Core Insights - Friedman Industries reported a net loss of approximately $0.7 million for the second fiscal quarter ended September 30, 2024, compared to net earnings of approximately $3.5 million for the same quarter in 2023, with sales decreasing from approximately $130.7 million to $106.8 million [2][3][4] - The company experienced a decline in sales volume due to weaker demand and political uncertainty, with total sales volume for the 2024 quarter at approximately 121,500 tons of inventory sold and 18,000 tons of toll processing, down from 129,500 tons and 26,000 tons in the 2023 quarter [2][6][7] - Operating cash flow for the quarter was approximately $10.8 million, and the company reduced its debt by 22% during the quarter [1][2] Financial Performance - Net sales for the quarter were approximately $106.8 million, down from $130.7 million in the previous year, while cost of materials sold decreased from $110.3 million to $88.8 million [3][4] - The flat-roll segment reported sales of approximately $97.4 million, down from $120.5 million, with an average selling price per ton decreasing from approximately $983 to $858 [6] - The tubular segment's sales totaled approximately $9.4 million, compared to $10.2 million in the prior year, with an average selling price per ton decreasing from approximately $1,217 to $1,030 [7] Balance Sheet Overview - As of September 30, 2024, total assets were approximately $209.2 million, down from $230.0 million as of March 31, 2024, with current assets decreasing from $170.1 million to $148.0 million [5] - Total liabilities decreased from $102.5 million to $80.4 million, while total stockholders' equity increased from $127.5 million to $128.8 million [5] Market Conditions - The company faced industry-wide pricing pressure, with hot-rolled coil prices stabilizing after a decline earlier in 2024, but demand remained soft due to political uncertainty [1][2] - The outlook for the third quarter of fiscal 2025 anticipates slightly lower sales volume due to seasonal impacts, with stable HRC prices leading to minimal changes in sales prices and margins [9][10] Hedging Activities - The company recognized a gain on hedging activities of approximately $0.2 million for the quarter, with limited hedging activities due to a lack of price volatility [8]

Core Viewpoint - Friedman Industries reported a significant decline in both earnings and revenues for the first quarter of fiscal 2025, indicating challenging market conditions and operational issues affecting performance [1][9][14]. Revenue Details - The company registered revenues of $114.6 million, down 16.6% year over year, attributed to declines in sales volume and average selling price per ton [2]. - Sales volume included approximately 119,000 tons from inventory (down 7.8% year over year) and 24,000 tons of toll-processing customer-owned material (flat year over year) [2][4]. Segment Performance - Revenues from the Flat-Roll segment were $103.4 million, down 17.4% from the previous year, with a sales volume of 109,000 tons from inventory [4]. - The average selling price per ton in the Flat-Roll segment decreased by 10.2% to $932 [5]. - The Tubular segment generated revenues of $11.2 million, down 7.7% year over year, but sales volume increased by 11.1% to 10,000 tons [5][6]. Gross Margin and Profitability - Gross profit declined 37.7% to $18.1 million, with gross margin contracting 536 basis points to 15.8% [7]. - The operating loss totaled $1.4 million compared to an operating profit of $10.4 million in the previous year [9]. Operating Expenses - Selling, general and administrative expenses decreased by 24% year over year to $4.5 million, primarily due to lower incentive compensation expenses [8]. Liquidity and Cash Flow - The company ended the first quarter with cash of $4.1 million, an increase from $2.9 million at the end of fiscal 2024 [10]. - Net cash used in operating activities was $6.1 million, compared to $4.6 million a year ago [11]. Guidance and Market Outlook - Management expects sales volume in the second quarter to be similar to that of the first quarter [12]. - There is an anticipated decline in hot-rolled coil (HRC) prices at the start of the second quarter, but recent trends indicate a potential increase in HRC index prices, which could improve margins later in the fiscal second quarter [13]. Overall Assessment - The first quarter results reflect a challenging environment for Friedman Industries, with disappointing revenue and profit figures, although there was a positive uptick in the Tubular segment's sales volume [14].

LONGVIEW, Texas, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Friedman Industries, Incorporated (NYSE American: FRD) announced today its results of operations for the quarter ended June 30, 2024. June 30, 2024 Quarter Highlights: Net earnings of approximately $2.6 million Sales of approximately $114.6 million Working capital balance at quarter-end of approximately $123.6 million "We are pleased to report profitable results for our first quarter in a period of challenging price dynamics," said Michael J. Taylor, Presid ...

Dividends are declared at the discretion of the Board and reviewed on a quarterly basis. The Board's desire is to pay a dividend at a level that it feels can be held stable for the foreseeable future and which may be increased periodically as the Company's financial position and operations become supportive of a new amount that the Board believes is sustainable. The determination to pay cash dividends takes into account various factors, including our financial condition, operating results, current and antic ...

LONGVIEW, Texas, June 26, 2024 (GLOBE NEWSWIRE) -- The Board of Directors (the "Board") of Friedman Industries, Incorporated, (NYSE American: FRD) a Texas-based company engaged in steel processing, pipe manufacturing, and steel and pipe distribution, declared on June 26, 2024, a cash dividend of $0.04 per share on the Common Stock of the Company. The Company will pay the cash dividend on August 16, 2024 to shareholders of record at the close of business on July 26, 2024. This dividend marks the Company's 21 ...

Zacks Investment Research has recently initiated coverage of Friedman Industries, Incorporated (FRD) , assigning a "Neutral" recommendation to the company's shares. This assessment comes amid a mixed outlook for the company, which has been making notable strides in the steel products space despite industry challenges. However, potential investors should consider certain risks outlined in the report. Friedman Industries operates in a highly competitive steel industry, with fluctuations in steel prices and de ...

Segment Details In the fiscal fourth quarter, Friedman Industries' net income was $4.9 million, down 21.4% from $6.3 million in the prior-year quarter. Revenues in Detail In the quarter under review, Friedman Industries' adjusted gross profit increased 1.5% to $27.5 million. However, the adjusted gross margin contracted 103 basis points (bps) to 20.8%. Friedman Industries, Incorporated (FRD) delivered earnings per share (EPS) of 71 cents in the fourth quarter of fiscal 2024, down 17.4% year over year. Full- ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Friedman Industries, Incorporated Announces Fourth Quarter and Fiscal Year 2024 Results LONGVIEW, Texas, June 11, 2024 (Globe Newswire) -- Friedman Industries, Incorporated (NYSE American: FRD) announced today its results of operations for the quarter and fiscal year ended March 31, 2024. March 31, 2024 Quarter Highlights: Fiscal Year March 31, 2024 Highlights: "We ended fiscal 2024 with a strong fourth quarter that made it our second most profitable fiscal year in Friedma ...

ABOUT FRIEDMAN INDUSTRIES Friedman Industries, Incorporated ("Company"), headquartered in Longview, Texas, is a manufacturer and processor of steel products with operating plants in Hickman, Arkansas; Decatur, Alabama; East Chicago, Indiana; Granite City, Illinois; Sinton, Texas and Lone Star, Texas. The Company has two reportable segments: flat-roll products and tubular products. The flat-roll product segment consists of the operations in Hickman, Decatur, East Chicago, Granite City and Sinton where the Co ...

March 31, 2024 Quarter Highlights: Fiscal Year March 31, 2024 Highlights: "We ended fiscal 2024 with a strong fourth quarter that made it our second most profitable fiscal year in Friedman's history," said Michael J. Taylor, President and Chief Executive Officer. "This result is evidence of the quality of our assets and our strategy, as well as the hard work and dedication of our team members, who make and deliver our products to customers every day." "I am pleased that investors are starting to recognize t ...