Sales Performance - Sales for the six months ended September 30, 2024, decreased by approximately $46.7 million to $240.7 million compared to the same period in 2023[47]. - Flat-roll product segment sales for the 2024 period totaled approximately $200.8 million, a decrease from approximately $245.7 million in 2023, with average selling price per ton dropping from approximately $1,011 to $895[48]. - Tubular product segment sales for the 2024 period totaled approximately $20.5 million, down from approximately $22.3 million in 2023, with average selling price per ton decreasing from approximately $1,290 to $1,087[49]. - Sales volume for the three months ended September 30, 2024, was approximately 121,500 tons from inventory and 18,000 tons of toll processing, compared to 129,500 tons and 26,000 tons in 2023[51]. - Sales volume for the third quarter of fiscal 2025 is expected to be slightly lower than the second quarter due to seasonal impacts[60]. Profitability - Adjusted gross profit for the six months ended September 30, 2024, was approximately $36.7 million, down from approximately $50.1 million in 2023, representing a gross profit margin decrease from 18.7% to 16.6%[47]. - Flat-roll segment operations recorded operating profits of approximately $5.3 million in 2024, down from $15.0 million in 2023[48]. - Tubular segment recorded an operating loss of approximately $1.8 million for the 2024 period, compared to an operating profit of approximately $2.3 million in 2023[49]. - The Company recognized hedging related gains of approximately $5.6 million in the 2024 period, compared to $4.8 million in 2023[47]. - The Company anticipates a challenging margin environment in the third quarter due to stable hot-rolled coil prices[60]. Costs and Expenses - Selling, general and administrative costs decreased by approximately $2.2 million in the 2024 period compared to 2023, primarily due to lower incentive compensation expenses[49]. - Income tax provision decreased from approximately $3.7 million in 2023 to approximately $0.5 million in 2024, with the effective tax rate dropping from 24.9% to 21.1%[50]. Financial Position - The Company's current ratio improved to 4.1 as of September 30, 2024, up from 3.1 on March 31, 2024[58]. - Working capital was approximately $111.7 million at September 30, 2024, compared to $116.0 million at March 31, 2024[58]. - The Company had a balance of approximately $35.9 million under its $150 million asset-based lending facility (ABL Facility) with an interest rate of 7.0% as of September 30, 2024[58]. - The ABL Facility supported access to approximately $104.7 million based on the borrowing base calculation as of September 30, 2024[58]. - The Company believes its current cash position and cash flows from operations are adequate to fund expected cash requirements for the next 12 months[58]. - The Company has the option to increase the ABL Facility by up to an aggregate of $25 million, in minimum increments of $5 million, if certain conditions are met[58]. Estimates and Judgments - No significant estimates or judgments were identified related to the consolidated financial statements in the current filing[61].

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- ...

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Friedman Industries reported its second most profitable year in FY2024 with **$17.3 million** net earnings on **$516.3 million** sales, driven by **19%** volume growth Q4 Fiscal 2024 Highlights (Quarter ended March 31, 2024) | Metric | Value | | :--- | :--- | | Net Earnings ($ million) | $5.0 million | | Sales ($ million) | $132.2 million | | Sales Volume Increase (vs Q3) (%) | 13% | | Sales Volume Increase (vs Q4 2023) (%) | 9% | Fiscal Year 2024 Highlights (Year ended March 31, 2024) | Metric | Value | | :--- | :--- | | Net Earnings ($ million) | $17.3 million | | Sales ($ million) | $516.3 million | | Sales Volume Increase (vs FY 2023) (%) | 19% | | Year-End Working Capital ($ million) | $116.0 million | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributes fiscal 2024's strong profitability and **19%** sales volume growth to strategic assets, anticipating continued expansion - Fiscal 2024 was the second most profitable fiscal year in the company's history, demonstrating the quality of its assets and strategy[4](index=4&type=chunk) - Sales volume grew by approximately **19%** in fiscal 2024, driven by the new Sinton, TX facility, which is expected to continue ramping up towards full production capacity in fiscal 2025[4](index=4&type=chunk) - The company is expanding its market share among top US steel consumers and has proven its ability to remain profitable through steel price volatility[4](index=4&type=chunk) - Management's favorable outlook is supported by a recent dividend increase, with a focus on delivering long-term value and unlocking further growth from current assets[4](index=4&type=chunk) [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) Consolidated results show decreased net earnings for Q4 and FY2024, with increased total assets and liabilities strengthening stockholders' equity [Statements of Operations](index=2&type=section&id=Statements%20of%20Operations) FY2024 net sales were **$516.3 million** with **$17.3 million** net earnings, while Q4 sales increased to **$132.2 million** but net earnings decreased Summary of Operations (In thousands, except for per share data) | | Three Months Ended March 31, | Year Ended March 31, | | :--- | :--- | :--- | | | **2024 (in thousands)** | **2023 (in thousands)** | **2024 (in thousands)** | **2023 (in thousands)** | | **Net Sales** | **$132,232** | **$124,186** | **$516,251** | **$547,542** | | Earnings from operations | $6,933 | $7,254 | $24,518 | $21,074 | | **Net earnings** | **$4,958** | **$6,311** | **$17,345** | **$21,344** | | **Diluted EPS** | **$0.71** | **$0.86** | **$2.39** | **$2.91** | [Balance Sheets](index=2&type=section&id=Balance%20Sheets) As of March 31, 2024, total assets increased to **$230.0 million**, liabilities to **$102.5 million**, and stockholders' equity to **$127.5 million** Summarized Balance Sheets (In thousands) | | March 31, 2024 (in thousands) | March 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$230,019** | **$199,312** | | Total Liabilities | $102,544 | $83,880 | | **Total Stockholders' Equity** | **$127,475** | **$115,432** | [Segment Performance](index=2&type=section&id=Segment%20Performance) Q4 2024 Flat-Roll segment sales and profit increased, while Tubular segment profit declined due to lower selling prices despite higher volume [Flat-Roll Segment Operations](index=2&type=section&id=Flat-Roll%20Segment%20Operations) Flat-Roll segment sales increased to **$120.6 million** in Q4 2024, with operating profit rising to **$9.6 million**, driven by higher selling prices and toll processing volume Flat-Roll Segment Performance (Q4) | Metric | 2024 Quarter | 2023 Quarter | | :--- | :--- | :--- | | Sales ($ million) | $120.6 million | $112.8 million | | Operating Profit ($ million) | $9.6 million | $7.7 million | | Sales Volume (Inventory) (tons) | ~120,000 tons | ~124,000 tons | | Sales Volume (Toll) (tons) | 29,500 tons | 14,000 tons | | Avg. Selling Price/ton ($) | $993 | $915 | [Tubular Segment Operations](index=3&type=section&id=Tubular%20Segment%20Operations) Tubular segment sales remained flat at **$11.6 million** in Q4 2024, but operating profit sharply declined to **$0.8 million** due to lower average selling prices Tubular Segment Performance (Q4) | Metric | 2024 Quarter | 2023 Quarter | | :--- | :--- | :--- | | Sales ($ million) | $11.6 million | $11.4 million | | Operating Profit ($ million) | $0.8 million | $2.5 million | | Tons Sold (tons) | ~9,500 tons | ~8,000 tons | | Avg. Selling Price/ton ($) | $1,216 | $1,404 | [Hedging Activities](index=4&type=section&id=Hedging%20Activities) Friedman Industries uses HRC futures to manage price risk, recognizing hedging gains of approximately **$1.1 million** in Q4 2024 and **$1.4 million** for the full fiscal year - The company uses HRC futures to manage price risk and aims to produce more consistent financial results over price cycles[13](index=13&type=chunk) Recognized Hedging Gains | Period | Gain Recognized ($ million) | | :--- | :--- | | Q4 Fiscal 2024 | ~$1.1 million | | Fiscal Year 2024 | ~$1.4 million | [Outlook](index=4&type=section&id=Outlook) Q1 fiscal 2025 sales volume is expected to be similar to Q4 fiscal 2024 despite downtime, with lower margins anticipated to be offset by **$5.3 million** in hedging gains - Sales volume for Q1 fiscal 2025 is expected to be similar to Q4 fiscal 2024, despite planned downtime for equipment installation and maintenance[14](index=14&type=chunk) - First-quarter margins are expected to be lower than fourth-quarter margins due to declining HRC prices[14](index=14&type=chunk) - The company anticipates the lower margin to be offset by hedging gains, which totaled approximately **$5.3 million** for Q1 fiscal 2025 as of the date of the release[14](index=14&type=chunk) [About Friedman Industries](index=4&type=section&id=About%20Friedman%20Industries) Friedman Industries, headquartered in Longview, Texas, manufactures and processes steel products through its flat-roll and tubular segments across US facilities - The company has two reportable segments: flat-roll products (operating in Hickman, AR; Decatur, AL; East Chicago, IN; Granite City, IL; Sinton, TX) and tubular products (operating in Lone Star, TX)[15](index=15&type=chunk) - The Sinton facility is newly constructed, commencing operations in October 2022, while the East Chicago and Granite City facilities were acquired in April 2022[15](index=15&type=chunk)

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 ...