Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jun. 30, 2017 | Aug. 14, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | FRIEDMAN INDUSTRIES INC | |
Entity Central Index Key | 39,092 | |
Trading Symbol | frd | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 7,009,444 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - Unaudited - USD ($) | Jun. 30, 2017 | Mar. 31, 2017 |
CURRENT ASSETS: | ||
Cash | $ 3,904,240 | $ 1,461,695 |
Accounts receivable, net of allowances for bad debts and cash discounts of $27,276 at June 30 and March 31, 2017, respectively | 8,259,005 | 8,939,051 |
Inventories | 39,415,741 | 34,918,550 |
Other | 16,793 | 113,540 |
TOTAL CURRENT ASSETS | 51,595,779 | 45,432,836 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Land | 1,452,799 | 1,082,331 |
Buildings and yard improvements | 8,598,135 | 7,111,735 |
Machinery and equipment | 39,206,048 | 31,451,479 |
Construction in progress | 9,451,972 | |
Less accumulated depreciation | (34,206,417) | (33,924,353) |
Property, plant, and equipment, net | 15,050,565 | 15,173,164 |
OTHER ASSETS: | ||
Deferred income tax asset | 1,107,166 | 1,165,950 |
Federal income taxes recoverable | 913,347 | 913,347 |
Cash value of officers’ life insurance and other assets | 336,375 | 578,000 |
TOTAL ASSETS | 69,003,232 | 63,263,297 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 7,748,967 | 2,003,661 |
Dividends payable | 70,094 | 70,094 |
Contribution to retirement plan | 84,000 | 42,000 |
Employee compensation and related expenses | 264,978 | 240,835 |
TOTAL CURRENT LIABILITIES | 8,168,039 | 2,356,590 |
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS | 306,002 | 550,282 |
TOTAL LIABILITIES | 8,474,041 | 2,906,872 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value $1 Authorized shares — 10,000,000 Issued shares — 7,975,160 at June 30 and March 31, 2017 | 8,185,160 | 8,185,160 |
Additional paid-in capital | 28,938,154 | 28,865,914 |
Treasury stock at cost (1,175,716 shares at June 30 and March 31, 2017) | (5,475,964) | (5,475,964) |
Retained earnings | 28,881,841 | 28,781,315 |
TOTAL STOCKHOLDERS’ EQUITY | 60,529,191 | 60,356,425 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 69,003,232 | $ 63,263,297 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets - Unaudited (Parentheticals) - USD ($) | Jun. 30, 2017 | Mar. 31, 2017 |
Allowance for bad debt and cash discounts | $ 27,276 | $ 27,276 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, issued (in shares) | 7,975,160 | 7,975,160 |
Treasury stock, shares (in shares) | 1,175,716 | 1,175,716 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - Unaudited - USD ($) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Net Sales | $ 23,083,269 | $ 22,393,764 |
Costs and expenses | ||
Costs of goods sold | 21,819,846 | 23,646,752 |
General, selling and administrative costs | 1,038,394 | 1,092,750 |
Costs and expenses, total | 22,858,240 | 24,739,502 |
EARNINGS (LOSS) FROM OPERATIONS | 225,029 | (2,345,738) |
Interest and other income | (4,375) | (14,750) |
EARNINGS (LOSS) BEFORE INCOME TAXES | 229,404 | (2,330,988) |
Income tax provision (benefit): | ||
Current | (828,613) | |
Deferred | 58,784 | (41,156) |
Income tax | 58,784 | (869,769) |
NET EARNINGS (LOSS) | $ 170,620 | $ (1,461,219) |
Average number of common shares outstanding: | ||
Basic (in shares) | 7,009,444 | 6,799,444 |
Diluted (in shares) | 7,009,444 | 6,799,444 |
Net earnings (loss) per share: | ||
Basic (in dollars per share) | $ 0.02 | $ (0.21) |
Earnings Per Share, Diluted | 0.02 | (0.21) |
Cash dividends declared per common share (in dollars per share) | $ 0.01 | $ 0.01 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - Unaudited - USD ($) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
OPERATING ACTIVITIES | ||
Net earnings (loss) | $ 170,620 | $ (1,461,219) |
Adjustments to reconcile net earnings (loss) to cash provided by (used in) operating activities: | ||
Depreciation | 282,064 | 401,999 |
Deferred taxes | 58,784 | (41,156) |
Compensation expense for restricted stock | 72,240 | |
Change in postretirement benefits | 1,720 | 14,420 |
Decrease (increase) in operating assets: | ||
Accounts receivable | 680,046 | (2,525,312) |
Inventories | (4,497,191) | 2,079,596 |
Federal income taxes recoverable | (1,068,338) | |
Other current assets | 96,747 | 118,106 |
Increase (decrease) in operating liabilities: | ||
Accounts payable and accrued expenses | 5,745,306 | 704,630 |
Contribution to retirement plan | 42,000 | 43,500 |
Employee compensation and related expenses | 24,143 | 36,288 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 2,676,479 | (1,697,486) |
INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (159,465) | (198,688) |
Increase in cash surrender value of officers’ life insurance | (4,375) | (14,750) |
NET CASH USED IN INVESTING ACTIVITIES | (163,840) | (213,438) |
FINANCING ACTIVITIES | ||
Cash dividends paid | (70,094) | (67,994) |
NET CASH USED IN FINANCING ACTIVITIES | (70,094) | (67,994) |
INCREASE (DECREASE) IN CASH | 2,442,545 | (1,978,918) |
Cash at beginning of period | 1,461,695 | 2,796,762 |
CASH AT END OF PERIOD | $ 3,904,240 | $ 817,844 |
Note A - Basis of Presentation
Note A - Basis of Presentation | 3 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE A — BASIS OF PRESENTATION The accompanying unaudited, condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10 not 10 March 31, 2017. |
Note B - Change in Accounting E
Note B - Change in Accounting Estimate | 3 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Accounting Changes [Text Block] | NOTE B — CHANGE IN ACCOUNTING ESTIMATE During the quarter ended June 30, 2017, April 1, 2017, $160,000, $102,000 $0.01 June 30, 2017. |
Note C - New Accounting Standar
Note C - New Accounting Standards | 3 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE C — NEW ACCOUNTING STANDARDS In August 2016, No. 2016 15, 2016 15” 2016 15 eight December 15, 2017, 2016 15 not In February 2016, No. 2016 02, 2016 02” 2016 02 12 12 December 15, 2018, 2016 02 not In May 2014, No. 2014 09, 2014 09” 2014 09 2014 09 December 15, 2016; not August 2015, No. 2015 14, 2015 14” 2015 14 2014 09 December 15, 2017, one December 15, 2016, 2014 09 not |
Note D - Inventories
Note D - Inventories | 3 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE D — INVENTORIES Inventories consist of prime coil, non-standard coil and tubular materials. Prime coil inventory consists primarily of raw materials, non-standard coil inventory consists primarily of raw materials and tubular inventory consists of both raw materials and finished goods. Cost for prime coil inventory is determined using the last-in, first $5,873,000 June 30, 2017 $5,593,000 March 31, 2017. A summary of inventory values by product group follows: June 30, March 31, Prime Coil Inventory $ 11,648,170 $ 8,481,605 Non-Standard Coil Inventory 2,086,410 1,119,170 Tubular Raw Material 2,239,599 1,480,730 Tubular Finished Goods 23,441,562 23,837,045 $ 39,415,741 $ 34,918,550 |
Note E - Stock Based Compensati
Note E - Stock Based Compensation | 3 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE E — STOCK BASED COMPENSATION The Company maintains the Friedman Industries, Incorporated 2016 500,000 may, As of June 30, 2017, 210,000 five January 4, 2022. No $1,444,800 60 $72,240 June 30, 2017 June 30, 2016, no |
Note F - Segment Information
Note F - Segment Information | 3 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE F — SEGMENT INFORMATION (in thousands) THREE MONTHS ENDED 201 7 2016 Net sales Coil $ 18,010 $ 18,999 Tubular 5,073 3,395 Total net sales $ 23,083 $ 22,394 Operating profit (loss) Coil $ 753 $ (1,515 ) Tubular (1 ) (274 ) Total operating profit (loss) 752 (1,789 ) Corporate expenses 527 557 Interest & other income (4 ) (15 ) Earnings (loss) before income taxes $ 229 $ (2,331 ) June 30, March 31, Segment assets Coil $ 25,132 $ 21,833 Tubular 37,592 37,299 62,724 59,132 Corporate assets 6,279 4,131 $ 69,003 $ 63,263 Corporate expenses reflect general and administrative expenses not |
Note G - Supplemental Cash Flow
Note G - Supplemental Cash Flow Information | 3 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE G — SUPPLEMENTAL CASH FLOW INFORMATION The Company paid income taxes of approximately $8,000 $13,500 June 30, 2017 2016, No June 30, 2017 2016, $70,094 $67,994 June 30, 2017 2016, $246,000 $293,000 June 30, 2017 2016, |
Note H - Income Taxes
Note H - Income Taxes | 3 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE H — INCOME TAXES The Company’s effective tax rate for the quarter ended June 30, 2017 June 30, 2016 |
Note D - Inventories (Tables)
Note D - Inventories (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, March 31, Prime Coil Inventory $ 11,648,170 $ 8,481,605 Non-Standard Coil Inventory 2,086,410 1,119,170 Tubular Raw Material 2,239,599 1,480,730 Tubular Finished Goods 23,441,562 23,837,045 $ 39,415,741 $ 34,918,550 |
Note F - Segment Information (T
Note F - Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | THREE MONTHS ENDED 201 7 2016 Net sales Coil $ 18,010 $ 18,999 Tubular 5,073 3,395 Total net sales $ 23,083 $ 22,394 Operating profit (loss) Coil $ 753 $ (1,515 ) Tubular (1 ) (274 ) Total operating profit (loss) 752 (1,789 ) Corporate expenses 527 557 Interest & other income (4 ) (15 ) Earnings (loss) before income taxes $ 229 $ (2,331 ) June 30, March 31, Segment assets Coil $ 25,132 $ 21,833 Tubular 37,592 37,299 62,724 59,132 Corporate assets 6,279 4,131 $ 69,003 $ 63,263 |
Note B - Change in Accounting16
Note B - Change in Accounting Estimate (Details Textual) - USD ($) | 3 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Depreciation | $ 282,064 | $ 401,999 |
Net Income (Loss) Attributable to Parent | $ 170,620 | $ (1,461,219) |
Earnings Per Share, Diluted | $ 0.02 | $ (0.21) |
Service Life [Member] | ||
Depreciation | $ (160,000) | |
Net Income (Loss) Attributable to Parent | $ 102,000 | |
Earnings Per Share, Diluted | $ 0.01 |
Note D - Inventories (Details T
Note D - Inventories (Details Textual) - USD ($) | Jun. 30, 2017 | Mar. 31, 2017 |
Excess of Replacement or Current Costs over Stated LIFO Value | $ 5,873,000 | $ 5,593,000 |
Note D - Inventories - Summary
Note D - Inventories - Summary of Inventory Values By Product Group (Details) - USD ($) | Jun. 30, 2017 | Mar. 31, 2017 |
Inventories | $ 39,415,741 | $ 34,918,550 |
Prime Coil Inventory [Member] | ||
Raw materials | 11,648,170 | 8,481,605 |
Non-standard Coil Inventory [Member] | ||
Raw materials | 2,086,410 | 1,119,170 |
Tubular Inventory [Member] | ||
Raw materials | 2,239,599 | 1,480,730 |
Finished goods | $ 23,441,562 | $ 23,837,045 |
Note E - Stock Based Compensa19
Note E - Stock Based Compensation (Details Textual) - 2016 Restricted Stock Plan [Member] - USD ($) | 3 Months Ended | |
Jun. 30, 2017 | Sep. 01, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500,000 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 210,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 1,444,800 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 5 years | |
Allocated Share-based Compensation Expense | $ 72,240 |
Note F - Segment Information -
Note F - Segment Information - Segment Information (Details) - USD ($) | 3 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2017 | |
Net Sales | $ 23,083,269 | $ 22,393,764 | |
Operating profit (loss) | 225,029 | (2,345,738) | |
Interest & other income | (4,375) | (14,750) | |
Earnings (loss) before income taxes | 229,404 | (2,330,988) | |
Assets | 69,003,232 | $ 63,263,297 | |
Operating Segments [Member] | |||
Operating profit (loss) | 752,000 | (1,789,000) | |
Assets | 62,724,000 | 59,132,000 | |
Operating Segments [Member] | Coil [Member] | |||
Net Sales | 18,010,000 | 18,999,000 | |
Operating profit (loss) | 753,000 | (1,515,000) | |
Assets | 25,132,000 | 21,833,000 | |
Operating Segments [Member] | Tubular [Member] | |||
Net Sales | 5,073,000 | 3,395,000 | |
Operating profit (loss) | (1,000) | (274,000) | |
Assets | 37,592,000 | 37,299,000 | |
Corporate, Non-Segment [Member] | |||
Corporate expenses | 527,000 | $ 557,000 | |
Assets | $ 6,279,000 | $ 4,131,000 |
Note G - Supplemental Cash Fl21
Note G - Supplemental Cash Flow Information (Details Textual) - USD ($) | 3 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Mar. 31, 2017 | |
Income Taxes Paid | $ 8,000 | $ 13,500 | |
Interest Paid, Net | 0 | 0 | |
Dividends Payable, Current | 70,094 | 67,994 | $ 70,094 |
Other Significant Noncash Transaction, Value of Consideration Given | $ 246,000 | $ 293,000 |