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Friedman Industries, Incorporated Announces Fourth Quarter and Fiscal Year 2018 Results

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LONGVIEW, Texas, June 28, 2018 (GLOBE NEWSWIRE) -- Friedman Industries, Incorporated (NYSE:FRD), headquartered in Longview, Texas, is a manufacturer and processor of steel products with operating plants in Hickman, Arkansas; Decatur, Alabama and Lone Star, Texas. The Company has two reportable segments; coil products and tubular products. The coil product segment consists of the operations in Hickman and Decatur where the Company processes hot-rolled steel coils using temper mills and cut-to-length lines. The tubular product segment consists of the operations in Lone Star where the Company manufactures electric resistance welded pipe, provides pipe finishing services and distributes pipe.  

The Company announced today its results of operations for the quarter and year ended March 31, 2018. For the year ended March 31, 2018, the Company recorded net earnings of $2,759,404 ($0.39 diluted earnings per share) on sales of $121,157,278. For the year ended March 31, 2017, the Company recorded a net loss of $2,678,684 ($0.39 diluted loss per share) on sales of $77,756,055.

For the quarter ended March 31, 2018, the Company recorded net earnings of $2,155,816 ($0.31 diluted earnings per share) on sales of $43,962,778 compared to a net loss of $376,958 ($0.06 loss per share diluted) on net sales of $21,056,040 for the quarter ended March 31, 2017.

SUMMARY OF OPERATIONS            
                 
     Three Months Ended March 31,     Year Ended March 31, 
      2018     2017       2018     2017  
                 
Net Sales   $   43,962,778   $   21,056,040     $   121,157,278   $   77,756,055  
                 
Total costs and              
  other income     41,247,746       21,558,099         117,089,984       81,906,871  
                 
Earnings (loss) before              
  income taxes     2,715,032       (502,059 )       4,067,294       (4,150,816 )
                 
Income taxes     559,216       (125,101 )       1,307,890       (1,472,132 )
                 
                 
Net earnings (loss) $   2,155,816   $   (376,958 )   $   2,759,404   $   (2,678,684 )
                 
Weighted average shares outstanding:            
  Basic       7,009,444       6,851,944         7,009,444       6,851,944  
  Diluted       7,009,444       6,851,944         7,009,444       6,851,944  
                 
Net earnings (loss) per share:            
  Basic   $   0.31   $   (0.06 )   $   0.39   $   (0.39 )
  Diluted   $   0.31   $   (0.06 )   $   0.39   $   (0.39 )

The improved fiscal 2018 results were driven by an increased volume of shipments for both the coil and tubular segments. For fiscal 2018, coil segment sales volume increased 19% and tubular segment sales volume increased 98% compared to fiscal 2017 volumes. The Company experienced improved demand throughout fiscal 2018 with a more notable increase during the fourth quarter associated with reactions to the Section 232 steel trade actions and the first full quarter of marketing API line pipe. Management expects results for the first quarter of fiscal 2019 to be positively impacted by the continuation of these conditions.

For further information, please refer to the Company's Form 10-K as filed with the U.S. Securities and Exchange Commission on June 28, 2018 or contact Alex LaRue, Chief Financial Officer – Secretary and Treasurer, at (903)758-3431.

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