Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Dec. 31, 2014 | Feb. 13, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Dec-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | FRD | |
Entity Registrant Name | FRIEDMAN INDUSTRIES INC | |
Entity Central Index Key | 39092 | |
Current Fiscal Year End Date | -28 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 6,799,444 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
CURRENT ASSETS: | ||
Cash | $6,960,809 | $15,081,024 |
Accounts receivable, net of allowances for bad debts and cash discounts of $27,276 at December 31 and March 31, 2014 | 5,039,602 | 9,347,289 |
Inventories | 50,820,078 | 35,288,559 |
Other | 241,347 | 129,796 |
TOTAL CURRENT ASSETS | 63,061,836 | 59,846,668 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Land | 1,412,719 | 1,410,689 |
Buildings and yard improvements | 8,132,755 | 7,113,482 |
Machinery and equipment | 35,484,369 | 31,773,161 |
Less accumulated depreciation | -30,302,151 | -28,934,601 |
Property, Plant and Equipment, Net, Total | 14,727,692 | 11,362,731 |
OTHER ASSETS: | ||
Cash value of officers' life insurance and other assets | 1,120,750 | 1,075,000 |
TOTAL ASSETS | 78,910,278 | 72,284,399 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 13,476,844 | 7,206,340 |
Dividends payable | 135,989 | 135,989 |
Contribution to profit-sharing plan | 190,000 | 52,500 |
Employee compensation and related expenses | 201,511 | 375,860 |
TOTAL CURRENT LIABILITIES | 14,004,344 | 7,770,689 |
DEFERRED INCOME TAXES | 97,516 | 189,998 |
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS | 1,070,680 | 1,013,056 |
STOCKHOLDERS' EQUITY: | ||
Common stock, par value $1: Authorized shares - 10,000,000 Issued shares - 7,975,160 at December 31 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 December 31 and March 31, 2014) | -5,475,964 | -5,475,964 |
Retained earnings | 32,234,868 | 31,807,786 |
TOTAL STOCKHOLDERS' EQUITY | 63,737,738 | 63,310,656 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $78,910,278 | $72,284,399 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 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 Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales | $23,552,636 | $28,274,696 | $83,001,633 | $84,167,208 |
Costs and expenses | ||||
Costs of goods sold | 22,293,839 | 26,427,918 | 78,279,846 | 78,798,672 |
General, selling and administrative costs | 976,330 | 1,121,986 | 3,407,757 | 3,472,545 |
Costs and Expenses, Total | 23,270,169 | 27,549,904 | 81,687,603 | 82,271,217 |
Interest and other income | -15,250 | -15,501 | -45,784 | -46,508 |
Earnings before income taxes | 297,717 | 740,293 | 1,359,814 | 1,942,499 |
Provision for (benefit from) income taxes: | ||||
Current | 137,591 | 275,970 | 617,247 | 768,149 |
Deferred | -27,517 | -23,145 | -92,482 | -149,136 |
Income Tax Expense (Benefit), Total | 110,074 | 252,825 | 524,765 | 619,013 |
Net earnings | $187,643 | $487,468 | $835,049 | $1,323,486 |
Weighted average number of common shares outstanding: | ||||
Basic | 6,799,444 | 6,799,444 | 6,799,444 | 6,799,444 |
Diluted | 6,799,444 | 6,799,444 | 6,799,444 | 6,799,444 |
Net earnings per share: | ||||
Basic | $0.03 | $0.07 | $0.12 | $0.19 |
Diluted | $0.03 | $0.07 | $0.12 | $0.19 |
Cash dividends declared per common share | $0.02 | $0.02 | $0.06 | $0.18 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash flows (USD $) | 9 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES | ||
Net earnings | $835,049 | $1,323,486 |
Adjustments to reconcile net earnings to cash provided by (used in) operating activities: | ||
Depreciation | 1,367,550 | 1,368,300 |
Provision for deferred taxes | -92,482 | -149,136 |
Provision for postretirement benefits | 57,624 | 52,430 |
Decrease (increase) in operating assets: | ||
Accounts receivable, net | 4,307,687 | 4,098,851 |
Inventories | -15,531,519 | 1,191,698 |
Other | -111,551 | -135,912 |
Increase (decrease) in operating liabilities: | ||
Accounts payable and accrued expenses | 6,270,504 | -4,478,860 |
Contribution to profit-sharing plan | 137,500 | 157,500 |
Employee compensation and related expenses | -174,349 | -215,890 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | -2,933,987 | 3,212,467 |
INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | -4,732,511 | -368,097 |
Increase in cash surrender value of officers' life insurance | -45,750 | -46,500 |
NET CASH USED IN INVESTING ACTIVITIES | -4,778,261 | -414,597 |
FINANCING ACTIVITIES | ||
Cash dividends paid | -407,967 | -1,631,868 |
NET CASH USED IN FINANCING ACTIVITIES | -407,967 | -1,631,868 |
INCREASE (DECREASE) IN CASH | -8,120,215 | 1,166,002 |
Cash at beginning of period | 15,081,024 | 15,923,294 |
CASH AT END OF PERIOD | $6,960,809 | $17,089,296 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Dec. 31, 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 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 | 9 Months Ended | ||||||||
Dec. 31, 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 under 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: | |||||||||
December 31, | March 31, | ||||||||
2014 | 2014 | ||||||||
Prime Coil Inventory | $ | 16,802,864 | $ | 7,685,177 | |||||
Non-Standard Coil Inventory | 2,726,867 | 2,572,787 | |||||||
Tubular Raw Material | 3,025,009 | 463,254 | |||||||
Tubular Finished Goods | 28,265,338 | 24,567,341 | |||||||
$ | 50,820,078 | $ | 35,288,559 | ||||||
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Information | NOTE C — SEGMENT INFORMATION (in thousands) | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net sales | |||||||||||||||||
Coil | $ | 15,981 | $ | 14,554 | $ | 55,162 | $ | 46,394 | |||||||||
Tubular | 7,572 | 13,721 | 27,840 | 37,773 | |||||||||||||
Total net sales | $ | 23,553 | $ | 28,275 | $ | 83,002 | $ | 84,167 | |||||||||
Operating profit (loss) | |||||||||||||||||
Coil | $ | 416 | $ | (389 | ) | $ | 422 | $ | (911 | ) | |||||||
Tubular | 128 | 1,584 | 2,225 | 4,341 | |||||||||||||
Total operating profit | 544 | 1,195 | 2,647 | 3,430 | |||||||||||||
Corporate expenses | 261 | 470 | 1,333 | 1,534 | |||||||||||||
Interest & other income | (15 | ) | (15 | ) | (46 | ) | (46 | ) | |||||||||
Total earnings before taxes | $ | 298 | $ | 740 | $ | 1,360 | $ | 1,942 | |||||||||
December 31, | March 31, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Segment assets | |||||||||||||||||
Coil | $ | 30,178 | $ | 22,308 | |||||||||||||
Tubular | 40,632 | 33,795 | |||||||||||||||
70,810 | 56,103 | ||||||||||||||||
Corporate assets | 8,100 | 16,181 | |||||||||||||||
$ | 78,910 | $ | 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, accrued 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 | 9 Months Ended |
Dec. 31, 2014 | |
Supplemental Cash Flow Information | NOTE D — SUPPLEMENTAL CASH FLOW INFORMATION |
The Company paid income taxes of approximately $688,000 and $748,000 in the nine months ended December 31, 2014 and 2013, respectively. The Company paid no interest in the nine months ended December 31, 2014 or 2013. Non-cash financing activities consisted of accrued dividends of $135,989 in both of the nine month periods ended December 31, 2014 and 2013. |
Income_Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2014 | |
Income Taxes | NOTE E — INCOME TAXES |
The Company’s effective tax rate for the nine months ended December 31, 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 nine months ended December 31, 2013 differed from the statutory rate due primarily to the benefit of a tax deduction allowed to manufacturing companies. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Summary of Inventory by Product Group | A summary of inventory values by product group follows: | ||||||||
December 31, | March 31, | ||||||||
2014 | 2014 | ||||||||
Prime Coil Inventory | $ | 16,802,864 | $ | 7,685,177 | |||||
Non-Standard Coil Inventory | 2,726,867 | 2,572,787 | |||||||
Tubular Raw Material | 3,025,009 | 463,254 | |||||||
Tubular Finished Goods | 28,265,338 | 24,567,341 | |||||||
$ | 50,820,078 | $ | 35,288,559 | ||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Information | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Net sales | |||||||||||||||||
Coil | $ | 15,981 | $ | 14,554 | $ | 55,162 | $ | 46,394 | |||||||||
Tubular | 7,572 | 13,721 | 27,840 | 37,773 | |||||||||||||
Total net sales | $ | 23,553 | $ | 28,275 | $ | 83,002 | $ | 84,167 | |||||||||
Operating profit (loss) | |||||||||||||||||
Coil | $ | 416 | $ | (389 | ) | $ | 422 | $ | (911 | ) | |||||||
Tubular | 128 | 1,584 | 2,225 | 4,341 | |||||||||||||
Total operating profit | 544 | 1,195 | 2,647 | 3,430 | |||||||||||||
Corporate expenses | 261 | 470 | 1,333 | 1,534 | |||||||||||||
Interest & other income | (15 | ) | (15 | ) | (46 | ) | (46 | ) | |||||||||
Total earnings before taxes | $ | 298 | $ | 740 | $ | 1,360 | $ | 1,942 | |||||||||
December 31, | March 31, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Segment assets | |||||||||||||||||
Coil | $ | 30,178 | $ | 22,308 | |||||||||||||
Tubular | 40,632 | 33,795 | |||||||||||||||
70,810 | 56,103 | ||||||||||||||||
Corporate assets | 8,100 | 16,181 | |||||||||||||||
$ | 78,910 | $ | 72,284 | ||||||||||||||
Summary_of_Inventory_Values_by
Summary of Inventory Values by Product Group (Detail) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
Inventory [Line Items] | ||
Inventory, Net | $50,820,078 | $35,288,559 |
Prime Coil Inventory | ||
Inventory [Line Items] | ||
Raw Materials | 16,802,864 | 7,685,177 |
Non-Standard Coil Inventory | ||
Inventory [Line Items] | ||
Raw Materials | 2,726,867 | 2,572,787 |
Tubular | ||
Inventory [Line Items] | ||
Raw Materials | 3,025,009 | 463,254 |
Finished Goods | $28,265,338 | $24,567,341 |
Segment_Information_Detail
Segment Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $23,552,636 | $28,274,696 | $83,001,633 | $84,167,208 | |
Interest & other income | 15,250 | 15,501 | 45,784 | 46,508 | |
Earnings before income taxes | 297,717 | 740,293 | 1,359,814 | 1,942,499 | |
Total assets | 78,910,278 | 78,910,278 | 72,284,399 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Operating profit (loss) | 544,000 | 1,195,000 | 2,647,000 | 3,430,000 | |
Total assets | 70,810,000 | 70,810,000 | 56,103,000 | ||
Operating Segments | Coil | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 15,981,000 | 14,554,000 | 55,162,000 | 46,394,000 | |
Operating profit (loss) | 416,000 | -389,000 | 422,000 | -911,000 | |
Total assets | 30,178,000 | 30,178,000 | 22,308,000 | ||
Operating Segments | Tubular | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 7,572,000 | 13,721,000 | 27,840,000 | 37,773,000 | |
Operating profit (loss) | 128,000 | 1,584,000 | 2,225,000 | 4,341,000 | |
Total assets | 40,632,000 | 40,632,000 | 33,795,000 | ||
Corporate and other | |||||
Segment Reporting Information [Line Items] | |||||
Corporate expenses | 261,000 | 470,000 | 1,333,000 | 1,534,000 | |
Total assets | $8,100,000 | $8,100,000 | $16,181,000 |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Detail) (USD $) | 9 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
Income taxes paid | $688,000 | $748,000 | |
Interest paid | 0 | 0 | |
Accrued dividends | $135,989 | $135,989 | $135,989 |