FRD Friedman Industries Inc

 

Part I — FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

FRIEDMAN INDUSTRIES, INCORPORATED

 

CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED

(In thousands, except for share data)

 

 

The accompanying notes are an integral part of these financial statements.

 

 

FRIEDMAN INDUSTRIES, INCORPORATED

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED

(In thousands, except per share data)

 

 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME — UNAUDITED

(In thousands)

 

 

The accompanying notes are an integral part of these financial statements.

 

 

FRIEDMAN INDUSTRIES, INCORPORATED

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED

(In thousands)

 

 

Cash and restricted cash at June 30, 2023 and March 31, 2023 included approximately $1.5 million and $2.4 million, respectively, of cash required to collateralize open derivative positions. These amounts are reported in "Other current assets" on the Company's consolidated balance sheets at June 30, 2023 and March 31, 2023. The Company had approximately $1.3 million in restricted cash at June 30, 2022. 

 

The accompanying notes are an integral part of these financial statements.

 

 

 

FRIEDMAN INDUSTRIES, INCORPORATED

 

CONDENSED NOTES TO QUARTERLY REPORT — UNAUDITED

 

NOTE A — BASIS OF PRESENTATION

 

The accompanying unaudited, condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information, refer to the consolidated financial statements and footnotes of Friedman Industries, Incorporated (the “Company”) included in its annual report on Form 10-K for the year ended March 31, 2023.

 

Business Combinations

 

The results of a business acquired in a business combination are included in the Company’s financial statements from the date of acquisition. The Company allocates the purchase price to the identifiable assets and liabilities of the acquired business at their acquisition date fair values. The excess of the purchase price over the amount allocated to the identifiable assets and liabilities, if any, is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management to make significant judgments and estimates, including the selection of valuation methodologies, estimates of future revenue and cash flows, discount rates and selection of comparable companies. Acquisition-related transaction costs are expensed in the period in which the costs are incurred.

 

Reclassifications

 

The unaudited condensed consolidated financial statements for the previous year may include certain reclassifications to conform to the current presentation. To conform with the current year presentation, “Interest expense” on the unaudited condensed consolidated statements of operations was moved below the calculation of "Earnings From Operations". To conform with the current year presentation, a gain of approximately $2.8 million reported in the prior year as a component of "Other income, net" on the unaudited condensed consolidated statement of operations was moved to the line item "Gain on economic hedges of risk". These reclassifications had no impact on previously reported net earnings or stockholder's equity.

NOTE B — BUSINESS COMBINATIONS

 

On April 30, 2022, (the “Acquisition Date”), the Company acquired certain assets and liabilities of Plateplus, Inc. (“Plateplus”), a wholly owned subsidiary of Metal One, Inc. (“Metal One” or “Seller”), whereby the Company acquired the real estate, buildings, equipment, inventory, and other assets of Plateplus’ East Chicago, IN and Granite City, IL facilities and certain steel inventory at Plateplus’ Loudon, TN and Houston, TX facilities (the “Transaction”). The East Chicago and Granite City facilities are steel coil processing facilities that produce the same type of products as the Company's facilities in Hickman, AR; Decatur, AL and  Sinton, TX. As a result of the Transaction, the Company expanded its footprint and distribution capabilities in the mid-western United States.

 

The Transaction resulted in the Company acquiring the assets noted above, for a total consideration of $76.5 million, of which $71.7 million was cash consideration and $4.8 million related to 516,041 shares of the Company's common stock issued to the Seller. The fair value of the 516,041 shares issued was determined based on the closing market price of the Company’s common stock on April 29, 2022, the last trading day prior to the Acquisition Date. The Transaction was funded with net borrowings of $71.9 million made under the Company's asset-based lending facility ("ABL Facility") provided by JPMorgan Chase Bank.

 

The Transaction was accounted for using the acquisition method of accounting, in accordance with Topic 805, Business Combinations, whereby the consideration transferred and the acquired identifiable assets and liabilities assumed are recorded at their respective fair values. The excess of the consideration transferred over the fair values of these identifiable net assets is recorded as goodwill. The Transaction resulted in no residual goodwill.

 

Fair value of assets acquired and liabilities assumed (in thousands)
Inventory		$	77,546
Property, plant and equipment			18,022
Operating lease right-of-use asset			1,237
Accounts payable			(19,065	)
Operating lease liability			(1,237	)
Total		$	76,503

 

The Company recorded one-time transaction specific costs of approximately $0.8 million in the three months ended June 30, 2022 as a component of "Selling, general and administrative" expenses on the condensed consolidated statement of operations.

 

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NOTE C — INVENTORIES

 

Inventories consist of prime coil, non-standard coil and tubular materials. Prime coil inventory consists primarily of raw materials, non-standard coil inventory consists primarily of raw materials and tubular inventory consists of both raw materials and finished goods. Cost for prime coil inventory is determined using the average cost method. Cost for non-standard coil inventory is determined using the specific identification method. Cost for tubular inventory is determined using the average cost method. All inventories are valued at the lower of cost or net realizable value.

 

A summary of inventory values by product group follows (in thousands):

 

		June 30, 2023				March 31, 2023
Prime Coil Inventory		$	87,209			$	75,917
Non-Standard Coil Inventory			449				278
Tubular Raw Material			7,955				5,193
Tubular Finished Goods			5,533				4,858
		$	101,146			$	86,246

 

Tubular raw material inventory consists of hot-rolled steel coils that the Company will manufacture into pipe. Tubular finished goods inventory consists of pipe the Company has manufactured.

 

NOTE D – DEBT

         

         The Company has a $150 million asset-based lending facility ("ABL Facility") in place with JPMorgan Chase Bank, N.A. as the arranging agent and BMO Harris Bank, N.A. as a one-third syndicated participant. The ABL Facility matures on May 19, 2026 and is secured by substantially all of the assets of the Company. The Company can elect borrowings on a floating rate basis or a term basis. Floating rate borrowings accrue interest at a rate equal to the prime rate minus 1% per annum. Term rate borrowings accrue interest at a rate equal to the SOFR rate applicable to the selected term plus 1.8% per annum. Availability of funds under the ABL Facility is subject to a borrowing base calculation determined as the sum of (a) 90% of eligible accounts receivable, plus (b) the product of 85% multiplied by the net orderly liquidating value percentage identified in the most recent inventory appraisal multiplied by eligible inventory. The ABL Facility contains a springing financial covenant whereby the financial covenant is only tested when availability falls below the greater of 15% of the revolving commitment or $22.5 million. The financial covenant restricts the Company from allowing its fixed charge coverage ratio to be, as of the end of any calendar month, less than 1.10 to 1.00 for the trailing twelve-month period then ending. The fixed charge coverage ratio is calculated as the ratio of (a) EBITDA, as defined in the ABL Facility, minus unfinanced capital expenditures to (b) cash interest expense plus scheduled principal payments on indebtedness plus taxes paid in cash plus restricted payments paid in cash plus capital lease obligation payments plus cash contributions to any employee pension benefit plans. The ABL Facility contains other representations and warranties and affirmative and negative covenants that are usual and customary. If certain conditions precedent are satisfied, the ABL facility may be increased by up to an aggregate of $25 million, in minimum increments of $5 million. At  June 30, 2023, the Company had a balance of approximately $39.3 million under the ABL Facility with an applicable interest rate of 7.25%. At  June 30, 2023, the Company's applicable borrowing base calculation supported access to approximately $111.0 million of the ABL Facility.

 

The Company incurred debt issuance costs of approximately $0.4 million in connection with the ABL Facility. The Company recorded these debt issuance costs as non-current other assets and is amortizing these costs on an equal monthly basis over the remaining term of the ABL facility.

 

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 NOTE E — LEASES

 

The Company was assigned an operating lease associated with the real property and leasehold improvements for the Granite City, IL facility acquired from Plateplus pursuant to the transaction disclosed in Note B. The current lease expires August 31, 2023 and the Company is in the process of renewing the lease. The lease calls for quarterly rental payments of approximately $19,000. The Company recognized an initial right-of-use ("ROU") asset and lease liability of approximately $1.2 million during the June 30, 2022 quarter related to this lease. The anticipated renewal of this lease is included in the ROU asset and lease liability calculation. The Company’s lease of its office space in Longview, Texas is the only other operating lease included in the Company's ROU assets and lease liabilities. The lease calls for monthly rent payments of approximately $5,000 and expires on April 30, 2024. The Company’s other operating leases for items such as IT equipment and storage space are either short-term in nature or immaterial.

 

In October 2019, the Company acquired a new heavy-duty forklift under a 5-year finance lease arrangement with a financed amount of approximately $0.5 million and a monthly payment of approximately $9,000.

 

The components of expense related to leases for the three months ended June 30, 2023 and 2022 are as follows (in thousands):

 

		Three Months Ended
		June 30,
		2023				2022
Finance lease – amortization of ROU asset		$	26			$	26
Finance lease – interest on lease liability			1				1
Operating lease expense			34				27
		$	61			$	54

 

The following table illustrates the balance sheet classification for ROU assets and lease liabilities as of June 30, 2023 and March 31, 2023 (in thousands):

 

		June 30, 2023				March 31, 2023			Balance Sheet Classification
Assets
Operating lease right-of-use asset		$	1,244			$	1,270		Operating lease right-of-use asset
Finance lease right-of-use asset			424				430		Property, plant & equipment
Total right-of-use assets		$	1,668			$	1,700
Liabilities
Operating lease liability, current		$	94			$	101		Accrued expenses
Finance lease liability, current			107				107		Current portion of finance lease
Operating lease liability, non-current			1,151				1,168		Other non-current liabilities
Finance lease liability, non-current			27				54		Other non-current liabilities
Total lease liabilities		$	1,379			$	1,430

 

As of June 30, 2023, the weighted-average remaining lease term was 19.4 years for operating leases and 1.3 years for finance leases. The weighted average discount rate was 2.6% for operating leases and 1.9% for finance leases.

 

Maturities of lease liabilities as of June 30, 2023 were as follows (in thousands):

 

		Operating Leases				Finance Leases
Fiscal 2024 (remainder of fiscal year)			100				82
Fiscal 2025			80				54
Fiscal 2026			75				—
Fiscal 2027			75				—
Fiscal 2028 and beyond			1,237				—
Total undiscounted lease payments		$	1,567			$	136
Less: imputed interest			(322	)			(2	)
Present value of lease liability		$	1,245			$	134

 

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NOTE F — PROPERTY, PLANT AND EQUIPMENT

 

In October 2022, the Company completed its new facility in Sinton, Texas, which is part of the flat-roll product segment (previously referred to as the coil product segment) at a total completed cost of approximately $22.2 million. The new facility is on the campus of Steel Dynamics, Inc.'s ("SDI") new flat roll steel mill in Sinton, Texas and consists of an approximately 70,000 square foot building located on approximately 26.5 acres leased from SDI under a 99-year agreement with an annual rental payment of $1. The facility is equipped with a stretcher leveler cut-to-length line that is capable of handling material up to 1” thick, widths up to 96” and yields exceeding 100,000 psi.

 

At June 30, 2023, the Company's construction in process balance of approximately $1.6 million consisted primarily of approximately $1.1 million associated with a project to upgrade a component of the Decatur, AL processing line. The total project is estimated to cost $2.1 million with completion expected during the March 31, 2024 quarter. The remaining construction in process balance is comprised of several smaller projects.

 

NOTE G — STOCK BASED COMPENSATION

 

The Company maintains the Friedman Industries, Incorporated 2016 Restricted Stock Plan (the “Plan”). The Plan is administered by the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) and continues indefinitely until terminated by the Board or until all shares allowed by the Plan have been awarded and earned. The aggregate number of shares of the Company’s Common Stock eligible for award under the Plan is 500,000 shares. Subject to the terms and provisions of the Plan, the Committee may, from time to time, select the employees, directors or consultants to whom awards will be granted and shall determine the amount and applicable restrictions of each award. Restricted awards entitle recipients to vote and receive non-forfeitable dividends during the restriction period. Because dividends are non-forfeitable, they are reflected in retained earnings. Forfeitures are accounted for upon their occurrence. Because the Company accounts for forfeitures as they occur, the non-forfeitable dividends are reclassified from retained earnings to additional stock compensation for the actual forfeitures that occurred.

 

The following table summarizes the activity related to restricted stock units ("RSUs") for the three months ended June 30, 2023:

 

						Weighted Average
						Grant Date Fair
		Number of Shares				Value Per Share
Unvested at March 31, 2023			100,366			$	6.08
Cancelled or forfeited			—				—
Granted			—				—
Vested			—				—
Unvested at June 30, 2023			100,366			$	6.08

 

The Company measures compensation expense for RSUs at the market price of the common stock as of the grant date. Compensation expense is recognized over the requisite service period applicable to each award. The Company recorded compensation expense of approximately $78,000 and $73,000 in the three months ended June 30, 2023 and 2022, respectively, relating to the RSUs issued under the Plan. As of June 30, 2023, unrecognized compensation expense related to unvested RSUs was approximately $0.2 million which is expected to be recognized over a weighted average period of approximately 1.2 years. As of June 30, 2023, a total of 122,485 shares were still available to be issued under the Plan.

 

NOTE H — DERIVATIVE FINANCIAL INSTRUMENTS

 

From time to time, we expect to use derivative financial instruments to minimize our exposure to commodity price risk that is inherent in our business. At the time derivative contracts are entered into, we assess whether the nature of the instrument qualifies for hedge accounting treatment according to the requirements of ASC 815 – Derivatives and Hedging (“ASC 815”). By using derivatives, the Company is exposed to credit and market risk. The Company’s exposure to credit risk includes the counterparty’s failure to fulfill its performance obligations under the terms of the derivative contract. The Company attempts to minimize its credit risk by entering into transactions with high quality counterparties and uses exchange-traded derivatives when available. Market risk is the risk that the value of the financial instrument might be adversely affected by a change in commodity prices. The Company manages market risk by continually monitoring exposure within its risk management strategy and portfolio. For those transactions designated as hedging instruments for accounting purposes, we document all relationships between hedging instruments and hedged items, as well as our risk-management objective and strategy for undertaking the various hedge transactions. We also assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting changes in cash flows or fair value of hedged items.

 

From time to time, derivatives designated for hedge accounting may be closed prior to contract expiration. The accounting treatment of closed positions depends on whether the closure occurred due to the hedged transaction occurring early or if the hedged transaction is still expected to occur as originally forecasted. For hedged transactions that occur early, the closure results in the realized gain or loss from closure being recognized in the same period the accelerated hedged transaction affects earnings. For hedged transactions that are still expected to occur as originally forecasted, the closure results in the realized gain or loss being deferred until the hedged transaction affects earnings.

 

If it is determined that hedged transactions associated with cash flow hedges are no longer probable of occurring, the gain or loss associated with the instrument is recognized immediately into earnings. 

 

From time to time, we may have derivative financial instruments for which we do not elect hedge accounting. 

 

The Company has forward physical purchase supply agreements in place with some of its suppliers for a portion of its monthly physical steel needs. These supply agreements are not subject to mark-to-market accounting due to the Company electing the normal purchase normal sale exclusion provided in ASC 815. 

 

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At June 30, 2023 the Company did not have any hot-rolled coil futures contracts designated as hedging instruments and classified as cash flow hedges. At  March 31, 2023, the Company held hot-rolled coil futures contracts which were designated as hedging instruments and classified as cash flow hedges, as hedges of variable sales prices. Accordingly, realized and unrealized gains and losses associated with the instruments were reported as a component of other comprehensive income and reclassified into earnings during the period in which the hedged transaction affects earnings. 

 

During the three month periods ended June 30, 2023 and 2022, the Company entered into hot-rolled coil futures contracts that were not designated as hedging instruments for accounting purposes. Accordingly, the change in fair value related to these instruments was immediately recognized in earnings for these periods.  

 

The following table summarizes the fair value of the Company’s derivative financial instruments and the respective line in which they were recorded in the Consolidated Balance Sheet as of June 30, 2023 (in thousands):

 

	Asset Derivatives					Liability Derivatives
	Balance Sheet					Balance Sheet
Derivatives not designated as hedging instruments:	Location		Fair Value			Location		Fair Value
Hot-rolled coil steel contracts	Current portion of derivative assets		$	243		Current portion of derivative liability		$	963

 

The following table summarizes the fair value of the Company’s derivative financial instruments and the respective line in which they were recorded in the Consolidated Balance Sheet as of March 31, 2023 (in thousands):

 

	Asset Derivatives					Liability Derivatives
	Balance Sheet					Balance Sheet
Derivatives not designated as hedging instruments:	Location		Fair Value			Location		Fair Value
Hot-rolled coil steel contracts	Current portion of derivative assets		$	536		Current portion of derivative liability		$	2,212

 

All derivatives are presented on a gross basis on the Consolidated Balance Sheets.

 

At  June 30, 2023 and  March 31, 2023, the Company reported approximately $0.4 million and $1.6 million, respectively, in "Other current assets" on its Consolidated Balance Sheet related to futures contracts which were closed but were pending cash settlement. 

 

The following table summarizes the pre-tax gain recognized in other comprehensive income and the loss reclassified from accumulated other comprehensive loss into earnings for derivative financial instruments designated as cash flow hedges for the periods presented (in thousands):

 

					Location of Loss		Pre- Tax Loss
		Pre-Tax Gain			Reclassified		Reclassified from
		Recognized in OCI			from AOCI into Net Earnings		AOCI into Net Earnings
For the three months ended June 30, 2023:
Hot-rolled coil steel contracts		$	—		Sales		$	(418	)
Total		$	—				$	(418	)
For the three months ended June 30, 2022:
Hot-rolled coil steel contracts		$	8,833		Sales		$	(626	)
Total		$	8,833				$	(626	)

 

 

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The following table summarizes the gains recognized in earnings for derivative instruments not designated as hedging instruments during the three months ended June 30, 2023 (in thousands):

 

			Gain Recognized in Earnings
	Location of Gain		for the Three Months Ended
	Recognized in Earnings		June 30, 2023
Hot-rolled coil steel contracts	Gain on economic hedges of risk		$	430

 

The following table summarizes the gains recognized in earnings for derivative instruments not designated as hedging instruments during the three months ended June 30, 2022 (in thousands):

 

			Gain Recognized in Earnings
	Location of Gain		for the Three Months Ended
	Recognized in Earnings		June 30, 2022
Hot-rolled coil steel contracts	Gain on economic hedges of risk		$	2,754

 

The notional amount (quantity) of our derivative instruments not designated as hedging instruments at June 30, 2023 consisted of 22,180 tons of short positions with maturity dates ranging from July 2023 to December 2023.

 

The following tables reflect the change in accumulated other comprehensive income (loss), net of tax, for the periods presented (in thousands):

 

		Gain (Loss) on
		Derivatives
Balance at March 31, 2023		$	(317	)
Other comprehensive income, net of loss, before reclassification			—
Total loss reclassified from AOCI (1)			317
Net current period other comprehensive income			317
Balance at June 30, 2023		$	—

 

(1) The loss reclassified from AOCI is presented net of tax benefits of approximately $0.1 million which are included in the provision for (benefit from) income taxes on the Company's Consolidated Statement of Operations for the three months ended June 30, 2023.

 

		Gain (Loss) on
		Derivatives
Balance at March 31, 2022		$	(10,269	)
Other comprehensive income, net of loss, before reclassification			6,699
Total loss reclassified from AOCI (1)			475
Net current period other comprehensive income			7,174
Balance at June 30, 2022		$	(3,095	)

 

(1) The loss reclassified from AOCI is presented net of tax benefits of approximately $0.2 million which are included in the provision for (benefit from) income taxes on the Company's Consolidated Statement of Operations for the three months ended June 30, 2022.

 

At  June 30, 2023 and  March 31, 2023, cash of approximately $1.5 million and $2.4 million, respectively, was held by our clearing agent to collateralize our open derivative positions. These cash requirements are included in "Other current assets" on the Company's Consolidated Balance Sheets at  June 30, 2023 and  March 31, 2023.

 

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NOTE I — FAIR VALUE MEASUREMENTS

 

Accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. Levels within the hierarchy are defined as follows:

 

●

Level 1 – Quoted prices for identical assets and liabilities in active markets.

●

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the assets and liabilities, either directly or indirectly.

●

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities.

 

Recurring Fair Value Measurements

 

At  June 30, 2023, our financial liabilities, net, measured at fair value on a recurring basis were as follows (in thousands):

 

		Quoted Prices
		in Active				Significant
		Markets for				Other				Significant
		Identical				Observable				Unobservable
		Assets				Inputs				Inputs
		(Level 1)				(Level 2)				(Level 3)				Total
Commodity futures – financial liabilities, net		$	(720	)		$	—			$	—			$	(720	)
Total		$	(720	)		$	—			$	—			$	(720	)

 

At  March 31, 2023, our financial liabilities, net, measured at fair value on a recurring basis were as follows (in thousands):

 

		Quoted Prices
		in Active				Significant
		Markets for				Other				Significant
		Identical				Observable				Unobservable
		Assets				Inputs				Inputs
		(Level 1)				(Level 2)				(Level 3)				Total
Commodity futures – financial liabilities, net		$	(1,676	)		$	—			$	—			$	(1,676	)
Total		$	(1,676	)		$	—			$	—			$	(1,676	)

 

At  June 30, 2023 and  March 31, 2023, the Company did not have any fair value measurements on a non-recurring basis.

 

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NOTE J — SEGMENT INFORMATION (in thousands)

 

The Flat-roll segment was previously referred to as the Coil segment. The Company is now using Flat-roll to describe the segment due to it being a more common term used in the Company's industry. 

		Three Months Ended
		June 30,
		2023				2022
Net sales
Flat-roll		$	125,197			$	142,877
Tubular			12,101				18,926
Total net sales		$	137,298			$	161,803
Operating profit
Flat-roll		$	11,814			$	13,543
Tubular			2,264				2,104
Total operating profit			14,078				15,647
General corporate expenses			(3,721	)			(3,328	)
Gain on economic hedges of risk			430				2,754
Interest expense			(540	)			(429	)
Other income			6				13
Total earnings before income taxes		$	10,253			$	14,657

 

		June 30, 2023				March 31, 2023
Segment assets
Flat-roll		$	185,303			$	179,780
Tubular			20,163				15,858
			205,466				195,638
Corporate assets			5,936				3,674
		$	211,402			$	199,312

 

Operating profit is total net sales less operating expenses, excluding general corporate expenses, gain on economic hedges of risk, interest expense and other income. General corporate expenses reflect general and administrative expenses not directly associated with segment operations and consist primarily of corporate and accounting salaries, professional fees and services, bad debts, retirement plan contribution expense, corporate insurance expenses, restricted stock plan compensation expense and office supplies. At June 30, and March 31, 2023, Corporate assets consist primarily of cash, restricted cash, unamortized debt issuance costs and the cash value of officers’ life insurance. Although inventory is transferred at cost between product groups, there are no sales between product groups.

 

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NOTE K — REVENUE

 

Revenue is generated primarily from contracts to manufacture or process steel products. Most of the Company’s revenue is generated by sales of material out of the Company’s inventory, but a portion of the Company’s revenue is derived from processing or storage of customer owned material. Generally, the Company’s performance obligations are satisfied, control of our products is transferred, and revenue is recognized at a single point in time, when title transfers to our customer for product shipped or when services are provided. Revenues are recorded net of any sales incentives. Shipping and other transportation costs charged to customers are treated as fulfillment activities and are recorded in both revenue and cost of sales at the time control is transferred to the customer. Costs related to obtaining sales contracts are incidental and expensed when incurred. Because customers are invoiced at the time title transfers and the Company’s rights to consideration are unconditional at that time, the Company does not maintain contract asset balances. Additionally, the Company does not maintain contract liability balances, as performance obligations are satisfied prior to customer payment for product. The Company offers industry standard payment terms.

 

The Company has two reportable segments: Flat-roll and Tubular. Flat-roll primarily generates revenue from cutting to length hot-rolled steel coils. Flat-roll segment revenue consists of three main product types: Prime Coil, Non-Standard Coil and Customer Owned Coil. Tubular primarily generates revenue from selling steel pipe it has manufactured resulting in a single product type: Manufactured Pipe. The following table disaggregates our revenue by product for each of our reportable business segments for the three months ended June 30, 2023 and 2022, respectively (in thousands):

 

		Three Months Ended
		June 30,
		2023				2022
Flat-roll Segment:
Prime Coil			123,822				140,981
Non-standard Coil			151				1,531
Processing or Storage of Customer Owned Coil			1,224				365
			125,197				142,877
Tubular Segment:
Manufactured Pipe			12,101				18,926
			12,101				18,926

 

   

NOTE L — STOCKHOLDERS’ EQUITY

 

The following tables reflect the changes in stockholders’ equity for each of the three months ended June 30, 2023 and June 30, 2022 (in thousands):

 

						Accumulated
						Other
						Comprehensive				Additional
		Common				Income,				Paid-In				Treasury				Retained
		Stock				Net of Tax				Capital				Stock				Earnings				Total
BALANCE AT MARCH 31, 2023		$	8,869				(317	)		$	35,005			$	(7,778	)		$	79,653			$	115,432
Net earnings			—				—				—				—				7,690				7,690
Other comprehensive income			—				317				—				—				—				317
Paid in capital – restricted stock units			—				—				78				—				—				78
Cash dividends ($0.02 per share)			—				—				—				—				(148	)			(148	)
BALANCE AT JUNE 30, 2023		$	8,869			$	—			$	35,083			$	(7,778	)		$	87,195			$	123,369

 

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						Accumulated
						Other
						Comprehensive				Additional
		Common				Income,				Paid-In				Treasury				Retained
		Stock				Net of Tax				Capital				Stock				Earnings				Total
BALANCE AT MARCH 31, 2022		$	8,345				(10,269	)		$	30,442			$	(7,741	)		$	58,909			$	79,686
Net earnings			—				—				—				—				11,184				11,184
Other comprehensive income			—				7,174				—				—				—				7,174
Paid in capital – restricted stock units			—				—				73				—				—				73
Shares issued - Plateplus business combination			516				—				4,268				—				—				4,784
Repurchase of shares			—				—				—				(29	)			—				(29	)
Cash dividends ($0.02 per share)			—				—				—				—				(157	)			(157	)
BALANCE AT JUNE 30, 2022		$	8,861			$	(3,095	)		$	34,783			$	(7,770	)		$	69,936			$	102,715

    

 

NOTE M — OTHER COMPREHENSIVE INCOME

 

The following table summarizes the tax effects on each component of Other Comprehensive Income for the periods presented (in thousands):

 

		Three Months Ended June 30, 2023
		Before-Tax				Tax				Net-of-Tax
Cash flow hedges		$	418			$	(101	)		$	317
Other comprehensive income		$	418			$	(101	)		$	317

 

		Three Months Ended June 30, 2022
		Before-Tax				Tax				Net-of-Tax
Cash flow hedges		$	9,460			$	(2,286	)		$	7,174
Other comprehensive income		$	9,460			$	(2,286	)		$	7,174

 

15

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NOTE N — EARNINGS PER SHARE

 

Basic and dilutive net earnings per share is computed based on the following information (in thousands, except for share data):

 

		Three Months Ended
		June 30,
		2023				2022
Numerator (basic and diluted)
Net earnings		$	7,690			$	11,184
Less: Allocation to unvested restricted stock units			90				196
Net earnings attributable to common shareholders		$	7,600			$	10,988
Denominator (basic and diluted)
Weighted average common shares outstanding			7,288,906				7,071,066

 

For the three months ended June 30, 2023 and 2022, the Company allocated dividends and undistributed earnings to the unvested restricted stock units. 

 

As the restricted stock qualifies as participating securities, the following restricted stock units were not accounted in the computation of weighted average diluted common shares outstanding under the two-class method:

 

		Three Months Ended
		June 30,
		2023				2022
Restricted Stock Units			60,524				69,702

 

NOTE O — SUPPLEMENTAL CASH FLOW INFORMATION

 

The Company paid interest of approximately $0.5 million and $0.4 million during the three months ended June 30, 2023 and 2022, respectively. Additionally, the Company paid income taxes of approximately $47,000 and $40,000 during the three months ended June 30, 2023 and 2022, respectively. During the three months ended June 30, 2022, the Company issued 516,041 shares of common stock as part of the Plateplus business combination resulting in non-cash investing activity of approximately $4.8 million.

 

NOTE P — INCOME TAXES

 

For the three months ended June 30, 2023 and 2022, the Company recorded an income tax provision of approximately $2.6 million and $3.5 million, respectively. For the three months ended June 30, 2023 and three months ended June 30, 2022, the effective tax rate differed from the federal statutory rate due primarily to the inclusion of state tax expenses in the provision.

 

16

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Table of Contents

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

Overview

 

Friedman Industries, Incorporated is a manufacturer and processor of steel products and operates in two reportable segments; flat-roll products and tubular products. The flat-roll segment was previously referred to as the coil segment. The Company is now using flat-roll to describe the segment due to it being a more common term used in the Company's industry.

 

The flat-roll product segment consists of the operation of five hot-rolled coil processing facilities located in Hickman, Arkansas; Decatur, Alabama; East Chicago, Indiana; Granite City, Illinois and Sinton, Texas. The facilities in Granite City and East Chicago were acquired on April 30, 2022 from Plateplus, Inc ("Plateplus"). More information about the Plateplus transaction can be found in Note B to the condensed consolidated financial statements. The facility in Sinton is a newly constructed facility that commenced operations during October 2022. The Hickman, Granite City and East Chicago facilities operate temper mills and cut-to-length lines. The Decatur and Sinton facilities operate stretcher leveler cut-to-length lines. The equipment at all locations improve the flatness and surface quality of the coils and cut the coils into sheet and plate of prescribed lengths. On a combined basis, the facilities are capable of cutting sheet and plate with thicknesses ranging from 16 gauge to 1” thick in widths ranging from 36” wide to 96” wide. The vast majority of coil product segment revenue is generated from sales of Company owned inventory but the segment also generates revenue from the processing or storage of customer owned coils on a fee basis.

 

The tubular product segment consists of the Company’s Texas Tubular Products division (“TTP”) located in Lone Star, Texas. TTP operates two electric resistance welded pipe mills with a combined outside diameter (“OD”) size range of 2 3/8” OD to 8 5/8” OD. Both pipe mills are American Petroleum Institute (“API”) licensed to manufacture line pipe and oil country pipe and also manufacture pipe for structural purposes that meets other recognized industry standards. TTP has a pipe finishing facility capable of applying threads and couplings to oil country tubular goods and performing other services that are customary in the pipe finishing process. The pipe finishing facility is currently idled. All of the tubular segment's revenue is generated from sales of Company owned inventory.

 

 

Results of Operations

 

Three Months Ended June 30, 2023 Compared to Three Months Ended June 30, 2022

 

During the three months ended June 30, 2023 (the “2023 quarter”), sales, costs of goods sold and gross profit decreased approximately $24.5 million, $22.2 million and $2.3 million, respectively, compared to the amounts recorded during the three months ended June 30, 2022 (the “2022 quarter”). The decrease in sales was primarily related to a decline in the average selling price partially offset by an increase in tons sold. Tons sold increased from approximately 105,000 tons in the 2022 quarter to approximately 129,000 tons in the 2023 quarter. The growth in sales volume was primarily related to the Company's Sinton, TX facility which commenced operations in October 2022 and the 2022 quarter containing only two months of sales activity following the April 30, 2022 acquisition of facilities and inventory from Plateplus. Gross profit decreased from approximately $18.6 million for the 2022 quarter to approximately $16.3 million for the 2023 quarter. Gross profit as a percentage of sales increased from approximately 11.5% for the 2022 quarter to approximately 11.9% for the 2023 quarter. Gross profit for the 2023 quarter included a recognized loss of approximately $0.4 million related to hedging activities while gross profit for the 2022 quarter included a recognized loss of approximately $0.6 million related to hedging activities. Excluding the recognized hedging losses, gross profit related to physical material as a percentage of sales was approximately 12.2% for the 2023 quarter compared to approximately 11.9% for the 2022 quarter.

 

Our operating results are significantly impacted by the market price of hot-rolled steel coil ("HRC"). The Company experienced significant volatility in steel price during both the 2023 quarter and the 2022 quarter. Entering the 2022 quarter, HRC prices experienced a sharp and abrupt increase in reaction to the Russian invasion of Ukraine increasing approximately 60% from March 2022 to April 2022. HRC prices then declined approximately 60% until the middle of December 2022. From late November 2022 until April 2023, domestic steel producers announced several rounds of price increases with HRC prices increasing approximately 95% during this time. From the middle of April 2023 and until the end of the 2023 quarter, HRC prices declined approximately 27%. For both the 2023 and 2022 quarters, the Company experienced significant increases in steel prices entering the quarters with an inflection point in steel price occurring during each quarter. As a result both quarters experienced stronger margins in the first half followed by margin compression in the second half. Overall, both quarters are characterized as periods of relatively strong margins.

 

Flat-roll Segment

 

Flat-roll product segment sales for the 2023 quarter totaled approximately $125.2 million compared to approximately $142.9 million for the 2022 quarter. For a more complete understanding of the average selling prices of goods sold, it is helpful to exclude any hedging related gains or losses that are captured in sales and any sales generated from processing or storage of customer owned material. Flat-roll segment sales for the 2023 quarter were reduced by approximately $0.4 million for the recognition of hedging related losses. Flat-roll segment sales for the 2022 quarter were reduced by approximately $0.6 million for the recognition of hedging related losses. Sales generated from processing or storage of customer owned material totaled approximately $1.2 million for the 2023 quarter compared to approximately $0.4 million for the 2022 quarter. Sales generated from flat-roll segment inventory, excluding the impact of any hedging related gains or losses, totaled approximately  $124.4 million for the 2023 quarter compared to approximately $143.1 million for the 2022 quarter. The average per ton selling price related to these shipments decreased from approximately $1,525 per ton in the 2022 quarter to approximately $1,038 per ton in the 2023 quarter. Inventory tons sold increased from approximately 94,000 tons in the 2022 quarter to approximately 120,000 tons in the 2023 quarter. The growth in sales volume was primarily related to the Company's Sinton, TX facility which commenced operations in October 2022 and the 2022 quarter containing only two months of sales activity following the April 30, 2022 acquisition of facilities and inventory from Plateplus. Flat-roll segment operations recorded operating profits of approximately $11.8 million and $13.5 million for the 2023 quarter and 2022 quarter, respectively. The operating profit for the 2023 quarter includes a recognized loss on hedging activities of approximately $0.4 million while the 2022 quarter operating profit included a recognized loss on hedging activities of approximately $0.6 million.

 

The Company’s flat-roll segment purchases its inventory from a limited number of suppliers. Loss of any of these suppliers could have a material adverse effect on the Company’s business.

 

Tubular Segment

 

Tubular product segment sales for the 2023 quarter totaled approximately $12.1 million compared to approximately $18.9 million for the 2022 quarter. Tubular segment sales for the 2023 quarter and 2022 quarter were not impacted by any hedging related gains or losses. Sales decreased due to a decrease in the average selling price per ton, accompanied by a decline in the volume sold. The average per ton selling price decreased from approximately $1,779 per ton in the 2022 quarter to approximately $1,358 per ton in the 2023 quarter. Tons sold decreased from approximately 10,500 tons in the 2022 quarter to approximately 9,000 tons in the 2023 quarter. The tubular segment recorded operating profits of approximately $2.3 million and $2.1 million for the 2023 quarter and 2022 quarter, respectively.

 

The tubular segment purchases its inventory from a limited number of suppliers. Loss of any of these suppliers could have a material adverse effect on the Company’s business. 

 

 

Selling, General and Administrative Costs

 

During the 2023 quarter, selling, general and administrative costs decreased approximately $0.4 million compared to the 2022 quarter. This decrease is primarily associated with one-time costs associated with the Plateplus transaction during the 2022 quarter. 

 

Income Taxes

 

Income taxes decreased from a provision for the 2022 quarter of approximately $3.4 million to a provision for the 2023 quarter of approximately $2.6 million. This decrease was primarily related to the lower earnings before income tax for the 2023 quarter. The income tax provision as a percentage of earnings before tax was approximately 25.0% and 23.7% for the three months ended June 30, 2023 and 2022, respectively. For both periods, the effective tax rate differed from the federal statutory rate due primarily to the inclusion of state income taxes in the provision.

 

 

 

FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES

 

The Company’s current ratio was 3.6 at June 30, 2023 and 3.2 at March 31, 2023. Working capital was approximately $113.1 million at June 30, 2023 and $98.6 million at March 31, 2023.

 

During the three months ended June 30, 2023, the Company maintained assets and liabilities at levels it believed were commensurate with operations. Changes in balance sheet amounts occurred in the ordinary course of business. Cash and restricted cash increased slightly due primarily to cash provided from the Company's credit facility being greater than cash used in operating activities and investing activities. The Company expects to continue to monitor, evaluate and manage balance sheet components depending on changes in market conditions and the Company’s operations.

 

The Company has a $150 million asset-based lending facility ("ABL Facility") which matures on May 19, 2026 and is secured by substantially all of the assets of the Company. The Company can elect borrowings on a floating rate basis or a term basis. Floating rate borrowings accrue interest at a rate equal to the prime rate minus 1% per annum. Term rate borrowings accrue interest at a rate equal to the SOFR rate applicable to the selected term plus 1.8% per annum. Availability of funds under the ABL Facility is subject to a borrowing base calculation determined as the sum of (a) 90% of eligible accounts receivable, plus (b) the product of 85% multiplied by the net orderly liquidating value percentage identified in the most recent inventory appraisal multiplied by eligible inventory. The ABL Facility contains a springing financial covenant whereby the financial covenant is only tested when availability falls below the greater of 15% of the revolving commitment or $22.5 million. The financial covenant restricts the Company from allowing its fixed charge coverage ratio to be, as of the end of any calendar month, less than 1.10 to 1.00 for the trailing twelve month period then ending. The fixed charge coverage ratio is calculated as the ratio of (a) EBITDA, as defined in the ABL Facility, minus unfinanced capital expenditures to (b) cash interest expense plus scheduled principal payments on indebtedness plus taxes paid in cash plus restricted payments paid in cash plus capital lease obligation payments plus cash contributions to any employee pension benefit plans. The ABL Facility contains other representations and warranties and affirmative and negative covenants that are usual and customary. If certain conditions precedent are satisfied, the ABL facility may be increased by up to an aggregate of $25 million, in minimum increments of $5 million. At June 30, 2023, the Company had a balance of approximately $39.3 million under the ABL Facility with an applicable interest rate of 7.25%. At June 30, 2023, the Company's applicable borrowing base calculation supported access to approximately $111.0 million of the ABL Facility. As of the filing date of this Form 10-Q, the Company had borrowings of approximately $38.0 million outstanding under the ABL Facility and the Company's most recent borrowing base calculation provided access to approximately $107.5 million of the ABL Facility.

 

The Company believes that its current cash position along with cash flows from operations and borrowing capability due to its financial position are adequate to fund its expected cash requirements for the next 12 months.

 

DERIVATIVE CONTRACTS

 

From time to time, the Company may use futures contracts to partially manage exposure to commodity price risk. The Company elects hedge accounting for some of its derivatives and classifies the transactions as either cash flow hedges or fair value hedges. From time to time, the Company may also transact futures contracts where hedge accounting is not elected. The Company recognized a loss related to derivatives designated for hedge accounting of approximately $0.4 million the three months ended June 23, 2023. For derivatives not designated for hedge accounting, the Company recognized a gain of approximately $0.4 million for the three months ended June 30, 2023. See Note H for further information.

 

OUTLOOK

 

The Company expects steady demand for its second quarter ending September 30, 2023 with sales volume expected to be approximately the same as volume for the first quarter ended June 30, 2023. HRC price has continued to see downward pressure during the second quarter. The Company expects lower physical margins for the second quarter compared to the first quarter due to the HRC price trend with hedging related gains partially offsetting the impact of lower margins.

 

CRITICAL ACCOUNTING ESTIMATES

 

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The more significant estimates and judgements for the Company include determining the fair value of assets acquired and liabilities assumed in the business combination discussed in Note B. The determination of fair value requires management to make significant judgments and estimates, including the selection of valuation methodologies, estimates of future revenue and cash flows, discount rates and selection of comparable companies. Actual results could differ from these estimates.

 

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

From time to time, the Company may make certain statements that contain forward-looking information (as defined in the Private Securities Litigation Reform Act of 1996, as amended) and that involve risk and uncertainty. Such statements may include those risks disclosed in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of this report, including the adequacy of cash and expectations as to future sales, prices and margins. These forward-looking statements may include, but are not limited to, future changes in the Company’s financial condition or results of operations, future production capacity, product quality and proposed expansion plans. Forward-looking statements may be made by management orally or in writing including, but not limited to, this Management’s Discussion and Analysis of Financial Condition and Results of Operations and other sections of the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including the Company’s Annual Report on Form 10-K and its other Quarterly Reports on Form 10-Q. Forward-looking statements include those preceded by, followed by or including the words “will,” “expect,” “intended,” “anticipated,” “believe,” “project,” “forecast,” “propose,” “plan,” “estimate,” “enable,” and similar expressions, including, for example, statements about our business strategy, our industry, our future profitability, growth in the industry sectors we serve, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions, and estimates and projections of future activity and trends in the oil and natural gas industry. These forward-looking statements are not guarantees of future performance. These statements are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. Although forward-looking statements reflect our current beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Actual results and trends in the future may differ materially depending on a variety of factors including, but not limited to, changes in the demand for and prices of the Company’s products, changes in government policy regarding steel, changes in the demand for steel and steel products in general and the Company’s success in executing its internal operating plans, changes in and availability of raw materials, unplanned shutdowns of our production facilities due to equipment failures or other issues, increased competition from alternative materials and risks concerning innovation, new technologies, products and increasing customer requirements. Accordingly, undue reliance should not be placed on our forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except to the extent law requires.

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Not required

 

Item 4. Controls and Procedures

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) and 15(d)-15(f) promulgated under the Securities Exchange Act of 1934, as amended). We have established disclosure controls and procedures designed to ensure that material information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission and that any material information relating to us is recorded, processed, summarized and reported to our management including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. In designing and evaluating our disclosure controls and procedures, our management recognizes that controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving desired control objectives. In reaching a reasonable level of assurance, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

 

As required by Rule 13a-15(b) under the Exchange Act, we have evaluated, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this quarterly report. Based upon our evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were not effective as of the end of the period covered by this Quarterly Report on Form 10-Q because the Company has not yet completed its remediation of the material weaknesses previously identified and disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023.

 

Notwithstanding the identified material weaknesses, the Company's management, including our Chief Executive Officer and Chief Financial Officer, believes that the consolidated financial statements included in this Quarterly Report on Form 10-Q fairly present in all material respects our financial condition and results of operations for the three months ended June 30, 2023 in accordance with U.S. Generally Accepted Accounting Principles.

 

Material Weakness in Internal Control Over Financial Reporting

 

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.

 

During the audit process related to our fiscal year ended March 31, 2023, management, in connection with our independent auditors, identified the following material weaknesses:

 

-  The Company did not design relevant control activities necessary to address all identified risks of material misstatement or in some circumstances, controls were designed appropriately but were implemented late in the fiscal year not allowing a sufficient period of time to evidence operating effectiveness.

-  The Company did not design and implement control activities to ensure completeness and accuracy of key reports used in the performance of certain controls.

-  Management review were not designed to operate at a level of precision sufficient to identify all potential material errors.

-  Certain controls were not executed or performed or were performed without sufficient documentation supporting the execution of the controls.

-  The Company had inadequate segregation of duties for certain business transactions.

 

 

Plan for Remediation of Material Weakness

 

In the prior year, the Company identified that the number of accounting personnel and the limited utilization of information technology in its control structure were the primary contributing factors to the material weaknesses identified. The Company hired additional personnel during the fiscal year ended March 31, 2023 ("fiscal 2023") and believes it is adequately staffed to execute the remediation plans developed by management. The previously identified material weaknesses have not been remediated due to ongoing post-acquisition integration during fiscal 2023. The operation of the full business in a new enterprise resource planning ("ERP") system is the most significant piece of this integration. All of the Company's coil segment locations were integrated into the new ERP system as of February 2023. The Company's tubular segment went live under the new ERP system at the start of August 2023. The Company expects the new ERP system to allow for many of the Company’s current manual controls and missing controls to be performed by the design and capabilities of the ERP system rather than relying on manual human execution. With most of the post-acquisition integration completed, the Company expects its additional personnel will be able to dedicate the necessary time during the fiscal year ended March 31, 2024 to improve the design, documentation and execution of internal controls.

 

We will continue to monitor the design and effectiveness of these procedures and controls and make any further changes the Company determines appropriate. We believe the additional investment in human capital and technology described above will allow the Company to remediate the material weaknesses identified. However, the material weaknesses will not be considered remediated until the applicable remedial actions operate effectively for a sufficient period of time.

 

Changes in Internal Controls over Financial Reporting

 

Except as discussed above, there were no changes in the Company's internal control over financial reporting that occurred during the fiscal quarter ended June 30, 2023 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

 

 

FRIEDMAN INDUSTRIES, INCORPORATED

Three Months Ended June 30, 2023

 

Part II — OTHER INFORMATION

 

Item 6. Exhibits

 

Exhibits
3.1	—	Articles of Incorporation of the Company, as amended (incorporated by reference from Exhibit 3.1 to the Company’s Form S-8 filed on December 21, 2016).
3.2	—	Articles of Amendment to the Articles of Incorporation of the Company, as filed with the Texas Secretary of State on September 22, 1987 (incorporated by reference from Exhibit 3.1 to the Company’s Form S-8 filed on December 21, 2016).
3.3	—	Amended and Restated Bylaws of the Company, as amended on November 8, 2021. (incorporated by reference from Exhibit 3.3 to the Company's Form 10-Q filed on November 19, 2021).
31.1	—	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by Michael J. Taylor.
31.2	—	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by Alex LaRue.
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 Michael J. Taylor.
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 Alex LaRue.
101.INS	—	Inline XBRL Instance Document.
101.SCH	—	Inline XBRL Taxonomy Schema Document.
101.CAL	—	Inline XBRL Calculation Linkbase Document.
101.DEF	—	Inline XBRL Definition Linkbase Document.
101.LAB	—	Inline XBRL Label Linkbase Document.
101.PRE	—	Inline XBRL Presentation Linkbase Document.
104	—	Cover Page Interactive File (formatted as Inline XBRL and contained in Exhibit 101)

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

		FRIEDMAN INDUSTRIES, INCORPORATED
Date: August 14, 2023		By		/s/    ALEX LARUE
				Alex LaRue, Chief Financial Officer – Secretary and Treasurer (Principal Financial Officer)

 

EXHIBIT 31.1

 

I, Michael J. Taylor, certify that:

 

1. I have reviewed this report on Form 10-Q of Friedman Industries, Incorporated;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Dated: August 14, 2023

 

 

/s/ MICHAEL J.  TAYLOR

President and Chief Executive Officer

 

EXHIBIT 31.2

 

I, Alex LaRue, certify that:

 

1. I have reviewed this report on Form 10-Q of Friedman Industries, Incorporated;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Dated: August 14, 2023

 

/s/ ALEX LARUE

Chief Financial Officer – Secretary and Treasurer

 

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

 

Not Filed Pursuant to the Securities Exchange Act of 1934

 

In connection with the Quarterly Report of Friedman Industries, Incorporated (the “Company”) on Form 10-Q for the period ended June 30, 2023, as filed with the U.S. Securities and Exchange Commission on the date hereof (the “Report”), I, Michael J. Taylor, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended, that:

 

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated: August 14, 2023

 

 

By	/s/ Michael J. Taylor
Name:	Michael J. Taylor
Title:	President and Chief Executive Officer

 

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

 

Not Filed Pursuant to the Securities Exchange Act of 1934

 

In connection with the Quarterly Report of Friedman Industries, Incorporated (the “Company”) on Form 10-Q for the period ended June 30, 2023, as filed with the U.S. Securities and Exchange Commission on the date hereof (the “Report”), I, Alex LaRue, Chief Financial Officer – Secretary and Treasurer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended, that:

 

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated: August 14, 2023

 

 

By	/s/ Alex LaRue
Name:	Alex LaRue
Title:	Chief Financial Officer – Secretary and Treasurer

 

v3.23.2

Document And Entity Information - shares	3 Months Ended
	Jun. 30, 2023	Aug. 14, 2023
Document Information [Line Items]
Entity Central Index Key	0000039092
Entity Registrant Name	FRIEDMAN INDUSTRIES INC
Amendment Flag	false
Current Fiscal Year End Date	--03-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	1-7521
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	74-1504405
Entity Address, Address Line One	1121 Judson Road, Suite 124
Entity Address, City or Town	Longview
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75601
City Area Code	903
Local Phone Number	758-3431
Title of 12(b) Security	Common Stock, $1 Par Value
Trading Symbol	FRD
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,375,282

v3.23.2

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
CURRENT ASSETS:
Cash	$ 4,823	$ 2,992
Accounts receivable, net of allowances for bad debts of $183 at both June 30, and March 31, 2023	46,775	49,367
Inventories	101,146	86,246
Current portion of derivative assets	243	536
Other current assets	3,104	4,515
TOTAL CURRENT ASSETS	156,091	143,656
PROPERTY, PLANT AND EQUIPMENT:
Land	1,670	1,670
Buildings and yard improvements	28,558	28,550
Machinery and equipment	50,988	51,001
Construction in process	1,598	1,167
Less accumulated depreciation	(29,179)	(28,455)
Property, plant, and equipment, net	53,635	53,933
OTHER ASSETS:
Cash value of officers’ life insurance and other assets	432	453
Operating lease right-of-use asset	1,244	1,270
TOTAL ASSETS	211,402	199,312
CURRENT LIABILITIES:
Accounts payable and accrued expenses	35,988	36,847
Income taxes payable	2,831	774
Dividends payable	148	148
Contribution to retirement plan	0	350
Employee compensation and related expenses	2,980	4,650
Current portion of financing lease	107	107
Current portion of derivative liability	963	2,212
TOTAL CURRENT LIABILITIES	43,017	45,088
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS	98	96
DEFERRED INCOME TAX LIABILITY	4,442	4,357
OTHER NON-CURRENT LIABILITIES	1,178	1,222
ASSET BASED LENDING FACILITY	39,298	33,117
TOTAL LIABILITIES	88,033	83,880
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock, par value $1: Authorized shares — 10,000,000; Issued shares — 8,868,716 shares at June 30, and March 31, 2023	8,869	8,869
Additional paid-in capital	35,083	35,005
Accumulated other comprehensive loss	0	(317)
Treasury stock at cost (1,493,128 shares at June 30, and March 31, 2023)	(7,778)	(7,778)
Retained earnings	87,195	79,653
TOTAL STOCKHOLDERS’ EQUITY	123,369	115,432
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 211,402	$ 199,312

v3.23.2

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Allowances for bad debts and cash discounts	$ 183	$ 183
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	10,000,000	10,000,000
Common stock, shares issued (in shares)	8,868,716	8,868,716
Treasury stock, shares (in shares)	1,493,128	1,493,128

v3.23.2

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Net Sales	$ 137,298	$ 161,803
Costs and expenses:
Costs of products sold	120,969	143,131
Selling, general and administrative	5,972	6,353
Costs and Expenses	126,941	149,484
EARNINGS FROM OPERATIONS	10,357	12,319
Gain on economic hedges of risk	430	2,754
Interest expense	(540)	(429)
Other income	6	13
EARNINGS BEFORE INCOME TAXES	10,253	14,657
Provision for (benefit from) income taxes:
Current	2,580	3,488
Deferred	(17)	(15)
Income tax	2,563	3,473
NET EARNINGS	$ 7,690	$ 11,184
Net earnings per share:
Basic (in dollars per share)	$ 1.04	$ 1.55
Diluted (in dollars per share)	1.04	1.55
Cash dividends, per share (in dollars per share)	$ 0.02	$ 0.02

v3.23.2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Net earnings	$ 7,690	$ 11,184
Other comprehensive income:
Cash flow hedges, net of tax	317	7,174
Other Comprehensive Income (Loss)	317	7,174
Comprehensive income	$ 8,007	$ 18,358

v3.23.2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
OPERATING ACTIVITIES
Net earnings	$ 7,690	$ 11,184
Adjustments to reconcile net earnings to cash provided by (used in) operating activities:
Depreciation and amortization	771	531
Deferred taxes	(17)	(15)
Compensation expense for restricted stock	78	73
Change in postretirement benefits	2	3
Gain recognized on open derivatives not designated for hedge accounting	(956)	(687)
Deferred realized gain (loss) on derivatives designated for hedge accounting	418	(1,451)
Decrease (increase) in operating assets, net of amounts acquired in business combination:
Accounts receivable	2,592	(40,809)
Inventories	(14,900)	21,613
Federal income taxes recoverable	0	1,404
Other current assets	553	584
Accounts payable and accrued expenses	(851)	(17,284)
Income taxes payable	2,057	1,576
Contribution to retirement plan	(350)	(75)
Employee compensation and related expenses	(1,670)	2,008
NET CASH USED IN OPERATING ACTIVITIES	(4,583)	(21,345)
INVESTING ACTIVITIES
Purchase of property, plant and equipment	(450)	(2,812)
Increase in cash surrender value of officers’ life insurance	(2)	(3)
NET CASH USED IN INVESTING ACTIVITIES	(452)	(74,535)
FINANCING ACTIVITIES
Debt issuance cost	0	(240)
Cash dividends paid	(148)	(147)
Cash paid for principal portion of finance lease	(26)	(26)
Cash paid for share repurchases	0	(29)
Asset based lending facility proceeds	6,181	83,930
NET CASH PROVIDED BY FINANCING ACTIVITIES	6,007	83,488
INCREASE (DECREASE) IN CASH AND RESTRICED CASH	972	(12,392)
CASH AND RESTRICTED CASH AT BEGINNING OF PERIOD	5,386	16,122
CASH AND RESTRICTED CASH AT END OF PERIOD	6,358	3,730
Plateplus Inc. [Member]
INVESTING ACTIVITIES
Plateplus business combination	$ 0	$ (71,720)

v3.23.2

Note A - Basis of Presentation	3 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	NOTE A — BASIS OF PRESENTATION   The accompanying unaudited, condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information, refer to the consolidated financial statements and footnotes of Friedman Industries, Incorporated (the “Company”) included in its annual report on Form 10-K for the year ended March 31, 2023.   Business Combinations   The results of a business acquired in a business combination are included in the Company’s financial statements from the date of acquisition. The Company allocates the purchase price to the identifiable assets and liabilities of the acquired business at their acquisition date fair values. The excess of the purchase price over the amount allocated to the identifiable assets and liabilities, if any, is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management to make significant judgments and estimates, including the selection of valuation methodologies, estimates of future revenue and cash flows, discount rates and selection of comparable companies. Acquisition-related transaction costs are expensed in the period in which the costs are incurred.   Reclassifications   The unaudited condensed consolidated financial statements for the previous year may include certain reclassifications to conform to the current presentation. To conform with the current year presentation, “Interest expense” on the unaudited condensed consolidated statements of operations was moved below the calculation of "Earnings From Operations". To conform with the current year presentation, a gain of approximately $2.8 million reported in the prior year as a component of "Other income, net" on the unaudited condensed consolidated statement of operations was moved to the line item "Gain on economic hedges of risk". These reclassifications had no impact on previously reported net earnings or stockholder's equity.

v3.23.2

Note B - Business Combinations	3 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Business Combination Disclosure [Text Block]	NOTE B — BUSINESS COMBINATIONS   On April 30, 2022, (the “Acquisition Date”), the Company acquired certain assets and liabilities of Plateplus, Inc. (“Plateplus”), a wholly owned subsidiary of Metal One, Inc. (“Metal One” or “Seller”), whereby the Company acquired the real estate, buildings, equipment, inventory, and other assets of Plateplus’ East Chicago, IN and Granite City, IL facilities and certain steel inventory at Plateplus’ Loudon, TN and Houston, TX facilities (the “Transaction”). The East Chicago and Granite City facilities are steel coil processing facilities that produce the same type of products as the Company's facilities in Hickman, AR; Decatur, AL and  Sinton, TX. As a result of the Transaction, the Company expanded its footprint and distribution capabilities in the mid-western United States.   The Transaction resulted in the Company acquiring the assets noted above, for a total consideration of $76.5 million, of which $71.7 million was cash consideration and $4.8 million related to 516,041 shares of the Company's common stock issued to the Seller. The fair value of the 516,041 shares issued was determined based on the closing market price of the Company’s common stock on April 29, 2022, the last trading day prior to the Acquisition Date. The Transaction was funded with net borrowings of $71.9 million made under the Company's asset-based lending facility ("ABL Facility") provided by JPMorgan Chase Bank.   The Transaction was accounted for using the acquisition method of accounting, in accordance with Topic 805, Business Combinations, whereby the consideration transferred and the acquired identifiable assets and liabilities assumed are recorded at their respective fair values. The excess of the consideration transferred over the fair values of these identifiable net assets is recorded as goodwill. The Transaction resulted in no residual goodwill.   Fair value of assets acquired and liabilities assumed (in thousands)         Inventory   $ 77,546   Property, plant and equipment     18,022   Operating lease right-of-use asset     1,237   Accounts payable     (19,065 ) Operating lease liability     (1,237 ) Total   $ 76,503     The Company recorded one-time transaction specific costs of approximately $0.8 million in the three months ended June 30, 2022 as a component of "Selling, general and administrative" expenses on the condensed consolidated statement of operations.

v3.23.2

Note C - Inventories	3 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Inventory Disclosure [Text Block]	NOTE C — INVENTORIES   Inventories consist of prime coil, non-standard coil and tubular materials. Prime coil inventory consists primarily of raw materials, non-standard coil inventory consists primarily of raw materials and tubular inventory consists of both raw materials and finished goods. Cost for prime coil inventory is determined using the average cost method. Cost for non-standard coil inventory is determined using the specific identification method. Cost for tubular inventory is determined using the average cost method. All inventories are valued at the lower of cost or net realizable value.   A summary of inventory values by product group follows (in thousands):       June 30, 2023     March 31, 2023   Prime Coil Inventory   $ 87,209     $ 75,917   Non-Standard Coil Inventory     449       278   Tubular Raw Material     7,955       5,193   Tubular Finished Goods     5,533       4,858       $ 101,146     $ 86,246     Tubular raw material inventory consists of hot-rolled steel coils that the Company will manufacture into pipe. Tubular finished goods inventory consists of pipe the Company has manufactured.

v3.23.2

Note D - Debt	3 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Debt Disclosure [Text Block]	NOTE D – DEBT                    The Company has a $150 million asset-based lending facility ("ABL Facility") in place with JPMorgan Chase Bank, N.A. as the arranging agent and BMO Harris Bank, N.A. as a one-third syndicated participant. The ABL Facility matures on May 19, 2026 and is secured by substantially all of the assets of the Company. The Company can elect borrowings on a floating rate basis or a term basis. Floating rate borrowings accrue interest at a rate equal to the prime rate minus 1% per annum. Term rate borrowings accrue interest at a rate equal to the SOFR rate applicable to the selected term plus 1.8% per annum. Availability of funds under the ABL Facility is subject to a borrowing base calculation determined as the sum of (a) 90% of eligible accounts receivable, plus (b) the product of 85% multiplied by the net orderly liquidating value percentage identified in the most recent inventory appraisal multiplied by eligible inventory. The ABL Facility contains a springing financial covenant whereby the financial covenant is only tested when availability falls below the greater of 15% of the revolving commitment or $22.5 million. The financial covenant restricts the Company from allowing its fixed charge coverage ratio to be, as of the end of any calendar month, less than 1.10 to 1.00 for the trailing twelve-month period then ending. The fixed charge coverage ratio is calculated as the ratio of (a) EBITDA, as defined in the ABL Facility, minus unfinanced capital expenditures to (b) cash interest expense plus scheduled principal payments on indebtedness plus taxes paid in cash plus restricted payments paid in cash plus capital lease obligation payments plus cash contributions to any employee pension benefit plans. The ABL Facility contains other representations and warranties and affirmative and negative covenants that are usual and customary. If certain conditions precedent are satisfied, the ABL facility may be increased by up to an aggregate of $25 million, in minimum increments of $5 million. At  June 30, 2023, the Company had a balance of approximately $39.3 million under the ABL Facility with an applicable interest rate of 7.25%. At  June 30, 2023, the Company's applicable borrowing base calculation supported access to approximately $111.0 million of the ABL Facility.   The Company incurred debt issuance costs of approximately $0.4 million in connection with the ABL Facility. The Company recorded these debt issuance costs as non-current other assets and is amortizing these costs on an equal monthly basis over the remaining term of the ABL facility.

v3.23.2

Note E - Leases	3 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Lessee, Operating Leases [Text Block]	NOTE E — LEASES   The Company was assigned an operating lease associated with the real property and leasehold improvements for the Granite City, IL facility acquired from Plateplus pursuant to the transaction disclosed in Note B. The current lease expires August 31, 2023 and the Company is in the process of renewing the lease. The lease calls for quarterly rental payments of approximately $19,000. The Company recognized an initial right-of-use ("ROU") asset and lease liability of approximately $1.2 million during the June 30, 2022 quarter related to this lease. The anticipated renewal of this lease is included in the ROU asset and lease liability calculation. The Company’s lease of its office space in Longview, Texas is the only other operating lease included in the Company's ROU assets and lease liabilities. The lease calls for monthly rent payments of approximately $5,000 and expires on April 30, 2024. The Company’s other operating leases for items such as IT equipment and storage space are either short-term in nature or immaterial.   In October 2019, the Company acquired a new heavy-duty forklift under a 5-year finance lease arrangement with a financed amount of approximately $0.5 million and a monthly payment of approximately $9,000.   The components of expense related to leases for the three months ended June 30, 2023 and 2022 are as follows (in thousands):       Three Months Ended       June 30,       2023     2022   Finance lease – amortization of ROU asset   $ 26     $ 26   Finance lease – interest on lease liability     1       1   Operating lease expense     34       27       $ 61     $ 54     The following table illustrates the balance sheet classification for ROU assets and lease liabilities as of June 30, 2023 and March 31, 2023 (in thousands):       June 30, 2023     March 31, 2023   Balance Sheet Classification Assets                   Operating lease right-of-use asset   $ 1,244     $ 1,270   Operating lease right-of-use asset Finance lease right-of-use asset     424       430   Property, plant & equipment Total right-of-use assets   $ 1,668     $ 1,700     Liabilities                   Operating lease liability, current   $ 94     $ 101   Accrued expenses Finance lease liability, current     107       107   Current portion of finance lease Operating lease liability, non-current     1,151       1,168   Other non-current liabilities Finance lease liability, non-current     27       54   Other non-current liabilities Total lease liabilities   $ 1,379     $ 1,430       As of June 30, 2023, the weighted-average remaining lease term was 19.4 years for operating leases and 1.3 years for finance leases. The weighted average discount rate was 2.6% for operating leases and 1.9% for finance leases.   Maturities of lease liabilities as of June 30, 2023 were as follows (in thousands):       Operating Leases     Finance Leases   Fiscal 2024 (remainder of fiscal year)     100       82   Fiscal 2025     80       54   Fiscal 2026     75       —   Fiscal 2027     75       —   Fiscal 2028 and beyond     1,237       —   Total undiscounted lease payments   $ 1,567     $ 136   Less: imputed interest     (322 )     (2 ) Present value of lease liability   $ 1,245     $ 134

v3.23.2

Note F - Property, Plant and Equipment	3 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	NOTE F — PROPERTY, PLANT AND EQUIPMENT   In October 2022, the Company completed its new facility in Sinton, Texas, which is part of the flat-roll product segment (previously referred to as the coil product segment) at a total completed cost of approximately $22.2 million. The new facility is on the campus of Steel Dynamics, Inc.'s ("SDI") new flat roll steel mill in Sinton, Texas and consists of an approximately 70,000 square foot building located on approximately 26.5 acres leased from SDI under a 99-year agreement with an annual rental payment of $1. The facility is equipped with a stretcher leveler cut-to-length line that is capable of handling material up to 1” thick, widths up to 96” and yields exceeding 100,000 psi.   At June 30, 2023, the Company's construction in process balance of approximately $1.6 million consisted primarily of approximately $1.1 million associated with a project to upgrade a component of the Decatur, AL processing line. The total project is estimated to cost $2.1 million with completion expected during the March 31, 2024 quarter. The remaining construction in process balance is comprised of several smaller projects.

v3.23.2

Note G - Stock Based Compensation	3 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Share-Based Payment Arrangement [Text Block]	NOTE G — STOCK BASED COMPENSATION   The Company maintains the Friedman Industries, Incorporated 2016 Restricted Stock Plan (the “Plan”). The Plan is administered by the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) and continues indefinitely until terminated by the Board or until all shares allowed by the Plan have been awarded and earned. The aggregate number of shares of the Company’s Common Stock eligible for award under the Plan is 500,000 shares. Subject to the terms and provisions of the Plan, the Committee may, from time to time, select the employees, directors or consultants to whom awards will be granted and shall determine the amount and applicable restrictions of each award. Restricted awards entitle recipients to vote and receive non-forfeitable dividends during the restriction period. Because dividends are non-forfeitable, they are reflected in retained earnings. Forfeitures are accounted for upon their occurrence. Because the Company accounts for forfeitures as they occur, the non-forfeitable dividends are reclassified from retained earnings to additional stock compensation for the actual forfeitures that occurred.   The following table summarizes the activity related to restricted stock units ("RSUs") for the three months ended June 30, 2023:               Weighted Average             Grant Date Fair       Number of Shares     Value Per Share   Unvested at March 31, 2023     100,366     $ 6.08   Cancelled or forfeited     —       —   Granted     —       —   Vested     —       —   Unvested at June 30, 2023     100,366     $ 6.08     The Company measures compensation expense for RSUs at the market price of the common stock as of the grant date. Compensation expense is recognized over the requisite service period applicable to each award. The Company recorded compensation expense of approximately $78,000 and $73,000 in the three months ended June 30, 2023 and 2022, respectively, relating to the RSUs issued under the Plan. As of June 30, 2023, unrecognized compensation expense related to unvested RSUs was approximately $0.2 million which is expected to be recognized over a weighted average period of approximately 1.2 years. As of June 30, 2023, a total of 122,485 shares were still available to be issued under the Plan.

v3.23.2

Note H - Derivative Financial Instruments	3 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Derivative Instruments and Hedging Activities Disclosure [Text Block]	NOTE H — DERIVATIVE FINANCIAL INSTRUMENTS   From time to time, we expect to use derivative financial instruments to minimize our exposure to commodity price risk that is inherent in our business. At the time derivative contracts are entered into, we assess whether the nature of the instrument qualifies for hedge accounting treatment according to the requirements of ASC 815 – Derivatives and Hedging (“ASC 815”). By using derivatives, the Company is exposed to credit and market risk. The Company’s exposure to credit risk includes the counterparty’s failure to fulfill its performance obligations under the terms of the derivative contract. The Company attempts to minimize its credit risk by entering into transactions with high quality counterparties and uses exchange-traded derivatives when available. Market risk is the risk that the value of the financial instrument might be adversely affected by a change in commodity prices. The Company manages market risk by continually monitoring exposure within its risk management strategy and portfolio. For those transactions designated as hedging instruments for accounting purposes, we document all relationships between hedging instruments and hedged items, as well as our risk-management objective and strategy for undertaking the various hedge transactions. We also assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting changes in cash flows or fair value of hedged items.   From time to time, derivatives designated for hedge accounting may be closed prior to contract expiration. The accounting treatment of closed positions depends on whether the closure occurred due to the hedged transaction occurring early or if the hedged transaction is still expected to occur as originally forecasted. For hedged transactions that occur early, the closure results in the realized gain or loss from closure being recognized in the same period the accelerated hedged transaction affects earnings. For hedged transactions that are still expected to occur as originally forecasted, the closure results in the realized gain or loss being deferred until the hedged transaction affects earnings.   If it is determined that hedged transactions associated with cash flow hedges are no longer probable of occurring, the gain or loss associated with the instrument is recognized immediately into earnings.    From time to time, we may have derivative financial instruments for which we do not elect hedge accounting.    The Company has forward physical purchase supply agreements in place with some of its suppliers for a portion of its monthly physical steel needs. These supply agreements are not subject to mark-to-market accounting due to the Company electing the normal purchase normal sale exclusion provided in ASC 815.    At June 30, 2023 the Company did not have any hot-rolled coil futures contracts designated as hedging instruments and classified as cash flow hedges. At  March 31, 2023, the Company held hot-rolled coil futures contracts which were designated as hedging instruments and classified as cash flow hedges, as hedges of variable sales prices. Accordingly, realized and unrealized gains and losses associated with the instruments were reported as a component of other comprehensive income and reclassified into earnings during the period in which the hedged transaction affects earnings.    During the three month periods ended June 30, 2023 and 2022, the Company entered into hot-rolled coil futures contracts that were not designated as hedging instruments for accounting purposes. Accordingly, the change in fair value related to these instruments was immediately recognized in earnings for these periods.     The following table summarizes the fair value of the Company’s derivative financial instruments and the respective line in which they were recorded in the Consolidated Balance Sheet as of June 30, 2023 (in thousands):     Asset Derivatives   Liability Derivatives     Balance Sheet         Balance Sheet         Derivatives not designated as hedging instruments: Location   Fair Value   Location   Fair Value   Hot-rolled coil steel contracts Current portion of derivative assets   $ 243   Current portion of derivative liability   $ 963                           The following table summarizes the fair value of the Company’s derivative financial instruments and the respective line in which they were recorded in the Consolidated Balance Sheet as of March 31, 2023 (in thousands):     Asset Derivatives   Liability Derivatives     Balance Sheet         Balance Sheet         Derivatives not designated as hedging instruments: Location   Fair Value   Location   Fair Value   Hot-rolled coil steel contracts Current portion of derivative assets   $ 536   Current portion of derivative liability   $ 2,212     All derivatives are presented on a gross basis on the Consolidated Balance Sheets.   At  June 30, 2023 and  March 31, 2023, the Company reported approximately $0.4 million and $1.6 million, respectively, in "Other current assets" on its Consolidated Balance Sheet related to futures contracts which were closed but were pending cash settlement.    The following table summarizes the pre-tax gain recognized in other comprehensive income and the loss reclassified from accumulated other comprehensive loss into earnings for derivative financial instruments designated as cash flow hedges for the periods presented (in thousands):             Location of Loss   Pre- Tax Loss       Pre-Tax Gain   Reclassified   Reclassified from       Recognized in OCI   from AOCI into Net Earnings   AOCI into Net Earnings   For the three months ended June 30, 2023:                   Hot-rolled coil steel contracts   $ —   Sales   $ (418 ) Total   $ —       $ (418 )                     For the three months ended June 30, 2022:                   Hot-rolled coil steel contracts   $ 8,833   Sales   $ (626 ) Total   $ 8,833       $ (626 )     The following table summarizes the gains recognized in earnings for derivative instruments not designated as hedging instruments during the three months ended June 30, 2023 (in thousands):         Gain Recognized in Earnings     Location of Gain   for the Three Months Ended     Recognized in Earnings   June 30, 2023   Hot-rolled coil steel contracts Gain on economic hedges of risk   $ 430     The following table summarizes the gains recognized in earnings for derivative instruments not designated as hedging instruments during the three months ended June 30, 2022 (in thousands):         Gain Recognized in Earnings     Location of Gain   for the Three Months Ended     Recognized in Earnings   June 30, 2022   Hot-rolled coil steel contracts Gain on economic hedges of risk   $ 2,754     The notional amount (quantity) of our derivative instruments not designated as hedging instruments at June 30, 2023 consisted of 22,180 tons of short positions with maturity dates ranging from July 2023 to December 2023.   The following tables reflect the change in accumulated other comprehensive income (loss), net of tax, for the periods presented (in thousands):       Gain (Loss) on       Derivatives   Balance at March 31, 2023   $ (317 ) Other comprehensive income, net of loss, before reclassification     —   Total loss reclassified from AOCI (1)     317   Net current period other comprehensive income     317   Balance at June 30, 2023   $ —     (1) The loss reclassified from AOCI is presented net of tax benefits of approximately $0.1 million which are included in the provision for (benefit from) income taxes on the Company's Consolidated Statement of Operations for the three months ended June 30, 2023.       Gain (Loss) on       Derivatives   Balance at March 31, 2022   $ (10,269 ) Other comprehensive income, net of loss, before reclassification     6,699   Total loss reclassified from AOCI (1)     475   Net current period other comprehensive income     7,174   Balance at June 30, 2022   $ (3,095 )   (1) The loss reclassified from AOCI is presented net of tax benefits of approximately $0.2 million which are included in the provision for (benefit from) income taxes on the Company's Consolidated Statement of Operations for the three months ended June 30, 2022.   At  June 30, 2023 and  March 31, 2023, cash of approximately $1.5 million and $2.4 million, respectively, was held by our clearing agent to collateralize our open derivative positions. These cash requirements are included in "Other current assets" on the Company's Consolidated Balance Sheets at  June 30, 2023 and  March 31, 2023.

v3.23.2

Note I - Fair Value Measurements	3 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Fair Value Disclosures [Text Block]	NOTE I — FAIR VALUE MEASUREMENTS   Accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. Levels within the hierarchy are defined as follows:     ● Level 1 – Quoted prices for identical assets and liabilities in active markets.   ● Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the assets and liabilities, either directly or indirectly.   ● Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities.   Recurring Fair Value Measurements   At  June 30, 2023, our financial liabilities, net, measured at fair value on a recurring basis were as follows (in thousands):       Quoted Prices                               in Active     Significant                       Markets for     Other     Significant               Identical     Observable     Unobservable               Assets     Inputs     Inputs               (Level 1)     (Level 2)     (Level 3)     Total   Commodity futures – financial liabilities, net   $ (720 )   $ —     $ —     $ (720 ) Total   $ (720 )   $ —     $ —     $ (720 )   At  March 31, 2023, our financial liabilities, net, measured at fair value on a recurring basis were as follows (in thousands):       Quoted Prices                               in Active     Significant                       Markets for     Other     Significant               Identical     Observable     Unobservable               Assets     Inputs     Inputs               (Level 1)     (Level 2)     (Level 3)     Total   Commodity futures – financial liabilities, net   $ (1,676 )   $ —     $ —     $ (1,676 ) Total   $ (1,676 )   $ —     $ —     $ (1,676 )   At  June 30, 2023 and  March 31, 2023, the Company did not have any fair value measurements on a non-recurring basis.

v3.23.2

Note J - Segment Information	3 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	NOTE J — SEGMENT INFORMATION (in thousands)   The Flat-roll segment was previously referred to as the Coil segment. The Company is now using Flat-roll to describe the segment due to it being a more common term used in the Company's industry.      Three Months Ended       June 30,       2023     2022   Net sales                 Flat-roll   $ 125,197     $ 142,877   Tubular     12,101       18,926   Total net sales   $ 137,298     $ 161,803                     Operating profit                 Flat-roll   $ 11,814     $ 13,543   Tubular     2,264       2,104   Total operating profit     14,078       15,647   General corporate expenses     (3,721 )     (3,328 ) Gain on economic hedges of risk     430       2,754   Interest expense     (540 )     (429 ) Other income     6       13   Total earnings before income taxes   $ 10,253     $ 14,657         June 30, 2023     March 31, 2023   Segment assets                 Flat-roll   $ 185,303     $ 179,780   Tubular     20,163       15,858         205,466       195,638   Corporate assets     5,936       3,674       $ 211,402     $ 199,312     Operating profit is total net sales less operating expenses, excluding general corporate expenses, gain on economic hedges of risk, interest expense and other income. General corporate expenses reflect general and administrative expenses not directly associated with segment operations and consist primarily of corporate and accounting salaries, professional fees and services, bad debts, retirement plan contribution expense, corporate insurance expenses, restricted stock plan compensation expense and office supplies. At June 30, and March 31, 2023, Corporate assets consist primarily of cash, restricted cash, unamortized debt issuance costs and the cash value of officers’ life insurance. Although inventory is transferred at cost between product groups, there are no sales between product groups.

v3.23.2

Note K - Revenue	3 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Revenue from Contract with Customer [Text Block]	NOTE K — REVENUE   Revenue is generated primarily from contracts to manufacture or process steel products. Most of the Company’s revenue is generated by sales of material out of the Company’s inventory, but a portion of the Company’s revenue is derived from processing or storage of customer owned material. Generally, the Company’s performance obligations are satisfied, control of our products is transferred, and revenue is recognized at a single point in time, when title transfers to our customer for product shipped or when services are provided. Revenues are recorded net of any sales incentives. Shipping and other transportation costs charged to customers are treated as fulfillment activities and are recorded in both revenue and cost of sales at the time control is transferred to the customer. Costs related to obtaining sales contracts are incidental and expensed when incurred. Because customers are invoiced at the time title transfers and the Company’s rights to consideration are unconditional at that time, the Company does not maintain contract asset balances. Additionally, the Company does not maintain contract liability balances, as performance obligations are satisfied prior to customer payment for product. The Company offers industry standard payment terms.   The Company has two reportable segments: Flat-roll and Tubular. Flat-roll primarily generates revenue from cutting to length hot-rolled steel coils. Flat-roll segment revenue consists of three main product types: Prime Coil, Non-Standard Coil and Customer Owned Coil. Tubular primarily generates revenue from selling steel pipe it has manufactured resulting in a single product type: Manufactured Pipe. The following table disaggregates our revenue by product for each of our reportable business segments for the three months ended June 30, 2023 and 2022, respectively (in thousands):       Three Months Ended       June 30,       2023     2022   Flat-roll Segment:                 Prime Coil     123,822       140,981   Non-standard Coil     151       1,531   Processing or Storage of Customer Owned Coil     1,224       365         125,197       142,877   Tubular Segment:                 Manufactured Pipe     12,101       18,926         12,101       18,926

v3.23.2

Note L - Stockholders' Equity	3 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Equity [Text Block]	NOTE L — STOCKHOLDERS’ EQUITY   The following tables reflect the changes in stockholders’ equity for each of the three months ended June 30, 2023 and June 30, 2022 (in thousands):               Accumulated                                               Other                                               Comprehensive     Additional                               Common     Income,     Paid-In     Treasury     Retained               Stock     Net of Tax     Capital     Stock     Earnings     Total   BALANCE AT MARCH 31, 2023   $ 8,869       (317 )   $ 35,005     $ (7,778 )   $ 79,653     $ 115,432   Net earnings     —       —       —       —       7,690       7,690   Other comprehensive income     —       317       —       —       —       317   Paid in capital – restricted stock units     —       —       78       —       —       78   Cash dividends ($0.02 per share)     —       —       —       —       (148 )     (148 ) BALANCE AT JUNE 30, 2023   $ 8,869     $ —     $ 35,083     $ (7,778 )   $ 87,195     $ 123,369                 Accumulated                                               Other                                               Comprehensive     Additional                               Common     Income,     Paid-In     Treasury     Retained               Stock     Net of Tax     Capital     Stock     Earnings     Total   BALANCE AT MARCH 31, 2022   $ 8,345       (10,269 )   $ 30,442     $ (7,741 )   $ 58,909     $ 79,686   Net earnings     —       —       —       —       11,184       11,184   Other comprehensive income     —       7,174       —       —       —       7,174   Paid in capital – restricted stock units     —       —       73       —       —       73   Shares issued - Plateplus business combination     516       —       4,268       —       —       4,784   Repurchase of shares     —       —       —       (29 )     —       (29 ) Cash dividends ($0.02 per share)     —       —       —       —       (157 )     (157 ) BALANCE AT JUNE 30, 2022   $ 8,861     $ (3,095 )   $ 34,783     $ (7,770 )   $ 69,936     $ 102,715

v3.23.2

Note M - Other Comprehensive Income	3 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Comprehensive Income (Loss) Note [Text Block]	NOTE M — OTHER COMPREHENSIVE INCOME   The following table summarizes the tax effects on each component of Other Comprehensive Income for the periods presented (in thousands):       Three Months Ended June 30, 2023       Before-Tax     Tax     Net-of-Tax                             Cash flow hedges   $ 418     $ (101 )   $ 317   Other comprehensive income   $ 418     $ (101 )   $ 317         Three Months Ended June 30, 2022       Before-Tax     Tax     Net-of-Tax                             Cash flow hedges   $ 9,460     $ (2,286 )   $ 7,174   Other comprehensive income   $ 9,460     $ (2,286 )   $ 7,174

v3.23.2

Note N - Earnings Per Share	3 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Earnings Per Share [Text Block]	NOTE N — EARNINGS PER SHARE   Basic and dilutive net earnings per share is computed based on the following information (in thousands, except for share data):       Three Months Ended       June 30,       2023     2022   Numerator (basic and diluted)                 Net earnings   $ 7,690     $ 11,184   Less: Allocation to unvested restricted stock units     90       196   Net earnings attributable to common shareholders   $ 7,600     $ 10,988                     Denominator (basic and diluted)                 Weighted average common shares outstanding     7,288,906       7,071,066     For the three months ended June 30, 2023 and 2022, the Company allocated dividends and undistributed earnings to the unvested restricted stock units.    As the restricted stock qualifies as participating securities, the following restricted stock units were not accounted in the computation of weighted average diluted common shares outstanding under the two-class method:       Three Months Ended       June 30,       2023     2022   Restricted Stock Units     60,524       69,702

v3.23.2

Note O - Supplemental Cash Flow Information	3 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Cash Flow, Supplemental Disclosures [Text Block]	NOTE O — SUPPLEMENTAL CASH FLOW INFORMATION   The Company paid interest of approximately $0.5 million and $0.4 million during the three months ended June 30, 2023 and 2022, respectively. Additionally, the Company paid income taxes of approximately $47,000 and $40,000 during the three months ended June 30, 2023 and 2022, respectively. During the three months ended June 30, 2022, the Company issued 516,041 shares of common stock as part of the Plateplus business combination resulting in non-cash investing activity of approximately $4.8 million.

v3.23.2

Note P - Income Taxes	3 Months Ended
	Jun. 30, 2023
Notes to Financial Statements
Income Tax Disclosure [Text Block]	NOTE P — INCOME TAXES   For the three months ended June 30, 2023 and 2022, the Company recorded an income tax provision of approximately $2.6 million and $3.5 million, respectively. For the three months ended June 30, 2023 and three months ended June 30, 2022, the effective tax rate differed from the federal statutory rate due primarily to the inclusion of state tax expenses in the provision.

v3.23.2

Note B - Business Combinations (Tables)	3 Months Ended
	Jun. 30, 2023
Notes Tables
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	Fair value of assets acquired and liabilities assumed (in thousands)         Inventory   $ 77,546   Property, plant and equipment     18,022   Operating lease right-of-use asset     1,237   Accounts payable     (19,065 ) Operating lease liability     (1,237 ) Total   $ 76,503

v3.23.2

Note C - Inventories (Tables)	3 Months Ended
	Jun. 30, 2023
Notes Tables
Schedule of Inventory, Current [Table Text Block]	June 30, 2023     March 31, 2023   Prime Coil Inventory   $ 87,209     $ 75,917   Non-Standard Coil Inventory     449       278   Tubular Raw Material     7,955       5,193   Tubular Finished Goods     5,533       4,858       $ 101,146     $ 86,246

v3.23.2

Note E - Leases (Tables)	3 Months Ended
	Jun. 30, 2023
Notes Tables
Lease, Cost [Table Text Block]	Three Months Ended       June 30,       2023     2022   Finance lease – amortization of ROU asset   $ 26     $ 26   Finance lease – interest on lease liability     1       1   Operating lease expense     34       27       $ 61     $ 54
Schedule of Balance Sheet Information Related to Operating Leases [Table Text Block]	June 30, 2023     March 31, 2023   Balance Sheet Classification Assets                   Operating lease right-of-use asset   $ 1,244     $ 1,270   Operating lease right-of-use asset Finance lease right-of-use asset     424       430   Property, plant & equipment Total right-of-use assets   $ 1,668     $ 1,700     Liabilities                   Operating lease liability, current   $ 94     $ 101   Accrued expenses Finance lease liability, current     107       107   Current portion of finance lease Operating lease liability, non-current     1,151       1,168   Other non-current liabilities Finance lease liability, non-current     27       54   Other non-current liabilities Total lease liabilities   $ 1,379     $ 1,430
Operating and Finance Lease, Liability, Maturity [Table Text Block]	Operating Leases     Finance Leases   Fiscal 2024 (remainder of fiscal year)     100       82   Fiscal 2025     80       54   Fiscal 2026     75       —   Fiscal 2027     75       —   Fiscal 2028 and beyond     1,237       —   Total undiscounted lease payments   $ 1,567     $ 136   Less: imputed interest     (322 )     (2 ) Present value of lease liability   $ 1,245     $ 134

v3.23.2

Note G - Stock Based Compensation (Tables)	3 Months Ended
	Jun. 30, 2023
Notes Tables
Nonvested Restricted Stock Shares Activity [Table Text Block]	Weighted Average             Grant Date Fair       Number of Shares     Value Per Share   Unvested at March 31, 2023     100,366     $ 6.08   Cancelled or forfeited     —       —   Granted     —       —   Vested     —       —   Unvested at June 30, 2023     100,366     $ 6.08

v3.23.2

Note H - Derivative Financial Instruments (Tables)	3 Months Ended
	Jun. 30, 2023
Notes Tables
Schedule of Derivative Instruments [Table Text Block]	Asset Derivatives   Liability Derivatives     Balance Sheet         Balance Sheet         Derivatives not designated as hedging instruments: Location   Fair Value   Location   Fair Value   Hot-rolled coil steel contracts Current portion of derivative assets   $ 243   Current portion of derivative liability   $ 963                           Asset Derivatives   Liability Derivatives     Balance Sheet         Balance Sheet         Derivatives not designated as hedging instruments: Location   Fair Value   Location   Fair Value   Hot-rolled coil steel contracts Current portion of derivative assets   $ 536   Current portion of derivative liability   $ 2,212
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block]	Location of Loss   Pre- Tax Loss       Pre-Tax Gain   Reclassified   Reclassified from       Recognized in OCI   from AOCI into Net Earnings   AOCI into Net Earnings   For the three months ended June 30, 2023:                   Hot-rolled coil steel contracts   $ —   Sales   $ (418 ) Total   $ —       $ (418 )                     For the three months ended June 30, 2022:                   Hot-rolled coil steel contracts   $ 8,833   Sales   $ (626 ) Total   $ 8,833       $ (626 )
Derivative Instruments, Gain (Loss) [Table Text Block]	Gain Recognized in Earnings     Location of Gain   for the Three Months Ended     Recognized in Earnings   June 30, 2023   Hot-rolled coil steel contracts Gain on economic hedges of risk   $ 430         Gain Recognized in Earnings     Location of Gain   for the Three Months Ended     Recognized in Earnings   June 30, 2022   Hot-rolled coil steel contracts Gain on economic hedges of risk   $ 2,754
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Notes Tables
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]	Gain (Loss) on       Derivatives   Balance at March 31, 2023   $ (317 ) Other comprehensive income, net of loss, before reclassification     —   Total loss reclassified from AOCI (1)     317   Net current period other comprehensive income     317   Balance at June 30, 2023   $ —       Gain (Loss) on       Derivatives   Balance at March 31, 2022   $ (10,269 ) Other comprehensive income, net of loss, before reclassification     6,699   Total loss reclassified from AOCI (1)     475   Net current period other comprehensive income     7,174   Balance at June 30, 2022   $ (3,095 )

v3.23.2

Note I - Fair Value Measurements (Tables)	3 Months Ended
	Jun. 30, 2023
Notes Tables
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block]	Quoted Prices                               in Active     Significant                       Markets for     Other     Significant               Identical     Observable     Unobservable               Assets     Inputs     Inputs               (Level 1)     (Level 2)     (Level 3)     Total   Commodity futures – financial liabilities, net   $ (720 )   $ —     $ —     $ (720 ) Total   $ (720 )   $ —     $ —     $ (720 )     Quoted Prices                               in Active     Significant                       Markets for     Other     Significant               Identical     Observable     Unobservable               Assets     Inputs     Inputs               (Level 1)     (Level 2)     (Level 3)     Total   Commodity futures – financial liabilities, net   $ (1,676 )   $ —     $ —     $ (1,676 ) Total   $ (1,676 )   $ —     $ —     $ (1,676 )

v3.23.2

Note J - Segment Information (Tables)	3 Months Ended
	Jun. 30, 2023
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended       June 30,       2023     2022   Net sales                 Flat-roll   $ 125,197     $ 142,877   Tubular     12,101       18,926   Total net sales   $ 137,298     $ 161,803                     Operating profit                 Flat-roll   $ 11,814     $ 13,543   Tubular     2,264       2,104   Total operating profit     14,078       15,647   General corporate expenses     (3,721 )     (3,328 ) Gain on economic hedges of risk     430       2,754   Interest expense     (540 )     (429 ) Other income     6       13   Total earnings before income taxes   $ 10,253     $ 14,657       June 30, 2023     March 31, 2023   Segment assets                 Flat-roll   $ 185,303     $ 179,780   Tubular     20,163       15,858         205,466       195,638   Corporate assets     5,936       3,674       $ 211,402     $ 199,312

v3.23.2

Note K - Revenue (Tables)	3 Months Ended
	Jun. 30, 2023
Notes Tables
Disaggregation of Revenue [Table Text Block]	Three Months Ended       June 30,       2023     2022   Flat-roll Segment:                 Prime Coil     123,822       140,981   Non-standard Coil     151       1,531   Processing or Storage of Customer Owned Coil     1,224       365         125,197       142,877   Tubular Segment:                 Manufactured Pipe     12,101       18,926         12,101       18,926

v3.23.2

Note L - Stockholders' Equity (Tables)	3 Months Ended
	Jun. 30, 2023
Notes Tables
Schedule of Stockholders Equity [Table Text Block]	Accumulated                                               Other                                               Comprehensive     Additional                               Common     Income,     Paid-In     Treasury     Retained               Stock     Net of Tax     Capital     Stock     Earnings     Total   BALANCE AT MARCH 31, 2023   $ 8,869       (317 )   $ 35,005     $ (7,778 )   $ 79,653     $ 115,432   Net earnings     —       —       —       —       7,690       7,690   Other comprehensive income     —       317       —       —       —       317   Paid in capital – restricted stock units     —       —       78       —       —       78   Cash dividends ($0.02 per share)     —       —       —       —       (148 )     (148 ) BALANCE AT JUNE 30, 2023   $ 8,869     $ —     $ 35,083     $ (7,778 )   $ 87,195     $ 123,369               Accumulated                                               Other                                               Comprehensive     Additional                               Common     Income,     Paid-In     Treasury     Retained               Stock     Net of Tax     Capital     Stock     Earnings     Total   BALANCE AT MARCH 31, 2022   $ 8,345       (10,269 )   $ 30,442     $ (7,741 )   $ 58,909     $ 79,686   Net earnings     —       —       —       —       11,184       11,184   Other comprehensive income     —       7,174       —       —       —       7,174   Paid in capital – restricted stock units     —       —       73       —       —       73   Shares issued - Plateplus business combination     516       —       4,268       —       —       4,784   Repurchase of shares     —       —       —       (29 )     —       (29 ) Cash dividends ($0.02 per share)     —       —       —       —       (157 )     (157 ) BALANCE AT JUNE 30, 2022   $ 8,861     $ (3,095 )   $ 34,783     $ (7,770 )   $ 69,936     $ 102,715

v3.23.2

Note M - Other Comprehensive Income (Tables)	3 Months Ended
	Jun. 30, 2023
Notes Tables
Comprehensive Income (Loss) [Table Text Block]	Three Months Ended June 30, 2023       Before-Tax     Tax     Net-of-Tax                             Cash flow hedges   $ 418     $ (101 )   $ 317   Other comprehensive income   $ 418     $ (101 )   $ 317       Three Months Ended June 30, 2022       Before-Tax     Tax     Net-of-Tax                             Cash flow hedges   $ 9,460     $ (2,286 )   $ 7,174   Other comprehensive income   $ 9,460     $ (2,286 )   $ 7,174

v3.23.2

Note N - Earnings Per Share (Tables)	3 Months Ended
	Jun. 30, 2023
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended       June 30,       2023     2022   Numerator (basic and diluted)                 Net earnings   $ 7,690     $ 11,184   Less: Allocation to unvested restricted stock units     90       196   Net earnings attributable to common shareholders   $ 7,600     $ 10,988                     Denominator (basic and diluted)                 Weighted average common shares outstanding     7,288,906       7,071,066
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	Three Months Ended       June 30,       2023     2022   Restricted Stock Units     60,524       69,702

v3.23.2

Note A - Basis of Presentation (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Derivative, Gain (Loss) on Derivative, Net	$ 430	$ 2,754
Reclassified from Other income (loss) to Gain (loss) on Economic Hedges of Risk [Member]
Derivative, Gain (Loss) on Derivative, Net	$ 2,800

v3.23.2

Note B - Business Combinations (Details Textual) - Plateplus Inc. [Member] - USD ($) $ in Thousands		3 Months Ended
	Apr. 30, 2022	Jun. 30, 2022
Business Combination, Consideration Transferred, Total	$ 76,500
Payments to Acquire Businesses, Gross	$ 71,700
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable		$ 4,784
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)	516,041	516,041
Goodwill, Ending Balance	$ 0
Selling, General and Administrative Expenses [Member]
Business Combination, Acquisition Related Costs		$ 800
ABL Facility [Member] | JPMorgan Chase Bank N.A. [Member]
Business Combination, Consideration Transferred, Liabilities Incurred	$ 71,900

v3.23.2

Note B - Business Combinations - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - Plateplus Inc. [Member] $ in Thousands	Apr. 30, 2022 USD ($)
Inventory	$ 77,546
Property, plant and equipment	18,022
Business combination, operating lease right-of-use asset	1,237
Accounts payable	(19,065)
Operating lease liability	(1,237)
Total	$ 76,503

v3.23.2

Note C - Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Inventory, Net	$ 101,146	$ 86,246
Prime Coil Inventory [Member]
Prime Coil Inventory	87,209	75,917
Non-standard Coil Inventory [Member]
Prime Coil Inventory	449	278
Tubular Inventory [Member]
Prime Coil Inventory	7,955	5,193
Tubular Finished Goods	$ 5,533	$ 4,858

v3.23.2

Note D - Debt (Details Textual) $ in Millions			10 Months Ended
	Apr. 29, 2022 USD ($)	Mar. 11, 2022 USD ($)	Mar. 11, 2022 USD ($)	Jun. 30, 2023 USD ($)
Line of Credit Facility, Maximum Borrowing Capacity, Maximum Conditional Increase	$ 25.0
ABL Facility [Member] | JPMorgan Chase Bank N.A. [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 150.0			$ 111.0
Debt Instrument, Covenant, Borrowing Limit as Percent of Accounts Receivable	90.00%	85.00%	85.00%
Debt Instrument, Covenant, Availability Remaining Before Testing, Percentage	15.00%
Debt Instrument, Covenant, Availability Remaining Before Testing, Value	$ 22.5
Debt Instrument, Covenant, Fixed Charge Coverage Ratio			1.10
Line of Credit Facility, Maximum Borrowing Capacity, Conditional Increase, Minimum Increments		$ 5.0	$ 5.0
Long-Term Line of Credit				$ 39.3
Line of Credit Facility, Interest Rate at Period End				7.25%
Debt Issuance Costs, Gross				$ 0.4
ABL Facility [Member] | JPMorgan Chase Bank N.A. [Member] | Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	1.00%
ABL Facility [Member] | JPMorgan Chase Bank N.A. [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Debt Instrument, Basis Spread on Variable Rate		1.80%

v3.23.2

Note E - Leases (Details Textual) - USD ($)	1 Months Ended	3 Months Ended
	Oct. 31, 2019	Jun. 30, 2023
Finance Lease, Liability, to be Paid		$ 136,000
Operating Lease, Weighted Average Remaining Lease Term (Year)		19 years 4 months 24 days
Finance Lease, Weighted Average Remaining Lease Term (Year)		1 year 3 months 18 days
Operating Lease, Weighted Average Discount Rate, Percent		2.60%
Finance Lease, Weighted Average Discount Rate, Percent		1.90%
Heavy-duty Forklift [Member]
Lessee, Finance Lease, Term of Contract (Year)	5 years
Finance Lease, Liability, to be Paid	$ 500,000
Finance Lease, Monthly Payment	$ 9,000
Granite City, IL Facility [Member]
Operating Lease, Quarterly Payments		$ 19,000
Granite City, IL Facility [Member] | Plateplus Inc. [Member]
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability		1,200,000
Office Space in Longview, Texas [Member]
Operating Lease, Monthly Payments		$ 5,000

v3.23.2

Note E - Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Finance lease – amortization of ROU asset	$ 26	$ 26
Finance lease – interest on lease liability	1	1
Operating lease expense	34	27
Lease, Cost	$ 61	$ 54

v3.23.2

Note E - Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Operating lease right-of-use asset	$ 1,244	$ 1,270
Total right-of-use assets	1,668	1,700
Finance lease liability, current	107	107
Total lease liabilities	1,379	1,430
Other Noncurrent Assets [Member]
Operating lease right-of-use asset	1,244	1,270
Property, Plant and Equipment, Net [Member]
Finance lease right-of-use asset	424	430
Accounts Payable and Accrued Liabilities [Member]
Operating lease liability, current	94	101
Current Portion of Financing Lease [Member]
Finance lease liability, current	107	107
Other Noncurrent Liabilities [Member]
Operating lease liability, non-current	1,151	1,168
Finance lease liability, non-current	$ 27	$ 54

v3.23.2

Note E - Leases - Maturities of Operating and Finance Lease (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Operating lease, Fiscal 2024 (remainder of fiscal year)	$ 100
Finance lease, Fiscal 2024 (remainder of fiscal year)	82
Operating lease, Fiscal 2025	80
Finance lease, Fiscal 2025	54
Operating lease, Fiscal 2026	75
Finance lease, Fiscal 2026	0
Operating lease, Fiscal 2027	75
Finance lease, Fiscal 2027	0
Operating lease, Fiscal 2028 and beyond	1,237
Finance lease, Fiscal 2028 and beyond	0
Operating lease, Total undiscounted lease payments	1,567
Finance lease, Total undiscounted lease payments	136
Operating lease, Less: imputed interest	(322)
Finance lease, Less: imputed interest	(2)
Present value of lease liability, finance lease	134
Accrued Expense and Other Noncurrent Liabilities [Member]
Present value of lease liability, operating lease	$ 1,245

v3.23.2

Note F - Property, Plant and Equipment (Details Textual) $ in Thousands	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	May 25, 2021 ft² a
Buildings and Improvements, Gross	$ 28,558	$ 28,550
Construction in Progress, Gross	1,598	$ 1,167
Facility in Sinton, Texas [Member]
Area of Land (Acre) | a			26.5
Lessee, Operating Lease, Term of Contract (Year)			99 years
Capitalized Property Plant and Equipment [Member]
Buildings and Improvements, Gross	22,200
Construction in Progress, Gross	1,600
Facility in Sinton, Texas [Member]
Area of Real Estate Property (Square Foot) | ft²			70,000
Upgrade of Decatur, AL Processing Line [Member]
Construction in Progress, Gross	1,100
Capital Expenditures, Expected Cost	$ 2,100

v3.23.2

Note G - Stock Based Compensation (Details Textual) - USD ($)	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Sep. 01, 2016
Restricted Stock Units (RSUs) [Member]
Share-Based Payment Arrangement, Expense	$ 78,000	$ 73,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount	$ 200,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)	1 year 2 months 12 days
2016 Restricted Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares)			500,000
2016 Restricted Stock Plan [Member] | Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares)	122,485

v3.23.2

Note G - Stock Based Compensation - Restricted Stock Activity (Details) - Restricted Stock [Member]	3 Months Ended
	Jun. 30, 2023 $ / shares shares
Unvested (in shares) | shares	100,366
Unvested (in dollars per share) | $ / shares	$ 6.08
Cancelled or forfeited (in shares) | shares	0
Cancelled or forfeited (in dollars per share) | $ / shares	$ 0
Granted (in shares) | shares	0	[1]
Granted (in dollars per share) | $ / shares	$ 0
Vested (in shares) | shares	0
Vested (in dollars per share) | $ / shares	$ 0
Unvested (in shares) | shares	100,366
Unvested (in dollars per share) | $ / shares	$ 6.08
[1] 50,000 shares were issued out of treasury stock

v3.23.2

Note H - Derivative Financial Instruments (Details Textual) $ in Millions	3 Months Ended
	Jun. 30, 2023 USD ($) GT	Jun. 30, 2022 USD ($)	Mar. 31, 2023 USD ($)
Derivative Asset	$ 0.4		$ 1.6
Other Current Assets [Member]
Derivative Liability, Subject to Master Netting Arrangement, Collateral, Right to Reclaim Cash Not Offset	1.5		$ 2.4
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Reclassification from AOCI, Current Period, Tax	$ 0.1	$ 0.2
Not Designated as Hedging Instrument [Member] | Short [Member]
Derivative, Nonmonetary Notional Amount, Mass (Gigaton) | GT	22,180

v3.23.2

Note H - Derivative Financial Instruments - Net Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Derivative assets	$ 400	$ 1,600
Current Portion of Derivative Assets [Member] | Hot-rolled Coil Future Contracts [Member] | Not Designated as Hedging Instrument [Member] | Short [Member]
Derivative assets	243	536
Current Portion of Derivative Liability [Member] | Hot-rolled Coil Future Contracts [Member] | Not Designated as Hedging Instrument [Member] | Short [Member]
Derivative liabilities	$ 963	$ 2,212

v3.23.2

Note H - Derivative Financial Instruments - Gain (Loss) Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Pre-tax gain (loss) recognized in OCI	$ 0	$ 8,833
Revenue	137,298	161,803
Total	7,690	11,184
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Revenue	(418)
Total		(626)
Hot-rolled Coil Future Contracts [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Revenue	(418)	(626)
Hot-rolled Coil Future Contracts [Member] | Designated as Hedging Instrument [Member]
Pre-tax gain (loss) recognized in OCI	$ 0	$ 8,833

v3.23.2

Note H - Derivative Financial Instruments - Gain (Loss) Recognized in Earnings for Derivative Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Hot-rolled coil steel contracts	$ 956	$ 687
Nonoperating Income (Expense) [Member] | Hot-rolled Coil Steel Contracts [Member]
Hot-rolled coil steel contracts	$ 430	$ 2,754

v3.23.2

Note H - Derivative Financial Instruments - Change in Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($)	3 Months Ended
	Jun. 30, 2023		Jun. 30, 2022
Balance	$ 115,432,000		$ 79,686,000
Net current period other comprehensive income	317,000		7,174,000
Balance	123,369,000		102,715,000
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
Balance	(317,000)		(10,269,000)
Other comprehensive income, net of loss, before reclassification	0		6,699
Total loss reclassified from AOCI (1)	317,000	[1]	475,000	[2]
Net current period other comprehensive income	317,000		7,174,000
Balance	$ 0		$ (3,095,000)
[1] The loss reclassified from AOCI is presented net of tax benefits of approximately $0.1 million which are included in the provision for (benefit from) income taxes on the Company's Consolidated Statement of Operations for the three months ended June 30, 2023. [2] The loss reclassified from AOCI is presented net of tax benefits of approximately $0.2 million which are included in the provision for (benefit from) income taxes on the Company's Consolidated Statement of Operations for the three months ended June 30, 2022.

v3.23.2

Note I - Fair Value Measurements - Recurring Fair Value Measurements (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Mar. 31, 2022
Commodity futures – financial liabilities, net		$ (720)	$ (1,676)
Total		(720)	(1,676)
Fair Value, Inputs, Level 1 [Member]
Commodity futures – financial liabilities, net	$ (720)		(1,676)
Total	(720)		(1,676)
Fair Value, Inputs, Level 2 [Member]
Commodity futures – financial liabilities, net	0		0
Total	$ 0		0
Fair Value, Inputs, Level 3 [Member]
Commodity futures – financial liabilities, net		0	0
Total		$ 0	$ 0

v3.23.2

Note J - Segment Information - Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023
Net Sales	$ 137,298	$ 161,803
Operating profit (loss)	10,357	12,319
Gain on economic hedges of risk	430	2,754
Interest expense	(540)	(429)
Other income	6	13
EARNINGS BEFORE INCOME TAXES	10,253	14,657
Assets	211,402		$ 199,312
Operating Segments [Member]
Operating profit (loss)	14,078	15,647
Assets	205,466		195,638
Corporate, Non-Segment [Member]
General corporate expenses	(3,721)	(3,328)
Assets	5,936		3,674
Coil [Member]
Net Sales	125,197	142,877
Coil [Member] | Operating Segments [Member]
Net Sales	125,197	142,877
Operating profit (loss)	11,814	13,543
Assets	185,303		179,780
Tubular [Member]
Net Sales	12,101	18,926
Tubular [Member] | Operating Segments [Member]
Net Sales	12,101	18,926
Operating profit (loss)	2,264	$ 2,104
Assets	$ 20,163		$ 15,858

v3.23.2

Note K - Revenue (Details Textual)	3 Months Ended
	Jun. 30, 2023
Number of Reportable Segments	2

v3.23.2

Note K - Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Net Sales	$ 137,298	$ 161,803
Coil [Member]
Net Sales	125,197	142,877
Coil [Member] | Prime Coil [Member]
Net Sales	123,822	140,981
Coil [Member] | Secondary Coil [Member]
Net Sales	151	1,531
Coil [Member] | Customer Owned [Member]
Net Sales	1,224	365
Tubular [Member]
Net Sales	12,101	18,926
Tubular [Member] | Manufactured Pipe [Member]
Net Sales	$ 12,101	$ 18,926

v3.23.2

Note L - Stockholders' Equity - Schedule of Stockholders' Equity (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Balance	$ 115,432	$ 79,686
Net earnings	7,690	11,184
Other comprehensive income (loss)	317	7,174
Paid in capital – restricted stock units	78	73
Cash dividends	(148)	(157)
Balance	123,369	102,715
Repurchase of shares		(29)
Plateplus Inc. [Member]
Shares issued - Plateplus business combination		4,784
Common Stock [Member]
Balance	8,869	8,345
Net earnings	0	0
Other comprehensive income (loss)	0	0
Paid in capital – restricted stock units	0	0
Cash dividends	0	0
Balance	8,869	8,861
Repurchase of shares		0
Common Stock [Member] | Plateplus Inc. [Member]
Shares issued - Plateplus business combination		516
AOCI Attributable to Parent [Member]
Balance	(317)	(10,269)
Net earnings	0	0
Other comprehensive income (loss)	317	7,174
Paid in capital – restricted stock units	0	0
Cash dividends	0	0
Balance	0	(3,095)
Repurchase of shares		0
AOCI Attributable to Parent [Member] | Plateplus Inc. [Member]
Shares issued - Plateplus business combination		0
Additional Paid-in Capital [Member]
Balance	35,005	30,442
Net earnings	0	0
Other comprehensive income (loss)	0	0
Paid in capital – restricted stock units	78	73
Cash dividends	0	0
Balance	35,083	34,783
Repurchase of shares		0
Additional Paid-in Capital [Member] | Plateplus Inc. [Member]
Shares issued - Plateplus business combination		4,268
Treasury Stock, Common [Member]
Balance	(7,778)	(7,741)
Net earnings	0	0
Other comprehensive income (loss)	0	0
Paid in capital – restricted stock units	0	0
Cash dividends	0	0
Balance	(7,778)	(7,770)
Shares issued - Plateplus business combination		0
Repurchase of shares		(29)
Retained Earnings [Member]
Balance	79,653	58,909
Net earnings	7,690	11,184
Other comprehensive income (loss)	0	0
Paid in capital – restricted stock units	0	0
Cash dividends	(148)	(157)
Balance	$ 87,195	69,936
Repurchase of shares		0
Retained Earnings [Member] | Plateplus Inc. [Member]
Shares issued - Plateplus business combination		$ 0

v3.23.2

Note L - Stockholders' Equity - Schedule of Stockholders' Equity (Details) (Parentheticals) - $ / shares	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash dividends, per share (in dollars per share)	$ 0.02	$ 0.02

v3.23.2

Note M - Other Comprehensive Income - Summary of Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flow hedges, before tax	$ 418	$ 9,460
Cash flow hedges, tax	(101)	(2,286)
Cash flow hedges	317	7,174
Other comprehensive income (loss), before tax	418	9,460
Other comprehensive income (loss), tax	(101)	(2,286)
Other Comprehensive Income (Loss)	$ 317	$ 7,174

v3.23.2

Note N - Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Net earnings	$ 7,690	$ 11,184
Less: Allocation to unvested restricted stock units	90	196
Net earnings attributable to common shareholders	$ 7,600	$ 10,988
Weighted average common shares outstanding (in shares)	7,288,906	7,071,066

v3.23.2

Note N - Earnings Per Share - Restricted Stock Units (Details) - shares	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Restricted Stock Units (RSUs) [Member]
Restricted Stock Units (in shares)	60,524	69,702

v3.23.2

Note O - Supplemental Cash Flow Information (Details Textual) - USD ($)		3 Months Ended
	Apr. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Interest Paid, Including Capitalized Interest, Operating and Investing Activities		$ 500,000	$ 400,000
Income Taxes Paid, Net		$ 47,000	$ 40,000
Plateplus Inc. [Member]
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)	516,041		516,041
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable			$ 4,784,000

v3.23.2

Note P - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Income Tax Expense (Benefit)	$ 2,563	$ 3,473

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