Friedman Industries(FRD) - 2023 Q4 - Annual Report

Sales and Revenue - In fiscal year 2023, coil products accounted for 89% of total sales, up from 81% in fiscal year 2022, while tubular products decreased to 11% from 19%[17] - Sales to O'Neal Steel represented approximately 15% of total sales in fiscal year 2023, compared to 11% in fiscal year 2022[17] Operations and Facilities - The company operates five coil processing facilities and a tubular products division, with significant investments in new facilities, including a newly constructed facility in Sinton, Texas, which began operations in October 2022[12] - The tubular products segment operates two electric resistance welded pipe mills, licensed by the American Petroleum Institute, with a size range of 2 3/8" OD to 8 5/8" OD[15] - The company’s coil processing facilities are capable of cutting sheet and plate with thicknesses ranging from 16 gauge to 1" thick and widths from 36" to 96"[12] Employment and Workforce - As of March 31, 2023, the company employed 234 full-time employees, a significant increase from 98 full-time employees in the previous year[21] - The company’s sales force for coil products consisted of 24 personnel, while the tubular products division had 3 sales personnel as of March 31, 2023[18][19] Supply Chain and Competition - The company relies on a limited number of suppliers for its inventory, and the loss of any supplier could adversely affect its business[14][16] - The company is engaged in a highly competitive market, competing with other processors of hot-rolled steel coils and tubular manufacturers[20] Safety and Employee Policies - The company has established policies for employee safety and wellness, emphasizing the importance of a safe work environment and employee engagement in safety processes[23] Financial Reporting and Compliance - The financial statements for the fiscal year ended March 31, 2023, include consolidated balance sheets and statements of operations for both 2023 and 2022[56] - The company plans to file definitive copies of the proxy statement for the 2023 Annual Meeting of Shareholders with the SEC within 120 days after the end of the fiscal year[52] - The report includes a schedule for valuation and qualifying accounts as part of the financial statement schedules[56] - The report includes certifications pursuant to the Sarbanes-Oxley Act of 2002, signed by key executives[59] - The report outlines the consent of the independent auditor, Moss Adams LLP, confirming the accuracy of the financial statements[58] Corporate Governance - The company has incorporated various amendments to its Articles of Incorporation and Bylaws, reflecting changes made in previous years[58] - The company has made several amendments to its credit agreement, indicating ongoing financial management strategies[58] - The Annual Report to Shareholders for the fiscal year ended March 31, 2023, is included as a key exhibit[58] - The report lists the company's subsidiaries, providing insight into its organizational structure[58]