Friedman Industries (FRD) 10-Q 14 Aug 17 2018 Q1 Quarterly report Financial data

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