0001193125-14-233511.txt : 20140624 0001193125-14-233511.hdr.sgml : 20140624 20140611165952 ACCESSION NUMBER: 0001193125-14-233511 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 16 CONFORMED PERIOD OF REPORT: 20140331 FILED AS OF DATE: 20140611 DATE AS OF CHANGE: 20140611 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FRIEDMAN INDUSTRIES INC CENTRAL INDEX KEY: 0000039092 STANDARD INDUSTRIAL CLASSIFICATION: STEEL WORKS, BLAST FURNACES & ROLLING & FINISHING MILLS [3310] IRS NUMBER: 741504405 STATE OF INCORPORATION: TX FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07521 FILM NUMBER: 14905219 BUSINESS ADDRESS: STREET 1: 19747 HWY 59 NORTH, SUITE 200 CITY: HUMBLE STATE: TX ZIP: 77338 BUSINESS PHONE: 7136729433 MAIL ADDRESS: STREET 1: PO BOX 62388 CITY: HOUSTON STATE: TX ZIP: 77205 10-K 1 d720436d10k.htm 10-K 10-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

 

x Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended March 31, 2014

 

¨ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from                      to                     

Commission File No. 1-7521

FRIEDMAN INDUSTRIES, INCORPORATED

(Exact name of registrant as specified in its charter)

 

Texas   74-1504405

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

19747 Hwy 59 N Suite 200, Humble, TX   77338
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (713) 672-9433

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Name of each exchange
on which registered

Common Stock, $1 Par Value   NYSE MKT

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes                   No     X    

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes                   No     X    

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes     X            No           

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes     X            No           

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

    X    

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer  (  )   Accelerated filer  (  )   Non-accelerated filer  (  )   Smaller reporting company  (X)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes                   No     X    

The aggregate market value of the Common Stock held by non-affiliates of the registrant as of September 30, 2013 (computed by reference to the closing price on such date) was approximately $66,966,000.

The number of shares of the registrant’s Common Stock outstanding at June 11, 2014 was 6,799,444 shares.

 

 

 


DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Annual Report to Shareholders of Friedman Industries, Incorporated for the fiscal year ended March 31, 2014 — Part II.

Proxy Statement for the 2014 Annual Meeting of Shareholders of Friedman Industries, Incorporated — Part III.

PART I

 

Item 1.  Business

Friedman Industries, Incorporated (the “Company”), a Texas corporation incorporated in 1965, is engaged in steel processing, pipe manufacturing and processing and steel and pipe distribution.

The Company has two product groups: coil and tubular products. Significant financial information relating to the Company’s product groups for the last two years is contained in Note 7 of the Consolidated Financial Statements included in the Company’s Annual Report to Shareholders for the fiscal year ended March 31, 2014, which financial statements are incorporated herein by reference in Item 8 hereof.

Coil Products

The Company purchases prime hot-rolled steel coils, processes the coils into flat, finished sheet and plate and sells these products on a wholesale, rapid-delivery basis in competition with steel mills, importers and steel service centers.

The Company owns and operates two coil processing facilities located in Hickman, Arkansas (“Hickman”) and Decatur, Alabama (“Decatur”). Each facility operates a cut-to-length line and a steel temper mill. The cut-to-length lines are designed to level the steel and cut the material to prescribed lengths. The steel temper mills are designed to improve the flatness of the steel and its surface qualities. The Company’s processing machinery is heavy, mill-type equipment capable of processing coils weighing up to 25 tons. Coils are processed to the specifications required for a particular order. Shipments are made via unaffiliated truckers or by rail and can generally be made within 48 hours of the receipt of a customer’s order.

The Hickman and Decatur facilities are functionally equivalent with respect to machinery, equipment, capacities and products produced. The Company makes shipments of coil products based on which facility offers the desired product or, if the product is available at both facilities, based on other factors, such as customer location, freight conditions and the ability of the facility to fulfill the order on a timely basis.

The Company also purchases and markets non-standard hot-rolled steel coils through its XSCP Division (“XSCP”). XSCP routinely processes non-standard coils into flat, finished sheet and plate. XSCP operates from the Company’s Hickman and Decatur coil processing facilities and shares certain expenses and employees with Hickman and Decatur. In addition, Hickman and Decatur provide warehousing, processing and distribution services to XSCP.

The Company primarily purchases hot-rolled steel coils from steel mills operated by Nucor Steel Company (“NSC”) located near the Hickman and Decatur processing facilities. Loss of NSC as a source of coil supply could have a material adverse effect on the Company’s business.

The Company also processes customer-owned coils on a fee basis. Revenues generated from processing customer-owned coils are not material to the Company’s results of operations and financial condition.

Tubular Products

Through its Texas Tubular Products Division (“TTP”) in Lone Star, Texas, the Company manufactures, purchases, processes and markets tubular products (“pipe”).

TTP operates two pipe mills. Both pipe mill #1 and pipe mill #2 are American Petroleum Institute-licensed to manufacture line and oil country pipe and also manufacture pipe for structural and piling purposes that meet other recognized industry standards. TTP also employs various pipe processing equipment, including beveling machines, pipe handling equipment and other related machinery.

 

2


In recent years, the Company has purchased steel coils from U.S. Steel Tubular Products, Inc. (“USS”), an affiliate of United States Steel Corporation, converted these coils into line and oil country pipe, and sold this pipe to USS pursuant to orders received from USS. The Company has also purchased pipe from USS and marketed it to other customers for structural and other miscellaneous applications. In addition, the Company manufactures pipe and markets it to other customers for structural and other miscellaneous applications.

Loss of USS as a supplier or customer could have a material adverse effect on the Company’s business. The Company can make no assurances as to orders from USS or the amounts of pipe and coil material that will be available from USS in the future.

Marketing

The following table sets forth the approximate percentage of total sales contributed by each group of products and services during each of the Company’s last two fiscal years:

 

Product and Service Groups

   2014     2013  

Coil Products

     57     49

Tubular Products

     43     51

Coil Products.  The Company sells coil products and processing services to approximately 160 customers located primarily in the midwestern, southwestern and southeastern regions of the United States. The Company’s principal customers for these products and services are steel distributors and customers fabricating steel products such as storage tanks, steel buildings, farm machinery and equipment, construction equipment, transportation equipment, conveyors and other similar products. During the fiscal years ended March 31, 2014 and 2013, five and seven customers of coil products, respectively, accounted for approximately 25% of the Company’s total sales. Sales of coil products to Trinity Industries, Inc. accounted for approximately 14% and 11% of the Company’s total sales in fiscal 2014 and 2013, respectively.

The Company sells substantially all of its coil products through its own sales force. At March 31, 2014, the sales force was comprised of a vice president and three professional sales personnel under the direction of the Senior Vice President — Sales and Marketing. Sales personnel are paid on a salary and commission basis.

The Company regularly contracts on a quarterly basis with many of its larger customers to supply minimum quantities of steel.

Tubular Products.  The Company sells its tubular products nationally to approximately 140 customers. The Company’s principal customers for these products are steel and pipe distributors, piling contractors and, historically, USS. Sales of pipe to USS accounted for approximately 15% and 14% of the Company’s total sales in fiscal 2014 and 2013, respectively. The Company can make no assurances as to the amount of future sales to USS.

The Company sells its tubular products through its own sales force comprised of a sales manager and three professional sales personnel under the direction of the Senior Vice President —Sales and Marketing. Sales personnel are paid on a salary and commission basis.

Competition

The Company is engaged in a non-seasonal, highly-competitive business. The Company competes with steel mills, importers and steel service centers. The steel industry, in general, is characterized by a small number of extremely large companies dominating the bulk of the market and a large number of relatively small companies, such as the Company, competing for a limited share of such market.

The Company believes that, generally, its ability to compete is dependent upon its ability to offer products at prices competitive with or below those of other steel suppliers, as well as its ability to provide products meeting customer specifications on a rapid-delivery basis.

 

3


Employees

At March 31, 2014, the Company had approximately 100 full-time employees.

Executive Officers of the Company

The following table sets forth as of March 31, 2014, for each executive officer of the Company, the name, age, officer positions and arrangements with other persons regarding his selection as an officer, if any, and the period during which such officer has served in such capacity:

 

Name

  

Age

    

Position, Offices with the Company

and Other Arrangements, if any

William E. Crow

     66      

Chief Executive Officer since 2006 and President since 1995; formerly Chief Operating Officer since 1995, Vice President since 1981 and President of Texas Tubular Products Division since August 1990

Thomas Thompson

     63      

Senior Vice President — Sales and Marketing since 1995: formerly Vice President — Sales since 1990

Alex LaRue

     28      

Assistant Vice President — Secretary and Treasurer since 2013; formerly Controller — Texas Tubular Products since 2011

Item 1A.  Risk Factors

Not required.

Item 1B.  Unresolved Staff Comments

Not required.

Item 2.  Properties

The principal real properties of the Company are described in the following table:

 

                        Location  

Approximate

Size

  

Ownership

Lone Star, Texas     

Plant — Texas Tubular Products

  118,260 sq. feet    Owned(1)

Offices — Texas Tubular Products

  9,200 sq. feet    Owned(1)

Land — Texas Tubular Products

  122.43 acres    Owned(1)
Longview, Texas     

Offices

  2,600 sq. feet    Leased(2)
Humble, TX     

Offices

  2,500 sq. feet    Leased(3)
Hickman, Arkansas     

Plant and Warehouse — Coil Products

  42,600 sq. feet    Owned(1)

Offices — Coil Products

  2,500 sq. feet    Owned(1)

Land — Coil Products

  26.19 acres    Owned(1)
Decatur, Alabama     

Plant and Warehouse — Coil Products

  48,000 sq. feet    Owned(1)

Offices — Coil Products

  2,000 sq. feet    Owned(1)

Land — Coil Products

  47.30 acres    Owned(1)

 

(1) All of the Company’s owned real properties, plants and offices are held in fee and are not subject to any mortgage or deed of trust.

 

(2) The office lease is with a non-affiliated party, expires on April 30, 2018, and provides for an annual rental payment by the Company of $32,736.

 

(3) The office lease is with a non-affiliated party, expires on December 31, 2016, and provides for an annual rental payment by the Company of $37,826.

 

4


Item 3.  Legal Proceedings

The Company is not a party to, nor is its property the subject of, any material pending legal proceedings.

 

5


PART II

Item 5.  Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

The Company’s Common Stock is traded principally on the NYSE MKT (Symbol: FRD).

Reference is hereby made to the sections of the Company’s Annual Report to Shareholders for the fiscal year ended March 31, 2014, entitled “Description of Business — Range of High and Low Sales Prices of Common Stock” and “Description of Business — Cash Dividends Declared Per Share of Common Stock”, which sections are hereby incorporated herein by reference.

The approximate number of shareholders of record of Common Stock of the Company as of May 23, 2014 was 260.

Item 6.  Selected Financial Data

Not required.

Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

Information with respect to Item 7 is hereby incorporated herein by reference from the section of the Company’s Annual Report to Shareholders for the fiscal year ended March 31, 2014, entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations”.

Item 7A.  Quantitative and Qualitative Disclosures about Market Risk

Not required.

Item 8.  Financial Statements and Supplementary Data

The following financial statements and notes thereto of the Company included in the Company’s Annual Report to Shareholders for the fiscal year ended March 31, 2014, are hereby incorporated herein by reference:

Consolidated Balance Sheets — March 31, 2014 and 2013

Consolidated Statements of Earnings — Years ended March 31, 2014 and 2013

Consolidated Statements of Stockholders’ Equity — Years ended March 31, 2014 and 2013

Consolidated Statements of Cash Flows — Years ended March 31, 2014 and 2013

Notes to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm

Information with respect to supplementary financial information relating to the Company appears in Note 8 — Summary of Quarterly Results of Operations (Unaudited) of the Notes to Consolidated Financial Statements incorporated herein by reference above in this Item 8 from the Company’s Annual Report to Shareholders for the fiscal year ended March 31, 2014.

The following supplementary schedule for the Company for the year ended March 31, 2014, is included elsewhere in this report:

Schedule II — Valuation and Qualifying Accounts

All other schedules for which provision is made in the applicable accounting regulation of the U.S. Securities and Exchange Commission (the “SEC”) are not required under the related instructions or are inapplicable and, therefore, have been omitted.

 

6


Item 9.  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company’s management, with the participation of the Company’s principal executive officer (“CEO”) and principal financial officer, evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on this evaluation, the CEO and principal financial officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures were effective to ensure that information that is required to be disclosed by the Company in the reports it files or submits under the Exchange Act is (i) recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to the Company’s management, including the CEO and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Internal Control Over Financial Reporting

Management’s report on internal control over financial reporting appears on page 14 of the Company’s Annual Report to Shareholders for the year ended March 31, 2014, which is incorporated herein by reference. This Annual Report on Form 10-K does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s independent registered public accounting firm pursuant to the rules of the SEC that permit the Company to provide only management’s report in this Annual Report.

There were no changes in the Company’s internal control over financial reporting that occurred during the fiscal quarter ended March 31, 2014 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Item 9B.  Other Information

None.

 

7


PART III

Item 10.  Directors, Executive Officers and Corporate Governance

Except as otherwise set forth below, information with respect to Item 10 is hereby incorporated herein by reference from the Company’s proxy statement in respect of the 2014 Annual Meeting of Shareholders, definitive copies of which are expected to be filed with the SEC on or before 120 days after the end of the Company’s 2014 fiscal year.

Information with respect to Item 10 regarding executive officers is hereby incorporated by reference from the information set forth under the caption “Executive Officers of the Company” in Item 1 of this Annual Report on Form 10-K.

The Company has adopted the Friedman Industries, Incorporated Code of Conduct and Ethics (the “Code”), which applies to the Company’s employees, directors and officers, including its principal executive officer, principal financial officer, principal accounting officer or controller or persons performing similar functions. A copy of the Code is filed as an exhibit hereto.

Item 11.  Executive Compensation

Information with respect to Item 11 is hereby incorporated herein by reference from the Company’s proxy statement in respect of the 2014 Annual Meeting of Shareholders, definitive copies of which are expected to be filed with the SEC on or before 120 days after the end of the Company’s 2014 fiscal year.

 

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Equity Compensation Plan Information

The Company had no equity compensation plans as of March 31, 2014.

Security Ownership Information

The additional information with respect to Item 12 regarding the security ownership of certain beneficial owners and management, and related matters, is hereby incorporated herein by reference from the Company’s proxy statement in respect to the 2014 Annual Meeting of Shareholders, definitive copies of which are expected to be filed with the SEC on or before 120 days after the end of the Company’s 2014 fiscal year.

Item 13.  Certain Relationships, Related Transactions and Director Independence

Information with respect to Item 13 is hereby incorporated herein by reference from the Company’s proxy statement in respect of the 2014 Annual Meeting of Shareholders, definitive copies of which are expected to be filed with the SEC on or before 120 days after the end of the Company’s 2014 fiscal year.

Item 14.  Principal Accountant Fees and Services

Information with respect to Item 14 is hereby incorporated herein by reference from the Company’s proxy statement in respect of the 2014 Annual Meeting of Shareholders, definitive copies of which are expected to be filed with the SEC on or before 120 days after the end of the Company’s 2014 fiscal year.

 

8


PART IV

Item 15.  Exhibits and Financial Statement Schedules

(a)  Documents included in this report

1.  Financial Statements

The following financial statements and notes thereto of the Company are included in the Company’s Annual Report to Shareholders for the fiscal year ended March 31, 2014, which is incorporated herein by reference:

Consolidated Balance Sheets — March 31, 2014 and 2013

Consolidated Statements of Earnings — Years ended March 31, 2014 and 2013

Consolidated Statements of Stockholders’ Equity — Years end March 31, 2014 and 2013

Consolidated Statements of Cash Flows — Years ended March 31, 2014 and 2013

Notes to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm

2.  Financial Statement Schedules

The following financial statement schedule of the Company is included in this report at page S-1:

Schedule II — Valuation and Qualifying Accounts

All other schedules for which provision is made in the applicable accounting regulations of the SEC are not required under the related instructions or are inapplicable and, therefore, have been omitted.

3.  Exhibits

 

Exhibit

No.

      

Description

     3.1     Articles of Incorporation of the Company, as amended (filed as an exhibit to and incorporated by reference from the Company’s Annual Report on Form 10-K for the year ended March 31, 1982).
     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 (filed as an exhibit to and incorporated by reference from the Company’s Annual Report on Form 10-K for the year ended March 31, 1988).
     3.3     Amended and Restated Bylaws of the Company (incorporated by reference from Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on February 9, 2006).
**13.1     The Company’s Annual Report to Shareholders for the fiscal year ended March 31, 2014.
**14.1     Friedman Industries, Incorporated Code of Conduct and Ethics.
**21.1     List of Subsidiaries.
**31.1     Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by William E. Crow.
**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 William E. Crow.
**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     XBRL Instance Document.
**101.SCH     XBRL Taxonomy Schema Document.

 

9


Exhibit

No.

      

Description

**101.CAL     XBRL Calculation Linkbase Document.
**101.DEF     XBRL Definition Linkbase Document.
**101.LAB     XBRL Label Linkbase Document.
**101.PRE     XBRL Presentation Linkbase Document.

 

** Filed herewith.

Copies of exhibits filed as a part of this Annual Report on Form 10-K may be obtained by shareholders of record at a charge of $.10 per page. Direct inquiries to: Alex LaRue, Assistant Vice President — Secretary & Treasurer, Friedman Industries, Incorporated, P.O. Box 62388, Houston, Texas 77205.

 

10


SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, Friedman Industries, Incorporated has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

FRIEDMAN INDUSTRIES, INCORPORATED
By:  

/s/    William E. Crow          

  William E. Crow
  Chief Executive Officer and
  President

Dated: June 11, 2014

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of Friedman Industries, Incorporated in the capacities and on the dates indicated.

 

Signature

  

Title

 

Date

/s/    WILLIAM E. CROW        

William E. Crow

  

Chief Executive Officer and President and Director (Principal Executive

Officer)

  June 11, 2014

/S/    ALEX LARUE        

Alex LaRue

  

Assistant Vice President — Secretary & Treasurer (Principal Financial Officer)

  June 11, 2014

/S/    DURGA D. AGRAWAL        

Durga D. Agrawal

   Director   June 11, 2014

/S/    CHARLES W. HALL        

Charles W. Hall

   Director   June 11, 2014

/S/    ALAN M. RAUCH        

Alan M. Rauch

   Director   June 11, 2014

/S/    MAX REICHENTHAL        

Max Reichenthal

   Director   June 11, 2014

/S/    JOEL SPIRA        

Joel Spira

   Director   June 11, 2014

/S/    JOE L. WILLIAMS        

Joe L. Williams

   Director   June 11, 2014

 

11


SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

FRIEDMAN INDUSTRIES, INCORPORATED

 

Column A

  Column B     Column C     Column D     Column E  

Description

  Balance at
Beginning
of Period
    Additions     Deductions—
Describe(B)
    Balance at
End of Period
 
    Charged to
Costs and
Expenses
    Charged to
Other Accounts—
Describe(A)
     

Year ended March 31, 2014

Allowance for doubtful accounts receivable and cash discounts (deducted from related asset account)

  $ 37,276      $ 12,363      $ 541,556      $ 563,919      $ 27,276   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Year ended March 31, 2013

Allowance for doubtful accounts receivable and cash discounts (deducted from related asset account)

  $ 37,276      $      $ 736,502      $ 736,502      $ 37,276   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

(A) Cash discounts allowed on sales and charged against revenue.

 

(B) Accounts receivable written off and cash discounts allowed on sales.

 

S-1


EXHIBIT INDEX

 

Exhibit

No.

           

Description

        3.1               Articles of Incorporation of the Company, as amended (filed as an exhibit to and incorporated by reference from the Company’s Annual Report on Form 10-K for the year ended March 31, 1982).
        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 (filed as an exhibit to and incorporated by reference from the Company’s Annual Report on Form 10-K for the year ended March 31, 1988).
        3.3               Amended and Restated Bylaws of the Company (incorporated by reference from Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on February 9, 2006).
    **13.1               The Company’s Annual Report to Shareholders for the fiscal year ended March 31, 2014.
    **14.1               Friedman Industries, Incorporated Code of Conduct and Ethics.
    **21.1               List of Subsidiaries.
    **31.1               Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, signed by William E. Crow.
    **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 William E. Crow.
    **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               XBRL Instance Document.
  **101.SCH               XBRL Taxonomy Schema Document.
  **101.CAL               XBRL Calculation Linkbase Document.
  **101.DEF               XBRL Definition Linkbase Document.
  **101.LAB               XBRL Label Linkbase Document.
  **101.PRE               XBRL Presentation Linkbase Document.

 

** Filed herewith.

Copies of exhibits filed as a part of this Annual Report on Form 10-K may be obtained by shareholders of record at a charge of $.10 per page. Direct inquiries to: Alex LaRue, Assistant Vice President — Secretary & Treasurer, Friedman Industries, Incorporated, P.O. Box 62388, Houston, Texas 77205.

EX-13.1 2 d720436dex131.htm EX-13.1 EX-13.1

EXHIBIT 13.1

THE COMPANY’S ANNUAL

REPORT TO SHAREHOLDERS FOR

THE FISCAL YEAR ENDED MARCH 31, 2014


FRIEDMAN

INDUSTRIES,

INCORPORATED

2014

ANNUAL REPORT


FRIEDMAN INDUSTRIES, INCORPORATED

 

 

FINANCIAL HIGHLIGHTS

 

     2014      2013  

Net sales

   $ 116,149,022       $ 136,448,786   

Net earnings

   $ 1,712,926       $ 6,135,812   

Net earnings per share (Basic)

   $ 0.25       $ 0.90   

Cash dividends per share

   $ 0.20       $ 0.97   

Stockholders’ equity

   $ 63,310,656       $ 62,957,619   

Working capital

   $ 52,075,979       $ 51,971,475   

TO OUR SHAREHOLDERS:

Friedman Industries, Incorporated (the “Company”) experienced positive earnings in fiscal 2014 despite a challenging marketplace for the Company’s products. The Company earned $1,712,926 ($0.25 per share diluted) on sales of $116,149,022 in fiscal 2014 compared to earnings of $6,135,812 ($0.90 per share diluted) on sales of $136,448,786 in fiscal 2013. Earnings were attributable to the Company’s tubular product segment. The Company experienced soft market conditions for its products and services in fiscal 2014.

The steel industry, as a whole, is cyclical. Currently, the Company is experiencing volatility in the market for its products and services as a result of oversupply, foreign competition and the slow recovery of the U.S. economy. Management is focused on balancing operational requirements with changing market conditions.

Construction continues on the pipe-finishing facility to be located in Lone Star, Texas as a component of the Company’s Texas Tubular Products division. The facility will focus primarily on threading and coupling oil country tubular goods. The Company expects the facility to be completed and operational in the fourth quarter of fiscal 2015.

You are invited to attend the Annual Meeting of Shareholders scheduled to start at 11:00 a.m. (Central Time) on Thursday, August 28, 2014, in the offices of Fulbright & Jaworski LLP, 1301 McKinney, 51st Floor, Houston, Texas 77010.

Sincerely,

 

LOGO

William E. Crow

Chief Executive Officer and President

 

1


FRIEDMAN INDUSTRIES, INCORPORATED

 

 

OFFICERS

William E. Crow

Chief Executive Officer and

President

Thomas N. Thompson

Senior Vice President — Sales and Marketing

Benny B. Harper

Vice President

Ronald L. Burgerson

Vice President

Howard Henderson

Vice President of Operations — Texas Tubular Division

Robert McCain

Vice President — Decatur Facility

Dale Ray

Vice President

Robert Sparkman

Vice President of Sales — Coil Divisions

Steve Teeter

Vice President — Hickman Facility

Alex LaRue

Assistant Vice President — Secretary & Treasurer

Charles W. Hall

Assistant Secretary

COMPANY OFFICES AND WEB SITE

    CORPORATE OFFICE

    P.O. Box 62388

    Houston, Texas 77205

    713-672-9433

    SALES OFFICE — COIL PRODUCTS

    1121 Judson Road, Suite 124

    Longview, Texas 75601

    903-758-3431

    SALES OFFICE — TUBULAR PRODUCTS

    P.O. Box 0388

    Lone Star, Texas 75668

    903-639-2511

    WEB SITE

    www.friedmanindustries.com

COUNSEL

Fulbright & Jaworski LLP

1301 McKinney, Suite 5100

Houston, Texas 77010

AUDITORS

Hein & Associates LLP

500 Dallas Street, Suite 2500

Houston, TX 77002

TRANSFER AGENT AND REGISTRAR

American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, NY 11219

DIRECTORS

William E. Crow

Chief Executive Officer and

President

Longview, Texas

Durga D. Agrawal

President, Piping Technology & Products, Inc. (pipe fabrication)

Houston, Texas

Charles W. Hall

Fulbright & Jaworski LLP (law firm)

Houston, Texas

Alan M. Rauch

President, Ener-Tex

International, Inc.

(oilfield equipment sales)

Houston, Texas

Max Reichenthal

President, Texas Iron and Metal

(steel product sales)

Houston, Texas

Joel Spira

Private investor; formerly, Partner, Weinstein Spira & Company (accounting firm)

Houston, Texas

Joe L. Williams

Partner, PozmantierWilliams Insurance Consultants, LLC

(insurance and risk management consultants)

Houston, Texas

ANNUAL REPORT ON FORM 10-K

Shareholders may obtain without charge a copy of the Company’s Annual Report on Form 10-K for the year ended March 31, 2014 as filed with the U.S. Securities and Exchange Commission. Written requests should be addressed to: Alex LaRue, Assistant Vice President — Secretary & Treasurer, Friedman Industries, Incorporated, P.O. Box 62388, Houston, Texas 77205.

 

 

2


FRIEDMAN INDUSTRIES, INCORPORATED

 

DESCRIPTION OF BUSINESS

Friedman Industries, Incorporated (the “Company”) is engaged in steel processing, pipe manufacturing and processing and steel and pipe distribution.

At its coil processing facilities in Hickman, Arkansas (“Hickman”) and Decatur, Alabama (“Decatur”), the Company processes hot-rolled steel coils into flat, finished sheet and plate and sells these products on a wholesale, rapid-delivery basis in competition with steel mills, importers and steel service centers. The Company’s XSCP Division (“XSCP”) purchases and markets non-standard hot-rolled coils. XSCP routinely processes non-standard coils into flat, finished sheet and plate. XSCP operates at both Hickman and Decatur, which provide personnel, warehousing, processing and distribution services to XSCP. The Company purchases a substantial amount of its annual coil tonnage from Nucor Steel Company (“NSC”). Loss of NSC as a source of coil supply could have a material adverse effect on the Company’s business. The Company also processes customer-owned coils on a fee basis. Revenues generated from processing customer-owned coils are not material to the Company’s results of operations and financial condition.

The Company sells its coil products and processing services directly through the Company’s own sales force to approximately 160 customers located primarily in the midwestern, southwestern and southeastern regions of the United States. These products and services are sold principally to steel distributors and to customers fabricating steel products such as storage tanks, steel buildings, farm machinery and equipment, construction equipment, transportation equipment, conveyors and other similar products.

The Company, through its Texas Tubular Products Division (“TTP”) located in Lone Star, Texas, manufactures, purchases, processes and markets tubular products (“pipe”). The Company sells pipe nationally to approximately 140 customers including, in recent years, a substantial amount of manufactured pipe to U.S. Steel Tubular Products, Inc. (“USS”), an affiliate of United States Steel Corporation. The Company also purchases a substantial portion of its annual supply of pipe and coil material used in pipe production from USS. Loss of USS as a supplier or customer could have a material adverse effect on the Company’s business. The Company can make no assurances as to orders from USS or the amounts of pipe and coil material that will be available from USS in the future.

Significant financial information relating to the Company’s two product groups, coil and tubular products, is contained in Note 7 of the Notes to the Company’s Consolidated Financial Statements appearing herein.

 

 

RANGE OF HIGH AND LOW SALES PRICES OF COMMON STOCK

 

     Fiscal 2014        Fiscal 2013  
     High        Low        High        Low  

First Quarter

   $ 10.12         $ 9.00         $ 11.93         $ 9.81   

Second Quarter

     10.36           9.56           10.64           8.95   

Third Quarter

     10.23           8.31           10.94           9.26   

Fourth Quarter

     9.00           7.87           11.98           9.67   

 

 

CASH DIVIDENDS DECLARED PER SHARE OF COMMON STOCK

 

     Fiscal 2014        Fiscal 2013  

First Quarter

   $ .08         $ .13   

Second Quarter

     .08           .13   

Third Quarter

     .02           .13   

Special

               .50   

Fourth Quarter

     .02           .08   

 

 

The Company’s Common Stock is traded principally on the NYSE MKT (trading symbol FRD).

The approximate number of shareholders of record of the Company as of May 23, 2014 was 260.

 

3


FRIEDMAN INDUSTRIES, INCORPORATED

 

CONSOLIDATED BALANCE SHEETS

ASSETS

 

     March 31  
     2014     2013  

CURRENT ASSETS:

    

Cash

   $ 15,081,024      $ 15,923,294   

Accounts receivable, net of allowances for bad debts and cash discounts of $27,276 and $37,276 at March 31, 2014 and 2013, respectively

     9,347,289        9,037,548   

Inventories

     35,288,559        39,219,168   

Other

     129,796        103,547   
  

 

 

   

 

 

 

TOTAL CURRENT ASSETS

     59,846,668        64,283,557   

PROPERTY, PLANT AND EQUIPMENT:

    

Land

     1,410,689        1,082,331   

Buildings and yard improvements

     7,113,482        7,014,180   

Machinery and equipment

     31,773,161        30,293,590   

Less accumulated depreciation

     (28,934,601     (27,111,529
  

 

 

   

 

 

 
     11,362,731        11,278,572   

OTHER ASSETS:

    

Cash value of officers’ life insurance and other assets

     1,075,000        1,013,000   
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 72,284,399      $ 76,575,129   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

     March 31  
     2014     2013  

CURRENT LIABILITIES:

    

Accounts payable and accrued expenses

   $ 7,206,340      $ 11,181,804   

Dividends payable

     135,989        543,956   

Contribution to profit sharing plan

     52,500        52,500   

Employee compensation and related expenses

     375,860        533,822   
  

 

 

   

 

 

 

TOTAL CURRENT LIABILITIES

     7,770,689        12,312,082   

DEFERRED INCOME TAXES

     189,998        362,279   

POSTRETIREMENT BENEFITS OTHER THAN PENSIONS

     1,013,056        943,149   

STOCKHOLDERS’ EQUITY:

    

Common stock, par value $1:

    

Authorized shares — 10,000,000

    

Issued shares — 7,975,160 at March 31, 2014 and 2013, respectively

     7,975,160        7,975,160   

Additional paid-in capital

     29,003,674        29,003,674   

Treasury stock at cost (1,175,716 shares at March 31, 2014 and 2013, respectively)

     (5,475,964     (5,475,964

Retained earnings

     31,807,786        31,454,749   
  

 

 

   

 

 

 

TOTAL STOCKHOLDERS’ EQUITY

     63,310,656        62,957,619   
  

 

 

   

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   $ 72,284,399      $ 76,575,129   
  

 

 

   

 

 

 

See accompanying notes.

 

4


FRIEDMAN INDUSTRIES, INCORPORATED

 

CONSOLIDATED STATEMENTS OF EARNINGS

 

 

     Year Ended March 31  
     2014     2013  

Net sales

   $ 116,149,022      $ 136,448,786   

Costs and expenses:

    

Cost of products sold

     109,086,539        122,047,302   

Selling, general and administrative

     4,587,787        5,314,971   
  

 

 

   

 

 

 
     113,674,326        127,362,273   
  

 

 

   

 

 

 
     2,474,696        9,086,513   

Interest and other income

     62,012        58,764   
  

 

 

   

 

 

 

EARNINGS BEFORE INCOME TAXES

     2,536,708        9,145,277   

Income taxes:

    

Current

     996,063        3,093,185   

Deferred

     (172,281     (83,720
  

 

 

   

 

 

 
     823,782        3,009,465   
  

 

 

   

 

 

 

NET EARNINGS

   $ 1,712,926      $ 6,135,812   
  

 

 

   

 

 

 

Weighted average number of common shares outstanding:

    

Basic

     6,799,444        6,799,444   

Diluted

     6,799,444        6,799,444   

Net earnings per share:

    

Basic

   $ 0.25      $ 0.90   

Diluted

   $ 0.25      $ 0.90   

CONSOLIDATED STATEMENTS OF

STOCKHOLDERS’ EQUITY

 

     Common
Stock
     Additional
Paid-In
Capital
     Treasury
Stock
    Retained
Earnings
 

BALANCE AT MARCH 31, 2012

   $ 7,975,160       $ 29,003,674       $ (5,475,964   $ 31,914,398   

Net earnings

                            6,135,812   

Cash dividends ($0.97)

                            (6,595,461
  

 

 

    

 

 

    

 

 

   

 

 

 

BALANCE AT MARCH 31, 2013

     7,975,160         29,003,674         (5,475,964     31,454,749   

Net earnings

                            1,712,926   

Cash dividends ($0.20)

                            (1,359,889
  

 

 

    

 

 

    

 

 

   

 

 

 

BALANCE AT MARCH 31, 2014

   $ 7,975,160       $ 29,003,674       $ (5,475,964   $ 31,807,786   
  

 

 

    

 

 

    

 

 

   

 

 

 

See accompanying notes.

 

5


FRIEDMAN INDUSTRIES, INCORPORATED

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

    Year Ended March 31  
    2014     2013  

OPERATING ACTIVITIES

   

Net earnings

  $ 1,712,926      $ 6,135,812   

Adjustments to reconcile net earnings to net cash provided by operating activities:

   

Depreciation

    1,823,072        1,790,041   

Deferred taxes

    (172,281     (83,720

Change in post-retirement benefits other than pensions

    69,907        89,411   

Changes in operating assets and liabilities:

   

Accounts receivable, net

    (309,741     7,246,829   

Inventories

    3,930,609        (2,465,488

Other

    (26,249     (15,261

Accounts payable and accrued expenses

    (3,975,464     (909,350

Employee compensation and related expenses

    (157,962     (193,520

Income taxes payable

           (98,464
 

 

 

   

 

 

 

Net cash provided by operating activities

    2,894,817        11,496,290   

INVESTING ACTIVITIES

   

Purchase of property, plant and equipment

    (1,907,231     (499,486

Proceeds from sales of assets

           42,375   

Increase in cash value of officers’ life insurance

    (62,000     (62,000
 

 

 

   

 

 

 

Net cash used in investing activities

    (1,969,231     (519,111

FINANCING ACTIVITIES

   

Cash dividends paid

    (1,767,856     (6,935,433
 

 

 

   

 

 

 

Net cash used in financing activities

    (1,767,856     (6,935,433
 

 

 

   

 

 

 

Increase (decrease) in cash

    (842,270     4,041,746   

Cash at beginning of year

    15,923,294        11,881,548   
 

 

 

   

 

 

 

Cash at end of year

  $ 15,081,024      $ 15,923,294   
 

 

 

   

 

 

 

See accompanying notes.

 

6


FRIEDMAN INDUSTRIES, INCORPORATED

 

NOTES TO CONSOLIDATED

FINANCIAL STATEMENTS

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF CONSOLIDATION:    The consolidated financial statements include the accounts of Friedman Industries, Incorporated and its subsidiary (collectively, the “Company”). All material intercompany amounts and transactions have been eliminated.

REVENUE RECOGNITION:    Revenue from sales of products is recognized at the time that title and the risks and rewards of ownership pass, which is on the date of shipment. This date is when the terms of customers’ arrangements are met, the sales price is fixed or determinable and collection is reasonably assured.

TRADE RECEIVABLES:    The Company’s receivables are recorded when billed, advanced or accrued and represent claims against third parties that will be settled in cash. The carrying value of the Company’s receivables, net of the allowance for doubtful accounts and cash discounts allowed, represents their estimated net realizable value. The Company estimates its allowance for doubtful accounts based on historical collection trends, the age of outstanding receivables and existing economic conditions. Trade receivables are generally considered past due after 30 days from invoice date. Past-due receivable balances are written-off when the Company’s internal collection efforts have been unsuccessful in collecting the amount due.

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. Inventories are valued at the lower of cost or replacement market. Cost for prime coil inventory is determined under the last-in, first-out (“LIFO”) method. In fiscal 2014, LIFO inventories were partially liquidated. Since the replacement costs and liquidation costs of material associated with this liquidation were approximately equal in the year, no meaningful gain or loss resulted from this partial liquidation. At March 31, 2014 and March 31, 2013, replacement cost exceeded LIFO cost by approximately $9,024,000 and $6,504,000, respectively. Cost for non-standard coil inventory is determined using the specific identification method. Cost for tubular inventory is determined using the weighted average method. Obsolete or slow-moving inventories are not significant based on the Company’s review of inventories. Accordingly, no allowance has been provided for such items.

The following is a summary of inventory by product group:

 

     March 31  
     2014      2013  

Prime coil inventory  

   $ 7,685,177       $ 10,981,835   

Non-standard coil inventory  

     2,572,787         3,741,718   

Tubular raw material  

     463,254         3,308,419   

Tubular finished goods  

     24,567,341         21,187,196   
  

 

 

    

 

 

 
   $ 35,288,559       $ 39,219,168   
  

 

 

    

 

 

 

PROPERTY, PLANT AND EQUIPMENT:    Property, plant and equipment is stated at cost. Depreciation is calculated primarily by the straight-line method over the estimated useful lives of the various classes of assets as follows:

 

Buildings  

     20 years   

Machinery and equipment  

     10 years   

Yard improvements  

     5 to 10 years   

Loaders and other rolling stock  

     5 to 10 years   

 

7


FRIEDMAN INDUSTRIES, INCORPORATED

 

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The Company assesses recoverability by comparing the carrying amount of the asset to estimated undiscounted future cash flows expected to be generated by the asset. If an asset is considered impaired, the impairment loss to be recognized is measured as the amount by which the asset’s carrying amount exceeds its fair value. Long-lived assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. No impairments were necessary at March 31, 2014 or 2013.

Maintenance and repairs are expensed as incurred.

SHIPPING COSTS:    Sales are credited for freight billed to customers and freight costs are charged to cost of products sold.

SUPPLEMENTAL CASH FLOW INFORMATION:    The Company paid no interest in fiscal 2014 or 2013. The Company paid income taxes of approximately $748,000 and $3,666,000 in fiscal 2014 and 2013, respectively. In fiscal 2014 and 2013, noncash financing activity consisted of accrued dividends of $135,989 and $543,956, respectively.

INCOME TAXES:    The Company accounts for income taxes under the liability method, whereby the Company recognizes, on a current and long-term basis, deferred tax assets and liabilities, which represent differences between the financial and income tax reporting bases of its assets and liabilities. Deferred tax assets and liabilities are determined based on temporary differences between income and expenses reported for financial reporting and tax reporting. The Company has assessed, using all available positive and negative evidences, the likelihood that the deferred tax assets will be recovered from future taxable income.

The Company has also analyzed tax positions taken on tax returns filed and does not believe that any are more likely than not to be overturned by the respective tax jurisdiction. Therefore, no liability for uncertain tax positions has been recognized.

USE OF 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. Actual results could differ from those estimates.

FINANCIAL INSTRUMENTS:    Since the Company’s financial instruments are considered short-term in nature, their carrying values approximate fair value.

EARNINGS PER SHARE:    Net income per basic common share is computed using the weighted average number of common shares outstanding during the period. Net income per diluted common share is computed using the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares result from the assumed exercise of outstanding common stock options having a dilutive effect using the treasury stock method.

ECONOMIC RELATIONSHIP:    U.S. Steel Tubular Products, Inc. (“USS”) and Nucor Steel Company supply a significant amount of steel products to the Company. Loss of either of these mills as a source of supply could have a material adverse effect on the Company. Additionally, the Company derives revenue by selling a substantial amount of its manufactured pipe to USS. Total sales to USS were approximately 15% and 14% of total Company sales in fiscal 2014 and 2013, respectively. Sales of coil products to Trinity Industries, Inc. accounted for approximately 14% and 11% of total Company sales in fiscal 2014 and 2013, respectively. No other customers accounted for 10% or more of total sales in the two years ended March 31, 2014. Loss of USS or Trinity as a customer could have a material adverse effect on the Company’s business.

The Company’s sales are concentrated primarily in the midwestern, southwestern, and southeastern regions of the United States and are primarily to customers in the steel distributing and fabricating industries. The Company performs periodic credit evaluations of the financial conditions of its customers and generally does not require collateral. Generally, receivables are due within 30 days.

 

8


FRIEDMAN INDUSTRIES, INCORPORATED

 

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

NEW ACCOUNTING PRONOUNCEMENTS:

There were no new accounting pronouncements that affected the financial statements and disclosures of the Company for the fiscal years ended March 31, 2014 or 2013.

2.   STOCK OPTIONS AND CAPITAL STOCK

In fiscal 2014 and 2013, the Company maintained no stock option plans. Accordingly, no options were outstanding and no options were granted in either fiscal year.

The Company has 1,000,000 authorized shares of Cumulative Preferred Stock with a par value of $1 per share. The stock may be issued in one or more series, and the Board of Directors is authorized to fix the designations, preferences, rights, qualifications, limitations and restrictions of each series, except that any series must provide for cumulative dividends and must be convertible into Common Stock. There were no shares of Cumulative Preferred Stock issued as of March 31, 2014 or March 31, 2013.

3.   COMMITMENTS AND CONTINGENCIES

The Company is obligated under noncancelable operating leases for its Longview, Texas and Humble, Texas office buildings, which expire April 30, 2018 and December 31, 2016, respectively. The following is a schedule of future minimum annual rental payments for the next five years required under these operating leases as of March 31, 2014:

 

2015

   $ 70,562   

2016

     70,562   

2017

     61,106   

2018

     32,736   

2019

     2,728   
  

 

 

 

Total

   $ 237,694   
  

 

 

 

Rental expenses for leased properties were approximately $70,500 and $67,900 during fiscal 2014 and 2013, respectively.

4.   EARNINGS PER SHARE

Basic and dilutive net earnings per share is computed based on the following information:

 

     Year Ended March 31  
     2014      2013  

Basic

     

Net earnings

   $ 1,712,926       $ 6,135,812   
  

 

 

    

 

 

 

Weighted average common shares

     6,799,444         6,799,444   
  

 

 

    

 

 

 

Dilutive

     

Net earnings

   $ 1,712,926       $ 6,135,812   
  

 

 

    

 

 

 

Weighted average common shares and common share equivalents

     6,799,444         6,799,444   
  

 

 

    

 

 

 

 

9


FRIEDMAN INDUSTRIES, INCORPORATED

 

5.   INCOME TAXES

Components of tax expense (benefit) are as follows:

 

     Year Ended March 31  
     2014     2013  

Federal

    

Current

   $ 863,049      $ 2,840,388   

Deferred

     (172,281     (83,720
  

 

 

   

 

 

 
     690,768        2,756,668   

State

    

Current

     133,014        252,797   
  

 

 

   

 

 

 
     133,014        252,797   
  

 

 

   

 

 

 

Total

   $ 823,782      $ 3,009,465   
  

 

 

   

 

 

 

The U.S. federal statutory income tax rate is reconciled to the effective rate as follows:

 

     Year Ended
March 31
 
     2014     2013  

Income Tax Expense at U.S. federal statutory rate

     34.0     34.0

Benefit of tax deduction allowed to manufacturing companies

     (3.0     (3.0

State and local income tax rates net of federal income tax benefit and true up of income taxes on prior year filing

     1.5        1.9   
  

 

 

   

 

 

 

Provision for income taxes

     32.5     32.9
  

 

 

   

 

 

 

The Company’s tax returns may be subject to examination by the Internal Revenue Service for the fiscal years ending March 31, 2011 through March 31, 2013. State and local returns may be subject to examination for fiscal years ended March 31, 2011 through March 31, 2013.

Deferred income taxes are provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s consolidated deferred tax assets (liabilities) are as follows:

 

     March 31  
     2014     2013  

Deferred tax liabilities:

    

Depreciation

   $ (1,500,000   $ (1,700,000
  

 

 

   

 

 

 

Total deferred tax liabilities

     (1,500,000     (1,700,000

Deferred tax assets:

    

Inventory capitalization

     170,000        170,000   

LIFO Inventory

     700,000        785,000   

Postretirement benefits other than pensions

     375,000        316,000   

Other

     65,002        66,721   
  

 

 

   

 

 

 

Total deferred tax assets

     1,310,002        1,337,721   
  

 

 

   

 

 

 

Net deferred tax liability

   $ (189,998   $ (362,279
  

 

 

   

 

 

 

6.   PROFIT SHARING PLAN

Effective May 1, 2007, the Company merged its defined contribution retirement plan and its 401(k) plan into the Friedman Industries, Inc. Employees’ Retirement and 401(k) Plan (the “Plan”). In addition, the Plan year end was changed to December 31. Employees fully vest in the Plan upon six years of service.

The retirement portion of the Plan covers substantially all employees, including officers. The Company’s contribution expenses, which are determined at the discretion of the Board of Directors in

 

10


FRIEDMAN INDUSTRIES, INCORPORATED

 

6.   PROFIT SHARING PLAN (Continued)

 

an amount not to exceed 15% of the total compensation paid during the year to all eligible employees, were $206,000 for the year ended March 31, 2014, and $210,000 for the year ended March 31, 2013. Contributions, Plan earnings and forfeitures of nonvested accounts of terminated participants are allocated to the remaining individual accounts determined by a point schedule based on years of employment with the Company.

Employees may participate in the 401(k) portion of the Plan. Employees are eligible to participate in the Plan when the employee has completed one year of service. Under the Plan, participating employees may defer a portion of their pretax earnings up to certain limits prescribed by the Internal Revenue Service. The Company provides matching contributions under the provisions of the Plan. Contribution expense related to the 401(k) portion of the Plan was approximately $47,500 and $59,000 for the years ended March 31, 2014 and 2013, respectively.

7.   INDUSTRY SEGMENT DATA

The Company is engaged in the steel processing, pipe manufacturing and processing and steel and pipe distribution business. Within the Company, there are two product groups: coil and tubular. The Company’s coil operations involve converting steel coils into flat sheet and plate steel cut to customer specifications and reselling steel coils. Through its tubular operations, the Company purchases, processes, manufactures and markets tubular products. The following is a summary of significant financial information relating to the product groups:

 

     Year Ended March 31  
     2014     2013  

NET SALES:

    

Coil

   $ 66,138,845      $ 67,045,885   

Tubular

     50,010,177        69,402,901   
  

 

 

   

 

 

 

TOTAL NET SALES

   $ 116,149,022      $ 136,448,786   
  

 

 

   

 

 

 

OPERATING PROFIT (LOSS):

    

Coil

   $ (839,442   $ 848,252   

Tubular

     5,288,372        10,696,683   
  

 

 

   

 

 

 

TOTAL OPERATING PROFIT

     4,448,930        11,544,935   

General corporate expenses

     (1,974,234     (2,458,422

Interest and other income

     62,012        58,764   
  

 

 

   

 

 

 

TOTAL EARNINGS BEFORE INCOME TAXES

   $ 2,536,708      $ 9,145,277   
  

 

 

   

 

 

 

IDENTIFIABLE ASSETS:

    

Coil

   $ 22,308,165      $ 29,779,697   

Tubular

     33,794,992        29,834,246   
  

 

 

   

 

 

 
     56,103,157        59,613,943   

General corporate assets

     16,181,242        16,961,186   
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 72,284,399      $ 76,575,129   
  

 

 

   

 

 

 

DEPRECIATION:

    

Coil

   $ 1,140,250      $ 1,113,053   

Tubular

     673,850        669,876   

Corporate and other

     8,972        7,112   
  

 

 

   

 

 

 
   $ 1,823,072      $ 1,790,041   
  

 

 

   

 

 

 

CAPITAL EXPENDITURES:

    

Coil

   $ 364,443      $ 333,916   

Tubular

     1,533,489        165,570   

Corporate and other

     9,299          
  

 

 

   

 

 

 
   $ 1,907,231      $ 499,486   
  

 

 

   

 

 

 

 

11


FRIEDMAN INDUSTRIES, INCORPORATED

 

7.   INDUSTRY SEGMENT DATA (Continued)

 

Operating profit is total net sales less operating expenses, excluding general corporate expenses, interest expense and interest 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, accrued profit sharing expense, accrued quarterly incentive bonuses, corporate insurance expenses and office supplies. Corporate assets consist primarily of cash and the cash value of officers’ life insurance. Although inventory is transferred at cost between product groups, there are no sales between product groups. Capital expenditures were related primarily to the Company’s pipe-finishing facility to be located in Lone Star, Texas. As of March 31, 2014, capitalized expenditures related to the construction of the facility totaled approximately $1,500,000.

8.   SUMMARY OF QUARTERLY RESULTS OF OPERATIONS (Unaudited)

The following is a summary of unaudited quarterly results of operations for the years ended March 31, 2014 and 2013:

 

     Quarter Ended  
     June 30,
2013
     September 30,
2013
     December 31,
2013
     March 31,
2014
 

Net sales

   $ 29,582,144       $ 26,310,369       $ 28,274,696       $ 31,981,813   

Gross profit

     2,443,844         1,077,913         1,846,778         1,693,948   

Net earnings

     808,359         27,659         487,468         389,440   

Basic

     .12         .00         .07         .06   

Diluted

     .12         .00         .07         .06   

 

     Quarter Ended  
     June 30,
2012
     September 30,
2012
     December 31,
2012
     March 31,
2013
 

Net sales

   $ 39,434,770       $ 33,334,070       $ 31,719,922       $ 31,960,024   

Gross profit

     4,647,758         3,776,798         2,884,278         3,092,650   

Net earnings

     2,091,854         1,644,329         1,150,058         1,249,571   

Basic

     .31         .24         .17         .18   

Diluted

     .31         .24         .17         .18   

 

12


FRIEDMAN INDUSTRIES, INCORPORATED

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Shareholders

Friedman Industries, Incorporated

Houston, Texas

We have audited the consolidated balance sheets of Friedman Industries, Incorporated (the “Company”) as of March 31, 2014 and 2013, and the related consolidated statements of earnings, stockholders’ equity, and cash flows for each of the two years in the period ended March 31, 2014. Our audits also included the financial statement schedule of Friedman Industries, Incorporated listed in Item 15(a). These consolidated financial statements and financial statement schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements and financial statement schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Friedman Industries, Incorporated as of March 31, 2014 and 2013, and the results of their operations and their cash flows for each of the two years in the period ended March 31, 2014, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

We were not engaged to examine management’s assertion about the effectiveness of the Company’s internal control over financial reporting as of March 31, 2014 included in the accompanying management’s report on internal control over financial reporting and, accordingly, we do not express an opinion thereon.

/s/    HEIN & ASSOCIATES LLP

Houston, Texas

June 11, 2014

 

13


FRIEDMAN INDUSTRIES, INCORPORATED

 

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended. Our internal control over financial reporting is a process designed under the supervision of our principal executive and principal financial officers, and effected by our board of directors, management and other personnel, 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.

Because of its inherent limitations, our internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with policies or procedures may deteriorate.

Our management assessed the effectiveness of our internal control over financial reporting as of the end of our most recent fiscal year. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control — Integrated Framework. Based on such assessment, management concluded that, as of March 31, 2014, our internal control over financial reporting is effective based on that criteria.

This annual report does not include an attestation report of our registered, independent public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our independent registered public accounting firm pursuant to rules of the U.S. Securities and Exchange Commission that permit us to provide only management’s report in this annual report.

 

14


FRIEDMAN INDUSTRIES, INCORPORATED

 

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS

RESULTS OF OPERATIONS

Year ended March 31, 2014 compared to year ended March 31, 2013

During the year ended March 31, 2014, sales, costs of goods sold and gross profit decreased $20,299,764, $12,960,763 and $7,339,001, respectively, from the comparable amounts recorded during the year ended March 31, 2013. The decrease in sales was related to both a decline in tons sold and a decrease in the average per ton selling price. Tons sold decreased from approximately 184,000 tons in fiscal 2013 to approximately 163,000 tons in fiscal 2014. The average per ton selling price decreased from approximately $740 per ton in fiscal 2013 to $712 per ton in fiscal 2014. The decrease in costs of goods sold was related primarily to the decline in tons sold. The average per ton cost increased from approximately $662 per ton in fiscal 2013 to $669 per ton in fiscal 2014. The decrease in gross profit was related to the decline in sales and a decline in margins earned on sales. Gross profit as a percentage of sales decreased from approximately 10.6% in fiscal 2013 to approximately 6.1% in fiscal 2014. In fiscal 2014, the Company experienced soft market conditions and reduced demand for its products and services.

Coil product segment sales decreased $907,040 during fiscal 2014. This decrease resulted from a decrease in the average selling price partially offset by an increase in coil tons sold. The average per ton selling price decreased from approximately $727 per ton in fiscal 2013 to $710 per ton in fiscal 2014. Coil tons sold increased from approximately 92,000 tons in fiscal 2013 to approximately 93,000 tons in fiscal 2014. The coil product segment recorded an operating loss of $839,442 in fiscal 2014 and an operating profit of $848,252 in fiscal 2013. Management believes that the operations of this segment have been adversely impacted in both fiscal 2014 and 2013 by soft demand related primarily to a weak U.S. economy and that market conditions will remain soft until the U.S. economy experiences sustained, significant improvement.

The Company is primarily dependent on Nucor Steel Company (“NSC”) for its supply of coil inventory. In fiscal 2014, NSC continued to supply the Company with steel coils in amounts that were adequate for the Company’s purposes. The Company does not currently anticipate any significant change in such supply from NSC. Loss of NSC as a supplier could have a material adverse effect on the Company’s business.

Tubular product segment sales decreased by $19,392,724 during fiscal 2014. This decrease resulted from a decline in tons sold and a decrease in the average selling price. Tubular tons sold decreased from approximately 92,000 tons in fiscal 2013 to approximately 70,000 tons in fiscal 2014. The average per ton selling price of tubular products decreased from approximately $754 per ton in fiscal 2013 to $715 per ton in fiscal 2014. Tubular product segment operating profit decreased $5,408,311 in fiscal 2014. Segment operating profits as a percentage of segment sales were approximately 10.6% and 15.4% in fiscal 2014 and 2013, respectively. In fiscal 2014, the tubular segment experienced a reduction in tons sold which had the effect of increasing the per ton cost of production and decreasing margins earned. Management believes the lower demand for its tubular products is related to soft market conditions created by oversupply, foreign competition and, more significantly, a weak U.S. economy.

U.S. Steel Tubular Products, Inc. (“USS”) has been the Company’s primary supplier of tubular products and coil material used in pipe manufacturing and has been a major customer of finished tubular products. Certain finished tubular products used in the energy business are manufactured by the Company and sold to USS. Loss of USS as a supplier or customer could have a material adverse effect on the Company’s business. The Company can make no assurances as to orders from USS or the amounts of pipe and coil material that will be available from USS in the future.

 

15


FRIEDMAN INDUSTRIES, INCORPORATED

 

In fiscal 2014, general, selling and administrative costs decreased $727,184 from the amount recorded during fiscal 2013. This decrease was related primarily to decreases in bonuses and commissions associated with decreased earnings and sales volume.

Income taxes decreased $2,185,683 from the amount recorded in fiscal 2013. This decrease was related primarily to the decrease in earnings before taxes. Effective tax rates were 32.5% and 32.9% in fiscal 2014 and 2013, respectively.

FINANCIAL CONDITION, LIQUIDITY AND SOURCES OF CAPITAL

The Company remained in a strong, liquid position at March 31, 2014. Current ratios were 7.7 and 5.2 at March 31, 2014 and March 31, 2013, respectively. Working capital was $52,075,979 at March 31, 2014 and $51,971,475 at March 31, 2013.

During the year ended March 31, 2014, 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. 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 in the past and may in the future borrow funds on a term basis to build or improve facilities. The Company currently has no plans to borrow funds on a term basis.

Construction is in progress for the Company’s pipe-finishing facility to be located in Lone Star, Texas. The Company plans to finance the estimated $9,200,000 total cost of this facility from internal sources. As of March 31, 2014, capitalized expenditures related to the construction of the facility totaled approximately $1,500,000. These expenditures were made from internally generated funds and as a result, no debt associated with this project has been incurred. The Company expects the facility to be completed and operational in the fourth quarter of fiscal 2015.

The Company believes that its current cash position along with cash flows from operations and borrowing capability due to its strong balance sheet are adequate to fund its expected cash requirements for the next 24 months.

OFF-BALANCE SHEET ARRANGEMENTS

The Company has no off-balance sheet arrangements.

INFLATION

During fiscal 2014 and 2013, the Company believes that the general level of inflation had little effect on its operations.

CRITICAL ACCOUNTING POLICIES

The preparation of consolidated financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. One such accounting policy that requires significant estimates and judgments is the valuation of LIFO inventories in the Company’s quarterly reporting. The Company’s quarterly valuation of inventory requires estimates of the year end quantities, which is inherently difficult. Historically, these estimates have been materially correct.

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. These forward-looking statements may include, but are not limited to, future 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

 

16


FRIEDMAN INDUSTRIES, INCORPORATED

 

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 under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. 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 and prices for the Company’s products, changes in the demand for steel and steel products in general and the Company’s success in executing its internal operating plans, including any proposed expansion plans.

 

17


FRIEDMAN INDUSTRIES, INCORPORATED

TEN YEAR FINANCIAL SUMMARY

 

      Year Ended March 31  
      2014      2013      2012      2011      2010      2009      2008      2007     2006      2005  

Net sales

   $ 116,149,022       $ 136,448,786       $ 161,521,993       $ 131,709,492       $ 65,132,170       $ 208,779,750       $ 178,785,110       $ 199,726,619      $ 181,900,351       $ 188,022,253   

Net earnings

   $ 1,712,926       $ 6,135,812       $ 8,150,464       $ 8,155,637       $ 652,024       $ 13,673,406       $ 4,465,127       $ 7,018,318 (1)    $ 6,453,888       $ 6,246,043   

Current assets

   $ 59,846,668       $ 64,283,557       $ 65,007,891       $ 54,562,344       $ 48,703,119       $ 42,673,377       $ 49,422,594       $ 51,731,369      $ 47,551,003       $ 43,498,759   

Current liabilities

   $ 7,770,689       $ 12,312,082       $ 13,853,388       $ 9,467,375       $ 7,576,278       $ 3,353,013       $ 14,784,366       $ 23,266,583      $ 18,383,193       $ 14,959,516   

Working capital

   $ 52,075,979       $ 51,971,475       $ 51,154,503       $ 45,094,969       $ 41,126,841       $ 39,320,364       $ 34,638,228       $ 28,464,786      $ 29,167,810       $ 28,539,243   

Total assets

   $ 72,284,399       $ 76,575,129       $ 78,570,393       $ 69,584,131       $ 65,031,722       $ 60,460,064       $ 66,958,392       $ 65,871,706      $ 55,930,889       $ 50,796,342   

Stockholders’ equity

   $ 63,310,656       $ 62,957,619       $ 63,417,268       $ 58,802,514       $ 56,358,410       $ 56,114,352       $ 44,956,741       $ 42,109,998      $ 37,097,335       $ 35,354,550   

Net earnings as a percent of Net sales

     1.5         4.5         5.0         6.2         1.0         6.5         2.5         3.5        3.5         3.3   

Stockholders’ equity

     2.7         9.7         12.9         13.9         1.2         24.4         9.9         16.7        17.4         17.7   

Weighted average number of common shares outstanding:

                            

Basic

     6,799,444         6,799,444         6,799,444         6,799,444         6,799,444         6,799,444         6,733,942         6,685,577        7,072,637         7,418,410   

Per share

                            

Net earnings per share:

                            

Basic

   $ 0.25       $ 0.90       $ 1.20       $ 1.20       $ 0.10       $ 2.01       $ 0.66       $ 1.05 (1)    $ 0.91       $ 0.84   

Stockholders’ equity

   $ 9.31       $ 9.26       $ 9.33       $ 8.65       $ 8.29       $ 8.25       $ 6.68       $ 6.30      $ 5.25       $ 4.77   

Cash dividends per common share

   $ 0.20       $ 0.97       $ 0.52       $ 0.84       $ 0.06       $ 0.37       $ 0.27       $ 0.34      $ 0.32       $ 0.29   

 

 

(1) Includes an after tax gain of $866,474 ($.13 per share basic) related to a gain on the sale of assets.

 


 

LOGO

 

 

EX-14.1 3 d720436dex141.htm EX-14.1 EX-14.1

EXHIBIT 14.1

FRIEDMAN INDUSTRIES, INCORPORATED

CODE OF CONDUCT AND ETHICS

It is the policy of Friedman Industries, Incorporated (the “Company”) to endeavor to conduct business with the highest standards of honesty and integrity and in compliance with all applicable laws. In view thereof, the Company’s Board of Directors has adopted this Code of Conduct and Ethics (the “Code”).

In addition to other Company policies, all Company employees, directors and officers are expected to:

 

   

Carry out their duties honestly and with the highest degree of integrity.

 

   

Avoid actual or apparent conflicts of interest between personal and professional relationships.

 

   

Report promptly any transaction or relationship that could compromise one’s ability to (i) adhere fully to the Code, other Company policies or applicable laws or (ii) make business decisions without regard to personal gain or benefit.

 

   

Seek, at all times, to provide information to Company officials and its outside professionals (e.g. accountants, counsel, insurance providers, etc.) that is accurate, relevant, complete, objective, timely and understandable, and encourage others within the Company to do the same.

 

   

Use reasonable efforts to assure full, fair, accurate, timely and understandable disclosure of information related to the Company’s business and financial operations in Company reports and documents filed with the U.S. Securities and Exchange Commission (the “SEC”) or the NYSE MKT or in other public communications made by the Company.

 

   

Use reasonable efforts to cause the Company to comply fully with the letter and spirit of all laws, rules and regulations applicable to the Company or its business.

 

   

Promptly report to the Audit Committee of the Board of Directors (the “Audit Committee”) (i) any weakness or deficiency in the design or operation of the Company’s internal controls or (ii) any fraud involving Company management or other employees having significant roles in the Company’s operations, financial reporting, disclosures or internal controls.

The Board of Directors is responsible for applying and interpreting the Code. Any questions relating to how the Code should be interpreted or applied should be addressed to a supervisor, the Chief Executive Officer, the President or the Assistant Vice President — Secretary & Treasurer. Any employee, officer or director who becomes aware of any existing or potential violation of laws, rules, regulations or the Code should promptly notify the Chief Executive Officer, the President, the Assistant Vice President — Secretary & Treasurer or the Chairman of the Audit Committee. Reports may be made orally or in writing and may be made anonymously and will be kept confidential to the extent permitted. Written reports should be sent to the attention of the Chief Executive Officer, the President or the Assistant Vice President — Secretary & Treasurer, at P.O. Box 62388, Houston, Texas 77205. In addition, reports may be made to the Chairman of the Audit Committee by calling (713) 622-7000 or sent to Three Greenway Plaza, Suite 1700, Houston, Texas 77046.

Failure to notify the Chief Executive Officer, the President, the Assistant Vice President —Secretary & Treasurer or the Chairman of the Audit Committee of any violation or potential violation is in itself a violation of the Code. To encourage employees to report any violations, the Company will not allow retaliation for reports made hereunder in good faith. In addition, the Company may not retaliate against any employee for providing information or assisting in the investigation of any law enforcement agency, regulatory agency or other governmental body relating to the Company.


Observance of the provisions of the Code is of extreme importance to the Company. A violation of the Code will be regarded as a serious offense and may constitute grounds for disciplinary action, including, but not limited to, demotion, suspension (with or without pay), discharge, or, in the case of directors, removal from the Board of Directors and legal proceedings.

From time to time, the Company may waive some provisions of the Code. Any employee, officer or director who believes that a waiver may be called for should contact the Assistant Vice President — Secretary & Treasurer. Any waiver of the Code for directors and executive officers of the Company must be approved by the Company’s Board of Directors and will be promptly reported in such manner as may be required by the SEC or NYSE MKT.

EX-21.1 4 d720436dex211.htm EX-21.1 EX-21.1

EXHIBIT 21.1

SUBSIDIARIES

 

FRIEDMAN/DECATUR, L.L.C.

   Alabama Limited Liability Company      100% owned   
EX-31.1 5 d720436dex311.htm EX-31.1 EX-31.1

EXHIBIT 31.1

I, William E. Crow, certify that:

1.  I have reviewed this report on Form 10-K 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: June 11, 2014

 

/S/    WILLIAM E. CROW                     

Chief Executive Officer and President

EX-31.2 6 d720436dex312.htm EX-31.2 EX-31.2

EXHIBIT 31.2

I, Alex LaRue, certify that:

1.  I have reviewed this report on Form 10-K 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: June 11, 2014

 

/S/    ALEX LARUE                                    

Assistant Vice President — Secretary and Treasurer

EX-32.1 7 d720436dex321.htm EX-32.1 EX-32.1

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 Annual Report of Friedman Industries, Incorporated (the “Company”) on Form 10-K for the fiscal year ended March 31, 2014, as filed with the U.S. Securities and Exchange Commission on the date hereof (the “Report”), I, William E. Crow, Chief Executive Officer and President 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, as amended; and

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

 

By:

  /S/    WILLIAM E. CROW        
  Chief Executive Officer and President

Dated: June 11, 2014

EX-32.2 8 d720436dex322.htm EX-32.2 EX-32.2

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 Annual Report of Friedman Industries, Incorporated (the “Company”) on Form 10-K for the fiscal year ended March 31, 2014, as filed with the U.S. Securities and Exchange Commission on the date hereof (the “Report”), I, Alex LaRue, Assistant Vice President — Secretary & Treasurer for 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, as amended; and

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

 

By:

  /S/    ALEX LARUE        
  Assistant Vice President — Secretary & Treasurer

Dated: June 11, 2014

EX-101.INS 9 frd-20140331.xml XBRL INSTANCE DOCUMENT 6799444 66966000 11881548 -5475964 29003674 7975160 31914398 37276 7975160 10000000 1175716 1 12312082 533822 1700000 543956 27111529 62957619 29003674 11181804 31454749 1700000 52500 943149 7975160 76575129 362279 1082331 6504000 9037548 39219168 1337721 30293590 66721 5475964 785000 11278572 76575129 15923294 7014180 -362279 316000 103547 64283557 1013000 37276 170000 21187196 3308419 29834246 10981835 29779697 3741718 -5475964 29003674 7975160 31454749 37276 0 59613943 16961186 7975160 10000000 1175716 1 70562 7770689 375860 1500000 135989 28934601 237694 32736 63310656 29003674 7206340 31807786 1500000 52500 70562 1013056 2728 61106 7975160 72284399 189998 1410689 9024000 9347289 35288559 1310002 31773161 65002 5475964 700000 11362731 72284399 15081024 7113482 -189998 375000 129796 59846668 1075000 27276 170000 24567341 463254 33794992 7685177 22308165 2572787 -5475964 29003674 7975160 31807786 27276 1 0 1000000 56103157 16181242 0.90 0.90 6799444 0.340 11496290 0.329 -0.030 0.019 6799444 499486 62000 3666000 6935433 136448786 15261 9145277 -7246829 0 9086513 58764 6135812 2465488 122047302 -6935433 252797 -83720 127362273 -193520 4041746 89411 252797 -519111 2840388 5314971 3009465 -98464 -83720 2756668 3093185 1790041 67900 -909350 42375 165570 69402901 10696683 669876 333916 67045885 848252 1113053 0.97 6135812 6595461 736502 736502 59000 210000 0.14 0.11 11544935 2458422 7112 FRD FRIEDMAN INDUSTRIES INC Yes false Smaller Reporting Company 2014 10-K 2014-03-31 0000039092 No --03-31 FY No <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">Depreciation is calculated primarily by the straight-line method over the estimated useful lives of the various classes of assets as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="83%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Buildings&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">20&#xA0;years</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Machinery and equipment&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">10&#xA0;years</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Yard improvements&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">5&#xA0;to&#xA0;10&#xA0;years</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Loaders and other rolling stock&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">5&#xA0;to&#xA0;10&#xA0;years</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> </div> 0.25 <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">SHIPPING COSTS:&#xA0;&#xA0;&#xA0;&#xA0;Sales are credited for freight billed to customers and freight costs are charged to cost of products sold.</font></p> </div> <div> <p style="margin-top:12px;margin-bottom:0px; text-indent:4%"> <font style="font-family:ARIAL" size="2">December&#xA0;31, 2016, respectively. The following is a schedule of future minimum annual rental payments for the next five years required under these operating leases as of March&#xA0;31, 2014:</font></p> <p style="font-size:6px;margin-top:0px;margin-bottom:0px"> &#xA0;</p> <table cellspacing="0" cellpadding="0" width="84%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="85%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">2015</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">70,562</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">2016</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">70,562</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">61,106</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">2018</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">32,736</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">2019</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">2,728</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Total</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">237,694</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:ARIAL" size="2">REVENUE RECOGNITION:&#xA0;&#xA0;&#xA0;&#xA0;Revenue from sales of products is recognized at the time that title and the risks and rewards of ownership pass, which is on the date of shipment. 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MARGIN-LEFT: 1em; MARGIN-TOP: 0px; TEXT-INDENT: -1em"> <font style="FONT-FAMILY: ARIAL" size="2">Year ended March&#xA0;31, 2014</font></p> <p style="MARGIN-BOTTOM: 1px; MARGIN-LEFT: 2em; MARGIN-TOP: 0px; TEXT-INDENT: -1em"> <font style="FONT-FAMILY: ARIAL" size="2">Allowance for doubtful accounts receivable and cash discounts (deducted from related asset account)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">37,276</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">12,363</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">541,556</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">563,919</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">27,276</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-BOTTOM: 0px; MARGIN-LEFT: 1em; MARGIN-TOP: 0px; TEXT-INDENT: -1em"> <font style="FONT-FAMILY: ARIAL" size="2">Year ended March&#xA0;31, 2013</font></p> <p style="MARGIN-BOTTOM: 1px; MARGIN-LEFT: 2em; MARGIN-TOP: 0px; TEXT-INDENT: -1em"> <font style="FONT-FAMILY: ARIAL" size="2">Allowance for doubtful accounts receivable and cash discounts (deducted from related asset account)</font></p> </td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">37,276</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: ARIAL" size="2">&#x2014;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">736,502</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">736,502</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">37,276</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; MARGIN-TOP: 0px"> &#xA0;</p> <p style="MARGIN-BOTTOM: 2px; BORDER-BOTTOM: #000000 0.5pt solid; MARGIN-TOP: 0px; LINE-HEIGHT: 8px; WIDTH: 13%"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: ARIAL" size="2">(A)</font></td> <td valign="top" align="left"><font style="FONT-FAMILY: ARIAL" size="2">Cash discounts allowed on sales and charged against revenue.</font></td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 3px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0"> <tr> <td valign="top" width="4%" align="left"><font style="FONT-FAMILY: ARIAL" size="2">(B)</font></td> <td valign="top" align="left"><font style="FONT-FAMILY: ARIAL" size="2">Accounts receivable written off and cash discounts allowed on sales.</font></td> </tr> </table> </div> 6799444 0.340 <div> <p style="margin-top:12px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>6.&#xA0;&#xA0;&#xA0;PROFIT SHARING PLAN</b></font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:4%"> <font style="font-family:ARIAL" size="2">Effective May&#xA0;1, 2007, the Company merged its defined contribution retirement plan and its 401(k) plan into the Friedman Industries, Inc. Employees&#x2019; Retirement and 401(k) Plan (the &#x201C;Plan&#x201D;). In addition, the Plan year end was changed to December&#xA0;31. Employees fully vest in the Plan upon six years of service.</font></p> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:ARIAL" size="2">The retirement portion of the Plan covers substantially all employees, including officers. The Company&#x2019;s contribution expenses, which are determined at the discretion of the Board of Directors in an amount not to exceed 15% of the total compensation paid during the year to all eligible employees, were $206,000 for the year ended March&#xA0;31, 2014, and $210,000 for the year ended March&#xA0;31, 2013. Contributions, Plan earnings and forfeitures of nonvested accounts of terminated participants are allocated to the remaining individual accounts determined by a point schedule based on years of employment with the Company.</font></p> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:ARIAL" size="2">Employees may participate in the 401(k) portion of the Plan. Employees are eligible to participate in the Plan when the employee has completed one year of service. Under the Plan, participating employees may defer a portion of their pretax earnings up to certain limits prescribed by the Internal Revenue Service. The Company provides matching contributions under the provisions of the Plan. Contribution expense related to the 401(k) portion of the Plan was approximately $47,500 and $59,000 for the years ended March&#xA0;31, 2014 and 2013, respectively.</font></p> </div> 2894817 <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">The following is a summary of inventory by product group:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 6px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="68%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>March&#xA0;31</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2014</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2013</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Prime coil inventory&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>7,685,177</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">10,981,835</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Non-standard coil inventory&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>2,572,787</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,741,718</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Tubular raw material&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>463,254</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,308,419</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Tubular finished goods&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>24,567,341</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">21,187,196</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>35,288,559</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">39,219,168</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">The following is a summary of unaudited quarterly results of operations for the years ended March&#xA0;31, 2014 and 2013:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="44%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><font style="FONT-FAMILY: ARIAL" size="2">Quarter Ended</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">June&#xA0;30,</font><br /> <font style="FONT-FAMILY: ARIAL" size="2">2013</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">September&#xA0;30,<br /> 2013</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">December&#xA0;31,<br /> 2013</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">March&#xA0;31,<br /> 2014</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Net sales</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">29,582,144</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">26,310,369</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">28,274,696</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">31,981,813</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Gross profit</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,443,844</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,077,913</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,846,778</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,693,948</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Net earnings</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">808,359</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">27,659</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">487,468</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">389,440</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Basic</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.12</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.07</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.06</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Diluted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.12</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.07</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.06</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="44%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><font style="FONT-FAMILY: ARIAL" size="2">Quarter Ended</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">June&#xA0;30,</font><br /> <font style="FONT-FAMILY: ARIAL" size="2">2012</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">September&#xA0;30,<br /> 2012</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">December&#xA0;31,<br /> 2012</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">March&#xA0;31,<br /> 2013</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Net sales</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">39,434,770</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">33,334,070</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">31,719,922</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">31,960,024</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Gross profit</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,647,758</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,776,798</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,884,278</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,092,650</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Net earnings</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,091,854</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,644,329</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,150,058</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,249,571</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Basic</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.31</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.24</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.17</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.18</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Diluted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.31</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.24</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.17</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.18</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> </div> <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">Components of tax expense (benefit) are as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="76%" align="center" border="0"> <tr> <td width="65%"></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>Year Ended March&#xA0;31</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2014</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2013</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Federal</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Current</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>863,049</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,840,388</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>(172,281</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>)&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(83,720</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>690,768</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,756,668</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">State</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Current</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>133,014</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">252,797</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>133,014</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">252,797</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Total</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>823,782</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,009,465</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:ARIAL" size="2">INCOME TAXES:&#xA0;&#xA0;&#xA0;&#xA0;The Company accounts for income taxes under the liability method, whereby the Company recognizes, on a current and long-term basis, deferred tax assets and liabilities, which represent differences between the financial and income tax reporting bases of its assets and liabilities. Deferred tax assets and liabilities are determined based on temporary differences between income and expenses reported for financial reporting and tax reporting. The Company has assessed, using all available positive and negative evidences, the likelihood that the deferred tax assets will be recovered from future taxable income.</font></p> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:ARIAL" size="2">The Company has also analyzed tax positions taken on tax returns filed and does not believe that any are more likely than not to be overturned by the respective tax jurisdiction. Therefore, no liability for uncertain tax positions has been recognized.</font></p> </div> 0.325 <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">The following is a summary of significant financial information relating to the product groups:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="65%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>Year Ended March&#xA0;31</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2014</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">2013</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">NET SALES:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Coil</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>66,138,845</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">67,045,885</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Tubular</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>50,010,177</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">69,402,901</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">TOTAL NET SALES</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>116,149,022</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">136,448,786</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">OPERATING PROFIT (LOSS):</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Coil</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>(839,442</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>)&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">848,252</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Tubular</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>5,288,372</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">10,696,683</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">TOTAL OPERATING PROFIT</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>4,448,930</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">11,544,935</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">General corporate expenses</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>(1,974,234</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>)&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2,458,422</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Interest and other income</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>62,012</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">58,764</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">TOTAL EARNINGS BEFORE INCOME TAXES</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>2,536,708</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">9,145,277</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">IDENTIFIABLE ASSETS:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Coil</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>22,308,165</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">29,779,697</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Tubular</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>33,794,992</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">29,834,246</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>56,103,157</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">59,613,943</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">General corporate assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>16,181,242</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">16,961,186</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">TOTAL ASSETS</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>72,284,399</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">76,575,129</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">DEPRECIATION:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Coil</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>1,140,250</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,113,053</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Tubular</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>673,850</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">669,876</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Corporate and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>8,972</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">7,112</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>1,823,072</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,790,041</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">CAPITAL EXPENDITURES:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Coil</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>364,443</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">333,916</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Tubular</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>1,533,489</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">165,570</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Corporate and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>9,299</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" nowrap="nowrap" align="right"><font style="FONT-FAMILY: ARIAL" size="2">&#x2014;</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>1,907,231</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">499,486</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">BASIS OF CONSOLIDATION:&#xA0;&#xA0;&#xA0;&#xA0;The consolidated financial statements include the accounts of Friedman Industries, Incorporated and its subsidiary (collectively, the &#x201C;Company&#x201D;). All material intercompany amounts and transactions have been eliminated.</font></p> </div> <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 18px"><font style="FONT-FAMILY: ARIAL" size="2"><b>8.&#xA0;&#xA0;&#xA0;SUMMARY OF QUARTERLY RESULTS OF OPERATIONS (Unaudited)</b></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">The following is a summary of unaudited quarterly results of operations for the years ended March&#xA0;31, 2014 and 2013:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="44%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><font style="FONT-FAMILY: ARIAL" size="2">Quarter Ended</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">June&#xA0;30,</font><br /> <font style="FONT-FAMILY: ARIAL" size="2">2013</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">September&#xA0;30,<br /> 2013</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">December&#xA0;31,<br /> 2013</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">March&#xA0;31,<br /> 2014</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Net sales</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">29,582,144</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">26,310,369</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">28,274,696</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">31,981,813</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Gross profit</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,443,844</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,077,913</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,846,778</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,693,948</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Net earnings</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">808,359</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">27,659</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">487,468</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">389,440</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Basic</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.12</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.07</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.06</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Diluted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.12</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.00</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.07</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.06</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0"> <tr> <td width="44%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="14" align="center"><font style="FONT-FAMILY: ARIAL" size="2">Quarter Ended</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">June&#xA0;30,</font><br /> <font style="FONT-FAMILY: ARIAL" size="2">2012</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">September&#xA0;30,<br /> 2012</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">December&#xA0;31,<br /> 2012</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">March&#xA0;31,<br /> 2013</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Net sales</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">39,434,770</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">33,334,070</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">31,719,922</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">31,960,024</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Gross profit</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">4,647,758</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,776,798</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,884,278</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,092,650</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Net earnings</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,091,854</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,644,329</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,150,058</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,249,571</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Basic</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.31</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.24</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.17</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.18</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Diluted</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.31</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.24</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.17</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">.18</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> </div> <div> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:ARIAL" size="2">SUPPLEMENTAL CASH FLOW INFORMATION:&#xA0;&#xA0;&#xA0;&#xA0;The Company paid no interest in fiscal 2014 or 2013. The Company paid income taxes of approximately $748,000 and $3,666,000 in fiscal 2014 and 2013, respectively. In fiscal 2014 and 2013, noncash financing activity consisted of accrued dividends of $135,989 and $543,956, respectively.</font></p> </div> <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">Basic and dilutive net earnings per share is computed based on the following information:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 6px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="76%" align="center" border="0"> <tr> <td width="70%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>Year Ended March&#xA0;31</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2014</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2013</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Basic</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Net earnings</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>1,712,926</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,135,812</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Weighted average common shares</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>6,799,444</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,799,444</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Dilutive</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Net earnings</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>1,712,926</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,135,812</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Weighted average common shares and common share equivalents</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>6,799,444</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,799,444</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">INVENTORIES:&#xA0;&#xA0;&#xA0;&#xA0;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. Inventories are valued at the lower of cost or replacement market. Cost for prime coil inventory is determined under the last-in, first-out (&#x201C;LIFO&#x201D;) method. In fiscal 2014, LIFO inventories were partially liquidated. Since the replacement costs and liquidation costs of material associated with this liquidation were approximately equal in the year, no meaningful gain or loss resulted from this partial liquidation. At March&#xA0;31, 2014 and March&#xA0;31, 2013, replacement cost exceeded LIFO cost by approximately $9,024,000 and $6,504,000, respectively. Cost for non-standard coil inventory is determined using the specific identification method. Cost for tubular inventory is determined using the weighted average method. Obsolete or slow-moving inventories are not significant based on the Company&#x2019;s review of inventories. Accordingly, no allowance has been provided for such items.</font></p> </div> <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">PROPERTY, PLANT AND EQUIPMENT:&#xA0;&#xA0;&#xA0;&#xA0;Property, plant and equipment is stated at cost. Depreciation is calculated primarily by the straight-line method over the estimated useful lives of the various classes of assets as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="83%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Buildings&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">20&#xA0;years</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Machinery and equipment&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">10&#xA0;years</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Yard improvements&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">5&#xA0;to&#xA0;10&#xA0;years</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Loaders and other rolling stock&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">5&#xA0;to&#xA0;10&#xA0;years</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; MARGIN-TOP: 0px"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The Company assesses recoverability by comparing the carrying amount of the asset to estimated undiscounted future cash flows expected to be generated by the asset. If an asset is considered impaired, the impairment loss to be recognized is measured as the amount by which the asset&#x2019;s carrying amount exceeds its fair value. Long-lived assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. No impairments were necessary at March&#xA0;31, 2014 or 2013.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">Maintenance and repairs are expensed as incurred.</font></p> </div> -0.030 <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px"><font style="FONT-FAMILY: ARIAL" size="2"><b>4.&#xA0;&#xA0;&#xA0;EARNINGS PER SHARE</b></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">Basic and dilutive net earnings per share is computed based on the following information:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 6px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="76%" align="center" border="0"> <tr> <td width="70%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>Year Ended March&#xA0;31</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2014</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2013</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Basic</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Net earnings</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>1,712,926</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,135,812</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Weighted average common shares</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>6,799,444</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,799,444</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Dilutive</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Net earnings</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>1,712,926</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,135,812</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Weighted average common shares and common share equivalents</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>6,799,444</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">6,799,444</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">ECONOMIC RELATIONSHIP:&#xA0;&#xA0;&#xA0;&#xA0;U.S. Steel Tubular Products, Inc. (&#x201C;USS&#x201D;) and Nucor Steel Company supply a significant amount of steel products to the Company. Loss of either of these mills as a source of supply could have a material adverse effect on the Company. Additionally, the Company derives revenue by selling a substantial amount of its manufactured pipe to USS. Total sales to USS were approximately 15% and 14% of total Company sales in fiscal 2014 and 2013, respectively. Sales of coil products to Trinity Industries, Inc. accounted for approximately 14% and 11% of total Company sales in fiscal 2014 and 2013, respectively. No other customers accounted for 10% or more of total sales in the two years ended March&#xA0;31, 2014. Loss of USS or Trinity as a customer could have a material adverse effect on the Company&#x2019;s business.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">The Company&#x2019;s sales are concentrated primarily in the midwestern, southwestern, and southeastern regions of the United States and are primarily to customers in the steel distributing and fabricating industries. The Company performs periodic credit evaluations of the financial conditions of its customers and generally does not require collateral. Generally, receivables are due within 30&#xA0;days.</font></p> </div> <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">The U.S. federal statutory income tax rate is reconciled to the effective rate as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 6px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="84%" align="center" border="0"> <tr> <td width="83%"></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>Year&#xA0;Ended<br /> March&#xA0;31</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2014</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2013</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Income Tax Expense at U.S. federal statutory rate</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>34.0</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>%&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">34.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Benefit of tax deduction allowed to manufacturing companies</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>(3.0</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>)&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(3.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">State and local income tax rates net of federal income tax benefit and true up of income taxes on prior year filing</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>1.5</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1.9</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Provision for income taxes</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>32.5</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>%&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">32.9</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> 0.015 <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 14px"><font style="FONT-FAMILY: ARIAL" size="2"><b>1.&#xA0;&#xA0;&#xA0;SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">BASIS OF CONSOLIDATION:&#xA0;&#xA0;&#xA0;&#xA0;The consolidated financial statements include the accounts of Friedman Industries, Incorporated and its subsidiary (collectively, the &#x201C;Company&#x201D;). All material intercompany amounts and transactions have been eliminated.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">REVENUE RECOGNITION:&#xA0;&#xA0;&#xA0;&#xA0;Revenue from sales of products is recognized at the time that title and the risks and rewards of ownership pass, which is on the date of shipment. This date is when the terms of customers&#x2019; arrangements are met, the sales price is fixed or determinable and collection is reasonably assured.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">TRADE RECEIVABLES:&#xA0;&#xA0;&#xA0;&#xA0;The Company&#x2019;s receivables are recorded when billed, advanced or accrued and represent claims against third parties that will be settled in cash. The carrying value of the Company&#x2019;s receivables, net of the allowance for doubtful accounts and cash discounts allowed, represents their estimated net realizable value. The Company estimates its allowance for doubtful accounts based on historical collection trends, the age of outstanding receivables and existing economic conditions. Trade receivables are generally considered past due after 30&#xA0;days from invoice date. Past-due receivable balances are written-off when the Company&#x2019;s internal collection efforts have been unsuccessful in collecting the amount due.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">INVENTORIES:&#xA0;&#xA0;&#xA0;&#xA0;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. Inventories are valued at the lower of cost or replacement market. Cost for prime coil inventory is determined under the last-in, first-out (&#x201C;LIFO&#x201D;) method. In fiscal 2014, LIFO inventories were partially liquidated. Since the replacement costs and liquidation costs of material associated with this liquidation were approximately equal in the year, no meaningful gain or loss resulted from this partial liquidation. At March&#xA0;31, 2014 and March&#xA0;31, 2013, replacement cost exceeded LIFO cost by approximately $9,024,000 and $6,504,000, respectively. Cost for non-standard coil inventory is determined using the specific identification method. Cost for tubular inventory is determined using the weighted average method. Obsolete or slow-moving inventories are not significant based on the Company&#x2019;s review of inventories. Accordingly, no allowance has been provided for such items.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">The following is a summary of inventory by product group:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 6px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="68%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>March&#xA0;31</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2014</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2013</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Prime coil inventory&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>7,685,177</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">10,981,835</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Non-standard coil inventory&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>2,572,787</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,741,718</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Tubular raw material&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>463,254</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,308,419</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Tubular finished goods&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>24,567,341</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">21,187,196</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>35,288,559</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">39,219,168</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">PROPERTY, PLANT AND EQUIPMENT:&#xA0;&#xA0;&#xA0;&#xA0;Property, plant and equipment is stated at cost. Depreciation is calculated primarily by the straight-line method over the estimated useful lives of the various classes of assets as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="83%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Buildings&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">20&#xA0;years</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Machinery and equipment&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">10&#xA0;years</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Yard improvements&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">5&#xA0;to&#xA0;10&#xA0;years</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Loaders and other rolling stock&#xA0;&#xA0;</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">5&#xA0;to&#xA0;10&#xA0;years</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; MARGIN-TOP: 0px"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The Company assesses recoverability by comparing the carrying amount of the asset to estimated undiscounted future cash flows expected to be generated by the asset. If an asset is considered impaired, the impairment loss to be recognized is measured as the amount by which the asset&#x2019;s carrying amount exceeds its fair value. Long-lived assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. No impairments were necessary at March&#xA0;31, 2014 or 2013.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">Maintenance and repairs are expensed as incurred.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">SHIPPING COSTS:&#xA0;&#xA0;&#xA0;&#xA0;Sales are credited for freight billed to customers and freight costs are charged to cost of products sold.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">SUPPLEMENTAL CASH FLOW INFORMATION:&#xA0;&#xA0;&#xA0;&#xA0;The Company paid no interest in fiscal 2014 or 2013. The Company paid income taxes of approximately $748,000 and $3,666,000 in fiscal 2014 and 2013, respectively. In fiscal 2014 and 2013, noncash financing activity consisted of accrued dividends of $135,989 and $543,956, respectively.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">INCOME TAXES:&#xA0;&#xA0;&#xA0;&#xA0;The Company accounts for income taxes under the liability method, whereby the Company recognizes, on a current and long-term basis, deferred tax assets and liabilities, which represent differences between the financial and income tax reporting bases of its assets and liabilities. Deferred tax assets and liabilities are determined based on temporary differences between income and expenses reported for financial reporting and tax reporting. The Company has assessed, using all available positive and negative evidences, the likelihood that the deferred tax assets will be recovered from future taxable income.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">The Company has also analyzed tax positions taken on tax returns filed and does not believe that any are more likely than not to be overturned by the respective tax jurisdiction. Therefore, no liability for uncertain tax positions has been recognized.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">USE OF ESTIMATES:&#xA0;&#xA0;&#xA0;&#xA0;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. Actual results could differ from those estimates.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">FINANCIAL INSTRUMENTS:&#xA0;&#xA0;&#xA0;&#xA0;Since the Company&#x2019;s financial instruments are considered short-term in nature, their carrying values approximate fair value.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">EARNINGS PER SHARE:&#xA0;&#xA0;&#xA0;&#xA0;Net income per basic common share is computed using the weighted average number of common shares outstanding during the period. Net income per diluted common share is computed using the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares result from the assumed exercise of outstanding common stock options having a dilutive effect using the treasury stock method.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">ECONOMIC RELATIONSHIP:&#xA0;&#xA0;&#xA0;&#xA0;U.S. Steel Tubular Products, Inc. (&#x201C;USS&#x201D;) and Nucor Steel Company supply a significant amount of steel products to the Company. Loss of either of these mills as a source of supply could have a material adverse effect on the Company. Additionally, the Company derives revenue by selling a substantial amount of its manufactured pipe to USS. Total sales to USS were approximately 15% and 14% of total Company sales in fiscal 2014 and 2013, respectively. Sales of coil products to Trinity Industries, Inc. accounted for approximately 14% and 11% of total Company sales in fiscal 2014 and 2013, respectively. No other customers accounted for 10% or more of total sales in the two years ended March&#xA0;31, 2014. Loss of USS or Trinity as a customer could have a material adverse effect on the Company&#x2019;s business.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">The Company&#x2019;s sales are concentrated primarily in the midwestern, southwestern, and southeastern regions of the United States and are primarily to customers in the steel distributing and fabricating industries. The Company performs periodic credit evaluations of the financial conditions of its customers and generally does not require collateral. Generally, receivables are due within 30&#xA0;days.</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; MARGIN-TOP: 0px"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">NEW ACCOUNTING PRONOUNCEMENTS:</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">There were no new accounting pronouncements that affected the financial statements and disclosures of the Company for the fiscal years ended March&#xA0;31, 2014 or 2013.</font></p> </div> <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">TRADE RECEIVABLES:&#xA0;&#xA0;&#xA0;&#xA0;The Company&#x2019;s receivables are recorded when billed, advanced or accrued and represent claims against third parties that will be settled in cash. The carrying value of the Company&#x2019;s receivables, net of the allowance for doubtful accounts and cash discounts allowed, represents their estimated net realizable value. The Company estimates its allowance for doubtful accounts based on historical collection trends, the age of outstanding receivables and existing economic conditions. Trade receivables are generally considered past due after 30&#xA0;days from invoice date. Past-due receivable balances are written-off when the Company&#x2019;s internal collection efforts have been unsuccessful in collecting the amount due.</font></p> </div> <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">Significant components of the Company&#x2019;s consolidated deferred tax assets (liabilities) are as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 6px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="84%" align="center" border="0"> <tr> <td width="65%"></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>March&#xA0;31</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2014</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">2013</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Deferred tax liabilities:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Depreciation</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>(1,500,000</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>)&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,700,000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Total deferred tax liabilities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>(1,500,000</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>)&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,700,000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Deferred tax assets:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Inventory capitalization</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>170,000</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">170,000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">LIFO Inventory</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>700,000</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">785,000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Postretirement benefits other than pensions</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>375,000</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">316,000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>65,002</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">66,721</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Total deferred tax assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>1,310,002</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,337,721</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Net deferred tax liability</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>(189,998</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>)&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(362,279</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:ARIAL" size="2">USE OF ESTIMATES:&#xA0;&#xA0;&#xA0;&#xA0;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. Actual results could differ from those estimates.</font></p> </div> <div> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:ARIAL" size="2">EARNINGS PER SHARE:&#xA0;&#xA0;&#xA0;&#xA0;Net income per basic common share is computed using the weighted average number of common shares outstanding during the period. Net income per diluted common share is computed using the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares result from the assumed exercise of outstanding common stock options having a dilutive effect using the treasury stock method.</font></p> </div> <div> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:ARIAL" size="2">FINANCIAL INSTRUMENTS:&#xA0;&#xA0;&#xA0;&#xA0;Since the Company&#x2019;s financial instruments are considered short-term in nature, their carrying values approximate fair value.</font></p> </div> 6799444 <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"><font style="FONT-FAMILY: ARIAL" size="2"><b>5.&#xA0;&#xA0;&#xA0;INCOME TAXES</b></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">Components of tax expense (benefit) are as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="76%" align="center" border="0"> <tr> <td width="65%"></td> <td valign="bottom" width="8%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>Year Ended March&#xA0;31</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2014</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2013</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Federal</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Current</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>863,049</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,840,388</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Deferred</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>(172,281</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>)&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(83,720</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>690,768</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">2,756,668</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">State</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Current</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>133,014</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">252,797</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>133,014</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">252,797</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 3em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Total</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>823,782</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">3,009,465</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">The U.S. federal statutory income tax rate is reconciled to the effective rate as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 6px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="84%" align="center" border="0"> <tr> <td width="83%"></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>Year&#xA0;Ended<br /> March&#xA0;31</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2014</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2013</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Income Tax Expense at U.S. federal statutory rate</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>34.0</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>%&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">34.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Benefit of tax deduction allowed to manufacturing companies</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>(3.0</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>)&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(3.0</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">State and local income tax rates net of federal income tax benefit and true up of income taxes on prior year filing</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>1.5</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1.9</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Provision for income taxes</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>32.5</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>%&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">32.9</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">%&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">The Company&#x2019;s tax returns may be subject to examination by the Internal Revenue Service for the fiscal years ending March&#xA0;31, 2011 through March&#xA0;31, 2013. State and local returns may be subject to examination for fiscal years ended March&#xA0;31, 2011 through March&#xA0;31, 2013.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">Deferred income taxes are provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company&#x2019;s consolidated deferred tax assets (liabilities) are as follows:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 6px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="84%" align="center" border="0"> <tr> <td width="65%"></td> <td valign="bottom" width="7%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>March&#xA0;31</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2014</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">2013</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Deferred tax liabilities:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Depreciation</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>(1,500,000</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>)&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,700,000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Total deferred tax liabilities</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>(1,500,000</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>)&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(1,700,000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2"><b>Deferred tax assets:</b></font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Inventory capitalization</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>170,000</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">170,000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">LIFO Inventory</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>700,000</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">785,000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Postretirement benefits other than pensions</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>375,000</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">316,000</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>65,002</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">66,721</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Total deferred tax assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>1,310,002</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,337,721</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Net deferred tax liability</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>(189,998</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>)&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(362,279</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">NEW ACCOUNTING PRONOUNCEMENTS:</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">There were no new accounting pronouncements that affected the financial statements and disclosures of the Company for the fiscal years ended March&#xA0;31, 2014 or 2013.</font></p> </div> <div> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px"><font style="FONT-FAMILY: ARIAL" size="2"><b>7.&#xA0;&#xA0;&#xA0;INDUSTRY SEGMENT DATA</b></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">The Company is engaged in the steel processing, pipe manufacturing and processing and steel and pipe distribution business. Within the Company, there are two product groups: coil and tubular. The Company&#x2019;s coil operations involve converting steel coils into flat sheet and plate steel cut to customer specifications and reselling steel coils. Through its tubular operations, the Company purchases, processes, manufactures and markets tubular products. The following is a summary of significant financial information relating to the product groups:</font></p> <p style="MARGIN-BOTTOM: 0px; FONT-SIZE: 12px; MARGIN-TOP: 0px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="92%" align="center" border="0"> <tr> <td width="65%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="6" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>Year Ended March&#xA0;31</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2"><b>2014</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center"><font style="FONT-FAMILY: ARIAL" size="2">2013</font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">NET SALES:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Coil</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>66,138,845</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">67,045,885</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Tubular</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>50,010,177</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">69,402,901</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">TOTAL NET SALES</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>116,149,022</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">136,448,786</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">OPERATING PROFIT (LOSS):</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Coil</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>(839,442</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>)&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">848,252</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Tubular</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>5,288,372</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">10,696,683</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">TOTAL OPERATING PROFIT</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>4,448,930</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">11,544,935</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">General corporate expenses</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>(1,974,234</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>)&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">(2,458,422</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">)&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Interest and other income</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>62,012</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">58,764</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">TOTAL EARNINGS BEFORE INCOME TAXES</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>2,536,708</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">9,145,277</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">IDENTIFIABLE ASSETS:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Coil</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>22,308,165</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">29,779,697</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Tubular</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>33,794,992</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">29,834,246</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>56,103,157</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">59,613,943</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">General corporate assets</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>16,181,242</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">16,961,186</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 5em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">TOTAL ASSETS</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>72,284,399</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">76,575,129</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">DEPRECIATION:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Coil</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>1,140,250</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,113,053</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Tubular</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>673,850</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">669,876</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Corporate and other</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>8,972</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">7,112</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 1px solid">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"></td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>1,823,072</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">1,790,041</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> <td valign="bottom">&#xA0;</td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td valign="bottom"> <p style="BORDER-TOP: #000000 3px double">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 1em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">CAPITAL EXPENDITURES:</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> <p style="MARGIN-LEFT: 2em; TEXT-INDENT: -1em"><font style="FONT-FAMILY: ARIAL" size="2">Coil</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2"><b>$</b></font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2"><b>364,443</b></font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2"><b>&#xA0;&#xA0;</b></font></td> <td valign="bottom"><font size="1">&#xA0;</font></td> <td valign="bottom"><font style="FONT-FAMILY: ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="FONT-FAMILY: ARIAL" size="2">333,916</font></td> <td valign="bottom" nowrap="nowrap"><font style="FONT-FAMILY: ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="MARGIN-LEFT: 2em; 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FONT-SIZE: 6px; MARGIN-TOP: 0px"> &#xA0;</p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: ARIAL" size="2">Operating profit is total net sales less operating expenses, excluding general corporate expenses, interest expense and interest 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, accrued profit sharing expense, accrued quarterly incentive bonuses, corporate insurance expenses and office supplies. Corporate assets consist primarily of cash and the cash value of officers&#x2019; life insurance. Although inventory is transferred at cost between product groups, there are no sales between product groups. Capital expenditures were related primarily to the Company&#x2019;s pipe-finishing facility to be located in Lone Star, Texas. As of March&#xA0;31, 2014, capitalized expenditures related to the construction of the facility totaled approximately $1,500,000.</font></p> </div> <div> <p style="margin-top:12px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>3.&#xA0;&#xA0;&#xA0;COMMITMENTS AND CONTINGENCIES</b></font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:4%"> <font style="font-family:ARIAL" size="2">The Company is obligated under noncancelable operating leases for its Longview, Texas and Humble, Texas office buildings, which expire April&#xA0;30, 2018 and December&#xA0;31, 2016, respectively. The following is a schedule of future minimum annual rental payments for the next five years required under these operating leases as of March&#xA0;31, 2014:</font></p> <p style="font-size:6px;margin-top:0px;margin-bottom:0px"> &#xA0;</p> <table cellspacing="0" cellpadding="0" width="84%" border="0" style="BORDER-COLLAPSE:COLLAPSE" align="center"> <tr> <td width="85%"></td> <td valign="bottom" width="6%"></td> <td></td> <td></td> <td></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">2015</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">70,562</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">2016</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">70,562</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">2017</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">61,106</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">2018</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">32,736</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top"> <p style="margin-left:1.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">2019</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">2,728</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:1px solid #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> <tr> <td valign="top"> <p style="margin-left:3.00em; text-indent:-1.00em"><font style="font-family:ARIAL" size="2">Total</font></p> </td> <td valign="bottom"><font size="1">&#xA0;&#xA0;</font></td> <td valign="bottom"><font style="font-family:ARIAL" size="2">$</font></td> <td valign="bottom" align="right"><font style="font-family:ARIAL" size="2">237,694</font></td> <td nowrap="nowrap" valign="bottom"><font style="font-family:ARIAL" size="2">&#xA0;&#xA0;</font></td> </tr> <tr style="font-size:1px"> <td valign="bottom"></td> <td valign="bottom">&#xA0;&#xA0;</td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td valign="bottom"> <p style="border-top:3px double #000000">&#xA0;</p> </td> <td>&#xA0;</td> </tr> </table> </div> 1907231 62000 748000 1767856 116149022 26249 2536708 309741 0 2474696 62012 1712926 -3930609 109086539 -1767856 133014 -172281 113674326 -157962 -842270 69907 133014 -1969231 863049 4587787 823782 -172281 690768 996063 1823072 70500 -3975464 P6Y <div> <p style="margin-top:12px;margin-bottom:0px"><font style="font-family:ARIAL" size="2"><b>2.&#xA0;&#xA0;&#xA0;STOCK OPTIONS AND CAPITAL STOCK</b></font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:4%"> <font style="font-family:ARIAL" size="2">In fiscal 2014 and 2013, the Company maintained no stock option plans. 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Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate (Detail)
12 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Income Tax Rate Reconciliation [Line Items]    
Income Tax Expense at U.S. federal statutory rate 34.00% 34.00%
Benefit of tax deduction allowed to manufacturing companies (3.00%) (3.00%)
State and local income tax rates net of federal income tax benefit and true up of income taxes on prior year filing 1.50% 1.90%
Provision for income taxes 32.50% 32.90%

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Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)
12 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Significant Accounting Policies [Line Items]    
Excess of replacement cost over LIFO cost $ 9,024,000 $ 6,504,000
Income taxes paid 748,000 3,666,000
Interest paid 0 0
Accrued dividends $ 135,989 $ 543,956
U.S. Steel Tubular Products, Inc
   
Significant Accounting Policies [Line Items]    
Percentage of total sales 15.00% 14.00%
Trinity Industries, Inc.
   
Significant Accounting Policies [Line Items]    
Percentage of total sales 14.00% 11.00%
XML 21 R37.htm IDEA: XBRL DOCUMENT v2.4.0.8
Industry Segment Data - Additional Information (Detail) (USD $)
12 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Segment Reporting Information [Line Items]    
Capitalized Expenditure $ 1,907,231 $ 499,486
Construction in Progress [Member]
   
Segment Reporting Information [Line Items]    
Capitalized Expenditure $ 1,500,000  
XML 22 R9.htm IDEA: XBRL DOCUMENT v2.4.0.8
Summary of Significant Accounting Policies
12 Months Ended
Mar. 31, 2014
Summary of Significant Accounting Policies

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF CONSOLIDATION:    The consolidated financial statements include the accounts of Friedman Industries, Incorporated and its subsidiary (collectively, the “Company”). All material intercompany amounts and transactions have been eliminated.

REVENUE RECOGNITION:    Revenue from sales of products is recognized at the time that title and the risks and rewards of ownership pass, which is on the date of shipment. This date is when the terms of customers’ arrangements are met, the sales price is fixed or determinable and collection is reasonably assured.

TRADE RECEIVABLES:    The Company’s receivables are recorded when billed, advanced or accrued and represent claims against third parties that will be settled in cash. The carrying value of the Company’s receivables, net of the allowance for doubtful accounts and cash discounts allowed, represents their estimated net realizable value. The Company estimates its allowance for doubtful accounts based on historical collection trends, the age of outstanding receivables and existing economic conditions. Trade receivables are generally considered past due after 30 days from invoice date. Past-due receivable balances are written-off when the Company’s internal collection efforts have been unsuccessful in collecting the amount due.

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. Inventories are valued at the lower of cost or replacement market. Cost for prime coil inventory is determined under the last-in, first-out (“LIFO”) method. In fiscal 2014, LIFO inventories were partially liquidated. Since the replacement costs and liquidation costs of material associated with this liquidation were approximately equal in the year, no meaningful gain or loss resulted from this partial liquidation. At March 31, 2014 and March 31, 2013, replacement cost exceeded LIFO cost by approximately $9,024,000 and $6,504,000, respectively. Cost for non-standard coil inventory is determined using the specific identification method. Cost for tubular inventory is determined using the weighted average method. Obsolete or slow-moving inventories are not significant based on the Company’s review of inventories. Accordingly, no allowance has been provided for such items.

The following is a summary of inventory by product group:

 

     March 31  
     2014      2013  

Prime coil inventory  

   $ 7,685,177       $ 10,981,835   

Non-standard coil inventory  

     2,572,787         3,741,718   

Tubular raw material  

     463,254         3,308,419   

Tubular finished goods  

     24,567,341         21,187,196   
  

 

 

    

 

 

 
   $ 35,288,559       $ 39,219,168   
  

 

 

    

 

 

 

PROPERTY, PLANT AND EQUIPMENT:    Property, plant and equipment is stated at cost. Depreciation is calculated primarily by the straight-line method over the estimated useful lives of the various classes of assets as follows:

 

Buildings  

     20 years   

Machinery and equipment  

     10 years   

Yard improvements  

     5 to 10 years   

Loaders and other rolling stock  

     5 to 10 years   

 

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The Company assesses recoverability by comparing the carrying amount of the asset to estimated undiscounted future cash flows expected to be generated by the asset. If an asset is considered impaired, the impairment loss to be recognized is measured as the amount by which the asset’s carrying amount exceeds its fair value. Long-lived assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. No impairments were necessary at March 31, 2014 or 2013.

Maintenance and repairs are expensed as incurred.

SHIPPING COSTS:    Sales are credited for freight billed to customers and freight costs are charged to cost of products sold.

SUPPLEMENTAL CASH FLOW INFORMATION:    The Company paid no interest in fiscal 2014 or 2013. The Company paid income taxes of approximately $748,000 and $3,666,000 in fiscal 2014 and 2013, respectively. In fiscal 2014 and 2013, noncash financing activity consisted of accrued dividends of $135,989 and $543,956, respectively.

INCOME TAXES:    The Company accounts for income taxes under the liability method, whereby the Company recognizes, on a current and long-term basis, deferred tax assets and liabilities, which represent differences between the financial and income tax reporting bases of its assets and liabilities. Deferred tax assets and liabilities are determined based on temporary differences between income and expenses reported for financial reporting and tax reporting. The Company has assessed, using all available positive and negative evidences, the likelihood that the deferred tax assets will be recovered from future taxable income.

The Company has also analyzed tax positions taken on tax returns filed and does not believe that any are more likely than not to be overturned by the respective tax jurisdiction. Therefore, no liability for uncertain tax positions has been recognized.

USE OF 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. Actual results could differ from those estimates.

FINANCIAL INSTRUMENTS:    Since the Company’s financial instruments are considered short-term in nature, their carrying values approximate fair value.

EARNINGS PER SHARE:    Net income per basic common share is computed using the weighted average number of common shares outstanding during the period. Net income per diluted common share is computed using the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares result from the assumed exercise of outstanding common stock options having a dilutive effect using the treasury stock method.

ECONOMIC RELATIONSHIP:    U.S. Steel Tubular Products, Inc. (“USS”) and Nucor Steel Company supply a significant amount of steel products to the Company. Loss of either of these mills as a source of supply could have a material adverse effect on the Company. Additionally, the Company derives revenue by selling a substantial amount of its manufactured pipe to USS. Total sales to USS were approximately 15% and 14% of total Company sales in fiscal 2014 and 2013, respectively. Sales of coil products to Trinity Industries, Inc. accounted for approximately 14% and 11% of total Company sales in fiscal 2014 and 2013, respectively. No other customers accounted for 10% or more of total sales in the two years ended March 31, 2014. Loss of USS or Trinity as a customer could have a material adverse effect on the Company’s business.

The Company’s sales are concentrated primarily in the midwestern, southwestern, and southeastern regions of the United States and are primarily to customers in the steel distributing and fabricating industries. The Company performs periodic credit evaluations of the financial conditions of its customers and generally does not require collateral. Generally, receivables are due within 30 days.

 

NEW ACCOUNTING PRONOUNCEMENTS:

There were no new accounting pronouncements that affected the financial statements and disclosures of the Company for the fiscal years ended March 31, 2014 or 2013.

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Commitments and Contingencies - Additional Information (Detail) (USD $)
12 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Contingencies And Commitments [Line Items]    
Rental expenses for leased properties $ 70,500 $ 67,900
Longview, Texas office building
   
Contingencies And Commitments [Line Items]    
Operating lease expiration, date Apr. 30, 2018  
Humble, Texas office building
   
Contingencies And Commitments [Line Items]    
Operating lease expiration, date Dec. 31, 2016  
XML 25 R28.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stock Options and Capital Stock - Additional Information (Detail) (Cumulative Preferred Stock, USD $)
Mar. 31, 2014
Mar. 31, 2013
Cumulative Preferred Stock
   
Class of Stock [Line Items]    
Preferred stock, authorized shares 1,000,000  
Preferred stock, par value $ 1  
Preferred stock, issued shares 0 0
XML 26 R30.htm IDEA: XBRL DOCUMENT v2.4.0.8
Schedule of Future Minimum Annual Rental Payments Under Operating Leases (Detail) (USD $)
Mar. 31, 2014
Operating Leased Assets [Line Items]  
2015 $ 70,562
2016 70,562
2017 61,106
2018 32,736
2019 2,728
Total $ 237,694
XML 27 R31.htm IDEA: XBRL DOCUMENT v2.4.0.8
Computation of Basic and Diluted Earnings Per Share (Detail) (USD $)
3 Months Ended 12 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2014
Mar. 31, 2013
Basic                    
Net earnings $ 389,440 $ 487,468 $ 27,659 $ 808,359 $ 1,249,571 $ 1,150,058 $ 1,644,329 $ 2,091,854 $ 1,712,926 $ 6,135,812
Weighted average common shares                 6,799,444 6,799,444
Dilutive                    
Net earnings $ 389,440 $ 487,468 $ 27,659 $ 808,359 $ 1,249,571 $ 1,150,058 $ 1,644,329 $ 2,091,854 $ 1,712,926 $ 6,135,812
Weighted average common shares and common share equivalents                 6,799,444 6,799,444
XML 28 R8.htm IDEA: XBRL DOCUMENT v2.4.0.8
Schedule II - Valuation and Qualifying Accounts
12 Months Ended
Mar. 31, 2014
Schedule II - Valuation and Qualifying Accounts

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

FRIEDMAN INDUSTRIES, INCORPORATED

 

Column A

  Column B     Column C     Column D     Column E  

Description

  Balance at
Beginning
of Period
    Additions     Deductions—
Describe(B)
    Balance at
End of Period
 
    Charged to
Costs and
Expenses
    Charged to
Other Accounts—
Describe(A)
     

Year ended March 31, 2014

Allowance for doubtful accounts receivable and cash discounts (deducted from related asset account)

  $ 37,276      $ 12,363      $ 541,556      $ 563,919      $ 27,276   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Year ended March 31, 2013

Allowance for doubtful accounts receivable and cash discounts (deducted from related asset account)

  $ 37,276      $      $ 736,502      $ 736,502      $ 37,276   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

 

(A) Cash discounts allowed on sales and charged against revenue.

 

(B) Accounts receivable written off and cash discounts allowed on sales.
XML 29 R32.htm IDEA: XBRL DOCUMENT v2.4.0.8
Components of Tax Expense (Benefit) (Detail) (USD $)
12 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Federal    
Current $ 863,049 $ 2,840,388
Deferred (172,281) (83,720)
Federal, total 690,768 2,756,668
State    
Current 133,014 252,797
State, total 133,014 252,797
Total $ 823,782 $ 3,009,465
XML 30 R2.htm IDEA: XBRL DOCUMENT v2.4.0.8
Consolidated Balance Sheets (USD $)
Mar. 31, 2014
Mar. 31, 2013
CURRENT ASSETS:    
Cash $ 15,081,024 $ 15,923,294
Accounts receivable, net of allowances for bad debts and cash discounts of $27,276 and $37,276 at March 31, 2014 and 2013, respectively 9,347,289 9,037,548
Inventories 35,288,559 39,219,168
Other 129,796 103,547
TOTAL CURRENT ASSETS 59,846,668 64,283,557
PROPERTY, PLANT AND EQUIPMENT:    
Land 1,410,689 1,082,331
Buildings and yard improvements 7,113,482 7,014,180
Machinery and equipment 31,773,161 30,293,590
Less accumulated depreciation (28,934,601) (27,111,529)
Property, Plant and Equipment, Net, Total 11,362,731 11,278,572
OTHER ASSETS:    
Cash value of officers' life insurance and other assets 1,075,000 1,013,000
TOTAL ASSETS 72,284,399 76,575,129
CURRENT LIABILITIES:    
Accounts payable and accrued expenses 7,206,340 11,181,804
Dividends payable 135,989 543,956
Contribution to profit sharing plan 52,500 52,500
Employee compensation and related expenses 375,860 533,822
TOTAL CURRENT LIABILITIES 7,770,689 12,312,082
DEFERRED INCOME TAXES 189,998 362,279
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS 1,013,056 943,149
STOCKHOLDERS' EQUITY:    
Common stock, par value $1: Authorized shares - 10,000,000 Issued shares - 7,975,160 at March 31, 2014 and 2013, respectively 7,975,160 7,975,160
Additional paid-in capital 29,003,674 29,003,674
Treasury stock at cost (1,175,716 shares at March 31, 2014 and 2013, respectively) (5,475,964) (5,475,964)
Retained earnings 31,807,786 31,454,749
TOTAL STOCKHOLDERS' EQUITY 63,310,656 62,957,619
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 72,284,399 $ 76,575,129
XML 31 R6.htm IDEA: XBRL DOCUMENT v2.4.0.8
Consolidated Statements of Stockholders' Equity (Parenthetical) (Retained Earnings, USD $)
12 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Retained Earnings
   
Cash dividends per share $ 0.2 $ 0.97
XML 32 R35.htm IDEA: XBRL DOCUMENT v2.4.0.8
Profit Sharing Plan - Additional Information (Detail) (USD $)
12 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Defined Benefit Plan Disclosure [Line Items]    
Service period of employees to fully vest in plan 6 years  
Defined Contribution Retirement Plan
   
Defined Benefit Plan Disclosure [Line Items]    
Maximum annual contribution percentage to defined contribution plan for eligible employees 15.00%  
Expenses related to defined contribution plans $ 206,000 $ 210,000
Defined Contribution 401 K Plan
   
Defined Benefit Plan Disclosure [Line Items]    
Company contributions to defined contribution plan $ 47,500 $ 59,000
Defined contribution plan service period for eligibility 1 year  
XML 33 R22.htm IDEA: XBRL DOCUMENT v2.4.0.8
Industry Segment Data (Tables)
12 Months Ended
Mar. 31, 2014
Summary of Significant Financial Information Relating to Product Groups

The following is a summary of significant financial information relating to the product groups:

 

     Year Ended March 31  
     2014     2013  

NET SALES:

    

Coil

   $ 66,138,845      $ 67,045,885   

Tubular

     50,010,177        69,402,901   
  

 

 

   

 

 

 

TOTAL NET SALES

   $ 116,149,022      $ 136,448,786   
  

 

 

   

 

 

 

OPERATING PROFIT (LOSS):

    

Coil

   $ (839,442   $ 848,252   

Tubular

     5,288,372        10,696,683   
  

 

 

   

 

 

 

TOTAL OPERATING PROFIT

     4,448,930        11,544,935   

General corporate expenses

     (1,974,234     (2,458,422

Interest and other income

     62,012        58,764   
  

 

 

   

 

 

 

TOTAL EARNINGS BEFORE INCOME TAXES

   $ 2,536,708      $ 9,145,277   
  

 

 

   

 

 

 

IDENTIFIABLE ASSETS:

    

Coil

   $ 22,308,165      $ 29,779,697   

Tubular

     33,794,992        29,834,246   
  

 

 

   

 

 

 
     56,103,157        59,613,943   

General corporate assets

     16,181,242        16,961,186   
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 72,284,399      $ 76,575,129   
  

 

 

   

 

 

 

DEPRECIATION:

    

Coil

   $ 1,140,250      $ 1,113,053   

Tubular

     673,850        669,876   

Corporate and other

     8,972        7,112   
  

 

 

   

 

 

 
   $ 1,823,072      $ 1,790,041   
  

 

 

   

 

 

 

CAPITAL EXPENDITURES:

    

Coil

   $ 364,443      $ 333,916   

Tubular

     1,533,489        165,570   

Corporate and other

     9,299          
  

 

 

   

 

 

 
   $ 1,907,231      $ 499,486   
  

 

 

   

 

 

 
XML 34 R36.htm IDEA: XBRL DOCUMENT v2.4.0.8
Summary of Significant Financial Information Relating to Product Groups (Detail) (USD $)
3 Months Ended 12 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2014
Mar. 31, 2013
Segment Reporting Information [Line Items]                    
Net sales $ 31,981,813 $ 28,274,696 $ 26,310,369 $ 29,582,144 $ 31,960,024 $ 31,719,922 $ 33,334,070 $ 39,434,770 $ 116,149,022 $ 136,448,786
Operating profit (loss)                 2,474,696 9,086,513
Interest and other income                 62,012 58,764
TOTAL EARNINGS BEFORE INCOME TAXES                 2,536,708 9,145,277
Total assets 72,284,399       76,575,129       72,284,399 76,575,129
Depreciation                 1,823,072 1,790,041
Capital Expenditure                 1,907,231 499,486
Operating Segments
                   
Segment Reporting Information [Line Items]                    
Operating profit (loss)                 4,448,930 11,544,935
Total assets 56,103,157       59,613,943       56,103,157 59,613,943
Operating Segments | Coil
                   
Segment Reporting Information [Line Items]                    
Net sales                 66,138,845 67,045,885
Operating profit (loss)                 (839,442) 848,252
Total assets 22,308,165       29,779,697       22,308,165 29,779,697
Depreciation                 1,140,250 1,113,053
Capital Expenditure                 364,443 333,916
Operating Segments | Tubular
                   
Segment Reporting Information [Line Items]                    
Net sales                 50,010,177 69,402,901
Operating profit (loss)                 5,288,372 10,696,683
Total assets 33,794,992       29,834,246       33,794,992 29,834,246
Depreciation                 673,850 669,876
Capital Expenditure                 1,533,489 165,570
Corporate and other
                   
Segment Reporting Information [Line Items]                    
General corporate expenses                 (1,974,234) (2,458,422)
Total assets 16,181,242       16,961,186       16,181,242 16,961,186
Depreciation                 8,972 7,112
Capital Expenditure                 $ 9,299  
XML 35 R24.htm IDEA: XBRL DOCUMENT v2.4.0.8
Valuation and Qualifying Accounts (Detail) (Allowance for doubtful accounts receivable and cash discounts (deducted from related asset account), USD $)
12 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Allowance for doubtful accounts receivable and cash discounts (deducted from related asset account)
   
Valuation and Qualifying Accounts Disclosure [Line Items]    
Balance at Beginning of Period $ 37,276 $ 37,276
Additions, Charged to Costs and Expenses 12,363  
Additions, Charged to Other Accounts- Describe 541,556 [1] 736,502 [1]
Deductions- Describe 563,919 [2] 736,502 [2]
Balance at End of Period $ 27,276 $ 37,276
[1] Cash discounts allowed on sales and charged against revenue.
[2] Accounts receivable written off and cash discounts allowed on sales.
XML 36 Show.js IDEA: XBRL DOCUMENT /** * Rivet Software Inc. * * @copyright Copyright (c) 2006-2011 Rivet Software, Inc. All rights reserved. * Version 2.4.0.3 * */ var Show = {}; Show.LastAR = null, Show.hideAR = function(){ Show.LastAR.style.display = 'none'; }; Show.showAR = function ( link, id, win ){ if( Show.LastAR ){ Show.hideAR(); } var ref = link; do { ref = ref.nextSibling; } while (ref && ref.nodeName != 'TABLE'); if (!ref || ref.nodeName != 'TABLE') { var tmp = win ? win.document.getElementById(id) : document.getElementById(id); if( tmp ){ ref = tmp.cloneNode(true); ref.id = ''; link.parentNode.appendChild(ref); } } if( ref ){ ref.style.display = 'block'; Show.LastAR = ref; } }; Show.toggleNext = function( link ){ var ref = link; do{ ref = ref.nextSibling; }while( ref.nodeName != 'DIV' ); if( ref.style && ref.style.display && ref.style.display == 'none' ){ ref.style.display = 'block'; if( link.textContent ){ link.textContent = link.textContent.replace( '+', '-' ); }else{ link.innerText = link.innerText.replace( '+', '-' ); } }else{ ref.style.display = 'none'; if( link.textContent ){ link.textContent = link.textContent.replace( '-', '+' ); }else{ link.innerText = link.innerText.replace( '-', '+' ); } } }; XML 37 R7.htm IDEA: XBRL DOCUMENT v2.4.0.8
Consolidated Statements of Cash Flows (USD $)
12 Months Ended
Mar. 31, 2014
Mar. 31, 2013
OPERATING ACTIVITIES    
Net earnings $ 1,712,926 $ 6,135,812
Adjustments to reconcile net earnings to net cash provided by operating activities:    
Depreciation 1,823,072 1,790,041
Deferred taxes (172,281) (83,720)
Change in post-retirement benefits other than pensions 69,907 89,411
Changes in operating assets and liabilities:    
Accounts receivable, net (309,741) 7,246,829
Inventories 3,930,609 (2,465,488)
Other (26,249) (15,261)
Accounts payable and accrued expenses (3,975,464) (909,350)
Employee compensation and related expenses (157,962) (193,520)
Income taxes payable   (98,464)
Net cash provided by operating activities 2,894,817 11,496,290
INVESTING ACTIVITIES    
Purchase of property, plant and equipment (1,907,231) (499,486)
Proceeds from sales of assets   42,375
Increase in cash value of officers' life insurance (62,000) (62,000)
Net cash used in investing activities (1,969,231) (519,111)
FINANCING ACTIVITIES    
Cash dividends paid (1,767,856) (6,935,433)
Net cash used in financing activities (1,767,856) (6,935,433)
Increase (decrease) in cash (842,270) 4,041,746
Cash at beginning of year 15,923,294 11,881,548
Cash at end of year $ 15,081,024 $ 15,923,294
XML 38 R3.htm IDEA: XBRL DOCUMENT v2.4.0.8
Consolidated Balance Sheets (Parenthetical) (USD $)
Mar. 31, 2014
Mar. 31, 2013
Allowances for bad debts and cash discounts $ 27,276 $ 37,276
Common stock, par value $ 1 $ 1
Common stock, shares authorized 10,000,000 10,000,000
Common stock, shares issued 7,975,160 7,975,160
Treasury stock, shares 1,175,716 1,175,716
XML 39 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Mar. 31, 2014
Basis of Consolidation

BASIS OF CONSOLIDATION:    The consolidated financial statements include the accounts of Friedman Industries, Incorporated and its subsidiary (collectively, the “Company”). All material intercompany amounts and transactions have been eliminated.

Revenue Recognition

REVENUE RECOGNITION:    Revenue from sales of products is recognized at the time that title and the risks and rewards of ownership pass, which is on the date of shipment. This date is when the terms of customers’ arrangements are met, the sales price is fixed or determinable and collection is reasonably assured.

Trade Receivables

TRADE RECEIVABLES:    The Company’s receivables are recorded when billed, advanced or accrued and represent claims against third parties that will be settled in cash. The carrying value of the Company’s receivables, net of the allowance for doubtful accounts and cash discounts allowed, represents their estimated net realizable value. The Company estimates its allowance for doubtful accounts based on historical collection trends, the age of outstanding receivables and existing economic conditions. Trade receivables are generally considered past due after 30 days from invoice date. Past-due receivable balances are written-off when the Company’s internal collection efforts have been unsuccessful in collecting the amount due.

Inventories

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. Inventories are valued at the lower of cost or replacement market. Cost for prime coil inventory is determined under the last-in, first-out (“LIFO”) method. In fiscal 2014, LIFO inventories were partially liquidated. Since the replacement costs and liquidation costs of material associated with this liquidation were approximately equal in the year, no meaningful gain or loss resulted from this partial liquidation. At March 31, 2014 and March 31, 2013, replacement cost exceeded LIFO cost by approximately $9,024,000 and $6,504,000, respectively. Cost for non-standard coil inventory is determined using the specific identification method. Cost for tubular inventory is determined using the weighted average method. Obsolete or slow-moving inventories are not significant based on the Company’s review of inventories. Accordingly, no allowance has been provided for such items.

Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT:    Property, plant and equipment is stated at cost. Depreciation is calculated primarily by the straight-line method over the estimated useful lives of the various classes of assets as follows:

 

Buildings  

     20 years   

Machinery and equipment  

     10 years   

Yard improvements  

     5 to 10 years   

Loaders and other rolling stock  

     5 to 10 years   

 

The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The Company assesses recoverability by comparing the carrying amount of the asset to estimated undiscounted future cash flows expected to be generated by the asset. If an asset is considered impaired, the impairment loss to be recognized is measured as the amount by which the asset’s carrying amount exceeds its fair value. Long-lived assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. No impairments were necessary at March 31, 2014 or 2013.

Maintenance and repairs are expensed as incurred.

Shipping Costs

SHIPPING COSTS:    Sales are credited for freight billed to customers and freight costs are charged to cost of products sold.

Supplemental Cash Flow Information

SUPPLEMENTAL CASH FLOW INFORMATION:    The Company paid no interest in fiscal 2014 or 2013. The Company paid income taxes of approximately $748,000 and $3,666,000 in fiscal 2014 and 2013, respectively. In fiscal 2014 and 2013, noncash financing activity consisted of accrued dividends of $135,989 and $543,956, respectively.

Income Taxes

INCOME TAXES:    The Company accounts for income taxes under the liability method, whereby the Company recognizes, on a current and long-term basis, deferred tax assets and liabilities, which represent differences between the financial and income tax reporting bases of its assets and liabilities. Deferred tax assets and liabilities are determined based on temporary differences between income and expenses reported for financial reporting and tax reporting. The Company has assessed, using all available positive and negative evidences, the likelihood that the deferred tax assets will be recovered from future taxable income.

The Company has also analyzed tax positions taken on tax returns filed and does not believe that any are more likely than not to be overturned by the respective tax jurisdiction. Therefore, no liability for uncertain tax positions has been recognized.

Use of Estimates

USE OF 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. Actual results could differ from those estimates.

Financial Instruments

FINANCIAL INSTRUMENTS:    Since the Company’s financial instruments are considered short-term in nature, their carrying values approximate fair value.

Earnings Per Share

EARNINGS PER SHARE:    Net income per basic common share is computed using the weighted average number of common shares outstanding during the period. Net income per diluted common share is computed using the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares result from the assumed exercise of outstanding common stock options having a dilutive effect using the treasury stock method.

Economic Relationship

ECONOMIC RELATIONSHIP:    U.S. Steel Tubular Products, Inc. (“USS”) and Nucor Steel Company supply a significant amount of steel products to the Company. Loss of either of these mills as a source of supply could have a material adverse effect on the Company. Additionally, the Company derives revenue by selling a substantial amount of its manufactured pipe to USS. Total sales to USS were approximately 15% and 14% of total Company sales in fiscal 2014 and 2013, respectively. Sales of coil products to Trinity Industries, Inc. accounted for approximately 14% and 11% of total Company sales in fiscal 2014 and 2013, respectively. No other customers accounted for 10% or more of total sales in the two years ended March 31, 2014. Loss of USS or Trinity as a customer could have a material adverse effect on the Company’s business.

The Company’s sales are concentrated primarily in the midwestern, southwestern, and southeastern regions of the United States and are primarily to customers in the steel distributing and fabricating industries. The Company performs periodic credit evaluations of the financial conditions of its customers and generally does not require collateral. Generally, receivables are due within 30 days.

New Accounting Pronouncements

NEW ACCOUNTING PRONOUNCEMENTS:

There were no new accounting pronouncements that affected the financial statements and disclosures of the Company for the fiscal years ended March 31, 2014 or 2013.

XML 40 R1.htm IDEA: XBRL DOCUMENT v2.4.0.8
Document and Entity Information (USD $)
12 Months Ended
Mar. 31, 2014
Jun. 11, 2014
Sep. 30, 2013
Document Information [Line Items]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Mar. 31, 2014    
Document Fiscal Year Focus 2014    
Document Fiscal Period Focus FY    
Trading Symbol FRD    
Entity Registrant Name FRIEDMAN INDUSTRIES INC    
Entity Central Index Key 0000039092    
Current Fiscal Year End Date --03-31    
Entity Well-known Seasoned Issuer No    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Filer Category Smaller Reporting Company    
Entity Common Stock, Shares Outstanding   6,799,444  
Entity Public Float     $ 66,966,000
XML 41 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Mar. 31, 2014
Summary of Inventory by Product Group

The following is a summary of inventory by product group:

 

     March 31  
     2014      2013  

Prime coil inventory  

   $ 7,685,177       $ 10,981,835   

Non-standard coil inventory  

     2,572,787         3,741,718   

Tubular raw material  

     463,254         3,308,419   

Tubular finished goods  

     24,567,341         21,187,196   
  

 

 

    

 

 

 
   $ 35,288,559       $ 39,219,168   
  

 

 

    

 

 

 
Estimated Useful Lives of Various Classes of Assets

Depreciation is calculated primarily by the straight-line method over the estimated useful lives of the various classes of assets as follows:

 

Buildings  

     20 years   

Machinery and equipment  

     10 years   

Yard improvements  

     5 to 10 years   

Loaders and other rolling stock  

     5 to 10 years   
XML 42 R4.htm IDEA: XBRL DOCUMENT v2.4.0.8
Consolidated Statements of Earnings (USD $)
12 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Net sales $ 116,149,022 $ 136,448,786
Costs and expenses:    
Cost of products sold 109,086,539 122,047,302
Selling, general and administrative 4,587,787 5,314,971
Costs and Expenses, Total 113,674,326 127,362,273
Operating profit (loss) 2,474,696 9,086,513
Interest and other income 62,012 58,764
EARNINGS BEFORE INCOME TAXES 2,536,708 9,145,277
Income taxes:    
Current 996,063 3,093,185
Deferred (172,281) (83,720)
Total 823,782 3,009,465
NET EARNINGS $ 1,712,926 $ 6,135,812
Weighted average number of common shares outstanding:    
Basic 6,799,444 6,799,444
Diluted 6,799,444 6,799,444
Net earnings per share:    
Basic $ 0.25 $ 0.90
Diluted $ 0.25 $ 0.90
XML 43 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
Earnings Per Share
12 Months Ended
Mar. 31, 2014
Earnings Per Share

4.   EARNINGS PER SHARE

Basic and dilutive net earnings per share is computed based on the following information:

 

     Year Ended March 31  
     2014      2013  

Basic

     

Net earnings

   $ 1,712,926       $ 6,135,812   
  

 

 

    

 

 

 

Weighted average common shares

     6,799,444         6,799,444   
  

 

 

    

 

 

 

Dilutive

     

Net earnings

   $ 1,712,926       $ 6,135,812   
  

 

 

    

 

 

 

Weighted average common shares and common share equivalents

     6,799,444         6,799,444   
  

 

 

    

 

 

 
XML 44 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
Commitments and Contingencies
12 Months Ended
Mar. 31, 2014
Commitments and Contingencies

3.   COMMITMENTS AND CONTINGENCIES

The Company is obligated under noncancelable operating leases for its Longview, Texas and Humble, Texas office buildings, which expire April 30, 2018 and December 31, 2016, respectively. The following is a schedule of future minimum annual rental payments for the next five years required under these operating leases as of March 31, 2014:

 

2015

   $ 70,562   

2016

     70,562   

2017

     61,106   

2018

     32,736   

2019

     2,728   
  

 

 

 

Total

   $ 237,694   
  

 

 

 
XML 45 R23.htm IDEA: XBRL DOCUMENT v2.4.0.8
Summary of Quarterly Results of Operations (Unaudited) (Tables)
12 Months Ended
Mar. 31, 2014
Summary of Unaudited Quarterly Results of Operations

The following is a summary of unaudited quarterly results of operations for the years ended March 31, 2014 and 2013:

 

     Quarter Ended  
     June 30,
2013
     September 30,
2013
     December 31,
2013
     March 31,
2014
 

Net sales

   $ 29,582,144       $ 26,310,369       $ 28,274,696       $ 31,981,813   

Gross profit

     2,443,844         1,077,913         1,846,778         1,693,948   

Net earnings

     808,359         27,659         487,468         389,440   

Basic

     .12         .00         .07         .06   

Diluted

     .12         .00         .07         .06   

 

     Quarter Ended  
     June 30,
2012
     September 30,
2012
     December 31,
2012
     March 31,
2013
 

Net sales

   $ 39,434,770       $ 33,334,070       $ 31,719,922       $ 31,960,024   

Gross profit

     4,647,758         3,776,798         2,884,278         3,092,650   

Net earnings

     2,091,854         1,644,329         1,150,058         1,249,571   

Basic

     .31         .24         .17         .18   

Diluted

     .31         .24         .17         .18   
XML 46 R19.htm IDEA: XBRL DOCUMENT v2.4.0.8
Commitments and Contingencies (Tables)
12 Months Ended
Mar. 31, 2014
Schedule of Future Minimum Annual Rental Payments Under Operating Leases

December 31, 2016, respectively. The following is a schedule of future minimum annual rental payments for the next five years required under these operating leases as of March 31, 2014:

 

2015

   $ 70,562   

2016

     70,562   

2017

     61,106   

2018

     32,736   

2019

     2,728   
  

 

 

 

Total

   $ 237,694   
  

 

 

 
XML 47 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
Industry Segment Data
12 Months Ended
Mar. 31, 2014
Industry Segment Data

7.   INDUSTRY SEGMENT DATA

The Company is engaged in the steel processing, pipe manufacturing and processing and steel and pipe distribution business. Within the Company, there are two product groups: coil and tubular. The Company’s coil operations involve converting steel coils into flat sheet and plate steel cut to customer specifications and reselling steel coils. Through its tubular operations, the Company purchases, processes, manufactures and markets tubular products. The following is a summary of significant financial information relating to the product groups:

 

     Year Ended March 31  
     2014     2013  

NET SALES:

    

Coil

   $ 66,138,845      $ 67,045,885   

Tubular

     50,010,177        69,402,901   
  

 

 

   

 

 

 

TOTAL NET SALES

   $ 116,149,022      $ 136,448,786   
  

 

 

   

 

 

 

OPERATING PROFIT (LOSS):

    

Coil

   $ (839,442   $ 848,252   

Tubular

     5,288,372        10,696,683   
  

 

 

   

 

 

 

TOTAL OPERATING PROFIT

     4,448,930        11,544,935   

General corporate expenses

     (1,974,234     (2,458,422

Interest and other income

     62,012        58,764   
  

 

 

   

 

 

 

TOTAL EARNINGS BEFORE INCOME TAXES

   $ 2,536,708      $ 9,145,277   
  

 

 

   

 

 

 

IDENTIFIABLE ASSETS:

    

Coil

   $ 22,308,165      $ 29,779,697   

Tubular

     33,794,992        29,834,246   
  

 

 

   

 

 

 
     56,103,157        59,613,943   

General corporate assets

     16,181,242        16,961,186   
  

 

 

   

 

 

 

TOTAL ASSETS

   $ 72,284,399      $ 76,575,129   
  

 

 

   

 

 

 

DEPRECIATION:

    

Coil

   $ 1,140,250      $ 1,113,053   

Tubular

     673,850        669,876   

Corporate and other

     8,972        7,112   
  

 

 

   

 

 

 
   $ 1,823,072      $ 1,790,041   
  

 

 

   

 

 

 

CAPITAL EXPENDITURES:

    

Coil

   $ 364,443      $ 333,916   

Tubular

     1,533,489        165,570   

Corporate and other

     9,299          
  

 

 

   

 

 

 
   $ 1,907,231      $ 499,486   
  

 

 

   

 

 

 

 

Operating profit is total net sales less operating expenses, excluding general corporate expenses, interest expense and interest 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, accrued profit sharing expense, accrued quarterly incentive bonuses, corporate insurance expenses and office supplies. Corporate assets consist primarily of cash and the cash value of officers’ life insurance. Although inventory is transferred at cost between product groups, there are no sales between product groups. Capital expenditures were related primarily to the Company’s pipe-finishing facility to be located in Lone Star, Texas. As of March 31, 2014, capitalized expenditures related to the construction of the facility totaled approximately $1,500,000.

XML 48 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
Income Taxes
12 Months Ended
Mar. 31, 2014
Income Taxes

5.   INCOME TAXES

Components of tax expense (benefit) are as follows:

 

     Year Ended March 31  
     2014     2013  

Federal

    

Current

   $ 863,049      $ 2,840,388   

Deferred

     (172,281     (83,720
  

 

 

   

 

 

 
     690,768        2,756,668   

State

    

Current

     133,014        252,797   
  

 

 

   

 

 

 
     133,014        252,797   
  

 

 

   

 

 

 

Total

   $ 823,782      $ 3,009,465   
  

 

 

   

 

 

 

The U.S. federal statutory income tax rate is reconciled to the effective rate as follows:

 

     Year Ended
March 31
 
     2014     2013  

Income Tax Expense at U.S. federal statutory rate

     34.0     34.0

Benefit of tax deduction allowed to manufacturing companies

     (3.0     (3.0

State and local income tax rates net of federal income tax benefit and true up of income taxes on prior year filing

     1.5        1.9   
  

 

 

   

 

 

 

Provision for income taxes

     32.5     32.9
  

 

 

   

 

 

 

The Company’s tax returns may be subject to examination by the Internal Revenue Service for the fiscal years ending March 31, 2011 through March 31, 2013. State and local returns may be subject to examination for fiscal years ended March 31, 2011 through March 31, 2013.

Deferred income taxes are provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s consolidated deferred tax assets (liabilities) are as follows:

 

     March 31  
     2014     2013  

Deferred tax liabilities:

    

Depreciation

   $ (1,500,000   $ (1,700,000
  

 

 

   

 

 

 

Total deferred tax liabilities

     (1,500,000     (1,700,000

Deferred tax assets:

    

Inventory capitalization

     170,000        170,000   

LIFO Inventory

     700,000        785,000   

Postretirement benefits other than pensions

     375,000        316,000   

Other

     65,002        66,721   
  

 

 

   

 

 

 

Total deferred tax assets

     1,310,002        1,337,721   
  

 

 

   

 

 

 

Net deferred tax liability

   $ (189,998   $ (362,279
  

 

 

   

 

 

 
XML 49 R14.htm IDEA: XBRL DOCUMENT v2.4.0.8
Profit Sharing Plan
12 Months Ended
Mar. 31, 2014
Profit Sharing Plan

6.   PROFIT SHARING PLAN

Effective May 1, 2007, the Company merged its defined contribution retirement plan and its 401(k) plan into the Friedman Industries, Inc. Employees’ Retirement and 401(k) Plan (the “Plan”). In addition, the Plan year end was changed to December 31. Employees fully vest in the Plan upon six years of service.

The retirement portion of the Plan covers substantially all employees, including officers. The Company’s contribution expenses, which are determined at the discretion of the Board of Directors in an amount not to exceed 15% of the total compensation paid during the year to all eligible employees, were $206,000 for the year ended March 31, 2014, and $210,000 for the year ended March 31, 2013. Contributions, Plan earnings and forfeitures of nonvested accounts of terminated participants are allocated to the remaining individual accounts determined by a point schedule based on years of employment with the Company.

Employees may participate in the 401(k) portion of the Plan. Employees are eligible to participate in the Plan when the employee has completed one year of service. Under the Plan, participating employees may defer a portion of their pretax earnings up to certain limits prescribed by the Internal Revenue Service. The Company provides matching contributions under the provisions of the Plan. Contribution expense related to the 401(k) portion of the Plan was approximately $47,500 and $59,000 for the years ended March 31, 2014 and 2013, respectively.

XML 50 R16.htm IDEA: XBRL DOCUMENT v2.4.0.8
Summary of Quarterly Results of Operations (Unaudited)
12 Months Ended
Mar. 31, 2014
Summary of Quarterly Results of Operations (Unaudited)

8.   SUMMARY OF QUARTERLY RESULTS OF OPERATIONS (Unaudited)

The following is a summary of unaudited quarterly results of operations for the years ended March 31, 2014 and 2013:

 

     Quarter Ended  
     June 30,
2013
     September 30,
2013
     December 31,
2013
     March 31,
2014
 

Net sales

   $ 29,582,144       $ 26,310,369       $ 28,274,696       $ 31,981,813   

Gross profit

     2,443,844         1,077,913         1,846,778         1,693,948   

Net earnings

     808,359         27,659         487,468         389,440   

Basic

     .12         .00         .07         .06   

Diluted

     .12         .00         .07         .06   

 

     Quarter Ended  
     June 30,
2012
     September 30,
2012
     December 31,
2012
     March 31,
2013
 

Net sales

   $ 39,434,770       $ 33,334,070       $ 31,719,922       $ 31,960,024   

Gross profit

     4,647,758         3,776,798         2,884,278         3,092,650   

Net earnings

     2,091,854         1,644,329         1,150,058         1,249,571   

Basic

     .31         .24         .17         .18   

Diluted

     .31         .24         .17         .18   
XML 51 R34.htm IDEA: XBRL DOCUMENT v2.4.0.8
Significant Components of Consolidated Deferred Tax Assets (Liabilities) (Detail) (USD $)
Mar. 31, 2014
Mar. 31, 2013
Deferred tax liabilities:    
Depreciation $ (1,500,000) $ (1,700,000)
Total deferred tax liabilities (1,500,000) (1,700,000)
Deferred tax assets:    
Inventory capitalization 170,000 170,000
LIFO Inventory 700,000 785,000
Postretirement benefits other than pensions 375,000 316,000
Other 65,002 66,721
Total deferred tax assets 1,310,002 1,337,721
Net deferred tax liability $ (189,998) $ (362,279)
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Income Taxes (Tables)
12 Months Ended
Mar. 31, 2014
Components of Tax Expense (Benefit)

Components of tax expense (benefit) are as follows:

 

     Year Ended March 31  
     2014     2013  

Federal

    

Current

   $ 863,049      $ 2,840,388   

Deferred

     (172,281     (83,720
  

 

 

   

 

 

 
     690,768        2,756,668   

State

    

Current

     133,014        252,797   
  

 

 

   

 

 

 
     133,014        252,797   
  

 

 

   

 

 

 

Total

   $ 823,782      $ 3,009,465   
  

 

 

   

 

 

 
Reconciliation of Federal Statutory Income Tax Rate to Effective Tax Rate

The U.S. federal statutory income tax rate is reconciled to the effective rate as follows:

 

     Year Ended
March 31
 
     2014     2013  

Income Tax Expense at U.S. federal statutory rate

     34.0     34.0

Benefit of tax deduction allowed to manufacturing companies

     (3.0     (3.0

State and local income tax rates net of federal income tax benefit and true up of income taxes on prior year filing

     1.5        1.9   
  

 

 

   

 

 

 

Provision for income taxes

     32.5     32.9
  

 

 

   

 

 

 
Significant Components of Consolidated Deferred Tax Assets (Liabilities)

Significant components of the Company’s consolidated deferred tax assets (liabilities) are as follows:

 

     March 31  
     2014     2013  

Deferred tax liabilities:

    

Depreciation

   $ (1,500,000   $ (1,700,000
  

 

 

   

 

 

 

Total deferred tax liabilities

     (1,500,000     (1,700,000

Deferred tax assets:

    

Inventory capitalization

     170,000        170,000   

LIFO Inventory

     700,000        785,000   

Postretirement benefits other than pensions

     375,000        316,000   

Other

     65,002        66,721   
  

 

 

   

 

 

 

Total deferred tax assets

     1,310,002        1,337,721   
  

 

 

   

 

 

 

Net deferred tax liability

   $ (189,998   $ (362,279
  

 

 

   

 

 

 
XML 54 R26.htm IDEA: XBRL DOCUMENT v2.4.0.8
Summary of Inventory Values by Product Group (Detail) (USD $)
Mar. 31, 2014
Mar. 31, 2013
Inventory [Line Items]    
Inventory, Net $ 35,288,559 $ 39,219,168
Prime Coil Inventory
   
Inventory [Line Items]    
Raw Materials 7,685,177 10,981,835
Non-Standard Coil Inventory
   
Inventory [Line Items]    
Raw Materials 2,572,787 3,741,718
Tubular
   
Inventory [Line Items]    
Raw Materials 463,254 3,308,419
Finished Goods $ 24,567,341 $ 21,187,196
XML 55 R5.htm IDEA: XBRL DOCUMENT v2.4.0.8
Consolidated Statements of Stockholders' Equity (USD $)
Total
Common Stock
Additional Paid-In Capital
Treasury Stock
Retained Earnings
Beginning Balance at Mar. 31, 2012   $ 7,975,160 $ 29,003,674 $ (5,475,964) $ 31,914,398
Net earnings 6,135,812       6,135,812
Cash dividends ($0.97) and ($0.20) for 2013 and 2014 respectively         (6,595,461)
Ending Balance at Mar. 31, 2013 62,957,619 7,975,160 29,003,674 (5,475,964) 31,454,749
Net earnings 1,712,926       1,712,926
Cash dividends ($0.97) and ($0.20) for 2013 and 2014 respectively         (1,359,889)
Ending Balance at Mar. 31, 2014 $ 63,310,656 $ 7,975,160 $ 29,003,674 $ (5,475,964) $ 31,807,786
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Stock Options and Capital Stock
12 Months Ended
Mar. 31, 2014
Stock Options and Capital Stock

2.   STOCK OPTIONS AND CAPITAL STOCK

In fiscal 2014 and 2013, the Company maintained no stock option plans. Accordingly, no options were outstanding and no options were granted in either fiscal year.

The Company has 1,000,000 authorized shares of Cumulative Preferred Stock with a par value of $1 per share. The stock may be issued in one or more series, and the Board of Directors is authorized to fix the designations, preferences, rights, qualifications, limitations and restrictions of each series, except that any series must provide for cumulative dividends and must be convertible into Common Stock. There were no shares of Cumulative Preferred Stock issued as of March 31, 2014 or March 31, 2013.

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Estimated Useful Lives of Various Classes of Assets (Detail)
12 Months Ended
Mar. 31, 2014
Building
 
Property, Plant and Equipment [Line Items]  
Estimated useful lives 20 years
Machinery and Equipment
 
Property, Plant and Equipment [Line Items]  
Estimated useful lives 10 years
Yard improvements | Minimum
 
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
Yard improvements | Maximum
 
Property, Plant and Equipment [Line Items]  
Estimated useful lives 10 years
Loaders and other rolling stock | Minimum
 
Property, Plant and Equipment [Line Items]  
Estimated useful lives 5 years
Loaders and other rolling stock | Maximum
 
Property, Plant and Equipment [Line Items]  
Estimated useful lives 10 years
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Summary of Unaudited Quarterly Results of Operations (Detail) (USD $)
3 Months Ended 12 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2014
Mar. 31, 2013
Schedule Of Quarterly Financial Information [Line Items]                    
Net sales $ 31,981,813 $ 28,274,696 $ 26,310,369 $ 29,582,144 $ 31,960,024 $ 31,719,922 $ 33,334,070 $ 39,434,770 $ 116,149,022 $ 136,448,786
Gross profit 1,693,948 1,846,778 1,077,913 2,443,844 3,092,650 2,884,278 3,776,798 4,647,758    
Net earnings $ 389,440 $ 487,468 $ 27,659 $ 808,359 $ 1,249,571 $ 1,150,058 $ 1,644,329 $ 2,091,854 $ 1,712,926 $ 6,135,812
Basic $ 0.06 $ 0.07 $ 0.00 $ 0.12 $ 0.18 $ 0.17 $ 0.24 $ 0.31 $ 0.25 $ 0.90
Diluted $ 0.06 $ 0.07 $ 0.00 $ 0.12 $ 0.18 $ 0.17 $ 0.24 $ 0.31 $ 0.25 $ 0.90
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Earnings Per Share (Tables)
12 Months Ended
Mar. 31, 2014
Computation of Basic and Diluted Earnings Per Share

Basic and dilutive net earnings per share is computed based on the following information:

 

     Year Ended March 31  
     2014      2013  

Basic

     

Net earnings

   $ 1,712,926       $ 6,135,812   
  

 

 

    

 

 

 

Weighted average common shares

     6,799,444         6,799,444   
  

 

 

    

 

 

 

Dilutive

     

Net earnings

   $ 1,712,926       $ 6,135,812   
  

 

 

    

 

 

 

Weighted average common shares and common share equivalents

     6,799,444         6,799,444