þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TEXAS (State or other jurisdiction of incorporation or organization) |
74-1504405 (I.R.S. Employer Identification Number) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company þ |
SEPTEMBER 30, 2010 | MARCH 31, 2010 | |||||||
ASSETS
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
$ | 19,876,177 | $ | 19,812,881 | ||||
Accounts receivable,
net of allowances for bad debts and cash discounts of
$37,276 at September 30
and March 31, 2010
|
8,234,074 | 8,686,151 | ||||||
Inventories
|
27,291,949 | 20,122,296 | ||||||
Other
|
218,391 | 81,791 | ||||||
|
||||||||
TOTAL CURRENT ASSETS
|
55,620,591 | 48,703,119 | ||||||
PROPERTY, PLANT AND
EQUIPMENT:
|
||||||||
Land
|
1,082,331 | 1,082,331 | ||||||
Buildings and yard
improvements
|
7,003,239 | 7,000,839 | ||||||
Machinery and equipment
|
29,836,770 | 29,374,766 | ||||||
Less accumulated depreciation
|
(22,895,733 | ) | (21,963,333 | ) | ||||
|
||||||||
|
15,026,607 | 15,494,603 | ||||||
|
||||||||
OTHER ASSETS:
|
||||||||
Cash value of officers
life insurance and other assets
|
862,000 | 834,000 | ||||||
TOTAL ASSETS
|
$ | 71,509,198 | $ | 65,031,722 | ||||
|
||||||||
LIABILITIES AND
STOCKHOLDERS EQUITY
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable and
accrued expenses
|
$ | 9,832,274 | $ | 6,912,741 | ||||
Current portion of
long-term debt
|
| 13,507 | ||||||
Income taxes payable
|
358,235 | 94,563 | ||||||
Dividends payable
|
543,956 | 67,994 | ||||||
Contribution to profit
sharing plan
|
155,000 | 44,000 | ||||||
Employee compensation
and related expenses
|
740,398 | 443,473 | ||||||
|
||||||||
TOTAL CURRENT LIABILITIES
|
11,629,863 | 7,576,278 | ||||||
DEFERRED INCOME TAXES
|
387,203 | 414,403 | ||||||
POSTRETIREMENT BENEFITS
OTHER THAN PENSIONS
|
730,087 | 682,631 | ||||||
STOCKHOLDERS
EQUITY:
|
||||||||
Common stock, par value
$1:
|
||||||||
Authorized shares
10,000,000
|
||||||||
Issued shares
7,975,160 at September 30 and March 31, 2010
|
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 September 30 and March 31, 2010)
|
(5,475,964 | ) | (5,475,964 | ) | ||||
Retained earnings
|
27,259,175 | 24,855,540 | ||||||
|
||||||||
TOTAL STOCKHOLDERS
EQUITY
|
58,762,045 | 56,358,410 | ||||||
|
||||||||
TOTAL LIABILITIES AND
STOCKHOLDERS EQUITY
|
$ | 71,509,198 | $ | 65,031,722 | ||||
|
2
Three months ended | Six months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net sales |
$ | 29,353,262 | $ | 16,086,330 | $ | 58,575,494 | $ | 28,332,549 | ||||||||
Costs and expenses |
||||||||||||||||
Costs of goods sold |
25,465,549 | 15,460,372 | 51,249,843 | 27,119,011 | ||||||||||||
General, selling and administrative costs |
1,264,251 | 926,315 | 2,538,721 | 1,849,202 | ||||||||||||
26,729,800 | 16,386,687 | 53,788,564 | 28,968,213 | |||||||||||||
Interest and other income |
(14,000 | ) | (14,500 | ) | (28,027 | ) | (29,000 | ) | ||||||||
Earnings (loss) before income taxes |
2,637,462 | (285,857 | ) | 4,814,957 | (606,664 | ) | ||||||||||
Provision for (benefit from) income taxes: |
||||||||||||||||
Current |
866,631 | (122,110 | ) | 1,622,589 | (302,344 | ) | ||||||||||
Deferred |
(13,600 | ) | 42,500 | (27,200 | ) | 64,675 | ||||||||||
853,031 | (79,610 | ) | 1,595,389 | (237,669 | ) | |||||||||||
Net earnings (loss) |
$ | 1,784,431 | $ | (206,247 | ) | $ | 3,219,568 | $ | (368,995 | ) | ||||||
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 (loss) per share: |
||||||||||||||||
Basic |
$ | 0.26 | $ | (0.03 | ) | $ | 0.47 | $ | (0.05 | ) | ||||||
Diluted |
$ | 0.26 | $ | (0.03 | ) | $ | 0.47 | $ | (0.05 | ) | ||||||
Cash dividends declared per common share |
$ | 0.08 | $ | 0.01 | $ | 0.12 | $ | 0.04 |
3
Six Months Ended | ||||||||
September 30, | ||||||||
2010 | 2009 | |||||||
OPERATING ACTIVITIES |
||||||||
Net earnings (loss) |
$ | 3,219,568 | $ | (368,995 | ) | |||
Adjustments to reconcile net earnings (loss) to cash
provided by operating activities: |
||||||||
Depreciation |
932,401 | 952,200 | ||||||
Provision for deferred taxes |
(27,200 | ) | 64,675 | |||||
Provision for postretirement benefits |
47,456 | 33,652 | ||||||
Decrease (increase) in operating assets: |
||||||||
Accounts receivable, net |
452,077 | 1,356,951 | ||||||
Prepaid income taxes |
| (220,872 | ) | |||||
Inventories |
(7,169,653 | ) | 1,821,652 | |||||
Other |
(136,600 | ) | (84,863 | ) | ||||
Increase (decrease) in operating liabilities: |
||||||||
Accounts payable and accrued expenses |
2,919,533 | 1,308,715 | ||||||
Contribution to profit-sharing plan |
111,000 | 84,000 | ||||||
Employee compensation and related expenses |
296,925 | 55,200 | ||||||
Income taxes payable |
263,672 | | ||||||
Deferred credit for LIFO inventory replacement |
| 111,052 | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES |
909,179 | 5,113,367 | ||||||
INVESTING ACTIVITIES |
||||||||
Purchase of property, plant and equipment |
(464,404 | ) | (304,039 | ) | ||||
Increase in cash surrender value of officers life insurance |
(28,000 | ) | (29,000 | ) | ||||
NET CASH USED IN INVESTING ACTIVITIES |
(492,404 | ) | (333,039 | ) | ||||
FINANCING ACTIVITIES |
||||||||
Cash dividends paid |
(339,972 | ) | (543,956 | ) | ||||
Principal payments on notes payable |
(13,507 | ) | (27,013 | ) | ||||
NET CASH USED IN FINANCING ACTIVITIES |
(353,479 | ) | (570,969 | ) | ||||
INCREASE IN CASH AND CASH EQUIVALENTS |
63,296 | 4,209,359 | ||||||
Cash and cash equivalents at beginning of period |
19,812,881 | 16,880,110 | ||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ | 19,876,177 | $ | 21,089,469 | ||||
4
September 30, | March 31, | |||||||
2010 | 2010 | |||||||
Prime Coil Inventory |
$ | 6,252,575 | $ | 4,643,951 | ||||
Non-Standard Coil Inventory |
645,320 | 504,351 | ||||||
Tubular Raw Material |
5,109,244 | 3,698,531 | ||||||
Tubular
Finished Goods |
15,284,810 | 11,275,463 | ||||||
$ | 27,291,949 | $ | 20,122,296 | |||||
5
Three Months Ended September 30, |
Six Months Ended September 30, |
|||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||
Net sales |
||||||||||||||||||
Coil |
$ | 13,236 | $ | 10,406 | $ | 25,333 | $ | 17,417 | ||||||||||
Tubular |
16,117 | 5,680 | 33,242 | 10,916 | ||||||||||||||
Total net sales |
$ | 29,353 | $ | 16,086 | $ | 58,575 | $ | 28,333 | ||||||||||
Operating profit (loss) |
||||||||||||||||||
Coil |
$ | 218 | $ | (377 | ) | $ | (106 | ) | $ | (334 | ) | |||||||
Tubular |
3,059 | 488 | 6,304 | 577 | ||||||||||||||
Total operating profit |
3,277 | 111 | 6,198 | 243 | ||||||||||||||
Corporate expenses |
654 | 411 | 1,411 | 879 | ||||||||||||||
Interest & other income |
(14 | ) | (14 | ) | (28 | ) | (29 | ) | ||||||||||
Total
earnings (loss) before taxes |
$ | 2,637 | $ | (286 | ) | $ | 4,815 | $ | (607 | ) | ||||||||
September 30, | March 31, | |||||||
2010 | 2010 | |||||||
Segment assets |
||||||||
Coil |
$ | 22,283 | $ | 20,377 | ||||
Tubular |
28,487 | 24,006 | ||||||
50,770 | 44,383 | |||||||
Corporate assets |
20,739 | 20,649 | ||||||
$ | 71,509 | $ | 65,032 | |||||
6
7
31.1 | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by William E. Crow | ||
31.2 | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by Ben Harper | ||
32.1 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by William E. Crow | ||
32.2 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by Ben Harper |
8
FRIEDMAN INDUSTRIES, INCORPORATED |
||||
Date November 12, 2010 | ||||
By | /s/ Ben Harper | |||
Ben Harper, Senior Vice President-Finance | ||||
(Principal Financial and Accounting Officer) | ||||
9
Exhibit No. | Description | |
Exhibit 31.1
|
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by William E. Crow | |
Exhibit 31.2
|
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by Ben Harper | |
Exhibit 32.1
|
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, signed by William E. Crow | |
Exhibit 32.2
|
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of The Sarbanes-Oxley Act of 2002, signed by Ben Harper |