Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Dec. 31, 2017 | Feb. 14, 2018 | |
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, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Dec. 31, 2017 | Mar. 31, 2017 |
CURRENT ASSETS: | ||
Cash | $ 2,123,803 | $ 1,461,695 |
Accounts receivable, net of allowances for bad debts and cash discounts of $21,052 and $27,276 at December 31 and March 31, 2017 | 7,054,181 | 8,939,051 |
Inventories | 46,399,435 | 34,918,550 |
Other | 380,576 | 113,540 |
TOTAL CURRENT ASSETS | 55,957,995 | 45,432,836 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Land | 1,452,799 | 1,082,331 |
Buildings and yard improvements | 8,682,405 | 7,111,735 |
Machinery and equipment | 39,237,369 | 31,451,479 |
Construction in progress | 9,451,972 | |
Less accumulated depreciation | (34,920,492) | (33,924,353) |
Property, plant, and equipment, net | 14,452,081 | 15,173,164 |
OTHER ASSETS: | ||
Deferred income tax asset | 463,728 | 1,165,950 |
Federal income taxes recoverable | 866,894 | 913,347 |
Cash value of officers’ life insurance and other assets | 206,125 | 578,000 |
TOTAL ASSETS | 71,946,823 | 63,263,297 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 6,575,457 | 2,003,661 |
Dividends payable | 70,094 | 70,094 |
Contribution to retirement plan | 162,000 | 42,000 |
Employee compensation and related expenses | 252,381 | 240,835 |
Revolving line of credit | 3,750,000 | |
TOTAL CURRENT LIABILITIES | 10,809,932 | 2,356,590 |
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS | 170,441 | 550,282 |
TOTAL LIABILITIES | 10,980,373 | 2,906,872 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value $1: Authorized shares — 10,000,000; Issued shares — 8,185,160 at September 30 and March 31, 2017 | 8,185,160 | 8,185,160 |
Additional paid-in capital | 29,082,634 | 28,865,914 |
Treasury stock at cost (1,175,716 shares at December 31 and March 31, 2017) | (5,475,964) | (5,475,964) |
Retained earnings | 29,174,620 | 28,781,315 |
TOTAL STOCKHOLDERS’ EQUITY | 60,966,450 | 60,356,425 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 71,946,823 | $ 63,263,297 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Dec. 31, 2017 | Mar. 31, 2017 |
Allowance for bad debt and cash discounts | $ 21,052 | $ 27,276 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 8,185,160 | 8,185,160 |
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, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net sales | $ 28,033,521 | $ 15,988,745 | $ 77,194,500 | $ 56,700,015 |
Costs and expenses | ||||
Costs of goods sold | 26,364,387 | 15,417,174 | 72,884,773 | 57,427,143 |
General, selling and administrative costs | 999,220 | 957,305 | 2,962,139 | 2,965,884 |
Interest expense | 8,451 | 8,451 | ||
Costs and expenses, total | 27,372,058 | 16,374,479 | 75,855,363 | 60,393,027 |
Interest and other income | (4,375) | (14,755) | (13,125) | (44,255) |
Earnings (loss) before income taxes | 665,838 | (370,979) | 1,352,262 | (3,648,757) |
Provision for (benefit from) income taxes: | ||||
Current | 46,452 | 46,452 | (673,618) | |
Deferred | 496,457 | (134,354) | 702,222 | (673,413) |
Income tax | 542,909 | (134,354) | 748,674 | (1,347,031) |
Net earnings (loss) | $ 122,929 | $ (236,625) | $ 603,588 | $ (2,301,726) |
Weighted average number of common shares outstanding: | ||||
Basic (in shares) | 7,009,444 | 6,799,444 | 7,009,444 | 6,799,444 |
Diluted (in shares) | 7,009,444 | 6,799,444 | 7,009,444 | 6,799,444 |
Net earnings (loss) per share: | ||||
Basic (in dollars per share) | $ 0.02 | $ (0.03) | $ 0.09 | $ (0.34) |
Diluted (in dollars per share) | 0.02 | (0.03) | 0.09 | (0.34) |
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, 2017 | Dec. 31, 2016 | |
OPERATING ACTIVITIES | ||
Net earnings (loss) | $ 603,588 | $ (2,301,726) |
Adjustments to reconcile net earnings (loss) to cash provided by (used in) operating activities: | ||
Depreciation | 996,139 | 1,202,549 |
Deferred taxes | 702,222 | (673,413) |
Compensation expense for restricted stock | 216,720 | |
Provision for postretirement benefits | 5,159 | 43,262 |
Decrease (increase) in operating assets: | ||
Accounts receivable, net | 1,884,870 | (106,616) |
Inventories | (11,480,885) | 7,375,622 |
Federal income taxes recoverable | 46,453 | (913,347) |
Other | (267,036) | (39,312) |
Increase (decrease) in operating liabilities: | ||
Accounts payable and accrued expenses | 4,571,796 | (595,940) |
Contribution to retirement plan | 120,000 | 126,500 |
Employee compensation and related expenses | 11,546 | (85,157) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (2,589,428) | 4,032,422 |
INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (275,056) | (655,032) |
Change in cash surrender value of officers’ life insurance | (13,125) | (44,250) |
NET CASH USED IN INVESTING ACTIVITIES | (288,181) | (699,282) |
FINANCING ACTIVITIES | ||
Borrowings under revolving line of credit | 3,750,000 | |
Cash dividends paid | (210,283) | (203,982) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 3,539,717 | (203,982) |
INCREASE IN CASH | 662,108 | 3,129,158 |
Cash at beginning of period | 1,461,695 | 2,796,762 |
CASH AT END OF PERIOD | $ 2,123,803 | $ 5,925,920 |
Note A - Basis of Presentation
Note A - Basis of Presentation | 9 Months Ended |
Dec. 31, 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 | 9 Months Ended |
Dec. 31, 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, $98,000 $0.01 December 31, 2017. |
Note C - New Accounting Standar
Note C - New Accounting Standards | 9 Months Ended |
Dec. 31, 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 was initially effective for interim and annual periods beginning after December 15, 2016 not August 2015, No. 2015 14, 2015 14” 2015 14 2014 09 December 15, 2017, one December 15, 2016, April 1, 2018. not two |
Note D - Inventories
Note D - Inventories | 9 Months Ended |
Dec. 31, 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 and non-standard coil inventories consist 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 $6,051,000 December 31, 2017 $5,593,000 March 31, 2017. A summary of inventory values by product group follows: December 31, 7 March 31, 7 Prime Coil Inventory $ 13,320,717 $ 8,481,605 Non-Standard Coil Inventory 3,236,378 1,119,170 Tubular Raw Material 4,922,377 1,480,730 Tubular Finished Goods 24,919,963 23,837,045 $ 46,399,435 $ 34,918,550 |
Note E - Debt
Note E - Debt | 9 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE E — DEBT On December 11, 2017, $7,500,000 December 11, 2018 0.55%. may not 1 $50.0 2 50% December 31, 2017, $3,750,000 3.95%. 10 $2,000,000 |
Note F - Stock Based Compensati
Note F - Stock Based Compensation | 9 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE F — STOCK BASED COMPENSATION The Company maintains the Friedman Industries, Incorporated 2016 500,000 may, As of December 31, 2017, 210,000 five January 4, 2022. No $1,444,800 60 $72,240 December 31, 2017 December 31, 2016, no |
Note G - Segment Information
Note G - Segment Information | 9 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE G — SEGMENT INFORMATION (in thousands) Three Months Ended December 31, Nine Months Ended December 31, 201 7 2016 201 7 2016 Net sales Coil $ 22,410 $ 13,495 $ 60,547 $ 47,945 Tubular 5,624 2,494 16,648 8,755 Total net sales $ 28,034 $ 15,989 $ 77,195 $ 56,700 Operating profit (loss) Coil $ 1,178 $ 538 $ 2,483 $ (858 ) Tubular (53 ) (437 ) 261 (1,360 ) Total operating profit (loss) 1,125 101 2,744 (2,218 ) Corporate expenses 463 487 1,405 1,475 Interest & other income (4 ) (15 ) (13 ) (44 ) Total earnings (loss) before taxes $ 666 $ (371 ) $ 1,352 $ (3,649 ) December 31, 7 March 31, 7 Segment assets Coil $ 26,770 $ 21,833 Tubular 41,501 37,299 68,271 59,132 Corporate assets 3,676 4,131 $ 71,947 $ 63,263 Corporate expenses reflect general and administrative expenses not ’ life insurance, deferred taxes and federal income taxes recoverable. |
Note H - Supplemental Cash Flow
Note H - Supplemental Cash Flow Information | 9 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE H — SUPPLEMENTAL CASH FLOW INFORMATION The Company paid income taxes of approximately $8,000 $13,500 nine December 31, 2017 2016, no nine December 31, 2017 2016. $70,094 nine December 31, 2017 2016, $385,000 $293,000 nine December 31, 2017 2016, |
Note I - Income Taxes
Note I - Income Taxes | 9 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE I — INCOME TAXES The effective tax rate for the nine December 31, 2017 provisional impact of the Tax Cuts and Jobs Act (the “Tax Act”), enacted on December 22, 2017 March 31, 2018, not The Tax Act reduces the federal corporate tax rate to 21.0% January 1, 2018. 15 30.8% for our fiscal 2018 January 1, 2018 December 31, 2017, $240,500 On December 22, 2017, 118 118” 118 period, which should not one 740 740” 118, 740 740 ’s best estimates based on records, information and current guidance. Additional information and analysis is required to finalize the impact that the Tax Act will have on the Company’s full fiscal year financial results. The Company currently anticipates finalizing and recording any resulting adjustments by the end of the fiscal year ending March 31, 2018. The Company ’s effective tax rate for the nine December 31, 2016 |
Note D - Inventories (Tables)
Note D - Inventories (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, 7 March 31, 7 Prime Coil Inventory $ 13,320,717 $ 8,481,605 Non-Standard Coil Inventory 3,236,378 1,119,170 Tubular Raw Material 4,922,377 1,480,730 Tubular Finished Goods 24,919,963 23,837,045 $ 46,399,435 $ 34,918,550 |
Note G - Segment Information (T
Note G - Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended December 31, Nine Months Ended December 31, 201 7 2016 201 7 2016 Net sales Coil $ 22,410 $ 13,495 $ 60,547 $ 47,945 Tubular 5,624 2,494 16,648 8,755 Total net sales $ 28,034 $ 15,989 $ 77,195 $ 56,700 Operating profit (loss) Coil $ 1,178 $ 538 $ 2,483 $ (858 ) Tubular (53 ) (437 ) 261 (1,360 ) Total operating profit (loss) 1,125 101 2,744 (2,218 ) Corporate expenses 463 487 1,405 1,475 Interest & other income (4 ) (15 ) (13 ) (44 ) Total earnings (loss) before taxes $ 666 $ (371 ) $ 1,352 $ (3,649 ) December 31, 7 March 31, 7 Segment assets Coil $ 26,770 $ 21,833 Tubular 41,501 37,299 68,271 59,132 Corporate assets 3,676 4,131 $ 71,947 $ 63,263 |
Note B - Change in Accounting17
Note B - Change in Accounting Estimate (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Depreciation | $ 996,139 | $ 1,202,549 | ||
Net Income (Loss) Attributable to Parent | $ 122,929 | $ (236,625) | $ 603,588 | $ (2,301,726) |
Earnings Per Share, Diluted | $ 0.02 | $ (0.03) | $ 0.09 | $ (0.34) |
Service Life [Member] | ||||
Depreciation | $ (160,000) | |||
Net Income (Loss) Attributable to Parent | $ 98,000 | |||
Earnings Per Share, Diluted | $ 0.01 |
Note D - Inventories (Details T
Note D - Inventories (Details Textual) - USD ($) | Dec. 31, 2017 | Mar. 31, 2017 |
Excess of Replacement or Current Costs over Stated LIFO Value | $ 6,051,000 | $ 5,593,000 |
Note D - Inventories - Summary
Note D - Inventories - Summary of Inventory Values by Product Group (Details) - USD ($) | Dec. 31, 2017 | Mar. 31, 2017 |
Inventories | $ 46,399,435 | $ 34,918,550 |
Prime Coil Inventory [Member] | ||
Raw materials | 13,320,717 | 8,481,605 |
Non-standard Coil Inventory [Member] | ||
Raw materials | 3,236,378 | 1,119,170 |
Tubular Inventory [Member] | ||
Raw materials | 4,922,377 | 1,480,730 |
Finished goods | $ 24,919,963 | $ 23,837,045 |
Note E - Debt (Details Textual)
Note E - Debt (Details Textual) - Citizens National Bank [Member] - Revolving Credit Facility [Member] - USD ($) | 1 Months Ended | |
Dec. 31, 2017 | Feb. 14, 2018 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 7,500,000 | |
Debt Instrument, Minimum Threshold of Shareholders' Equity | $ 50,000,000 | |
Debt Instrument, Debt to Shareholders' Equity Maximum Threshold, Percent | 50.00% | |
Long-term Line of Credit | $ 3,750,000 | |
Line of Credit Facility, Interest Rate at Period End | 3.95% | |
Subsequent Event [Member] | ||
Long-term Line of Credit | $ 2,000,000 | |
Prime Rate [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | (0.55%) |
Note F - Stock Based Compensa21
Note F - Stock Based Compensation (Details Textual) - 2016 Restricted Stock Plan [Member] - USD ($) | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2017 | Dec. 31, 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 | $ 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 G - Segment Information -
Note G - Segment Information - Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | |
Net sales | $ 28,033,521 | $ 15,988,745 | $ 77,194,500 | $ 56,700,015 | |
Interest & other income | (4,375) | (14,755) | (13,125) | (44,255) | |
Total earnings (loss) before taxes | 665,838 | (370,979) | 1,352,262 | (3,648,757) | |
Assets | 71,946,823 | 71,946,823 | $ 63,263,297 | ||
Operating Segments [Member] | |||||
Operating profit (loss) | 1,125,000 | 101,000 | 2,744,000 | (2,218,000) | |
Assets | 68,271,000 | 68,271,000 | 59,132,000 | ||
Operating Segments [Member] | Coil [Member] | |||||
Net sales | 22,410,000 | 13,495,000 | 60,547,000 | 47,945,000 | |
Operating profit (loss) | 1,178,000 | 538,000 | 2,483,000 | (858,000) | |
Assets | 26,770,000 | 26,770,000 | 21,833,000 | ||
Operating Segments [Member] | Tubular [Member] | |||||
Net sales | 5,624,000 | 2,494,000 | 16,648,000 | 8,755,000 | |
Operating profit (loss) | (53,000) | (437,000) | 261,000 | (1,360,000) | |
Assets | 41,501,000 | 41,501,000 | 37,299,000 | ||
Corporate, Non-Segment [Member] | |||||
Corporate expenses | 463,000 | $ 487,000 | 1,405,000 | $ 1,475,000 | |
Assets | $ 3,676,000 | $ 3,676,000 | $ 4,131,000 |
Note H - Supplemental Cash Fl23
Note H - Supplemental Cash Flow Information (Details Textual) - USD ($) | 9 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | |
Income Taxes Paid | $ 8,000 | $ 13,500 | |
Interest Paid, Net | 0 | 0 | |
Dividends Payable, Current | 70,094 | 70,094 | $ 70,094 |
Other Significant Noncash Transaction, Value of Consideration Given | $ 385,000 | $ 293,000 |
Note I - Income Taxes (Details
Note I - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 240,500 | ||
Scenario, Forecast [Member] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 30.80% |