Friedman Industries(FRD) - 2020 Q4 - Annual Report

Sales Performance - The coil products segment accounted for 70% of total sales in 2020, up from 67% in 2019, while tubular products contributed 30%, down from 33%[17] - Sales of coil products to Trinity Industries, Inc. represented approximately 18% of total sales in 2020, compared to 21% in 2019[17] Facilities and Operations - The Decatur facility is set to enhance processing capabilities with new equipment, allowing for material up to 96" wide and thicknesses up to ½", with commercial use expected to start in February 2021[12] - The company operates two hot-roll coil processing facilities located in Hickman, Arkansas, and Decatur, Alabama[12] - The tubular products segment operates two electric resistance welded pipe mills with a combined outside diameter size range of 2 3/8" to 8 5/8"[15] Workforce and Sales Strategy - The company had 103 full-time employees as of March 31, 2020[22] - The company sells substantially all of its products through its own sales force, which includes a Vice President and several professional sales personnel[18][20] - The company competes in a highly competitive market, relying on competitive pricing and rapid delivery to meet customer specifications[21] Financial Performance and Provisions - The allowance for doubtful accounts receivable charged to bad debt expense was $53,239 for fiscal year 2020, compared to $15,673 for fiscal year 2019, indicating a significant increase in provisions[65] - Cash discounts allowed on sales were $624,413 in fiscal year 2020, down from $750,059 in fiscal year 2019, reflecting a decrease of approximately 16.8%[66] - The ending balance for the allowance for doubtful accounts receivable was $82,417 for fiscal year 2020, compared to $29,178 for fiscal year 2019, showing an increase of 181.5%[65] - The total accounts receivable written off was $0 in fiscal year 2020, compared to $7,547 in fiscal year 2019, indicating improved collection efforts[66] Governance and Compliance - The consolidated balance sheets and statements of operations for the fiscal year ended March 31, 2020, are included in the annual report[55] - The company plans to file definitive copies of the proxy statement with the SEC within 120 days after the end of the fiscal year[53] - The financial statements include a report from an independent registered public accounting firm, ensuring the accuracy of the financial data presented[55] - The financial statement schedules are included in the report, providing detailed insights into the company's financial position[55] - The company has incorporated various amendments to its articles of incorporation and bylaws, reflecting ongoing governance updates[56] Employee Incentives - The company has established a restricted stock plan to incentivize key employees, which is part of its broader compensation strategy[56]