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.