OEMs). The Company also provides after-market service parts that are available to keep its branded and OEM produced equipment operating to the satisfaction of the end user of the Company’s products. | |||||||||
On June 25, 2013, the Company acquired the fixed assets, raw material inventory, work-in-progress inventory and select finished goods inventory of Agro Trend, a division of Rojac Industries, Inc. of Clifford, Ontario, Canada. Agro Trend distributes agricultural equipment and manufactures commercial snow blowers and agricultural trailers. Most of the existing Agro Trend operational team was retained to continue the manufacture of snow blowers and trailers. The acquired assets and operations are reported with our agricultural products segment. For financial information related to the acquisition, see Note 13, “Acquisitions”. | |||||||||
Our Pressurized Vessels segment is primarily engaged in the fabrication and sale of pressurized vessels and tanks through the Company’s wholly-owned subsidiary, Art’s-Way Vessels, Inc. This segment provides a combination of services as a manufacturer and supplier of steel vessels and steel containment systems. The vessels are primarily sold to manufacturing facilities that will use the vessel as a component part of their end product. In addition to its role as a fabricator of vessels, it provides services including: custom CAD drawing; welding; interior linings and exterior finishing; passivation of stainless steel; hydrostatic and pneumatic testing; design, build and finishing of skids; installation of piping; non-destructive examination and heat treating. | |||||||||
Our Modular Buildings segment is primarily engaged in the construction of modular laboratories and animal housing facilities through the Company’s wholly-owned subsidiary, Art’s-Way Scientific, Inc. Buildings commonly produced range from basic swine buildings to complex containment research laboratories. This segment also provides services relating to the design, manufacturing, delivering, installation and renting of the building units that it produces. | |||||||||
On September 30, 2013, the Company acquired the assets of Ohio Metal Working Products Company in Canton, Ohio consisting of inventory, equipment, land, and building. Ohio Metal Working Products Company is a domestic manufacturer and distributor of standard single point brazed carbide tipped tools as well as PCD (polycrystalline diamond) and CBN (cubic boron nitride) inserts and tools. The existing Ohio Metal Working Products Company operational team was retained to continue the manufacturing of the carbide, PCD, and CBN tipped tools and inserts. The acquired assets and operations will be reported in a new segment for financial reporting purposes. For financial information related to the acquisition, see Note 13, “Acquisitions”. | |||||||||
(b) Principles of Consolidation | |||||||||
The consolidated financial statements include the accounts of Art’s-Way Manufacturing Co., Inc. and its wholly-owned subsidiaries, Universal Harvester by Art’s-Way, Inc., Art’s-Way Vessels, Inc., Art’s-Way Scientific, Inc., Art’s-Way Manufacturing International LTD, and Ohio Metal Working Products/Art’s-Way, Inc. Art’s-Way Vessels became active in October 2005 after purchasing certain assets of Vessel Systems, Inc., while Art’s-Way Scientific, Inc. became active in August 2006 after purchasing certain assets of Tech Space, Inc. Universal Harvester by Art’s-Way was formed in 2012 in connection with the Company’s acquisition of certain assets of Universal Harvester Co., Inc. Art’s-Way Manufacturing International LTD was formed in June 2013 when the Company acquired certain assets of Agro Trend while Ohio Metal Working Products/Art’s-Way, Inc. was formed in September 2013 when the Company acquired certain assets of Ohio Metal Working Products Company. All material inter-company accounts and transactions are eliminated in consolidation. | |||||||||
The financial books of Art’s-Way Manufacturing International LTD are kept in the functional currency of Canadian dollars and the financial statements are converted to U.S. Dollars for consolidation. When consolidating the financial results of the Company into U.S. Dollars for reporting purposes, the Company uses the All-Current translation method. The All-Current method requires the balance sheet assets and liabilities be translated to U.S. Dollars at the exchange rate as of quarter end. Owner’s equity is translated at historical exchange rates and retained earnings are translated at an average exchange rate for the period. Additionally, revenue and expenses are translated at average exchange rates for the periods presented. The Company monitors the resulting cumulative translation adjustment and considers it to be immaterial. | |||||||||
(c) Cash Concentration | |||||||||
The Company maintains several different accounts at four different banks, and balances in these accounts are periodically in excess of federally insured limits. However, management believes the risk of loss to be low. | |||||||||
(d) Customer Concentration | |||||||||
During the year ended November 30, 2013, no one customer accounted for more than 6% of consolidated revenues. During the year ended November 30, 2012, one customer did account for approximately 25% of consolidated revenues. This was a customer of our Modular Buildings segment. In addition, during the year ended November 30, 2012, another customer accounted for approximately 12% of consolidated revenues. This was a customer of our Agricultural Products segment. | |||||||||
(e) Accounts Receivable | |||||||||
Accounts receivable are carried at original invoice amount less an estimate made for doubtful accounts based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. Accounts receivable are written-off when deemed uncollectible. Recoveries of accounts receivable previously written-off are recorded when received. Accounts receivable are generally considered past due 60 days past invoice date, with the exception of international sales which primarily are sold with a letter of credit for 120 day terms. | |||||||||
Trade receivables due from customers are uncollateralized customer obligations due under normal trade terms requiring payment within 30 days from the invoice date. Trade receivables are stated at the amount billed to the customer. The Company charges interest on overdue customer account balances at a rate of 1.5% per month. Payments of trade receivables are allocated to the specific invoices identified on the customer's remittance advice or, if unspecified, are applied to the earliest unpaid invoices. | |||||||||
(f) Inventories | |||||||||
Inventories are stated at the lower of cost or market, and cost is determined using the standard costing method. Management monitors the carrying value of inventories using inventory control and review processes that include, but are not limited to, sales forecast review, inventory status reports, and inventory reduction programs. The Company records inventory write downs to market based on expected usage information for raw materials and historical selling trends for finished goods. Additional write downs may be necessary if the assumptions made by management do not occur. | |||||||||
(g) Property, Plant, and Equipment | |||||||||
Property, plant, and equipment are recorded at cost. Depreciation of plant and equipment is provided using the straight-line method, based on the estimated useful lives of the assets which range from three to forty years. | |||||||||
(h) Lessor Accounting | |||||||||
Modular buildings held for short term lease by our Modular Buildings segment are recorded at cost. Amortization of the property is calculated over the useful life of the building. Estimated useful life is five years. Lease revenue is accounted for on a straight-line basis over the term of the related lease agreement. | |||||||||
(i) Goodwill and Other Intangible Assets and Impairment | |||||||||
Goodwill represents costs in excess of the fair value of net tangible and identifiable net intangible assets acquired in business combinations. Art’s-Way performs an annual test for impairment of goodwill during the fourth quarter. | |||||||||
Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives, which is five years. | |||||||||
(j) Income Taxes | |||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating losses. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates as recognized in income in the period that includes the enactment date. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is entirely dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. | |||||||||
The Company shall classify interest and penalties to be paid on an underpayment of taxes as income tax expense. The Company files income tax returns in the U.S. federal jurisdiction and various states and Canada. The company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years ended before November 30, 2009. | |||||||||
(k) Revenue Recognition | |||||||||
Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the shipment of the product. All sales are made to authorized dealers whose application for dealer status has been approved and who have been informed of general sales policies. Any changes in Company terms are documented in the most recently published price lists. Pricing is fixed and determinable according to the Company’s published equipment and parts price lists. Title to all equipment and parts sold shall pass to the Buyer upon delivery to the carrier and is not subject to a customer acceptance provision. Proof of the passing of title is documented by the signing of the delivery receipt by a representative of the carrier. Post shipment obligations are limited to any claim with respect to the condition of the equipment or parts. Applicable sales taxes imposed on our revenues are presented on a net basis on the consolidated statements of operations and therefore do not impact net revenues or cost of goods sold. A provision for warranty expenses, based on sales volume, is included in the financial statements. The Company’s return policy allows for new and saleable parts to be returned, subject to inspection and a restocking charge which is included in net sales. Whole goods are not returnable. Shipping costs charged to customers are included in net sales. Freight costs incurred are included in cost of goods sold. | |||||||||
In certain circumstances, upon the customer’s written request, we may recognize revenue when production is complete and the good is ready for shipment. At the buyer’s request, we will bill the buyer upon completing all performance obligations, but before shipment. The buyer dictates that we ship the goods per their direction from our manufacturing facility, as is customary with this type of agreement, in order to minimize shipping costs. The written agreement with the customer specifies that the goods will be delivered on a schedule to be determined by the customer, with a final specified delivery date, and that we will segregate the goods from our inventory, such that they are not available to fill other orders. This agreement also specifies that the buyer is required to purchase all goods manufactured under this agreement. Title of the goods will pass to the buyer when the goods are complete and ready for shipment, per the customer agreement. At the transfer of title, all risks of ownership have passed to the buyer, and the buyer agrees to maintain insurance on the manufactured items that have not yet been shipped. The Company has operated using bill and hold agreements with certain customers for many years. The credit terms on this agreement are consistent with the credit terms on all other sales. All risks of loss are shouldered by the buyer, and there are no exceptions to the buyer’s commitment to accept and pay for these manufactured goods. Revenues recognized at the completion of production in 2013 and 2012 were approximately $788,000 and $937,000, respectively. | |||||||||
Our Modular Buildings segment is in the construction industry, and as such accounts for long-term contracts on the percentage of completion method. Revenue and gross profit are recognized as work is performed based on the relationship between actual costs incurred and total estimated costs at completion. Contract losses are recognized when current estimates of total contract revenue and contract cost indicate a loss. Estimated contract costs include any and all costs appropriately allocable to the contract. The provision for these contract losses will be the excess of estimated contract costs over estimated contract revenues. | |||||||||
Costs and profit in excess of amounts billed are classified as current assets and billings in excess of cost and profit are classified as current liabilities. | |||||||||
(l) Research and Development | |||||||||
Research and development costs are expensed when incurred. Such costs approximated $174,000 and $125,000 for the years ended November 30, 2013 and 2012, respectively. | |||||||||
(m) Advertising | |||||||||
Advertising costs are expensed when incurred. Such costs approximated $479,000 and $256,000 for the years ended November 30, 2013 and 2012, respectively. | |||||||||
(n) Income Per Share | |||||||||
Basic net income per common share has been computed on the basis of the weighted average number of common shares outstanding. Diluted net income per share has been computed on the basis of the weighted average number of common shares outstanding plus equivalent shares assuming exercise of stock options. | |||||||||
Basic and diluted earnings per common share have been computed based on the following as of November 30, 2013 and 2012: | |||||||||
For the twelve months ended | |||||||||
30-Nov-13 | 30-Nov-12 | ||||||||
Basic: | |||||||||
Numerator: net income | $ | 1,551,376 | $ | 2,665,087 | |||||
Denominator: average number of common shares outstanding | 4,039,530 | 4,032,643 | |||||||
Basic earnings per common share | $ | 0.38 | $ | 0.66 | |||||
Diluted: | |||||||||
Numerator: net income | $ | 1,551,376 | $ | 2,665,087 | |||||
Average number of common shares outstanding | 4,039,530 | 4,032,643 | |||||||
Effect of dilutive stock options | 10,261 | 16,873 | |||||||
Denominator: dilutive average number of common shares outstanding | 4,049,791 | 4,049,516 | |||||||
Diluted earnings per common share | $ | 0.38 | $ | 0.66 | |||||
(o) Stock Based Compensation | |||||||||
Stock-based compensation expense reflects the fair value of stock-based awards measured at the grant date and recognized over the relevant vesting period. We estimate the fair value of each stock-based award on the measurement date using the Black-Scholes option valuation model which incorporates assumptions as to stock price volatility, the expected life of the options, risk-free interest rate and dividend yield. Restricted stock is valued at market value at the day of grant. | |||||||||
(p) Use of Estimates | |||||||||
Management of the Company has made a number of estimates and assumptions related to the reported amount of assets and liabilities, reported amount of revenues and expenses, and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. These estimates include the valuation of the Company’s accounts receivable, inventories, percent completion, warranty accrual and realizability of the deferred tax assets. Actual results could differ from those estimates. | |||||||||
(q) Recently Issued Accounting Pronouncements | |||||||||
Fair Value Measurements Update | |||||||||
In May 2011, the FASB issued ASU No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS’s” that amends the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and disclosing information about fair value measurements. The amendments in this update achieve the objective of developing common fair value measurement and disclosure requirements, as well as improving consistency and understandability. Some of the requirements clarify the FASB’s intent about the application of existing fair value measurement requirements while other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The amendments in this ASU are effective prospectively for interim and annual periods beginning after December 15, 2011, with no early adoption permitted. The company has completed the adoption of this standard and the standard does not have a material impact on our consolidated financial statements. | |||||||||
Comprehensive Income | |||||||||
In June 2011, the FASB issued ASU No. 2011-05, “Presentation of Comprehensive Income” that improves the comparability, consistency, and transparency of financial reporting and increases the prominence of items reported in other comprehensive income by eliminating the option to present components of other comprehensive income as part of the statements of changes in stockholders’ equity. The amendments in this standard require that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. Under either method, adjustments must be displayed for items that are reclassified from other comprehensive income (“OCI”) to net income, in both net income and OCI. The standard does not change the current option for presenting components of OCI gross or net of the effect of income taxes, provided that such tax effects are presented in the statement in which OCI is presented or disclosed in the notes to the financial statements. Additionally, the standard does not affect the calculation or reporting of earnings per share. For public entities, the amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and are to be applied retrospectively, with early adoption permitted. The Company has completed the adoption of this standard and the standard does not have a material impact on our consolidated financial statements. | |||||||||
In December 2011, the FASB issued ASU (Accounting Standards Update) No. 2011-12 which stated that the new presentation requirements about reclassifications of items out of accumulated other comprehensive income would be difficult for preparers and may add unnecessary complexity to financial statements. In addition it is difficult for some stakeholders to change systems in time to gather the information for the new presentation requirements by the effective date of Update 2011-05. Given these issues, they asked the Board to reconsider whether it is necessary to require entities to present reclassification adjustments by component in both the statement where net income is presented and the statement where other comprehensive income is presented for both interim and annual financial statements. Because those pending paragraphs are effective on a retrospective basis for public entities for annual periods beginning after December 15, 2011, and interim periods within those years, those stakeholders asked the Board, at a minimum, to defer the effective date pertaining to reclassification adjustments out of accumulated other comprehensive income in Accounting Standards Update 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, until the Board is able to reconsider those paragraphs. | |||||||||
In order to defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments, the paragraphs in this Update supersede certain pending paragraphs in Update 2011-05. The amendments are being made to allow the Board time to confirm whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented. While the Board is considering the operational concerns about the presentation requirements for reclassification adjustments and the needs of financial statement users for additional information about reclassification adjustments, entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before Update 2011-05. All other requirements in Update 2011-05 are not affected by this Update, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities must apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company has completed the adoption of this standard and the standard does not have a material impact on our consolidated financial statements. | |||||||||
In February 2013, the FASB issued ASU No. 2013-02. After reviewing the presentation requirements about the effect of reclassification adjustments out of accumulated other comprehensive income on each line item of net income that were deferred by Update 2011-12, the FASB decided to not move forward with the requirement. Instead, the FASB decided that the reporting as described above is to be completed in one location, either on the face of the financial statements or in the notes. The Company has completed the adoption of this standard and the standard does not have a material impact on our consolidated financial statements. | |||||||||
Presentation of an Unrecognized Tax Benefit | |||||||||
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” that clarifies how an unrecognized tax benefit should be presented in the financial statements when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists; as a reduction to a deferred tax asset or as a liability. The amendments are meant to eliminate the diversity that exists in the financial statement presentation of the unrecognized tax benefits. The amendments in this ASU do not require new recurring disclosures and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. The effective date for the Company will be the fiscal year beginning December 1, 2014. The Company currently has no unrecognized tax benefits that are impacted by the amendment and the Company does not expect this standard to have a material impact on our consolidated financial statements. |
Note_2_Allowance_for_Doubtful_
Note 2 - Allowance for Doubtful Accounts | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Allowance for Credit Losses [Text Block] | ' | ||||||||
(2) Allowance for Doubtful Accounts | |||||||||
A summary of the Company’s activity in the allowance for doubtful accounts is as follows: | |||||||||
For the 12 months ended | |||||||||
30-Nov-13 | 30-Nov-12 | ||||||||
Balance, beginning | $ | 27,958 | $ | 49,583 | |||||
Provision charged to expense | 7,516 | (7,654 | ) | ||||||
Less amounts charged-off | - | (13,971 | ) | ||||||
Balance, ending | $ | 35,474 | $ | 27,958 | |||||
Note_3_Inventory
Note 3 - Inventory | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
(3) Inventories | |||||||||
Major classes of inventory are: | |||||||||
30-Nov-13 | 30-Nov-12 | ||||||||
Raw materials | $ | 10,322,014 | $ | 8,466,060 | |||||
Work in process | 511,016 | 632,969 | |||||||
Finished goods | 7,305,301 | 7,694,528 | |||||||
$ | 18,138,331 | 16,793,557 | |||||||
Less: Reserves | (3,215,806 | ) | (2,466,075 | ) | |||||
$ | 14,922,525 | $ | 14,327,482 | ||||||
Note_4_Contracts_in_Progress
Note 4 - Contracts in Progress | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Contractors [Abstract] | ' | ||||||||
Long-term Contracts or Programs Disclosure [Text Block] | ' | ||||||||
(4) Contracts in Progress | |||||||||
Amounts included in the consolidated financial statements related to uncompleted contracts are as follows: | |||||||||
The amounts billed on these long term contracts are due 30 days from invoice date. All amounts billed are expected to be collected within the next 12 months. Retainage was $0 and $173,360 as of November 30, 2013 and 2012, respectively. | |||||||||
Cost and Profit in | Billings in Excess of | ||||||||
Excess of Billings | Costs and Profit | ||||||||
30-Nov-13 | |||||||||
Costs | $ | 326,560 | $ | 115,789 | |||||
Estimated earnings | 106,848 | 21,470 | |||||||
433,408 | 137,259 | ||||||||
Less: amounts billed | (391,170 | ) | (154,980 | ) | |||||
$ | 42,238 | $ | (17,721 | ) | |||||
30-Nov-12 | |||||||||
Costs | $ | 127,858 | $ | 4,994,950 | |||||
Estimated earnings | 42,200 | 2,932,023 | |||||||
170,058 | 7,926,973 | ||||||||
Less: amounts billed | (68,000 | ) | (9,052,639 | ) | |||||
$ | 102,058 | $ | (1,125,666 | ) | |||||
Note_5_Property_Plant_and_Equi
Note 5 - Property, Plant, and Equipment | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
(5) Property, Plant, and Equipment | |||||||||
Major classes of property, plant, and equipment are: | |||||||||
30-Nov-13 | -1 | 30-Nov-12 | |||||||
Land | $ | 1,188,155 | $ | 1,038,154 | |||||
Buildings and improvements | 10,315,222 | 9,178,964 | |||||||
Construction in Progress | 404,016 | 444,221 | |||||||
Manufacturing machinery and equipment | 13,555,073 | 11,872,993 | |||||||
Trucks and automobiles | 436,367 | 396,308 | |||||||
Furniture and fixtures | 149,022 | 147,013 | |||||||
26,047,855 | 23,077,653 | ||||||||
Less accumulated depreciation | (14,147,653 | ) | (13,514,955 | ) | |||||
Property, plant and equipment | $ | 11,900,202 | $ | 9,562,698 | |||||
(1) Includes assets purchased with Ohio Metal and Agro Trend acquisitions | |||||||||
Depreciation expense totaled $673,681 and $668,970 for the fiscal years ended November 30, 2013 and 2012, respectively. |
Note_6_Assets_Available_for_Sa
Note 6 - Assets Available for Sale | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Assets Available For Sale [Abstract] | ' | ||||||||
Assets Available For Sale [Text Block] | ' | ||||||||
(6) Assets Available for Sale | |||||||||
Major components of assets available for sale are: | |||||||||
30-Nov-13 | 30-Nov-12 | ||||||||
Salem, SD production facility | $ | - | $ | 87,500 | |||||
Armstrong, IA farm and pasture land | - | 118,008 | |||||||
$ | - | $ | 205,508 | ||||||
The Company had been leasing approximately 88 acres of excess land to third parties for farming. In December of 2012, we sold this excess land as 3 separate tracts. Tract 1 was farmland northwest of the Armstrong Manufacturing plant located at 5556 Highway 9 in Armstrong, Iowa. Tract 2 was farmland north of railroad tracks that run on the north side of the Armstrong Manufacturing plant located at 5556 Highway 9 in Armstrong, Iowa. Tract 3 was pasture land east of the Armstrong Manufacturing plant located at 5556 Highway 9 in Armstrong, Iowa. The net gain on the sale of the three parcels totaled $639,000. | |||||||||
To better utilize our production facilities, our auger production was moved from our Salem, South Dakota facility to our West Union, Iowa production facility in July 2011. The Salem, South Dakota facility was sold in December 2012. An impairment of $95,000 was recognized in fiscal year 2012 on the production facility due to the Company’s carrying value exceeding the bid price. A net loss of $9,000 was recognized in December 2012, which consisted of the closing costs associated with the sale. | |||||||||
The net gain for the year ended November 30, 2013 on the sale of the Salem, South Dakota facility and the three tracts of land in Iowa totaled $630,000. The gain is recorded as an Other Income item in the accompanying statement of operations for the year ended November 30, 2013. |
Note_7_Accrued_Expenses
Note 7 - Accrued Expenses | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | ||||||||
(7) Accrued Expenses | |||||||||
Major components of accrued expenses are: | |||||||||
30-Nov-13 | 30-Nov-12 | ||||||||
Salaries, wages, and commissions | $ | 836,200 | $ | 924,123 | |||||
Accrued warranty expense | 220,719 | 578,864 | |||||||
Other | 661,556 | 457,253 | |||||||
$ | 1,718,475 | $ | 1,960,240 | ||||||
Note_8_Product_Warranty
Note 8 - Product Warranty | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Product Warranties Disclosures [Abstract] | ' | ||||||||
Product Warranty Disclosure [Text Block] | ' | ||||||||
(8) Product Warranty | |||||||||
The Company offers warranties of various lengths to its customers depending on the specific product and terms of the customer purchase agreement. The average length of the warranty period is 1 year from date of purchase. The Company’s warranties require it to repair or replace defective products during the warranty period at no cost to the customer. The Company records a liability for estimated costs that may be incurred under its warranties. The costs are estimated based on historical experience and any specific warranty issues that have been identified. Although historical warranty costs have been within expectations, there can be no assurance that future warranty costs will not exceed historical amounts. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the balance as necessary. | |||||||||
Changes in the Company’s product warranty liability included in “accrued expenses” for the years ended November 30, 2013 and 2012 are as follows: | |||||||||
30-Nov-13 | 30-Nov-12 | ||||||||
Balance, beginning | $ | 578,864 | $ | 201,630 | |||||
Settlements / adjustments | (605,281 | ) | (436,096 | ) | |||||
Warranties issued | 247,136 | 813,330 | |||||||
Balance, ending | $ | 220,719 | $ | 578,864 | |||||
Note_9_Loan_and_Credit_Agreeme
Note 9 - Loan and Credit Agreements | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt Disclosure [Text Block] | ' | ||||||||
(9) Loan and Credit Agreements | |||||||||
On May 1, 2013, the Company began to move all banking arrangements previously held through West Bank to U.S. Bank. The relationship with U.S. Bank now includes an $8,000,000 revolving line of credit (the “Line of Credit”) which is scheduled to mature on May 1, 2014. The Line of Credit is renewable annually with advances funding the Company’s working capital needs and is secured by real property and fixed asset collateral. The interest rate is U.S. Bank’s prime interest rate, adjusted each time that the Federal prime rate changes, with a minimum rate of 3.50%. As of November 30, 2013, the interest rate was the minimum of 3.50%. Monthly interest-only payments are required and the unpaid principal is due on the maturity date. However, any principal balance remaining at maturity may be rolled over to the next annual renewal. As of November 30, 2013, the Company had a principal balance of $3,350,000 outstanding against the Line of Credit. The Line of Credit states that the borrowing base will be an amount equal to the sum of 75% of accounts receivable (discounted for aged accounts and customer balances exceeding 20% of aggregate receivables), plus 50% of inventory (this component cannot exceed $6,000,000 and only includes finished goods and raw materials deemed to be in good condition and not obsolete), less any outstanding loan balance of the Line of Credit, and less undrawn amounts of outstanding letters of credit issued by U.S. Bank or any affiliate. The Company’s obligations under the Line of Credit are evidenced by a Revolving Credit Note effective May 1, 2013, a Revolving Credit Agreement dated May 1, 2013 and certain other ancillary documents. | |||||||||
In addition to the Line of Credit, on May 1, 2013, the Company refinanced all outstanding West Bank term loans with U.S. Bank. The West Bank long-term debt, which had outstanding principal balances of $4,342,000 at a fixed interest rate of 4.75% and $1,749,000 at a fixed interest rate of 4.50%, was paid off with four U.S. Bank loans totaling $6,319,000 at a fixed interest rate of 2.98% (the “2013 U.S. Bank Term Loans”). As detailed in the Company’s long-term debt summary below, monthly principal and interest payments in the aggregate amount of $93,850 are required, with final payments of principal and accrued interest on the four loans, in the aggregate amount of $1,372,000, due on May 1, 2018. | |||||||||
As a result of paying off the West Bank loans, the Company incurred $130,000 worth of prepayment penalties which were financed by the U.S. Bank loans. The penalties were booked to fixed costs on the income statement for the quarter ended May 31, 2013. Closing costs amounted to $9,000 and will be amortized over the life of the loans. | |||||||||
Except for the U.S. Bank UHC Loan (as defined below), each of the Company’s term loans from U.S. Bank is governed by a Term Note and a Term Loan Agreement. Each Term Loan Agreement and the Revolving Credit Agreement require the Company to provide monthly internally prepared financial reports, year-end audited financial statements, and a monthly aging of accounts receivable. The Company, as of the end of each fiscal quarter, must maintain a debt to tangible net worth ratio of not more than 1.5 to 1.0 and a fixed charge coverage ratio of at least 1.15 to 1.00. The loans are secured by a first position security interest on the assets of the Company and its subsidiaries, including but not limited to, inventories, machinery, equipment and real estate, in accordance with the Business Security Agreements entered into by the Company and its subsidiaries and the Pledge Agreements entered into by the subsidiaries. Additionally, the Company has mortgaged certain real property in favor of U.S. Bank to secure the new loans, as documented by the Mortgage, Security Agreement and Assignment of Rents between U.S. Bank and the Company and its subsidiaries. | |||||||||
If the Company or its subsidiaries (as guarantors pursuant to continuing guaranties) commits an event of default under the Term Loan Agreements, Business Security Agreements, Pledge Agreements or Revolving Credit Agreement and fails or is unable to cure that default, the interest rate on each of the loans and Line of Credit could increase by 5.0% per annum and U.S. Bank can immediately terminate its obligation, if any, to make additional loans to the Company. In addition, U.S. Bank may collect any and all money due or to become due and shall have all other rights and remedies for default provided by the Uniform Commercial Code, as well as any other applicable law and the various loan agreements, including, without limitation, the right to repossess, render unusable and/or dispose of the collateral without judicial process. | |||||||||
The Company was in compliance with all covenants under the Term Loan Agreements and the Revolving Credit Agreement as measured on November 30, 2013, other than its covenant to maintain a fixed charge coverage ratio of at least 1.15 to 1.00. The fixed charge coverage ratio is based on a rolling 12 month calculation and measures the Company’s ability to cover fixed expenses such as loan payments, tax payments, rental payments, and dividends. The timing of tax payments was the main reason for the non-compliance result as of November 30, 2013. US Bank has issued a waiver forgiving the non-compliance for the fourth quarter and no event of default occurred. The next measurement date is February 28, 2014. | |||||||||
On May 10, 2012, the Company obtained $880,000 in long-term debt from U.S. Bank issued to acquire the building and property of Universal Harvester Co., Inc. located in Ames, Iowa (the “U.S. Bank UHC Loan”). The maturity date of this loan is May 10, 2017, with a final payment of principal and accrued interest in the amount of $283,500 due May 10, 2017. This loan is secured by a mortgage on the building and property acquired from Universal Harvester Co., Inc. in Ames, Iowa, pursuant to a Mortgage, Security Agreement and Assignment of Rents between the Company and U.S. Bank, dated May 10, 2012. On May 1, 2013, the U.S. Bank UHC Loan and the Mortgage were amended to extend the mortgage to secure the 2013 U.S. Bank Term Loans in addition to the U.S. Bank UHC Loan. | |||||||||
If the Company or its subsidiaries (as guarantors) commits an event of default under the agreement governing the U.S. Bank UHC Loan, the lender may cause the entire amount of the loan to be immediately due and payable, may foreclose on the property, or may increase the interest rate to a rate of 5.00% per annum, plus the interest rate otherwise payable under the U.S. Bank UHC Loan. | |||||||||
On May 1, 2010, the Company obtained a loan to finance the purchase of an additional facility located in West Union, Iowa to be used as a distribution center, warehouse facility, and manufacturing plant for certain products under the Art’s-Way brand. The funds for this loan were made available by the Iowa Finance Authority by the issuance of tax exempt bonds. This loan had an original principal amount of $1,300,000 and an interest rate of 3.5%. On February 1, 2013, the interest rate was decreased to 2.75%. The other terms of the loan remain unchanged. | |||||||||
This loan from the Iowa Finance Authority, which has been assigned to The First National Bank of West Union (n/k/a Bank 1st), is governed by a Manufacturing Facility Revenue Note dated May 28, 2010 as amended February 1, 2013 and a Loan Agreement dated May 1, 2010 and a First Amendment to Loan Agreement dated February 1, 2013 (collectively, “the IFA Loan Agreement”), which requires the Company to provide quarterly internally prepared financial reports and year-end audited financial statements and to maintain a minimum debt service coverage ratio of 1.5 to 1.0, which is measured at November 30 of each year. Among other covenants, the IFA Loan Agreement also requires the Company to maintain proper insurance on, and maintain in good repair, the West Union Facility, and continue to conduct business and remain duly qualified to do business in the State of Iowa. The loan is secured by a mortgage on the Company’s West Union Facility, pursuant to a Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement dated May 1, 2010 between the Company and The First National Bank of West Union (the “West Union Mortgage”). | |||||||||
If the Company commits an event of default under the IFA Loan Agreement and does not cure the event of default within the time specified by the IFA Loan Agreement, the lender may cause the entire amount of the loan to be immediately due and payable and take any other action that it is lawfully permitted to take or in equity to enforce the Company’s performance. | |||||||||
The Company was in compliance with all covenants under the IFA Loan Agreement as measured on November 30, 2013. The next measurement date is November 30, 2014. | |||||||||
A summary of the Company’s term debt is as follows: | |||||||||
30-Nov-13 | 30-Nov-12 | ||||||||
U.S. Bank loan payable in monthly installments of $42,500 including interest at 2.98%, due May 1, 2018 (November 30, 2012 is West Bank loan amount) | $ | 2,114,675 | $ | 2,435,359 | |||||
U.S. Bank loan payable in monthly installments of $11,000 including interest at 2.98%, due May 1, 2018 (November 30, 2012 is West Bank loan amount) | 955,507 | 1,027,330 | |||||||
U.S. Bank loan payable in monthly installments of $12,550 including interest at 2.98%, due May 1, 2018 (November 30, 2012 is West Bank loan amount) | 1,085,350 | 1,167,725 | |||||||
U.S. Bank loan payable in monthly installments of $27,800 including interest at 2.98%, due May 1, 2018 (November 30, 2012 is West Bank loan amount) | 1,693,752 | 1,875,120 | |||||||
U.S. Bank loan payable in monthly installments of $11,700 including interest at 3.15%, due May 10, 2017 | 707,719 | 823,555 | |||||||
Iowa Finance Authority loan payable in monthly installments of $12,500 including interest at 2.75%, due June 1, 2020 | 904,662 | 1,027,366 | |||||||
IDED loan payable in monthly installments of $2,437 including interest at 6%, due June 1, 2014 | 14,375 | 41,866 | |||||||
IDED loan payable in monthly installments of $813 including interest at 0%, due June 1, 2014 | 4,883 | 14,649 | |||||||
IDED loan payable in monthly installments of $0 including interest at 0% originally due July 1, 2014, forgiven in full July 31, 2013 | - | 48,830 | |||||||
West Union Community Development Corporation loan payable in annual installments of $4,333 including interest at 0% originally due September 1, 2013, repaid in full August 21, 2013 | - | 4,334 | |||||||
Total term debt | $ | 7,480,923 | $ | 8,466,134 | |||||
Less current portion of term debt | 1,228,964 | 1,165,177 | |||||||
Term debt, excluding current portion | $ | 6,251,959 | $ | 7,300,957 | |||||
A summary of the minimum maturities of term debt follows for the years ending November 30: | |||||||||
Year: | Amount | ||||||||
2014 | 1,228,964 | ||||||||
2015 | 1,246,624 | ||||||||
2016 | 1,284,323 | ||||||||
2017 | 1,529,360 | ||||||||
2018 | 1,959,912 | ||||||||
2019 and thereafter | 231,740 | ||||||||
$ | 7,480,923 | ||||||||
Note_10_Employee_Benefit_Plans
Note 10 - Employee Benefit Plans | 12 Months Ended |
Nov. 30, 2013 | |
Disclosure Text Block Supplement [Abstract] | ' |
Compensation and Employee Benefit Plans [Text Block] | ' |
(10) Employee Benefit Plans | |
The Company sponsors a defined contribution 401(k) savings plan which covers substantially all full-time employees who meet eligibility requirements. Participating employees may contribute as salary reductions any amount of their compensation up to the limit prescribed by the Internal Revenue Code. The Company makes a 25% matching contribution to employees contributing a minimum of 4% of their compensation, up to 1% of eligible compensation. The Company recognized an expense of $38,145 and $31,763 related to this plan during the years ended November 30, 2013 and 2012, respectively. |
Note_11_Equity_Incentive_Plan_
Note 11 - Equity Incentive Plan and Stock Based Compensation | 12 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
(11) Equity Incentive Plan | |||||||||||||||||
On November 30, 2013, the Company had one equity incentive plan, which is described below. The compensation cost charged against income was $29,812 and $34,519 for 2013 and 2012, respectively. The total income tax deductions for share-based compensation arrangements were $17,210 and $8,900 for 2013 and 2012, respectively. No compensation cost was capitalized as part of inventory or fixed assets. | |||||||||||||||||
On January 27, 2011, the Board of Directors of the Company authorized and approved the Art’s-Way Manufacturing Co., Inc. 2011 Equity Incentive Plan (the “2011 Plan”), subject to approval by the stockholders on or before January 27, 2012. The 2011 Plan was approved by the stockholders on April 28, 2011. It replaced the Employee Stock Option Plan and the Directors’ Stock Option Plan (collectively, the “Prior Plans”), and no further stock options will be awarded under the Prior Plans. Awards to directors and executive officers under the 2011 Plan will be governed by the forms of agreement approved by the Board of Directors. The 2011 Plan permits the plan administrator to award nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units, performance awards, and stock appreciation rights to employees (including officers), directors, and consultants. The Board of Directors has approved a director compensation policy pursuant to which non-employee directors are automatically granted non-qualified stock options to purchase 2,000 shares of common stock annually or initially upon their election to the Board, which are fully vested. | |||||||||||||||||
Stock options granted prior to January 27, 2011 are governed by the applicable Prior Plan and the forms of agreement adopted thereunder. | |||||||||||||||||
The fair value of each option award is estimated on the date of grant using the Black Scholes option-pricing model. Expected volatility is based on historical volatility of the Company’s stock and other factors. The Company uses historical option exercise and termination data to estimate the expected term the options are expected to be outstanding. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. The expected dividend yield is calculated using historical dividend amounts and the stock price at the option issuance date. | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Expected Volatility | 53.71 | % | 68.42 | % | |||||||||||||
Expected Dividend Yield | 1.063 | % | 1.007 | % | |||||||||||||
Expected Term (in years) | 2 | 2 | |||||||||||||||
Risk-Free Rate | 3.25 | % | 3.25 | % | |||||||||||||
Summary of activity under the plans as of November 30, 2012 and 2013, and changes during the years then ended as follows: | |||||||||||||||||
2013 Option Activity | |||||||||||||||||
Options | Shares | Weighted-Average | Weighted-Average | Aggregate | |||||||||||||
Exercise | Remaining | Intrinsic | |||||||||||||||
Price | Contractual | Value | |||||||||||||||
Term | |||||||||||||||||
Options outstanding at beginning of period | 163,000 | $ | 9.16 | - | - | ||||||||||||
Granted | 14,000 | $ | 6.4 | - | - | ||||||||||||
Exercised | (9,000 | ) | $ | 5.15 | - | $ | 13,970 | ||||||||||
Options Expired or Forfeited | (25,000 | ) | $ | 10.04 | - | - | |||||||||||
Options outstanding at end of period | 143,000 | $ | 9 | 5.71 | $ | 48,400 | |||||||||||
Options exercisable at end of period | 143,000 | $ | 9 | 5.71 | $ | 48,400 | |||||||||||
2012 Option Activity | |||||||||||||||||
Options | Shares | Weighted-Average | Weighted-Average | Aggregate | |||||||||||||
Exercise | Remaining | Intrinsic | |||||||||||||||
Price | Contractual | Value | |||||||||||||||
Term | |||||||||||||||||
Options outstanding at beginning of period | 153,000 | $ | 9.32 | - | - | ||||||||||||
Granted | 14,000 | $ | 6.75 | - | - | ||||||||||||
Exercised | (2,000 | ) | $ | 4.56 | - | $ | 5,660 | ||||||||||
Options Expired or Forfeited | (2,000 | ) | $ | 8.66 | - | - | |||||||||||
Options outstanding at end of period | 163,000 | $ | 9.16 | 5.6 | $ | 34,700 | |||||||||||
Options exercisable at end of period | 163,000 | $ | 9.16 | 5.6 | $ | 34,700 | |||||||||||
The weighted-average grant-date fair value of options granted during the year 2013 and 2012 was $0.15 and $1.26, respectively. | |||||||||||||||||
A summary of the status of the Company’s non-vested shares as of November 30, 2013, and changes during the year ended November 30, 2013, is presented below: | |||||||||||||||||
Non-vested Shares | Shares | Weighted-Average | |||||||||||||||
Grant-Date Fair Value | |||||||||||||||||
Non-vested at beginning of period | - | $ | 0 | ||||||||||||||
Granted | 14,000 | $ | 0.15 | ||||||||||||||
Vested | (14,000 | ) | $ | 0.15 | |||||||||||||
Forfeited | - | $ | 0 | ||||||||||||||
Non-vested at end of period | 0 | ||||||||||||||||
As of November 30, 2013, there was no unrecognized compensation cost related to non-vested share-based compensation arrangements under the plans. The total fair value of shares vested during the years ended November 30, 2013 and 2012 was $2,100 and $17,640 respectively. | |||||||||||||||||
The cash received from the exercise of options during fiscal year 2013 was $46,390, compared to $9,110 in 2012. | |||||||||||||||||
During fiscal year 2013 the Company issued 2,500 shares of restricted stock under the 2011 Plan. During fiscal year 2013, 1300 shares of restricted stock became unrestricted. The Company issued 3,000 shares of restricted stock in fiscal year 2012 of which 800 were subsequently forfeited. Compensation expense of $8,554 and $16,200 was recognized in 2013 and 2012, respectively, for shares of restricted stock. |
Note_12_Income_Taxes
Note 12 - Income Taxes | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
(12) Income Taxes | |||||||||
Total income tax expense (benefit) for the years ended November 30, 2013 and 2012 consists of the following: | |||||||||
30-Nov | |||||||||
2013 | 2012 | ||||||||
Current expense | $ | 765,606 | $ | 1,364,661 | |||||
Deferred expense(benefit) | (111,138 | ) | (41,721 | ) | |||||
$ | 654,468 | $ | 1,322,940 | ||||||
The reconciliation of the statutory Federal income tax rate is as follows: | |||||||||
30-Nov | |||||||||
2013 | 2012 | ||||||||
Statutory federal income tax rate | 34 | % | 34.00% | ||||||
R & D tax credits | (1.0 | ) | (2.0 | ) | |||||
Permanent Differences and Other | (3.3 | ) | 1.2 | ||||||
29.7 | % | 33.2 | % | ||||||
Tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) at November 30, 2013 and 2012 are presented below: | |||||||||
30-Nov | |||||||||
2013 | 2012 | ||||||||
Current deferred tax assets (liabilities): | |||||||||
Accrued expenses | $ | 168,000 | $ | 254,000 | |||||
Inventory capitalization | 24,000 | 8,000 | |||||||
Asset reserves | 1,036,000 | 800,000 | |||||||
Total current deferred tax assets | $ | 1,228,000 | $ | 1,062,000 | |||||
Non-current deferred tax assets (liabilities): | |||||||||
Property, plant, and equipment | $ | (953,000 | ) | $ | (897,000 | ) | |||
Total non-current deferred tax assets (liabilities) | $ | (953,000 | ) | $ | (897,000 | ) | |||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. |
Note_13_Acquisitions
Note 13 - Acquisitions | 12 Months Ended | ||||||||||||
Nov. 30, 2013 | |||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||||||
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | ' | ||||||||||||
(13) Acquisitions | |||||||||||||
On May 10, 2012, the Company acquired the assets of Universal Harvester Co., Inc. consisting of inventory, equipment, land, building goodwill and intangible assets. The acquisition-date fair value of the total consideration transferred was approximately $3,066,000 consisting of $3,030,450 of current and future cash to be paid and $35,550 of common stock. Under the terms of the purchase agreement, cash in the amount $3,003,565 was paid on May 11, 2012 and $27,427 of cash was paid on real estate taxes accrued but due on the land and building in future periods. The company issued 5,000 shares of common stock valued at $35,550 based on the closing market price as of May 10, 2012. | |||||||||||||
The operating results of the acquired business are reflected in the Company’s consolidated statement of operations from the acquisition date forward. The acquisition was made to continue the Company’s growth strategy and diversify its product offerings inside the agricultural industry. The purchase price was determined based on an arms-length negotiated value. The transaction is being accounted for under the acquisition method of accounting, with the purchase price allocated to the individual assets acquired. The purchase price allocation has been finalized and no longer subject to change. | |||||||||||||
The consideration has been allocated as follows: | |||||||||||||
Initially | Adjustments | Final | |||||||||||
Inventories | $ | 902,589 | $ | 45,171 | $ | 947,760 | |||||||
Equipment, tools and dies | 364,053 | - | 364,053 | ||||||||||
Goodwill and intangible assets | 699,900 | (81,171 | ) | 618,729 | |||||||||
Land and building | 1,100,000 | 36,000 | 1,136,000 | ||||||||||
Total | $ | 3,066,542 | $ | - | $ | 3,066,542 | |||||||
The unaudited pro forma information for the periods set forth below gives effect to the acquisition as if it had occurred at the beginning of fiscal year starting December 1, 2011. The pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that actually would have been achieved had the acquisition been consummated as of that time or that may result in the future: | |||||||||||||
Year Ended | Year Ended | ||||||||||||
November 31, 2013 | 30-Nov-12 | ||||||||||||
Net Sales from Continuing Operations: | |||||||||||||
As Reported | $ | 34,226,553 | $ | 36,456,830 | |||||||||
Pro Forma | $ | 34,226,553 | $ | 38,710,922 | |||||||||
Net Income from Continuing Operations: | |||||||||||||
As Reported | $ | 1,551,376 | $ | 2,665,087 | |||||||||
Pro Forma | $ | 1,551,376 | $ | 2,756,182 | |||||||||
Basic Net income per Share: | |||||||||||||
As Reported | $ | 0.38 | $ | 0.66 | |||||||||
Pro Forma | $ | 0.38 | $ | 0.68 | |||||||||
Diluted Net income per Share: | |||||||||||||
As Reported | $ | 0.38 | $ | 0.66 | |||||||||
Pro Forma | $ | 0.38 | $ | 0.68 | |||||||||
Weighted average outstanding shares used to compute basic net income per share | 4,039,530 | 4,032,643 | |||||||||||
Weighted average outstanding shares used to compute diluted net income per share | 4,049,791 | 4,049,516 | |||||||||||
On June 25, 2013, the Company acquired the fixed assets, raw material inventory, work-in-process inventory, and select finished good inventory of Agro Trend, a division of Rojac Industries, Inc. of Clifford, Ontario, Canada. A new entity was formed, Art's Way Manufacturing International LTD (“International”), which is included in the agricultural products segment for financial reporting purposes. International will lease the facility in Clifford, Ontario and is continuing manufacturing, marketing and sales from the Canadian location. The amount paid in US dollars for the acquisition of assets totaled $311,000 ($88,000 in fixed assets and $223,000 in inventory). The purchase price allocation has been reviewed and is final. The operating results of the acquired business are reflected in the Company’s consolidated statement of operations from the acquisition date forward. The acquisition was made to continue the Company’s growth strategy and diversify its product offerings inside the agricultural industry. | |||||||||||||
The acquisition also includes a consignment arrangement regarding $600,000 of select finished good inventory. As part of the arrangement, International agreed to use reasonable efforts to sell the inventory including providing a sales and marketing plan with projections within 60 days of the closing date and meeting with the consignor quarterly to discuss progress. On a monthly basis, International agreed to pay the consignor an amount equal to the cost base of the inventory sold that month. As of November 30, 2013, International had sold $159,000 of the consigned inventory. | |||||||||||||
The financial books of the operation are kept in the functional currency of Canadian dollars and the financial statements are converted to U.S. Dollars for consolidation. When consolidating the financial results of the Company into U.S. Dollars for reporting purposes, the Company uses the All-Current translation method. The All-Current method requires the balance sheet assets and liabilities be translated to U.S. Dollars at the exchange rate as of quarter end. Owner’s equity is translated at historical exchange rates and retained earnings are translated at an average exchange rate for the period. Additionally, revenue and expenses are translated at average exchange rates for the periods presented. The Company monitors the resulting cumulative translation adjustment and considers it to be immaterial. | |||||||||||||
On September 30, 2013, the Company acquired the assets of Ohio Metal Working Products Company in Canton, Ohio consisting of inventory, equipment, real property, and intangible assets. A new entity was formed, Ohio Metal Working Products/Art’s-Way, Inc. A new segment called Tools has been created for financial reporting purposes. Ohio Metal Working Products/Art’s-Way, Inc. is a domestic manufacturer and distributor of standard single point brazed carbide tipped tools as well as PCD (polycrystalline diamond) and CBN (cubic boron nitride) inserts and tools. The amount paid for the acquisition totaled approximately $3,172,000 ($1,142,000 in inventory, $1,200,000 in land and building, $868,000 in fixed assets, and a reduction for assumed vacation liability of $38,000). The Company has a year to review and assess the purchase price allocation. Upon completion of the review, adjustments will be made if necessary. The acquisition was financed by accessing the line of credit available through US Bank. The acquired assets are not subject to a security interest. We expect to obtain permanent financing for the acquisition in the future. The operating results of the acquired business are reflected in the Company’s consolidated statement of operations from the acquisition date forward. The acquisition was made to continue the Company’s growth strategy and diversify its product offerings. |
Note_14_Disclosures_About_the_
Note 14 - Disclosures About the Fair Value of Financial Instruments | 12 Months Ended |
Nov. 30, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Disclosures [Text Block] | ' |
(14) Disclosures About the Fair Value of Financial Instruments | |
The fair value of a financial instrument is defined as the amount at which the instrument could be exchanged in a current transaction between willing parties. At November 30, 2013 and 2012, the carrying amount approximates fair value for cash, accounts receivable, accounts payable, notes payable to bank, and other current liabilities. The carrying amounts approximate fair value because of the short maturity of these instruments. The fair value of the Company’s installment term loans payable also approximate recorded value because the interest rates charged under the loan terms are not substantially different than current interest rates. |
Note_15_Litigation_and_Conting
Note 15 - Litigation and Contingencies | 12 Months Ended |
Nov. 30, 2013 | |
Disclosure Text Block Supplement [Abstract] | ' |
Legal Matters and Contingencies [Text Block] | ' |
(15) Litigation and Contingencies | |
Various legal actions and claims that arise in the normal course of business are pending against the Company. In the opinion of management adequate provisions have been made in the accompanying financial statements for all pending legal actions and other claims. |
Note_16_Segment_Information
Note 16 - Segment Information | 12 Months Ended | ||||||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||||||
(16) Segment Information | |||||||||||||||||||||
There are four reportable segments: agricultural products, pressurized vessels, modular buildings, and tools. The agricultural products segment fabricates and sells farming products as well as replacement parts for these products in the United States and worldwide. The pressurized vessel segment produces and services pressurized tanks. The modular building segment produces modular buildings for animal containment and various laboratory uses. The tools segment manufactures steel cutting tools and inserts. | |||||||||||||||||||||
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, 2013 | |||||||||||||||||||||
Agricultural Products | Pressurized Vessels | Modular Buildings | Tools | Consolidated | |||||||||||||||||
Revenue from external customers | $ | 28,199,000 | $ | 2,137,000 | $ | 3,240,000 | $ | 651,000 | $ | 34,227,000 | |||||||||||
Gross Profit | 6,508,000 | 234,000 | 1,441,000 | 183,000 | $ | 8,366,000 | |||||||||||||||
Operating Expense | 5,275,000 | 360,000 | 769,000 | 145,000 | $ | 6,549,000 | |||||||||||||||
Income (loss) from operations | 1,234,000 | (127,000 | ) | 672,000 | 38,000 | $ | 1,817,000 | ||||||||||||||
Income (loss) before tax | 1,718,000 | (221,000 | ) | 680,000 | 29,000 | $ | 2,206,000 | ||||||||||||||
Total Assets | 23,279,000 | 2,758,000 | 3,092,000 | 3,639,000 | $ | 32,768,000 | |||||||||||||||
Capital expenditures | 776,000 | 41,000 | 20,000 | 5,000 | $ | 842,000 | |||||||||||||||
Depreciation & Amortization | 413,000 | 105,000 | 158,000 | 28,000 | $ | 704,000 | |||||||||||||||
Twelve Months Ended November 30, 2012 | |||||||||||||||||||||
Agricultural Products | Pressurized Vessels | Modular Buildings | Tools | Consolidated | |||||||||||||||||
Revenue from external customers | $ | 24,720,000 | $ | 2,092,000 | $ | 9,645,000 | $ | - | $ | 36,457,000 | |||||||||||
Gross Profit | 6,945,000 | 146,000 | 2,941,000 | - | $ | 10,032,000 | |||||||||||||||
Operating Expense | 4,572,000 | 273,000 | 859,000 | - | $ | 5,704,000 | |||||||||||||||
Income (loss) from operations | 2,373,000 | (127,000 | ) | 2,082,000 | - | $ | 4,328,000 | ||||||||||||||
Income (loss) before tax | 2,326,000 | (355,000 | ) | 2,017,000 | - | $ | 3,988,000 | ||||||||||||||
Total Assets | 24,155,000 | 2,846,000 | 4,228,000 | - | $ | 31,229,000 | |||||||||||||||
Capital expenditures | 753,000 | 14,000 | 33,000 | - | $ | 800,000 | |||||||||||||||
Depreciation & Amortization | 531,000 | 113,000 | 209,000 | - | $ | 853,000 | |||||||||||||||
Note_17_Subsequent_Event
Note 17 - Subsequent Event | 12 Months Ended |
Nov. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
(17) Subsequent Events | |
Management evaluated all other activity of the Company and concluded that no subsequent events have occurred that would require recognition in the condensed consolidated financial statements or disclosure in the notes to the condensed consolidated financial statements. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | 24 Months Ended | ||||||||
Nov. 30, 2013 | Nov. 30, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ' | ||||||||
Basis of Accounting, Policy [Policy Text Block] | ' | ' | ||||||||
Nature of Business | ||||||||||
Art’s-Way Manufacturing Co., Inc. is primarily engaged in the fabrication and sale of specialized farm machinery in the agricultural sector of the United States. Primary product offerings include: portable and stationary animal feed processing equipment; hay and forage equipment; sugar beet harvesting equipment; land maintenance equipment; a line of portable grain augers; a line of manure spreaders; moldboard plows and a line of reels. The Company sells its labeled products through independent farm equipment dealers throughout the United States. In addition, the Company manufactures and supplies hay blowers to original equipment manufacturers (OEMs). The Company also provides after-market service parts that are available to keep its branded and OEM produced equipment operating to the satisfaction of the end user of the Company’s products. | ||||||||||
On June 25, 2013, the Company acquired the fixed assets, raw material inventory, work-in-progress inventory and select finished goods inventory of Agro Trend, a division of Rojac Industries, Inc. of Clifford, Ontario, Canada. Agro Trend distributes agricultural equipment and manufactures commercial snow blowers and agricultural trailers. Most of the existing Agro Trend operational team was retained to continue the manufacture of snow blowers and trailers. The acquired assets and operations are reported with our agricultural products segment. For financial information related to the acquisition, see Note 13, “Acquisitions”. | ||||||||||
Our Pressurized Vessels segment is primarily engaged in the fabrication and sale of pressurized vessels and tanks through the Company’s wholly-owned subsidiary, Art’s-Way Vessels, Inc. This segment provides a combination of services as a manufacturer and supplier of steel vessels and steel containment systems. The vessels are primarily sold to manufacturing facilities that will use the vessel as a component part of their end product. In addition to its role as a fabricator of vessels, it provides services including: custom CAD drawing; welding; interior linings and exterior finishing; passivation of stainless steel; hydrostatic and pneumatic testing; design, build and finishing of skids; installation of piping; non-destructive examination and heat treating. | ||||||||||
Our Modular Buildings segment is primarily engaged in the construction of modular laboratories and animal housing facilities through the Company’s wholly-owned subsidiary, Art’s-Way Scientific, Inc. Buildings commonly produced range from basic swine buildings to complex containment research laboratories. This segment also provides services relating to the design, manufacturing, delivering, installation and renting of the building units that it produces. | ||||||||||
On September 30, 2013, the Company acquired the assets of Ohio Metal Working Products Company in Canton, Ohio consisting of inventory, equipment, land, and building. Ohio Metal Working Products Company is a domestic manufacturer and distributor of standard single point brazed carbide tipped tools as well as PCD (polycrystalline diamond) and CBN (cubic boron nitride) inserts and tools. The existing Ohio Metal Working Products Company operational team was retained to continue the manufacturing of the carbide, PCD, and CBN tipped tools and inserts. The acquired assets and operations will be reported in a new segment for financial reporting purposes. For financial information related to the acquisition, see Note 13, “Acquisitions”. | ||||||||||
Consolidation, Policy [Policy Text Block] | ' | ' | ||||||||
Principles of Consolidation | ||||||||||
The consolidated financial statements include the accounts of Art’s-Way Manufacturing Co., Inc. and its wholly-owned subsidiaries, Universal Harvester by Art’s-Way, Inc., Art’s-Way Vessels, Inc., Art’s-Way Scientific, Inc., Art’s-Way Manufacturing International LTD, and Ohio Metal Working Products/Art’s-Way, Inc. Art’s-Way Vessels became active in October 2005 after purchasing certain assets of Vessel Systems, Inc., while Art’s-Way Scientific, Inc. became active in August 2006 after purchasing certain assets of Tech Space, Inc. Universal Harvester by Art’s-Way was formed in 2012 in connection with the Company’s acquisition of certain assets of Universal Harvester Co., Inc. Art’s-Way Manufacturing International LTD was formed in June 2013 when the Company acquired certain assets of Agro Trend while Ohio Metal Working Products/Art’s-Way, Inc. was formed in September 2013 when the Company acquired certain assets of Ohio Metal Working Products Company. All material inter-company accounts and transactions are eliminated in consolidation. | ||||||||||
The financial books of Art’s-Way Manufacturing International LTD are kept in the functional currency of Canadian dollars and the financial statements are converted to U.S. Dollars for consolidation. When consolidating the financial results of the Company into U.S. Dollars for reporting purposes, the Company uses the All-Current translation method. The All-Current method requires the balance sheet assets and liabilities be translated to U.S. Dollars at the exchange rate as of quarter end. Owner’s equity is translated at historical exchange rates and retained earnings are translated at an average exchange rate for the period. Additionally, revenue and expenses are translated at average exchange rates for the periods presented. The Company monitors the resulting cumulative translation adjustment and considers it to be immaterial. | ||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | ' | ||||||||
Cash Concentration | ||||||||||
The Company maintains several different accounts at four different banks, and balances in these accounts are periodically in excess of federally insured limits. However, management believes the risk of loss to be low. | ||||||||||
Major Customers, Policy [Policy Text Block] | ' | ' | ||||||||
Customer Concentration | ||||||||||
During the year ended November 30, 2013, no one customer accounted for more than 6% of consolidated revenues. During the year ended November 30, 2012, one customer did account for approximately 25% of consolidated revenues. This was a customer of our Modular Buildings segment. In addition, during the year ended November 30, 2012, another customer accounted for approximately 12% of consolidated revenues. This was a customer of our Agricultural Products segment. | ||||||||||
Receivables, Policy [Policy Text Block] | ' | ' | ||||||||
Accounts Receivable | ||||||||||
Accounts receivable are carried at original invoice amount less an estimate made for doubtful accounts based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. Accounts receivable are written-off when deemed uncollectible. Recoveries of accounts receivable previously written-off are recorded when received. Accounts receivable are generally considered past due 60 days past invoice date, with the exception of international sales which primarily are sold with a letter of credit for 120 day terms. | ||||||||||
Trade receivables due from customers are uncollateralized customer obligations due under normal trade terms requiring payment within 30 days from the invoice date. Trade receivables are stated at the amount billed to the customer. The Company charges interest on overdue customer account balances at a rate of 1.5% per month. Payments of trade receivables are allocated to the specific invoices identified on the customer's remittance advice or, if unspecified, are applied to the earliest unpaid invoices. | ||||||||||
Inventory, Policy [Policy Text Block] | ' | ' | ||||||||
Inventories | ||||||||||
Inventories are stated at the lower of cost or market, and cost is determined using the standard costing method. Management monitors the carrying value of inventories using inventory control and review processes that include, but are not limited to, sales forecast review, inventory status reports, and inventory reduction programs. The Company records inventory write downs to market based on expected usage information for raw materials and historical selling trends for finished goods. Additional write downs may be necessary if the assumptions made by management do not occur. | ||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ' | ||||||||
Property, Plant, and Equipment | ||||||||||
Property, plant, and equipment are recorded at cost. Depreciation of plant and equipment is provided using the straight-line method, based on the estimated useful lives of the assets which range from three to forty years. | ||||||||||
Lease, Policy [Policy Text Block] | ' | ' | ||||||||
Lessor Accounting | ||||||||||
Modular buildings held for short term lease by our Modular Buildings segment are recorded at cost. Amortization of the property is calculated over the useful life of the building. Estimated useful life is five years. Lease revenue is accounted for on a straight-line basis over the term of the related lease agreement. | ||||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | ' | ' | ||||||||
Goodwill and Other Intangible Assets and Impairment | ||||||||||
Goodwill represents costs in excess of the fair value of net tangible and identifiable net intangible assets acquired in business combinations. Art’s-Way performs an annual test for impairment of goodwill during the fourth quarter. | ||||||||||
Intangible assets with finite lives are amortized on a straight-line basis over their estimated useful lives, which is five years. | ||||||||||
Income Tax, Policy [Policy Text Block] | ' | ' | ||||||||
Income Taxes | ||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating losses. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates as recognized in income in the period that includes the enactment date. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is entirely dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. | ||||||||||
The Company shall classify interest and penalties to be paid on an underpayment of taxes as income tax expense. The Company files income tax returns in the U.S. federal jurisdiction and various states and Canada. The company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years ended before November 30, 2009. | ||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ' | ||||||||
Revenue Recognition | ||||||||||
Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the shipment of the product. All sales are made to authorized dealers whose application for dealer status has been approved and who have been informed of general sales policies. Any changes in Company terms are documented in the most recently published price lists. Pricing is fixed and determinable according to the Company’s published equipment and parts price lists. Title to all equipment and parts sold shall pass to the Buyer upon delivery to the carrier and is not subject to a customer acceptance provision. Proof of the passing of title is documented by the signing of the delivery receipt by a representative of the carrier. Post shipment obligations are limited to any claim with respect to the condition of the equipment or parts. Applicable sales taxes imposed on our revenues are presented on a net basis on the consolidated statements of operations and therefore do not impact net revenues or cost of goods sold. A provision for warranty expenses, based on sales volume, is included in the financial statements. The Company’s return policy allows for new and saleable parts to be returned, subject to inspection and a restocking charge which is included in net sales. Whole goods are not returnable. Shipping costs charged to customers are included in net sales. Freight costs incurred are included in cost of goods sold. | ||||||||||
In certain circumstances, upon the customer’s written request, we may recognize revenue when production is complete and the good is ready for shipment. At the buyer’s request, we will bill the buyer upon completing all performance obligations, but before shipment. The buyer dictates that we ship the goods per their direction from our manufacturing facility, as is customary with this type of agreement, in order to minimize shipping costs. The written agreement with the customer specifies that the goods will be delivered on a schedule to be determined by the customer, with a final specified delivery date, and that we will segregate the goods from our inventory, such that they are not available to fill other orders. This agreement also specifies that the buyer is required to purchase all goods manufactured under this agreement. Title of the goods will pass to the buyer when the goods are complete and ready for shipment, per the customer agreement. At the transfer of title, all risks of ownership have passed to the buyer, and the buyer agrees to maintain insurance on the manufactured items that have not yet been shipped. The Company has operated using bill and hold agreements with certain customers for many years. The credit terms on this agreement are consistent with the credit terms on all other sales. All risks of loss are shouldered by the buyer, and there are no exceptions to the buyer’s commitment to accept and pay for these manufactured goods. Revenues recognized at the completion of production in 2013 and 2012 were approximately $788,000 and $937,000, respectively. | ||||||||||
Our Modular Buildings segment is in the construction industry, and as such accounts for long-term contracts on the percentage of completion method. Revenue and gross profit are recognized as work is performed based on the relationship between actual costs incurred and total estimated costs at completion. Contract losses are recognized when current estimates of total contract revenue and contract cost indicate a loss. Estimated contract costs include any and all costs appropriately allocable to the contract. The provision for these contract losses will be the excess of estimated contract costs over estimated contract revenues. | ||||||||||
Costs and profit in excess of amounts billed are classified as current assets and billings in excess of cost and profit are classified as current liabilities. | ||||||||||
Research and Development Expense, Policy [Policy Text Block] | ' | ' | ||||||||
Research and Development | ||||||||||
Research and development costs are expensed when incurred. Such costs approximated $174,000 and $125,000 for the years ended November 30, 2013 and 2012, respectively. | ||||||||||
Advertising Costs, Policy [Policy Text Block] | ' | ' | ||||||||
Advertising | ||||||||||
Advertising costs are expensed when incurred. Such costs approximated $479,000 and $256,000 for the years ended November 30, 2013 and 2012, respectively. | ||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ' | ||||||||
Income Per Share | ||||||||||
Basic net income per common share has been computed on the basis of the weighted average number of common shares outstanding. Diluted net income per share has been computed on the basis of the weighted average number of common shares outstanding plus equivalent shares assuming exercise of stock options. | ||||||||||
Basic and diluted earnings per common share have been computed based on the following as of November 30, 2013 and 2012: | ||||||||||
For the twelve months ended | ||||||||||
30-Nov-13 | 30-Nov-12 | |||||||||
Basic: | ||||||||||
Numerator: net income | $ | 1,551,376 | $ | 2,665,087 | ||||||
Denominator: average number of common shares outstanding | 4,039,530 | 4,032,643 | ||||||||
Basic earnings per common share | $ | 0.38 | $ | 0.66 | ||||||
Diluted: | ||||||||||
Numerator: net income | $ | 1,551,376 | $ | 2,665,087 | ||||||
Average number of common shares outstanding | 4,039,530 | 4,032,643 | ||||||||
Effect of dilutive stock options | 10,261 | 16,873 | ||||||||
Denominator: dilutive average number of common shares outstanding | 4,049,791 | 4,049,516 | ||||||||
Diluted earnings per common share | $ | 0.38 | $ | 0.66 | ||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ' | ||||||||
Stock Based Compensation | ||||||||||
Stock-based compensation expense reflects the fair value of stock-based awards measured at the grant date and recognized over the relevant vesting period. We estimate the fair value of each stock-based award on the measurement date using the Black-Scholes option valuation model which incorporates assumptions as to stock price volatility, the expected life of the options, risk-free interest rate and dividend yield. Restricted stock is valued at market value at the day of grant. | ||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ' | ||||||||
Use of Estimates | ||||||||||
Management of the Company has made a number of estimates and assumptions related to the reported amount of assets and liabilities, reported amount of revenues and expenses, and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. These estimates include the valuation of the Company’s accounts receivable, inventories, percent completion, warranty accrual and realizability of the deferred tax assets. Actual results could differ from those estimates. | ||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ' | ||||||||
Recently Issued Accounting Pronouncements | ||||||||||
Fair Value Measurements Update | ||||||||||
In May 2011, the FASB issued ASU No. 2011-04, “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRS’s” that amends the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and disclosing information about fair value measurements. The amendments in this update achieve the objective of developing common fair value measurement and disclosure requirements, as well as improving consistency and understandability. Some of the requirements clarify the FASB’s intent about the application of existing fair value measurement requirements while other amendments change a particular principle or requirement for measuring fair value or for disclosing information about fair value measurements. The amendments in this ASU are effective prospectively for interim and annual periods beginning after December 15, 2011, with no early adoption permitted. The company has completed the adoption of this standard and the standard does not have a material impact on our consolidated financial statements. | ||||||||||
Comprehensive Income | ||||||||||
In June 2011, the FASB issued ASU No. 2011-05, “Presentation of Comprehensive Income” that improves the comparability, consistency, and transparency of financial reporting and increases the prominence of items reported in other comprehensive income by eliminating the option to present components of other comprehensive income as part of the statements of changes in stockholders’ equity. The amendments in this standard require that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. Under either method, adjustments must be displayed for items that are reclassified from other comprehensive income (“OCI”) to net income, in both net income and OCI. The standard does not change the current option for presenting components of OCI gross or net of the effect of income taxes, provided that such tax effects are presented in the statement in which OCI is presented or disclosed in the notes to the financial statements. Additionally, the standard does not affect the calculation or reporting of earnings per share. For public entities, the amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2011 and are to be applied retrospectively, with early adoption permitted. The Company has completed the adoption of this standard and the standard does not have a material impact on our consolidated financial statements. | ||||||||||
In December 2011, the FASB issued ASU (Accounting Standards Update) No. 2011-12 which stated that the new presentation requirements about reclassifications of items out of accumulated other comprehensive income would be difficult for preparers and may add unnecessary complexity to financial statements. In addition it is difficult for some stakeholders to change systems in time to gather the information for the new presentation requirements by the effective date of Update 2011-05. Given these issues, they asked the Board to reconsider whether it is necessary to require entities to present reclassification adjustments by component in both the statement where net income is presented and the statement where other comprehensive income is presented for both interim and annual financial statements. Because those pending paragraphs are effective on a retrospective basis for public entities for annual periods beginning after December 15, 2011, and interim periods within those years, those stakeholders asked the Board, at a minimum, to defer the effective date pertaining to reclassification adjustments out of accumulated other comprehensive income in Accounting Standards Update 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, until the Board is able to reconsider those paragraphs. | ||||||||||
In order to defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments, the paragraphs in this Update supersede certain pending paragraphs in Update 2011-05. The amendments are being made to allow the Board time to confirm whether to present on the face of the financial statements the effects of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented. While the Board is considering the operational concerns about the presentation requirements for reclassification adjustments and the needs of financial statement users for additional information about reclassification adjustments, entities should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect before Update 2011-05. All other requirements in Update 2011-05 are not affected by this Update, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities must apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. The Company has completed the adoption of this standard and the standard does not have a material impact on our consolidated financial statements. | ||||||||||
In February 2013, the FASB issued ASU No. 2013-02. After reviewing the presentation requirements about the effect of reclassification adjustments out of accumulated other comprehensive income on each line item of net income that were deferred by Update 2011-12, the FASB decided to not move forward with the requirement. Instead, the FASB decided that the reporting as described above is to be completed in one location, either on the face of the financial statements or in the notes. The Company has completed the adoption of this standard and the standard does not have a material impact on our consolidated financial statements. | ||||||||||
Presentation of an Unrecognized Tax Benefit | ||||||||||
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists” that clarifies how an unrecognized tax benefit should be presented in the financial statements when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists; as a reduction to a deferred tax asset or as a liability. The amendments are meant to eliminate the diversity that exists in the financial statement presentation of the unrecognized tax benefits. The amendments in this ASU do not require new recurring disclosures and are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. The effective date for the Company will be the fiscal year beginning December 1, 2014. The Company currently has no unrecognized tax benefits that are impacted by the amendment and the Company does not expect this standard to have a material impact on our consolidated financial statements. |
Note_1_Summary_of_Significant_1
Note 1 - Summary of Significant Account Policies (Tables) | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||
For the twelve months ended | |||||||||
30-Nov-13 | 30-Nov-12 | ||||||||
Basic: | |||||||||
Numerator: net income | $ | 1,551,376 | $ | 2,665,087 | |||||
Denominator: average number of common shares outstanding | 4,039,530 | 4,032,643 | |||||||
Basic earnings per common share | $ | 0.38 | $ | 0.66 | |||||
Diluted: | |||||||||
Numerator: net income | $ | 1,551,376 | $ | 2,665,087 | |||||
Average number of common shares outstanding | 4,039,530 | 4,032,643 | |||||||
Effect of dilutive stock options | 10,261 | 16,873 | |||||||
Denominator: dilutive average number of common shares outstanding | 4,049,791 | 4,049,516 | |||||||
Diluted earnings per common share | $ | 0.38 | $ | 0.66 |
Note_2_Allowance_for_Doubtful_1
Note 2 - Allowance for Doubtful Accounts (Tables) | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | ||||||||
For the 12 months ended | |||||||||
30-Nov-13 | 30-Nov-12 | ||||||||
Balance, beginning | $ | 27,958 | $ | 49,583 | |||||
Provision charged to expense | 7,516 | (7,654 | ) | ||||||
Less amounts charged-off | - | (13,971 | ) | ||||||
Balance, ending | $ | 35,474 | $ | 27,958 |
Note_3_Inventory_Tables
Note 3 - Inventory (Tables) | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
30-Nov-13 | 30-Nov-12 | ||||||||
Raw materials | $ | 10,322,014 | $ | 8,466,060 | |||||
Work in process | 511,016 | 632,969 | |||||||
Finished goods | 7,305,301 | 7,694,528 | |||||||
$ | 18,138,331 | 16,793,557 | |||||||
Less: Reserves | (3,215,806 | ) | (2,466,075 | ) | |||||
$ | 14,922,525 | $ | 14,327,482 |
Note_4_Contracts_in_Progress_T
Note 4 - Contracts in Progress (Tables) | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Contractors [Abstract] | ' | ||||||||
Schedule of Long-term Contracts [Table Text Block] | ' | ||||||||
Cost and Profit in | Billings in Excess of | ||||||||
Excess of Billings | Costs and Profit | ||||||||
30-Nov-13 | |||||||||
Costs | $ | 326,560 | $ | 115,789 | |||||
Estimated earnings | 106,848 | 21,470 | |||||||
433,408 | 137,259 | ||||||||
Less: amounts billed | (391,170 | ) | (154,980 | ) | |||||
$ | 42,238 | $ | (17,721 | ) | |||||
30-Nov-12 | |||||||||
Costs | $ | 127,858 | $ | 4,994,950 | |||||
Estimated earnings | 42,200 | 2,932,023 | |||||||
170,058 | 7,926,973 | ||||||||
Less: amounts billed | (68,000 | ) | (9,052,639 | ) | |||||
$ | 102,058 | $ | (1,125,666 | ) |
Note_5_Property_Plant_and_Equi1
Note 5 - Property, Plant, and Equipment (Tables) | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
30-Nov-13 | -1 | 30-Nov-12 | |||||||
Land | $ | 1,188,155 | $ | 1,038,154 | |||||
Buildings and improvements | 10,315,222 | 9,178,964 | |||||||
Construction in Progress | 404,016 | 444,221 | |||||||
Manufacturing machinery and equipment | 13,555,073 | 11,872,993 | |||||||
Trucks and automobiles | 436,367 | 396,308 | |||||||
Furniture and fixtures | 149,022 | 147,013 | |||||||
26,047,855 | 23,077,653 | ||||||||
Less accumulated depreciation | (14,147,653 | ) | (13,514,955 | ) | |||||
Property, plant and equipment | $ | 11,900,202 | $ | 9,562,698 |
Note_6_Assets_Available_for_Sa1
Note 6 - Assets Available for Sale (Tables) | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Assets Available For Sale [Abstract] | ' | ||||||||
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | ' | ||||||||
30-Nov-13 | 30-Nov-12 | ||||||||
Salem, SD production facility | $ | - | $ | 87,500 | |||||
Armstrong, IA farm and pasture land | - | 118,008 | |||||||
$ | - | $ | 205,508 |
Note_7_Accrued_Expenses_Tables
Note 7 - Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | ' | ||||||||
30-Nov-13 | 30-Nov-12 | ||||||||
Salaries, wages, and commissions | $ | 836,200 | $ | 924,123 | |||||
Accrued warranty expense | 220,719 | 578,864 | |||||||
Other | 661,556 | 457,253 | |||||||
$ | 1,718,475 | $ | 1,960,240 |
Note_8_Product_Warranty_Tables
Note 8 - Product Warranty (Tables) | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Product Warranties Disclosures [Abstract] | ' | ||||||||
Schedule of Product Warranty Liability [Table Text Block] | ' | ||||||||
30-Nov-13 | 30-Nov-12 | ||||||||
Balance, beginning | $ | 578,864 | $ | 201,630 | |||||
Settlements / adjustments | (605,281 | ) | (436,096 | ) | |||||
Warranties issued | 247,136 | 813,330 | |||||||
Balance, ending | $ | 220,719 | $ | 578,864 |
Note_9_Loan_and_Credit_Agreeme1
Note 9 - Loan and Credit Agreements (Tables) | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Debt [Table Text Block] | ' | ||||||||
30-Nov-13 | 30-Nov-12 | ||||||||
U.S. Bank loan payable in monthly installments of $42,500 including interest at 2.98%, due May 1, 2018 (November 30, 2012 is West Bank loan amount) | $ | 2,114,675 | $ | 2,435,359 | |||||
U.S. Bank loan payable in monthly installments of $11,000 including interest at 2.98%, due May 1, 2018 (November 30, 2012 is West Bank loan amount) | 955,507 | 1,027,330 | |||||||
U.S. Bank loan payable in monthly installments of $12,550 including interest at 2.98%, due May 1, 2018 (November 30, 2012 is West Bank loan amount) | 1,085,350 | 1,167,725 | |||||||
U.S. Bank loan payable in monthly installments of $27,800 including interest at 2.98%, due May 1, 2018 (November 30, 2012 is West Bank loan amount) | 1,693,752 | 1,875,120 | |||||||
U.S. Bank loan payable in monthly installments of $11,700 including interest at 3.15%, due May 10, 2017 | 707,719 | 823,555 | |||||||
Iowa Finance Authority loan payable in monthly installments of $12,500 including interest at 2.75%, due June 1, 2020 | 904,662 | 1,027,366 | |||||||
IDED loan payable in monthly installments of $2,437 including interest at 6%, due June 1, 2014 | 14,375 | 41,866 | |||||||
IDED loan payable in monthly installments of $813 including interest at 0%, due June 1, 2014 | 4,883 | 14,649 | |||||||
IDED loan payable in monthly installments of $0 including interest at 0% originally due July 1, 2014, forgiven in full July 31, 2013 | - | 48,830 | |||||||
West Union Community Development Corporation loan payable in annual installments of $4,333 including interest at 0% originally due September 1, 2013, repaid in full August 21, 2013 | - | 4,334 | |||||||
Total term debt | $ | 7,480,923 | $ | 8,466,134 | |||||
Less current portion of term debt | 1,228,964 | 1,165,177 | |||||||
Term debt, excluding current portion | $ | 6,251,959 | $ | 7,300,957 | |||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | ||||||||
Year: | Amount | ||||||||
2014 | 1,228,964 | ||||||||
2015 | 1,246,624 | ||||||||
2016 | 1,284,323 | ||||||||
2017 | 1,529,360 | ||||||||
2018 | 1,959,912 | ||||||||
2019 and thereafter | 231,740 | ||||||||
$ | 7,480,923 |
Note_11_Equity_Incentive_Plan_1
Note 11 - Equity Incentive Plan and Stock Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Expected Volatility | 53.71 | % | 68.42 | % | |||||||||||||
Expected Dividend Yield | 1.063 | % | 1.007 | % | |||||||||||||
Expected Term (in years) | 2 | 2 | |||||||||||||||
Risk-Free Rate | 3.25 | % | 3.25 | % | |||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||
Options | Shares | Weighted-Average | Weighted-Average | Aggregate | |||||||||||||
Exercise | Remaining | Intrinsic | |||||||||||||||
Price | Contractual | Value | |||||||||||||||
Term | |||||||||||||||||
Options outstanding at beginning of period | 163,000 | $ | 9.16 | - | - | ||||||||||||
Granted | 14,000 | $ | 6.4 | - | - | ||||||||||||
Exercised | (9,000 | ) | $ | 5.15 | - | $ | 13,970 | ||||||||||
Options Expired or Forfeited | (25,000 | ) | $ | 10.04 | - | - | |||||||||||
Options outstanding at end of period | 143,000 | $ | 9 | 5.71 | $ | 48,400 | |||||||||||
Options exercisable at end of period | 143,000 | $ | 9 | 5.71 | $ | 48,400 | |||||||||||
Options | Shares | Weighted-Average | Weighted-Average | Aggregate | |||||||||||||
Exercise | Remaining | Intrinsic | |||||||||||||||
Price | Contractual | Value | |||||||||||||||
Term | |||||||||||||||||
Options outstanding at beginning of period | 153,000 | $ | 9.32 | - | - | ||||||||||||
Granted | 14,000 | $ | 6.75 | - | - | ||||||||||||
Exercised | (2,000 | ) | $ | 4.56 | - | $ | 5,660 | ||||||||||
Options Expired or Forfeited | (2,000 | ) | $ | 8.66 | - | - | |||||||||||
Options outstanding at end of period | 163,000 | $ | 9.16 | 5.6 | $ | 34,700 | |||||||||||
Options exercisable at end of period | 163,000 | $ | 9.16 | 5.6 | $ | 34,700 | |||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | ' | ||||||||||||||||
Non-vested Shares | Shares | Weighted-Average | |||||||||||||||
Grant-Date Fair Value | |||||||||||||||||
Non-vested at beginning of period | - | $ | 0 | ||||||||||||||
Granted | 14,000 | $ | 0.15 | ||||||||||||||
Vested | (14,000 | ) | $ | 0.15 | |||||||||||||
Forfeited | - | $ | 0 | ||||||||||||||
Non-vested at end of period | 0 |
Note_12_Income_Taxes_Tables
Note 12 - Income Taxes (Tables) | 12 Months Ended | ||||||||
Nov. 30, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||
30-Nov | |||||||||
2013 | 2012 | ||||||||
Current expense | $ | 765,606 | $ | 1,364,661 | |||||
Deferred expense(benefit) | (111,138 | ) | (41,721 | ) | |||||
$ | 654,468 | $ | 1,322,940 | ||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||
30-Nov | |||||||||
2013 | 2012 | ||||||||
Statutory federal income tax rate | 34 | % | 34.00% | ||||||
R & D tax credits | (1.0 | ) | (2.0 | ) | |||||
Permanent Differences and Other | (3.3 | ) | 1.2 | ||||||
29.7 | % | 33.2 | % | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||
30-Nov | |||||||||
2013 | 2012 | ||||||||
Current deferred tax assets (liabilities): | |||||||||
Accrued expenses | $ | 168,000 | $ | 254,000 | |||||
Inventory capitalization | 24,000 | 8,000 | |||||||
Asset reserves | 1,036,000 | 800,000 | |||||||
Total current deferred tax assets | $ | 1,228,000 | $ | 1,062,000 | |||||
Non-current deferred tax assets (liabilities): | |||||||||
Property, plant, and equipment | $ | (953,000 | ) | $ | (897,000 | ) | |||
Total non-current deferred tax assets (liabilities) | $ | (953,000 | ) | $ | (897,000 | ) |
Note_13_Acquisitions_Tables
Note 13 - Acquisitions (Tables) | 12 Months Ended | ||||||||||||
Nov. 30, 2013 | |||||||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||||||
Schedule of Purchase Price Allocation [Table Text Block] | ' | ||||||||||||
Initially | Adjustments | Final | |||||||||||
Inventories | $ | 902,589 | $ | 45,171 | $ | 947,760 | |||||||
Equipment, tools and dies | 364,053 | - | 364,053 | ||||||||||
Goodwill and intangible assets | 699,900 | (81,171 | ) | 618,729 | |||||||||
Land and building | 1,100,000 | 36,000 | 1,136,000 | ||||||||||
Total | $ | 3,066,542 | $ | - | $ | 3,066,542 | |||||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | ||||||||||||
Year Ended | Year Ended | ||||||||||||
November 31, 2013 | 30-Nov-12 | ||||||||||||
Net Sales from Continuing Operations: | |||||||||||||
As Reported | $ | 34,226,553 | $ | 36,456,830 | |||||||||
Pro Forma | $ | 34,226,553 | $ | 38,710,922 | |||||||||
Net Income from Continuing Operations: | |||||||||||||
As Reported | $ | 1,551,376 | $ | 2,665,087 | |||||||||
Pro Forma | $ | 1,551,376 | $ | 2,756,182 | |||||||||
Basic Net income per Share: | |||||||||||||
As Reported | $ | 0.38 | $ | 0.66 | |||||||||
Pro Forma | $ | 0.38 | $ | 0.68 | |||||||||
Diluted Net income per Share: | |||||||||||||
As Reported | $ | 0.38 | $ | 0.66 | |||||||||
Pro Forma | $ | 0.38 | $ | 0.68 | |||||||||
Weighted average outstanding shares used to compute basic net income per share | 4,039,530 | 4,032,643 | |||||||||||
Weighted average outstanding shares used to compute diluted net income per share | 4,049,791 | 4,049,516 |
Note_16_Segment_Information_Ta
Note 16 - Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||||||
Twelve Months Ended November 30, 2013 | |||||||||||||||||||||
Agricultural Products | Pressurized Vessels | Modular Buildings | Tools | Consolidated | |||||||||||||||||
Revenue from external customers | $ | 28,199,000 | $ | 2,137,000 | $ | 3,240,000 | $ | 651,000 | $ | 34,227,000 | |||||||||||
Gross Profit | 6,508,000 | 234,000 | 1,441,000 | 183,000 | $ | 8,366,000 | |||||||||||||||
Operating Expense | 5,275,000 | 360,000 | 769,000 | 145,000 | $ | 6,549,000 | |||||||||||||||
Income (loss) from operations | 1,234,000 | (127,000 | ) | 672,000 | 38,000 | $ | 1,817,000 | ||||||||||||||
Income (loss) before tax | 1,718,000 | (221,000 | ) | 680,000 | 29,000 | $ | 2,206,000 | ||||||||||||||
Total Assets | 23,279,000 | 2,758,000 | 3,092,000 | 3,639,000 | $ | 32,768,000 | |||||||||||||||
Capital expenditures | 776,000 | 41,000 | 20,000 | 5,000 | $ | 842,000 | |||||||||||||||
Depreciation & Amortization | 413,000 | 105,000 | 158,000 | 28,000 | $ | 704,000 | |||||||||||||||
Twelve Months Ended November 30, 2012 | |||||||||||||||||||||
Agricultural Products | Pressurized Vessels | Modular Buildings | Tools | Consolidated | |||||||||||||||||
Revenue from external customers | $ | 24,720,000 | $ | 2,092,000 | $ | 9,645,000 | $ | - | $ | 36,457,000 | |||||||||||
Gross Profit | 6,945,000 | 146,000 | 2,941,000 | - | $ | 10,032,000 | |||||||||||||||
Operating Expense | 4,572,000 | 273,000 | 859,000 | - | $ | 5,704,000 | |||||||||||||||
Income (loss) from operations | 2,373,000 | (127,000 | ) | 2,082,000 | - | $ | 4,328,000 | ||||||||||||||
Income (loss) before tax | 2,326,000 | (355,000 | ) | 2,017,000 | - | $ | 3,988,000 | ||||||||||||||
Total Assets | 24,155,000 | 2,846,000 | 4,228,000 | - | $ | 31,229,000 | |||||||||||||||
Capital expenditures | 753,000 | 14,000 | 33,000 | - | $ | 800,000 | |||||||||||||||
Depreciation & Amortization | 531,000 | 113,000 | 209,000 | - | $ | 853,000 |
Note_1_Summary_of_Significant_2
Note 1 - Summary of Significant Account Policies (Details) (USD $) | 12 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Note 1 - Summary of Significant Account Policies (Details) [Line Items] | ' | ' |
Overdue Trade Receivables, Interest Rate, Percent of Account Balances Per Month | 1.50% | ' |
Finite-Lived Intangible Asset, Useful Life | '5 years | ' |
Sales Revenue, Goods, Gross | $788,000 | $937,000 |
Research and Development Expense | 174,000 | 125,000 |
Advertising Expense | $479,000 | $256,000 |
Modular Buildings [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ' | ' |
Note 1 - Summary of Significant Account Policies (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | ' | 25.00% |
Agricultural Products [Member] | Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | ' | ' |
Note 1 - Summary of Significant Account Policies (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | ' | 12.00% |
Assets Leased to Others [Member] | ' | ' |
Note 1 - Summary of Significant Account Policies (Details) [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' |
Customer Concentration Risk [Member] | Maximum [Member] | Sales Revenue, Net [Member] | ' | ' |
Note 1 - Summary of Significant Account Policies (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | 6.00% | ' |
Maximum [Member] | ' | ' |
Note 1 - Summary of Significant Account Policies (Details) [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '40 years | ' |
Minimum [Member] | ' | ' |
Note 1 - Summary of Significant Account Policies (Details) [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' |
Note_1_Summary_of_Significant_3
Note 1 - Summary of Significant Account Policies (Details) - Basic and Diluted Earnings Per Common Share (USD $) | 12 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Basic: | ' | ' |
Numerator: net income (in Dollars) | $1,551,376 | $2,665,087 |
Average number of common shares outstanding | 4,039,530 | 4,032,643 |
Effect of dilutive stock options | 10,261 | 16,873 |
Denominator: dilutive average number of common shares outstanding | 4,049,791 | 4,049,516 |
Diluted earnings per common share (in Dollars per share) | $0.38 | $0.66 |
Basic earnings per common share (in Dollars per share) | $0.38 | $0.66 |
Note_2_Allowance_for_Doubtful_2
Note 2 - Allowance for Doubtful Accounts (Details) - Activity in the Allowance for Doubtful Accounts (USD $) | 12 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Activity in the Allowance for Doubtful Accounts [Abstract] | ' | ' |
Balance, beginning | $27,958 | $49,583 |
Balance, ending | 35,474 | 27,958 |
Provision charged to expense | 7,516 | -7,654 |
Less amounts charged-off | ' | ($13,971) |
Note_3_Inventory_Details_Major
Note 3 - Inventory (Details) - Major Classes Of Inventory (USD $) | Nov. 30, 2013 | Nov. 30, 2012 |
Major Classes Of Inventory [Abstract] | ' | ' |
Raw materials | $10,322,014 | $8,466,060 |
Work in process | 511,016 | 632,969 |
Finished goods | 7,305,301 | 7,694,528 |
18,138,331 | 16,793,557 | |
Less: Reserves | -3,215,806 | -2,466,075 |
$14,922,525 | $14,327,482 |
Note_4_Contracts_in_Progress_D
Note 4 - Contracts in Progress (Details) (USD $) | Nov. 30, 2013 | Nov. 30, 2012 |
Contractors [Abstract] | ' | ' |
Contract Receivable Retainage | $0 | $173,360 |
Note_4_Contracts_in_Progress_D1
Note 4 - Contracts in Progress (Details) - Long-term Contracts (USD $) | Nov. 30, 2013 | Nov. 30, 2012 |
Cost and Profit in Excess of Billings [Member] | ' | ' |
Note 4 - Contracts in Progress (Details) - Long-term Contracts [Line Items] | ' | ' |
Costs | $326,560 | $127,858 |
Estimated earnings | 106,848 | 42,200 |
433,408 | 170,058 | |
Less: amounts billed | -391,170 | -68,000 |
Less: amounts billed | 391,170 | 68,000 |
42,238 | 102,058 | |
Billings in Excess of Cost and Profit [Member] | ' | ' |
Note 4 - Contracts in Progress (Details) - Long-term Contracts [Line Items] | ' | ' |
Costs | 115,789 | 4,994,950 |
Estimated earnings | 21,470 | 2,932,023 |
137,259 | 7,926,973 | |
Less: amounts billed | 154,980 | 9,052,639 |
Less: amounts billed | -154,980 | -9,052,639 |
($17,721) | ($1,125,666) |
Note_5_Property_Plant_and_Equi2
Note 5 - Property, Plant, and Equipment (Details) (USD $) | 12 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Property, Plant and Equipment [Abstract] | ' | ' |
Depreciation | $704,457 | $792,910 |
Note_5_Property_Plant_and_Equi3
Note 5 - Property, Plant, and Equipment (Details) - Major Classes of Property, Plant, and Equipment (USD $) | Nov. 30, 2013 | Nov. 30, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Property, plant and equipment, gross | $26,047,855 | [1] | $23,077,653 |
Less accumulated depreciation | -14,147,653 | [1] | -13,514,955 |
Property, plant and equipment | 11,900,202 | [1] | 9,562,698 |
Land [Member] | ' | ' | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Property, plant and equipment, gross | 1,188,155 | [1] | 1,038,154 |
Building and Building Improvements [Member] | ' | ' | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Property, plant and equipment, gross | 10,315,222 | [1] | 9,178,964 |
Construction in Progress [Member] | ' | ' | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Property, plant and equipment, gross | 404,016 | [1] | 444,221 |
Manufacturing Machinery and Equipment [Member] | ' | ' | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Property, plant and equipment, gross | 13,555,073 | [1] | 11,872,993 |
Trucks and Automobiles [Member] | ' | ' | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Property, plant and equipment, gross | 436,367 | [1] | 396,308 |
Furniture and Fixtures [Member] | ' | ' | |
Property, Plant and Equipment [Line Items] | ' | ' | |
Property, plant and equipment, gross | $149,022 | [1] | $147,013 |
[1] | includes assets purchased with Ohio Metal and Agro Trend acquisitions |
Note_6_Assets_Available_for_Sa2
Note 6 - Assets Available for Sale (Details) (USD $) | 12 Months Ended | 1 Months Ended | |
Nov. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | |
Three Parcels [Member] | Salem, South Dakota Facility [Member] | ||
Note 6 - Assets Available for Sale (Details) [Line Items] | ' | ' | ' |
Gains (Losses) on Sales of Other Real Estate | ' | $639,000 | ' |
Asset Impairment Charges | ' | ' | 95,000 |
Gain (Loss) on Disposition of Property Plant Equipment | 601,678 | ' | -9,000 |
Gain (Loss) on Disposition of Assets | $630,000 | ' | ' |
Note_6_Assets_Available_for_Sa3
Note 6 - Assets Available for Sale (Details) - Major Components of Assets Available for Sale (USD $) | Nov. 30, 2012 |
Long Lived Assets Held-for-sale [Line Items] | ' |
Assets available for sale | $205,508 |
Salem, South Dakota Facility [Member] | ' |
Long Lived Assets Held-for-sale [Line Items] | ' |
Assets available for sale | 87,500 |
Armstrong, Iowa Farm and Pasture Land [Member] | ' |
Long Lived Assets Held-for-sale [Line Items] | ' |
Assets available for sale | $118,008 |
Note_7_Accrued_Expenses_Detail
Note 7 - Accrued Expenses (Details) - Major Components Of Accrued Expenses (USD $) | Nov. 30, 2013 | Nov. 30, 2012 |
Major Components Of Accrued Expenses [Abstract] | ' | ' |
Salaries, wages, and commissions | $836,200 | $924,123 |
Accrued warranty expense | 220,719 | 578,864 |
Other | 661,556 | 457,253 |
$1,718,475 | $1,960,240 |
Note_8_Product_Warranty_Detail
Note 8 - Product Warranty (Details) | 12 Months Ended |
Nov. 30, 2013 | |
Product Warranties Disclosures [Abstract] | ' |
Standard Product Warranty Description | '1 |
Note_8_Product_Warranty_Detail1
Note 8 - Product Warranty (Details) - Changes In Product Warranty Liability (USD $) | 12 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Changes In Product Warranty Liability [Abstract] | ' | ' |
Balance, beginning | $578,864 | $201,630 |
Balance, ending | 220,719 | 578,864 |
Settlements / adjustments | -605,281 | -436,096 |
Warranties issued | $247,136 | $813,330 |
Note_9_Loan_and_Credit_Agreeme2
Note 9 - Loan and Credit Agreements (Details) (USD $) | 1 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||
31-May-13 | Nov. 30, 2013 | Nov. 30, 2012 | Apr. 30, 2013 | Apr. 30, 2013 | 31-May-13 | 31-May-13 | Nov. 30, 2013 | 10-May-12 | Nov. 30, 2013 | Nov. 30, 2012 | Feb. 28, 2013 | 1-May-10 | |
West Bank Loan 1 [Member] | West Bank Loan 2 [Member] | US Bank, New Loans [Member] | West Bank [Member] | US Bank [Member] | US Bank [Member] | Iowa Finance Authority [Member] | Iowa Finance Authority [Member] | Iowa Finance Authority [Member] | Iowa Finance Authority [Member] | ||||
Note 9 - Loan and Credit Agreements (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | $8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 3.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding (in Dollars) | ' | 3,350,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Borrowing Capacity, Description | 'The Line of Credit states that the borrowing base will be an amount equal to the sum of 75% of accounts receivable (discounted for aged accounts and customer balances exceeding 20% of aggregate receivables), plus 50% of inventory (this component cannot exceed $6,000,000 and only includes finished goods and raw materials deemed to be in good condition and not obsolete), less any outstanding loan balance of the Line of Credit, and less undrawn amounts of outstanding letters of credit issued by U.S. Bank or any affiliate. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Borrowing Capacity, Borrowing Base, Percentage of Accounts Receivable | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Borrowing Capacity, Borrowing Base, Minimum Percentage of Aggregate Receivables | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Borrowing Capacity, Borrowing Base, Percentage of Inventory | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Borrowing Capacity, Borrowing Base, Maximum Inventory Amount (in Dollars) | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt (in Dollars) | ' | 7,480,923 | 8,466,134 | 4,342,000 | 1,749,000 | ' | ' | ' | ' | 904,662 | 1,027,366 | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | 4.75% | 4.50% | 2.98% | ' | ' | ' | 2.75% | 2.75% | 2.75% | 3.50% |
Debt Instrument, Face Amount (in Dollars) | ' | ' | ' | ' | ' | 6,319,000 | ' | ' | 880,000 | ' | ' | ' | 1,300,000 |
Debt Instrument, Periodic Payment (in Dollars) | ' | ' | ' | ' | ' | 93,850 | ' | ' | ' | 12,500 | 12,500 | ' | ' |
Term Loan Final Payment (in Dollars) | ' | ' | ' | ' | ' | 1,372,000 | ' | ' | 283,500 | ' | ' | ' | ' |
Debt Instrument, Fee Amount (in Dollars) | ' | ' | ' | ' | ' | ' | 130,000 | ' | ' | ' | ' | ' | ' |
Debt Issuance Cost (in Dollars) | ' | ' | ' | ' | ' | $9,000 | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Covenant, Debt to Tangible Net Worth Ratio | ' | ' | ' | ' | ' | 1.5 | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Covenant, Fixed Charge Coverage Ratio | ' | ' | ' | ' | ' | 1.15 | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Covenant, Interest Rate Increase in Event of Default | ' | ' | ' | ' | ' | 5.00% | ' | 5.00% | ' | ' | ' | ' | ' |
Debt Instrument, Covenant, Debt Service Coverage Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | ' |
Note_9_Loan_and_Credit_Agreeme3
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt (USD $) | Nov. 30, 2013 | Nov. 30, 2012 |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt [Line Items] | ' | ' |
Long-term Debt | $7,480,923 | $8,466,134 |
Less current portion of term debt | 1,228,964 | 1,165,177 |
Term debt, excluding current portion | 6,251,959 | 7,300,957 |
US Bank Loan 1 [Member] | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt [Line Items] | ' | ' |
Long-term Debt | 2,114,675 | 2,435,359 |
US Bank Loan 2 [Member] | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt [Line Items] | ' | ' |
Long-term Debt | 955,507 | 1,027,330 |
US Bank Loan 3 [Member] | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt [Line Items] | ' | ' |
Long-term Debt | 1,085,350 | 1,167,725 |
US Bank Loan 4 [Member] | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt [Line Items] | ' | ' |
Long-term Debt | 1,693,752 | 1,875,120 |
US Bank Loan 5 [Member] | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt [Line Items] | ' | ' |
Long-term Debt | 707,719 | 823,555 |
Iowa Finance Authority [Member] | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt [Line Items] | ' | ' |
Long-term Debt | 904,662 | 1,027,366 |
IDED [Member] | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt [Line Items] | ' | ' |
Long-term Debt | 14,375 | 41,866 |
IDED Note 1 [Member] | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt [Line Items] | ' | ' |
Long-term Debt | 4,883 | 14,649 |
IDED Note 2 [Member] | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt [Line Items] | ' | ' |
Long-term Debt | ' | 48,830 |
West Union Community Development Corp [Member] | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt [Line Items] | ' | ' |
Long-term Debt | ' | $4,334 |
Note_9_Loan_and_Credit_Agreeme4
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt (Parentheticals) (USD $) | 12 Months Ended | |||
Nov. 30, 2013 | Nov. 30, 2012 | Feb. 28, 2013 | 1-May-10 | |
US Bank Loan 1 [Member] | ' | ' | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt (Parentheticals) [Line Items] | ' | ' | ' | ' |
Installments (in Dollars) | $42,500 | $42,500 | ' | ' |
Interest | 2.98% | 2.98% | ' | ' |
US Bank Loan 2 [Member] | ' | ' | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt (Parentheticals) [Line Items] | ' | ' | ' | ' |
Installments (in Dollars) | 11,000 | 11,000 | ' | ' |
Interest | 2.98% | 2.98% | ' | ' |
US Bank Loan 3 [Member] | ' | ' | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt (Parentheticals) [Line Items] | ' | ' | ' | ' |
Installments (in Dollars) | 12,550 | 12,550 | ' | ' |
Interest | 2.98% | 2.98% | ' | ' |
US Bank Loan 4 [Member] | ' | ' | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt (Parentheticals) [Line Items] | ' | ' | ' | ' |
Installments (in Dollars) | 27,800 | 27,800 | ' | ' |
Interest | 2.98% | 2.98% | ' | ' |
US Bank Loan 5 [Member] | ' | ' | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt (Parentheticals) [Line Items] | ' | ' | ' | ' |
Installments (in Dollars) | 11,700 | 11,700 | ' | ' |
Interest | 3.15% | 3.15% | ' | ' |
Iowa Finance Authority [Member] | ' | ' | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt (Parentheticals) [Line Items] | ' | ' | ' | ' |
Installments (in Dollars) | 12,500 | 12,500 | ' | ' |
Interest | 2.75% | 2.75% | 2.75% | 3.50% |
IDED [Member] | ' | ' | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt (Parentheticals) [Line Items] | ' | ' | ' | ' |
Installments (in Dollars) | 2,437 | 2,437 | ' | ' |
Interest | 6.00% | 6.00% | ' | ' |
IDED Note 1 [Member] | ' | ' | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt (Parentheticals) [Line Items] | ' | ' | ' | ' |
Installments (in Dollars) | 813 | 813 | ' | ' |
Interest | 0.00% | 0.00% | ' | ' |
IDED Note 2 [Member] | ' | ' | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt (Parentheticals) [Line Items] | ' | ' | ' | ' |
Installments (in Dollars) | 0 | 0 | ' | ' |
Interest | 0.00% | 0.00% | ' | ' |
West Union Community Development Corp [Member] | ' | ' | ' | ' |
Note 9 - Loan and Credit Agreements (Details) - Summary Of Term Debt (Parentheticals) [Line Items] | ' | ' | ' | ' |
Installments (in Dollars) | $4,333 | $4,333 | ' | ' |
Interest | 0.00% | 0.00% | ' | ' |
Note_9_Loan_and_Credit_Agreeme5
Note 9 - Loan and Credit Agreements (Details) - Summary of the Minimum Maturities of Term Debt (USD $) | Nov. 30, 2013 | Nov. 30, 2012 |
Summary of the Minimum Maturities of Term Debt [Abstract] | ' | ' |
2014 | $1,228,964 | ' |
2015 | 1,246,624 | ' |
2016 | 1,284,323 | ' |
2017 | 1,529,360 | ' |
2018 | 1,959,912 | ' |
2019 and thereafter | 231,740 | ' |
$7,480,923 | $8,466,134 |
Note_10_Employee_Benefit_Plans1
Note 10 - Employee Benefit Plans (Details) (USD $) | 12 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Disclosure Text Block Supplement [Abstract] | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 25.00% | ' |
Defined Contribution Plan, Minimum Threshold Percentage of Employee Contributions | 4.00% | ' |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 1.00% | ' |
Defined Contribution Plan, Cost Recognized (in Dollars) | $38,145 | $31,763 |
Note_11_Equity_Incentive_Plan_2
Note 11 - Equity Incentive Plan and Stock Based Compensation (Details) (USD $) | 12 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Note 11 - Equity Incentive Plan and Stock Based Compensation (Details) [Line Items] | ' | ' |
Allocated Share-based Compensation Expense | $29,812 | $34,519 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 17,210 | 8,900 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | 0 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $0.15 | $1.26 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | 2,100 | 17,640 |
Proceeds from Stock Options Exercised | 46,390 | 9,110 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 14,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in Shares) | 14,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in Shares) | 0 | ' |
Non-Qualified Options to Each Director Annually or Upon Election [Member] | ' | ' |
Note 11 - Equity Incentive Plan and Stock Based Compensation (Details) [Line Items] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 2,000 | ' |
Restricted Stock [Member] | ' | ' |
Note 11 - Equity Incentive Plan and Stock Based Compensation (Details) [Line Items] | ' | ' |
Allocated Share-based Compensation Expense | $8,554 | $16,200 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 2,500 | 3,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in Shares) | 1,300 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period (in Shares) | ' | 800 |
Note_11_Equity_Incentive_Plan_3
Note 11 - Equity Incentive Plan and Stock Based Compensation (Details) - Fair Value Assumptions | 12 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Fair Value Assumptions [Abstract] | ' | ' |
Expected Volatility | 53.71% | 68.42% |
Expected Dividend Yield | 1.06% | 1.01% |
Expected Term (in years) | '2 years | '2 years |
Risk-Free Rate | 3.25% | 3.25% |
Note_11_Equity_Incentive_Plan_4
Note 11 - Equity Incentive Plan and Stock Based Compensation (Details) - Option Activity (USD $) | 12 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Option Activity [Abstract] | ' | ' |
Options outstanding at beginning of period | 163,000 | 153,000 |
Options outstanding at beginning of period (in Dollars per share) | $9.16 | $9.32 |
Granted | 14,000 | 14,000 |
Granted (in Dollars per share) | $6.40 | $6.75 |
Exercised | -9,000 | -2,000 |
Exercised (in Dollars per share) | $5.15 | $4.56 |
Exercised (in Dollars) | $13,970 | $5,660 |
Options Expired or Forfeited | -25,000 | -2,000 |
Options Expired or Forfeited (in Dollars per share) | $10.04 | $8.66 |
Options outstanding at end of period | 143,000 | 163,000 |
Options outstanding at end of period (in Dollars per share) | $9 | $9.16 |
Options outstanding at end of period | '5 years 259 days | '5 years 219 days |
Options outstanding at end of period (in Dollars) | 48,400 | 34,700 |
Options exercisable at end of period | 143,000 | 163,000 |
Options exercisable at end of period (in Dollars per share) | $9 | $9.16 |
Options exercisable at end of period | '5 years 259 days | '5 years 219 days |
Options exercisable at end of period (in Dollars) | $48,400 | $34,700 |
Note_11_Equity_Incentive_Plan_5
Note 11 - Equity Incentive Plan and Stock Based Compensation (Details) - Summary of the Status of the Companybs Non-vested Shares (USD $) | 12 Months Ended |
Nov. 30, 2013 | |
Summary of the Status of the Companybs Non-vested Shares [Abstract] | ' |
Non-vested at beginning of period | 0 |
Non-vested at beginning of period (in Dollars per share) | $0 |
Granted | 14,000 |
Granted (in Dollars per share) | $0.15 |
Vested | -14,000 |
Vested (in Dollars per share) | $0.15 |
Forfeited | 0 |
Forfeited (in Dollars per share) | $0 |
Non-vested at end of period | 0 |
Note_12_Income_Taxes_Details_I
Note 12 - Income Taxes (Details) - Income Tax Expense (Benefit) (USD $) | 12 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Income Tax Expense (Benefit) [Abstract] | ' | ' |
Current expense | $765,606 | $1,364,661 |
Deferred expense(benefit) | -111,138 | -41,721 |
$654,468 | $1,322,940 |
Note_12_Income_Taxes_Details_R
Note 12 - Income Taxes (Details) - Reconciliation of the Statutory Federal Income Tax Rate | 12 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Reconciliation of the Statutory Federal Income Tax Rate [Abstract] | ' | ' |
Statutory federal income tax rate | 34.00% | 34.00% |
R & D tax credits | -1.00% | -2.00% |
Permanent Differences and Other | -3.30% | 1.20% |
29.70% | 33.20% |
Note_12_Income_Taxes_Details_D
Note 12 - Income Taxes (Details) - Deferred Tax Assets and Liabilities (USD $) | Nov. 30, 2013 | Nov. 30, 2012 |
Current deferred tax assets (liabilities): | ' | ' |
Accrued expenses | $168,000 | $254,000 |
Inventory capitalization | 24,000 | 8,000 |
Asset reserves | 1,036,000 | 800,000 |
Total current deferred tax assets | 1,228,097 | 1,061,806 |
Non-current deferred tax assets (liabilities): | ' | ' |
Property, plant, and equipment | -953,000 | -897,000 |
Total non-current deferred tax assets (liabilities) | ($952,645) | ($897,492) |
Note_13_Acquisitions_Details
Note 13 - Acquisitions (Details) (USD $) | 12 Months Ended | 5 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||||
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2013 | Jun. 25, 2013 | 10-May-12 | 11-May-12 | 10-May-12 | 10-May-12 | 11-May-12 | 31-May-13 | Jun. 25, 2013 | Sep. 30, 2013 | |
Agricultural Products [Member] | Agricultural Products [Member] | Current and Future Cash Payments [Member] | Real Estate Taxes Paid [Member] | Common Stock [Member] | Universal Harvester [Member] | Universal Harvester [Member] | Universal Harvester [Member] | Agro Trend [Member] | Ohio Metal Working Products Company [Member] | |||
Consigned Inventory [Member] | Consigned Inventory [Member] | Universal Harvester [Member] | Universal Harvester [Member] | Universal Harvester [Member] | ||||||||
Agro Trend [Member] | Agro Trend [Member] | |||||||||||
Note 13 - Acquisitions (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Consideration Transferred | ' | ' | ' | ' | ' | ' | ' | $3,066,000 | ' | ' | ' | ' |
Payments to Acquire Businesses, Gross | ' | ' | ' | ' | -3,030,450 | 27,427 | ' | ' | 3,003,565 | ' | 311,000 | 3,172,000 |
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | ' | ' | ' | ' | ' | ' | 35,550 | ' | ' | ' | ' | ' |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 88,000 | 868,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 223,000 | 1,142,000 |
Other Inventory, Materials, Supplies and Merchandise under Consignment, Gross | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Inventories | -769,641 | 130,617 | -159,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Land And Building | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $38,000 |
Note_13_Acquisitions_Details_P
Note 13 - Acquisitions (Details) - Purchase Price Allocation (Universal Harvester [Member], USD $) | 10-May-12 |
Scenario, Previously Reported [Member] | ' |
Note 13 - Acquisitions (Details) - Purchase Price Allocation [Line Items] | ' |
Inventories | $902,589 |
Equipment, tools and dies | 364,053 |
Goodwill and intangible assets | 699,900 |
Land and building | 1,100,000 |
Total | 3,066,542 |
Scenario, Adjustment [Member] | ' |
Note 13 - Acquisitions (Details) - Purchase Price Allocation [Line Items] | ' |
Inventories | 45,171 |
Goodwill and intangible assets | -81,171 |
Land and building | 36,000 |
Scenario, Actual [Member] | ' |
Note 13 - Acquisitions (Details) - Purchase Price Allocation [Line Items] | ' |
Inventories | 947,760 |
Equipment, tools and dies | 364,053 |
Goodwill and intangible assets | 618,729 |
Land and building | 1,136,000 |
Total | $3,066,542 |
Note_13_Acquisitions_Details_U
Note 13 - Acquisitions (Details) - Unaudited Pro Forma Information (USD $) | 12 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Unaudited Pro Forma Information [Abstract] | ' | ' |
As Reported (in Dollars) | $34,226,553 | $36,456,830 |
Pro Forma (in Dollars) | 34,226,553 | 38,710,922 |
As Reported (in Dollars) | 1,551,376 | 2,665,087 |
Pro Forma (in Dollars) | $1,551,376 | $2,756,182 |
As Reported | $0.38 | $0.66 |
Pro Forma | $0.38 | $0.68 |
As Reported | $0.38 | $0.66 |
Pro Forma | $0.38 | $0.68 |
Weighted average outstanding shares used to compute basic net income per share (in Shares) | 4,039,530 | 4,032,643 |
Weighted average outstanding shares used to compute diluted net income per share (in Shares) | 4,049,791 | 4,049,516 |
Note_16_Segment_Information_De
Note 16 - Segment Information (Details) | 12 Months Ended |
Nov. 30, 2013 | |
Segment Reporting [Abstract] | ' |
Number of Reportable Segments | 4 |
Note_16_Segment_Information_De1
Note 16 - Segment Information (Details) - Segment Reporting Information (USD $) | 12 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
Segment Reporting Information [Line Items] | ' | ' |
Revenue from external customers | $34,226,553 | $36,456,830 |
Gross Profit | 8,366,446 | 10,032,263 |
Operating Expense | 6,549,306 | 5,704,438 |
Income (loss) from operations | 1,551,376 | 2,665,087 |
Income (loss) before tax | 2,206,000 | 3,988,000 |
Total Assets | 32,767,621 | 31,228,676 |
Capital expenditures | 842,000 | 800,000 |
Depreciation & Amortization | 704,000 | 853,000 |
External [Member] | Agricultural Products [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenue from external customers | 28,199,000 | 24,720,000 |
External [Member] | Pressurized Vessels [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenue from external customers | 2,137,000 | 2,092,000 |
External [Member] | Modular Buildings [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenue from external customers | 3,240,000 | 9,645,000 |
External [Member] | Tools [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenue from external customers | 651,000 | ' |
External [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Revenue from external customers | 34,227,000 | 36,457,000 |
Agricultural Products [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Gross Profit | 6,508,000 | 6,945,000 |
Operating Expense | 5,275,000 | 4,572,000 |
Income (loss) from operations | 1,234,000 | 2,373,000 |
Income (loss) before tax | 1,718,000 | 2,326,000 |
Total Assets | 23,279,000 | 24,155,000 |
Capital expenditures | 776,000 | 753,000 |
Depreciation & Amortization | 413,000 | 531,000 |
Pressurized Vessels [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Gross Profit | 234,000 | 146,000 |
Operating Expense | 360,000 | 273,000 |
Income (loss) from operations | -127,000 | -127,000 |
Income (loss) before tax | -221,000 | -355,000 |
Total Assets | 2,758,000 | 2,846,000 |
Capital expenditures | 41,000 | 14,000 |
Depreciation & Amortization | 105,000 | 113,000 |
Modular Buildings [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Gross Profit | 1,441,000 | 2,941,000 |
Operating Expense | 769,000 | 859,000 |
Income (loss) from operations | 672,000 | 2,082,000 |
Income (loss) before tax | 680,000 | 2,017,000 |
Total Assets | 3,092,000 | 4,228,000 |
Capital expenditures | 20,000 | 33,000 |
Depreciation & Amortization | 158,000 | 209,000 |
Tools [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Gross Profit | 183,000 | ' |
Operating Expense | 145,000 | ' |
Income (loss) from operations | 38,000 | ' |
Income (loss) before tax | 29,000 | ' |
Total Assets | 3,639,000 | ' |
Capital expenditures | 5,000 | ' |
Depreciation & Amortization | $28,000 | ' |