Friedman Industries (FRD) 10-Q 13 Aug 14 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Jun. 30, 2014
Document Information [Line Items]	'
Document Type	'10-Q
Amendment Flag	'false
Document Period End Date	30-Jun-14
Document Fiscal Year Focus	'2015
Document Fiscal Period Focus	'Q1
Trading Symbol	'FRD
Entity Registrant Name	'FRIEDMAN INDUSTRIES INC
Entity Central Index Key	'0000039092
Current Fiscal Year End Date	'--03-31
Entity Filer Category	'Smaller Reporting Company
Entity Common Stock, Shares Outstanding	6,799,444

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Jun. 30, 2014	Mar. 31, 2014
CURRENT ASSETS:	'	'
Cash	$10,788,178	$15,081,024
Accounts receivable, net of allowances for bad debts and cash discounts of $27,276 at June 30 and March 31, 2014	8,106,496	9,347,289
Inventories	38,913,148	35,288,559
Other	29,607	129,796
TOTAL CURRENT ASSETS	57,837,429	59,846,668
PROPERTY, PLANT AND EQUIPMENT:	'	'
Land	1,410,689	1,410,689
Buildings and yard improvements	7,188,776	7,113,482
Machinery and equipment	32,219,380	31,773,161
Less accumulated depreciation	-29,378,451	-28,934,601
Property, Plant and Equipment, Net, Total	11,440,394	11,362,731
OTHER ASSETS:	'	'
Cash value of officers' life insurance and other assets	1,090,250	1,075,000
TOTAL ASSETS	70,368,073	72,284,399
CURRENT LIABILITIES:	'	'
Accounts payable and accrued expenses	5,562,808	7,206,340
Dividends payable	135,989	135,989
Contribution to profit sharing plan	105,000	52,500
Employee compensation and related expenses	323,045	375,860
TOTAL CURRENT LIABILITIES	6,126,842	7,770,689
DEFERRED INCOME TAXES	152,550	189,998
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS	1,032,264	1,013,056
STOCKHOLDERS' EQUITY:	'	'
Common stock, par value $1: Authorized shares - 10,000,000 Issued shares - 7,975,160 at June 30 and March 31, 2014	7,975,160	7,975,160
Additional paid-in capital	29,003,674	29,003,674
Treasury stock at cost (1,175,716 shares at June 30 and March 31, 2014)	-5,475,964	-5,475,964
Retained earnings	31,553,547	31,807,786
TOTAL STOCKHOLDERS' EQUITY	63,056,417	63,310,656
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$70,368,073	$72,284,399

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Mar. 31, 2014
Allowances for bad debts and cash discounts	$27,276	$27,276
Common stock, par value	$1	$1
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	7,975,160	7,975,160
Treasury stock, shares	1,175,716	1,175,716

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Earnings (USD $)	3 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Net Sales	$27,904,521	$29,582,144
Costs and expenses	'	'
Costs of goods sold	26,862,460	27,138,300
General, selling and administrative costs	1,134,576	1,304,900
Costs and Expenses, Total	27,997,036	28,443,200
Interest and other income	-15,252	-15,506
Earnings (loss) before income taxes	-77,263	1,154,450
Income tax provision (benefit):	'	'
Current	78,435	448,936
Deferred	-37,448	-102,845
Income Tax Expense (Benefit), Total	40,987	346,091
Net earnings (loss)	($118,250)	$808,359
Average number of common shares outstanding:	'	'
Basic	6,799,444	6,799,444
Diluted	6,799,444	6,799,444
Net earnings (loss) per share:	'	'
Basic	($0.02)	$0.12
Diluted	($0.02)	$0.12
Cash dividends declared per common share	$0.02	$0.08

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash flows (USD $)	3 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
OPERATING ACTIVITIES	'	'
Net earnings (loss)	($118,250)	$808,359
Adjustments to reconcile net earnings (loss) to cash provided by (used in) operating activities:	'	'
Depreciation	443,849	456,898
Provision for deferred taxes	-37,448	-102,845
Change in postretirement benefits	19,208	22,353
Decrease (increase) in operating assets:	'	'
Accounts receivable	1,240,793	579,356
Inventories	-3,624,589	7,197,984
Other current assets	100,189	92,311
Increase (decrease) in operating liabilities:	'	'
Accounts payable and accrued expenses	-1,643,532	-6,851,767
Contribution to profit sharing plan	52,500	52,500
Employee compensation and related expenses	-52,815	-62,729
Deferred credit for LIFO inventory replacement	'	54,625
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	-3,620,095	2,247,045
INVESTING ACTIVITIES	'	'
Purchase of property, plant and equipment	-521,512	-14,590
Increase in cash surrender value of officers' life insurance	-15,250	-15,500
NET CASH USED IN INVESTING ACTIVITIES	-536,762	-30,090
FINANCING ACTIVITIES	'	'
Cash dividends paid	-135,989	-543,956
NET CASH USED IN FINANCING ACTIVITIES	-135,989	-543,956
INCREASE (DECREASE) IN CASH	-4,292,846	1,672,999
Cash at beginning of period	15,081,024	15,923,294
CASH AT END OF PERIOD	$10,788,178	$17,596,293

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Jun. 30, 2014
Basis of Presentation	'
	NOTE A — BASIS OF PRESENTATION
	The accompanying unaudited, condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information, refer to the consolidated financial statements and footnotes of Friedman Industries, Incorporated (the “Company”) included in its annual report on Form 10-K for the year ended March 31, 2014.

Inventories

Inventories	3 Months Ended
	Jun. 30, 2014
Inventories	'
	NOTE B — 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. Inventories are valued at the lower of cost or replacement market. Cost for prime coil inventory is determined using the last-in, first-out (“LIFO”) method. Cost for non-standard coil inventory is determined using the specific identification method. Cost for tubular inventory is determined using the weighted average method.
	A summary of inventory values by product group follows:
		June 30,		March 31,
		2014		2014
	Prime Coil Inventory	$	9,963,999	$	7,685,177
	Non-Standard Coil Inventory		1,798,628		2,572,787
	Tubular Raw Material		2,164,364		463,254
	Tubular Finished Goods		24,986,157		24,567,341
		$	38,913,148	$	35,288,559

Segment_Information

Segment Information	3 Months Ended
	Jun. 30, 2014
Segment Information	'
	NOTE C — SEGMENT INFORMATION (in thousands)
		THREE MONTHS ENDED
		JUNE 30,
		2014			2013
	Net sales
	Coil	$	17,906		$	17,163
	Tubular		9,999			12,419
	Total net sales	$	27,905		$	29,582
	Operating profit (loss)
	Coil	$	(404	)	$	178
	Tubular		772			1,650
	Total operating profit		368			1,828
	Corporate expenses		460			689
	Interest & other income		(15	)		(15	)
	Earnings (loss) before income taxes	$	(77	)	$	1,154
		June 30,			March 31,
		2014			2014
	Segment assets
	Coil	$	24,451		$	22,308
	Tubular		34,016			33,795
			58,467			56,103
	Corporate assets		11,901			16,181
		$	70,368		$	72,284
	Corporate expenses reflect general and administrative expenses not directly associated with segment operations and consist primarily of corporate executive and accounting salaries, professional fees and services, bad debts, profit sharing expense, corporate insurance expenses and office supplies. Corporate assets consist primarily of cash and the cash value of officers’ life insurance.

Supplemental_Cash_Flow_Informa

Supplemental Cash Flow Information	3 Months Ended
	Jun. 30, 2014
Supplemental Cash Flow Information	'
	NOTE D — SUPPLEMENTAL CASH FLOW INFORMATION
	The Company paid income taxes of approximately $93,000 and $106,000 in the quarters ended June 30, 2014 and 2013, respectively. No interest was paid in the quarters ended June 30, 2014 and 2013, respectively. Noncash financing activities consisted of accrued dividends of $135,989 and $543,956 in the quarters ended June 30, 2014 and 2013, respectively.

Income_Taxes

Income Taxes	3 Months Ended
	Jun. 30, 2014
Income Taxes	'
	NOTE E — INCOME TAXES
	The Company’s effective tax rate for the quarter ended June 30, 2014 differed from the statutory rate due primarily to a change in estimate related to state income taxes payable as of March 31, 2014. The Company’s effective tax rate for the quarter ended June  30, 2013 differed from the statutory rate due primarily to the benefit of tax deduction allowed to manufacturing companies.

Inventories_Tables

Inventories (Tables)	3 Months Ended
	Jun. 30, 2014
Summary of Inventory by Product Group	'
	A summary of inventory values by product group follows:
		June 30,		March 31,
		2014		2014
	Prime Coil Inventory	$	9,963,999	$	7,685,177
	Non-Standard Coil Inventory		1,798,628		2,572,787
	Tubular Raw Material		2,164,364		463,254
	Tubular Finished Goods		24,986,157		24,567,341
		$	38,913,148	$	35,288,559

Segment_Information_Tables

Segment Information (Tables)	3 Months Ended
	Jun. 30, 2014
Segment Information	'
		THREE MONTHS ENDED
		JUNE 30,
		2014			2013
	Net sales
	Coil	$	17,906		$	17,163
	Tubular		9,999			12,419
	Total net sales	$	27,905		$	29,582
	Operating profit (loss)
	Coil	$	(404	)	$	178
	Tubular		772			1,650
	Total operating profit		368			1,828
	Corporate expenses		460			689
	Interest & other income		(15	)		(15	)
	Earnings (loss) before income taxes	$	(77	)	$	1,154
		June 30,			March 31,
		2014			2014
	Segment assets
	Coil	$	24,451		$	22,308
	Tubular		34,016			33,795
			58,467			56,103
	Corporate assets		11,901			16,181
		$	70,368		$	72,284

Summary_of_Inventory_Values_by

Summary of Inventory Values by Product Group (Detail) (USD $)	Jun. 30, 2014	Mar. 31, 2014
Inventory [Line Items]	'	'
Inventory, Net	$38,913,148	$35,288,559
Prime Coil Inventory	'	'
Inventory [Line Items]	'	'
Raw Materials	9,963,999	7,685,177
Non-Standard Coil Inventory	'	'
Inventory [Line Items]	'	'
Raw Materials	1,798,628	2,572,787
Tubular	'	'
Inventory [Line Items]	'	'
Raw Materials	2,164,364	463,254
Finished Goods	$24,986,157	$24,567,341

Segment_Information_Detail

Segment Information (Detail) (USD $)	3 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Mar. 31, 2014
Segment Reporting Information [Line Items]	'	'	'
Net Sales	$27,904,521	$29,582,144	'
Interest & other income	15,252	15,506	'
Earnings (loss) before income taxes	-77,263	1,154,450	'
Total assets	70,368,073	'	72,284,399
Operating Segments	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Operating profit (loss)	368,000	1,828,000	'
Total assets	58,467,000	'	56,103,000
Operating Segments | Coil	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net Sales	17,906,000	17,163,000	'
Operating profit (loss)	-404,000	178,000	'
Total assets	24,451,000	'	22,308,000
Operating Segments | Tubular	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Net Sales	9,999,000	12,419,000	'
Operating profit (loss)	772,000	1,650,000	'
Total assets	34,016,000	'	33,795,000
Corporate and other	'	'	'
Segment Reporting Information [Line Items]	'	'	'
Corporate expenses	460,000	689,000	'
Total assets	$11,901,000	'	$16,181,000

Supplemental_Cash_Flow_Informa1

Supplemental Cash Flow Information (Detail) (USD $)	3 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Mar. 31, 2014
Income taxes paid	$93,000	$106,000	'
Interest paid	0	0	'
Accrued dividends	$135,989	$543,956	$135,989