10-K 1 frd20160331_10k.htm FORM 10-K frd20160331_10k.htm



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K

 

Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended March 31, 2016

 

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, 2015 (computed by reference to the closing price on such date) was approximately $40,347,000.  

 

The number of shares of the registrant’s Common Stock outstanding at June 29, 2016 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, 2016 — Part II.

 

Proxy Statement for the 2016 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 8 of the Consolidated Financial Statements included in the Company’s Annual Report to Shareholders for the fiscal year ended March 31, 2016, 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.

 

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 purposes that meets other recognized industry standards. Pipe mill #1 focuses on producing pipe with outside diameters (“OD”) of 6 5/8” and 8 5/8”. Pipe mill #2 is capable of producing pipe with OD ranging from 2 3/8” to 5 9/16” with the majority of production focusing on OD of 4 1/2”, 5 1/2” and 5 9/16”. TTP also employs various pipe processing equipment, including beveling machines, pipe handling equipment and other related machinery.

 

 

The Company is currently constructing a pipe-finishing facility in Lone Star, Texas that it expects to be completed during the second quarter of fiscal 2017. The facility will focus primarily on threading and coupling oil country tubular goods.

 

Historically, 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. In recent years, orders from USS have declined due to the increased presence of low priced imported material. In fiscal 2016 and fiscal 2015, orders from USS were also negatively impacted by a significant decline in the U.S. energy industry. The Company has also purchased new mill reject pipe from USS and marketed it to other customers for structural and other miscellaneous applications. In March 2016, USS announced it was temporarily idling its Lone Star Tubular Operations facility due to weak market conditions. The Company is unable to provide an estimate of how long USS’s Lone Star facility will be idled. The Company expects orders from USS to remain low and supplies of new mill reject pipe from USS to be significantly reduced while USS’s Lone Star facility remains idled and the U.S. energy industry remains depressed.

  

 
2

 

 

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

 

2016

   

2015

 

Coil Products

    81 %     67 %

Tubular Products

    19 %     33 %

 

Coil Products.  The Company sells coil products and processing services to approximately 125 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, 2016 and 2015, one and two customers of coil products, respectively, accounted for at least 25% of the Company’s total sales. Sales of coil products to Trinity Industries, Inc. accounted for approximately 35% and 21% of the Company’s total sales in fiscal 2016 and 2015, respectively.

 

The Company sells substantially all of its coil products through its own sales force. At March 31, 2016, the sales force was comprised of 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 makes regular commitments with many of its larger customers to supply minimum quantities of steel during agreed upon periods of time.

 

Tubular Products.  The Company sells its tubular products nationally to approximately 135 customers. The Company’s principal customers for these products are steel and pipe distributors, piling contractors and, historically, USS. In fiscal years 2016 and 2015, no individual tubular customer accounted for 10% or more of the Company’s total sales.

 

The Company sells substantially all of its tubular products through its own sales force comprised of a sales manager and two 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.

 

Employees

 

At March 31, 2016, the Company had 86 full-time employees and 3 part-time employees.

 

 

 
3

 

 

Executive Officers of the Company

 

The following table sets forth as of March 31, 2016, 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 (1)

 

68

 

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

 

65

 

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

Robert Sparkman (2)

 

59

 

Senior Vice President — Operations since 2015; formerly Vice President of Sales — Coil Division since 2002

Alex LaRue

 

30

 

Vice President — Secretary and Treasurer since 2014; formerly Assistant Vice President — Secretary and Treasurer since 2013; formerly Controller — Texas Tubular Products since 2011

 

 

(1)

As previously disclosed on Form 8-K, effective April 1, 2016, Mr. Crow is no longer serving as President of the Company, but will continue as Chief Executive Officer.

 

 

(2)

As previously disclosed on Form 8-K, on April 1, 2016, Mr. Sparkman began serving as President and Chief Operating Officer of the Company.

 

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

161,000 sq. feet

 

Owned(1)

Offices — Texas Tubular Products

12,200 sq. feet

 

Owned(1)

Land — Texas Tubular Products

122.4 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

26.2 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

47.3 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 a class member of pending steel antitrust class action litigation brought against certain steel manufacturers in the United States District Court for the Northern District of Illinois. The litigation was initiated by several complaints filed in September and October of 2008 alleging the defendants conspired, in violation of the U.S. antitrust laws, to restrict their output and therefore raise or fix the prices for steel products sold for delivery in the United States between April 1, 2005 and December 31, 2007. The plaintiffs seek monetary and other relief on behalf of themselves and the class. In fiscal 2016, the Company received settlement proceeds of $316,310 related to this litigation. The litigation continues against the non-settling defendants, Nucor Corporation, Steel Dynamics, Inc. and SSAB Swedish Steel Corporation, but the Company is unable to estimate the amount of future proceeds, if any, to be received.

 

The Company is not a party to, nor is its property the subject of, any other 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, 2016, 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 27, 2016 was 235.

 

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, 2016, 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, 2016, are hereby incorporated herein by reference:

 

Consolidated Balance Sheets — March 31, 2016 and 2015

 

Consolidated Statements of Earnings — Years ended March 31, 2016 and 2015

 

Consolidated Statements of Stockholders’ Equity — Years ended March 31, 2016 and 2015

 

Consolidated Statements of Cash Flows — Years ended March 31, 2016 and 2015

 

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 9 — 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, 2016.

 

The following supplementary schedule for the Company for the year ended March 31, 2016, 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.

 

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

 

None.

 

 

 
6

 

 

 

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 16 of the Company’s Annual Report to Shareholders for the year ended March 31, 2016, 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, 2016 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 2016 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 2016 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 2016 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 2016 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, 2016.

 

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 2016 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 2016 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 2016 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 2016 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 2016 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 2016 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, 2016, which is incorporated herein by reference:

 

Consolidated Balance Sheets — March 31, 2016 and 2015

 

Consolidated Statements of Earnings — Years ended March 31, 2016 and 2015

 

Consolidated Statements of Stockholders’ Equity — Years end March 31, 2016 and 2015

 

Consolidated Statements of Cash Flows — Years ended March 31, 2016 and 2015

 

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.

 

 
9

 

 

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, 2016.

     

  **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, Vice President — Secretary and 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

 

Dated: June 29, 2016

 

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

 

Chief Executive Officer and Director

 

June 29, 2016

William E. Crow   (Principal Executive Officer)    
         

/S/    ALEX LARUE

 

Vice President — Secretary and Treasurer

 

June 29, 2016

Alex LaRue   (Principal Financial Officer)    
         

/S/    DURGA D. AGRAWAL

 

Director

 

June 29, 2016

Durga D. Agrawal        
         

/S/    CHARLES W. HALL

 

Director

 

June 29, 2016

Charles W. Hall        
         

/S/    ALAN M. RAUCH

 

Director

 

June 29, 2016

Alan M. Rauch        
         

/S/    MAX REICHENTHAL

 

Director

 

June 29, 2016

Max Reichenthal        
         

/S/    JOEL SPIRA

 

Director

 

June 29, 2016

Joel Spira        
         

/S/    JOE L. WILLIAMS

 

Director

 

June 29, 2016

Joe L. Williams        

 

 

 
11

 

 

 

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS

 

FRIEDMAN INDUSTRIES, INCORPORATED

 

Column A

 

Column B

   

Column C

   

Column D

   

Column E

 
           

Additions

                 
Description   Balance at
Beginning
of Period
   

Charged to
Costs and
Expenses

   

Charged to
Other Accounts—
Describe(A)

    Deductions—
Describe(B)
    Balance at
End of Period
 

Year ended March 31, 2016

                                       

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

  $ 27,276     $ 4,153     $ 334,796     $ 343,949     $ 22,276  
                                         
Year ended March 31, 2015                                        

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

  $ 27,276     $ 4,306     $ 484,451     $ 488,757     $ 27,276  

  


(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 By laws 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, 2016.

       

  **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, Vice President — Secretary and Treasurer, Friedman Industries, Incorporated, P.O. Box 62388, Houston, Texas 77205.