Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Dec. 31, 2016 | Feb. 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 | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Dec. 31, 2016 | Mar. 31, 2016 |
CURRENT ASSETS: | ||
Cash | $ 5,925,920 | $ 2,796,762 |
Accounts receivable, net of allowances for bad debts and cash discounts of $22,276 at December 31 and March 31, 2016 | 4,929,002 | 4,822,386 |
Inventories | 34,563,506 | 41,939,128 |
Other | 182,692 | 143,380 |
TOTAL CURRENT ASSETS | 45,601,120 | 49,701,656 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Land | 1,082,331 | 1,082,331 |
Buildings and yard improvements | 7,111,735 | 7,111,735 |
Machinery and equipment | 31,445,742 | 30,903,321 |
Construction in progress | 9,313,410 | 9,200,799 |
Less accumulated depreciation | (33,532,496) | (32,329,947) |
Property, plant, and equipment, net | 15,420,722 | 15,968,239 |
OTHER ASSETS: | ||
Deferred income tax asset | 1,081,915 | 408,502 |
Federal income taxes recoverable | 913,347 | |
Cash value of officers’ life insurance and other assets | 563,250 | 812,000 |
TOTAL ASSETS | 63,580,354 | 66,890,397 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 1,880,759 | 2,476,699 |
Dividends payable | 67,994 | 67,994 |
Contribution to retirement plan | 170,000 | 43,500 |
Employee compensation and related expenses | 192,400 | 277,557 |
TOTAL CURRENT LIABILITIES | 2,311,153 | 2,865,750 |
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS | 535,862 | 785,600 |
TOTAL LIABILITIES | 2,847,015 | 3,651,350 |
COMMITMENTS AND CONTINGENCIES (SEE NOTE 4) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value $1: Authorized shares — 10,000,000 Issued shares — 7,975,160 at June 30 and March 31, 2016 | 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, 2016) | (5,475,964) | (5,475,964) |
Retained earnings | 29,230,469 | 31,736,177 |
TOTAL STOCKHOLDERS’ EQUITY | 60,733,339 | 63,239,047 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 63,580,354 | $ 66,890,397 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Dec. 31, 2016 | Mar. 31, 2016 |
Allowances for bad debt and cash discounts | $ 22,276 | $ 22,276 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, issued shares (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 | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales | $ 15,988,745 | $ 18,548,247 | $ 56,700,015 | $ 65,682,520 |
Costs and expenses | ||||
Costs of goods sold | 15,417,174 | 17,080,958 | 57,427,143 | 61,165,635 |
General, selling and administrative costs | 957,305 | 1,099,682 | 2,965,884 | 3,665,974 |
Costs and expenses, total | 16,374,479 | 18,180,640 | 60,393,027 | 64,831,609 |
Interest and other income | (14,755) | (328,560) | (44,255) | (363,060) |
Earnings (loss) before income taxes | (370,979) | 696,167 | (3,648,757) | 1,213,971 |
Provision for (benefit from) income taxes: | ||||
Current | 175,469 | (673,618) | 289,462 | |
Deferred | (134,354) | 35,578 | (673,413) | 106,734 |
Income tax | (134,354) | 211,047 | (1,347,031) | 396,196 |
Net earnings (loss) | $ (236,625) | $ 485,120 | $ (2,301,726) | $ 817,775 |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 6,799,444 | 6,799,444 | 6,799,444 | 6,799,444 |
Diluted (in shares) | 6,799,444 | 6,799,444 | 6,799,444 | 6,799,444 |
Net earnings (loss) per share: | ||||
Basic (in dollars per share) | $ (0.03) | $ 0.07 | $ (0.34) | $ 0.12 |
Diluted (in dollars per share) | (0.03) | 0.07 | (0.34) | 0.12 |
Cash dividends declared per common share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.03 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING ACTIVITIES | ||
Net earnings (loss) | $ (2,301,726) | $ 817,775 |
Adjustments to reconcile net earnings (loss) to cash provided by operating activities: | ||
Depreciation | 1,202,549 | 1,275,150 |
Deferred taxes | (673,413) | 106,734 |
Provision for postretirement benefits | 43,262 | 64,515 |
Decrease (increase) in operating assets: | ||
Accounts receivable, net | (106,616) | 2,096,891 |
Inventories | 7,375,622 | (2,318,979) |
Federal income taxes recoverable | (913,347) | |
Other | (39,312) | (85,682) |
Accounts payable and accrued expenses | (595,940) | 2,349,912 |
Contribution to retirement plan | 126,500 | 129,000 |
Employee compensation and related expenses | (85,157) | (51,105) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 4,032,422 | 4,384,211 |
INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (655,032) | (1,897,132) |
Change in cash surrender value of officers’ life insurance | (44,250) | (46,750) |
NET CASH USED IN INVESTING ACTIVITIES | (699,282) | (1,943,882) |
FINANCING ACTIVITIES | ||
Cash dividends paid | (203,982) | (203,982) |
NET CASH USED IN FINANCING ACTIVITIES | (203,982) | (203,982) |
INCREASE IN CASH | 3,129,158 | 2,236,347 |
Cash at beginning of period | 2,796,762 | 2,225,924 |
CASH AT END OF PERIOD | $ 5,925,920 | $ 4,462,271 |
Note A - Basis of Presentation
Note A - Basis of Presentation | 9 Months Ended |
Dec. 31, 2016 | |
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 10 March 31, 2016. |
Note B - New Accounting Standar
Note B - New Accounting Standards | 9 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE B — NEW ACCOUNTING STANDARDS In August 2016, 2016 15, 2016 15”). 2016 15 eight December 15, 2017, 2016 15 In March 2016, 2016 09, 2016 09”). 2016 09 December 15, 2016. 2016 09 In February 2016, 2016 02, 2016 02”). 2016 02 12 12 December 15, 2018, 2016 02 In May 2014, 2014 09, 2014 09”). 2014 09 2014 09 December 15, 2016; August 2015, 2015 14, 2015 14”). 2015 14 2014 09 December 15, 2017, one December 15, 2016, 2014 09 |
Note C - Inventories
Note C - Inventories | 9 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE C — 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 nine December 31, 2016, March 31, 2017 $165,841 A summary of inventory values by product group follows: December 31, March 31, Prime Coil Inventory $ 7,029,796 $ 14,168,626 Non-Standard Coil Inventory 904,165 992,163 Tubular Raw Material 2,802,688 1,566,048 Tubular Finished Goods 23,826,857 25,212,291 $ 34,563,506 $ 41,939,128 |
Note D - Stock Based Compensati
Note D - Stock Based Compensation | 9 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE D — STOCK BASED COMPENSATION On September 1, 2016, 2016 December 21, 2016, 8 500,000 may, 210,000 January 4, 2017 five 100% January 4, 2022). $1,444,800 60 |
Note E - Segment Information
Note E - Segment Information | 9 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE E — SEGMENT INFORMATION (in thousands) Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net sales Coil $ 13,495 $ 15,203 $ 47,945 $ 52,838 Tubular 2,494 3,345 8,755 12,845 Total net sales $ 15,989 $ 18,548 $ 56,700 $ 65,683 Operating profit (loss) Coil $ 538 $ 1,817 $ (858 ) $ 4,858 Tubular (437 ) (977 ) (1,360 ) (2,324 ) Total operating profit (loss) 101 840 (2,218 ) 2,534 Corporate expenses 487 473 1,475 1,683 Interest & other income (15 ) (329 ) (44 ) (363 ) Total earnings (loss) before taxes $ (371 ) $ 696 $ (3,649 ) $ 1,214 December 31, March 31, Segment assets Coil $ 17,545 $ 25,317 Tubular 37,537 37,543 55,082 62,860 Corporate assets 8,498 4,030 $ 63,580 $ 66,890 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, retirement plan contribution expense, corporate insurance expenses and office supplies. Corporate assets consist primarily of cash, the cash value of officers’ life insurance, deferred taxes and federal income taxes recoverable. |
Note F - Supplemental Cash Flow
Note F - Supplemental Cash Flow Information | 9 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE F — SUPPLEMENTAL CASH FLOW INFORMATION The Company paid income taxes of approximately $13,500 $162,000 nine December 31, 2016 2015, nine December 31, 2016 2015. $67,994 nine December 31, 2016 2015, nine December 31, 2016 $293,000 |
Note G - Income Taxes
Note G - Income Taxes | 9 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE G — INCOME TAXES The Company’s effective tax rate for the nine December 31, 2016 nine December 31, 2015 |
Note C - Inventories (Tables)
Note C - Inventories (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, March 31, Prime Coil Inventory $ 7,029,796 $ 14,168,626 Non-Standard Coil Inventory 904,165 992,163 Tubular Raw Material 2,802,688 1,566,048 Tubular Finished Goods 23,826,857 25,212,291 $ 34,563,506 $ 41,939,128 |
Note E - Segment Information (T
Note E - Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Nine Months Ended 2016 2015 2016 2015 Net sales Coil $ 13,495 $ 15,203 $ 47,945 $ 52,838 Tubular 2,494 3,345 8,755 12,845 Total net sales $ 15,989 $ 18,548 $ 56,700 $ 65,683 Operating profit (loss) Coil $ 538 $ 1,817 $ (858 ) $ 4,858 Tubular (437 ) (977 ) (1,360 ) (2,324 ) Total operating profit (loss) 101 840 (2,218 ) 2,534 Corporate expenses 487 473 1,475 1,683 Interest & other income (15 ) (329 ) (44 ) (363 ) Total earnings (loss) before taxes $ (371 ) $ 696 $ (3,649 ) $ 1,214 December 31, March 31, Segment assets Coil $ 17,545 $ 25,317 Tubular 37,537 37,543 55,082 62,860 Corporate assets 8,498 4,030 $ 63,580 $ 66,890 |
Note C - Inventories (Details T
Note C - Inventories (Details Textual) | 9 Months Ended |
Dec. 31, 2016USD ($) | |
Effect of LIFO Inventory Liquidation, Deferred Debit to Inventory | $ 165,841 |
Note C - Inventories - Summary
Note C - Inventories - Summary of Inventory Values By Product Group (Details) - USD ($) | Dec. 31, 2016 | Mar. 31, 2016 |
Inventories | $ 34,563,506 | $ 41,939,128 |
Prime Coil Inventory [Member] | ||
Raw materials | 7,029,796 | 14,168,626 |
Non-standard Coil Inventory [Member] | ||
Raw materials | 904,165 | 992,163 |
Tubular Inventory [Member] | ||
Raw materials | 2,802,688 | 1,566,048 |
Finished goods | $ 23,826,857 | $ 25,212,291 |
Note D - Stock Based Compensa17
Note D - Stock Based Compensation (Details Textual) - 2016 Restricted Stock Plan [Member] - USD ($) | Jan. 04, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500,000 | |
Restricted Stock [Member] | Subsequent Event [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 |
Note E - Segment Information -
Note E - Segment Information - Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | |
Net sales | $ 15,988,745 | $ 18,548,247 | $ 56,700,015 | $ 65,682,520 | |
Interest & other income | (14,755) | (328,560) | (44,255) | (363,060) | |
Total earnings (loss) before taxes | (370,979) | 696,167 | (3,648,757) | 1,213,971 | |
Assets | 63,580,354 | 63,580,354 | $ 66,890,397 | ||
Operating Segments [Member] | |||||
Operating profit (loss) | 101,000 | 840,000 | (2,218,000) | 2,534,000 | |
Assets | 55,082,000 | 55,082,000 | 62,860,000 | ||
Operating Segments [Member] | Coil [Member] | |||||
Net sales | 13,495,000 | 15,203,000 | 47,945,000 | 52,838,000 | |
Operating profit (loss) | 538,000 | 1,817,000 | (858,000) | 4,858,000 | |
Assets | 17,545,000 | 17,545,000 | 25,317,000 | ||
Operating Segments [Member] | Tubular [Member] | |||||
Net sales | 2,494,000 | 3,345,000 | 8,755,000 | 12,845,000 | |
Operating profit (loss) | (437,000) | (977,000) | (1,360,000) | (2,324,000) | |
Assets | 37,537,000 | 37,537,000 | 37,543,000 | ||
Corporate, Non-Segment [Member] | |||||
Corporate expenses | 487,000 | $ 473,000 | 1,475,000 | $ 1,683,000 | |
Assets | $ 8,498,000 | $ 8,498,000 | $ 4,030,000 |
Note F - Supplemental Cash Fl19
Note F - Supplemental Cash Flow Information (Details Textual) - USD ($) | 9 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2016 | |
Income Taxes Paid | $ 13,500 | $ 162,000 | |
Dividends Payable, Current | 67,994 | $ 67,994 | |
Other Significant Noncash Transaction, Value of Consideration Given | $ 293,000 |