NOTE B — CHANGE IN ACCOUNTING PRINCIPLE

Effective

April 1, 2018,

the Company changed its method for valuing prime coil inventory of the coil segment from the last-in,

first

-out (“LIFO”) method to the average cost method. The effects of the change in accounting principle from LIFO to average cost have been retrospectively applied to all prior periods presented in all sections of this quarterly report on Form

-Q. The Company believes the average cost method is preferable as it more closely resembles the physical flow of our inventory, it better matches revenues with expenses and it aligns with how we internally manage our business. As a result of the retrospective application of the change in accounting principle, certain financial statement line items in the Company’s consolidated balance sheet as of

March 31, 2018,

its consolidated statement of operations for the

three

and

nine

months ended

December 31, 2017

and its consolidated statement of cash flows for the

nine

months ended

December 31, 2017

were adjusted as presented in the table below. In addition, retained earnings as of

April 1, 2017

increased

$4,418,318

as a result of the change in accounting principle.

	As Originally Reported			Effect of Change			As Adjusted
Consolidated Statement of Operations, Three Months Ended December 31, 2017
Cost of goods sold		26,364,387			(55,400	)		26,308,987
Income tax provision		542,909			17,058			559,967
Net earnings		122,929			38,342			161,271

Net earnings per share:
Basic		0.02			-			0.02
Diluted		0.02			-			0.02

Consolidated Statement of Operations, Nine Months Ended December 31, 2017
Cost of goods sold		72,884,773			(458,528	)		72,426,245
Income tax provision		748,674			141,181			889,855
Net earnings		603,588			317,347			920,935

Net earnings per share:
Basic		0.09			0.04			0.13
Diluted		0.09			0.04			0.13

Consolidated Statement of Cash Flows, Nine Months Ended December 31, 2017
Net earnings		603,588			317,347			920,935
Change in inventories		(11,480,885	)		(458,528	)		(11,939,413	)
Change in deferred income taxes		702,222			108,483			810,705
Change in income taxes payable		-			32,698			32,698

Consolidated Balance Sheet, as of March 31, 2018
Inventories		38,039,332			7,290,102			45,329,434
Deferred income tax liability		103,198			1,768,968			1,872,166
Retained earnings		31,190,246			5,521,134			36,711,380

The following table shows the effect of the change in accounting principle from LIFO to average cost on the

three

and

nine

months ended

December 31, 2018:

	As Computed Under LIFO		As Computed Under Average Cost		Effect of Change
Consolidated Statement of Operations, Three Months Ended December 31, 2018
Earnings before income taxes		2,233,044		880,867		(1,352,177	)
Income tax provision		545,478		216,094		(329,384	)
Net earnings		1,687,567		664,773		(1,022,794	)

Net earnings per share:
Basic		0.24		0.09		(0.15	)
Diluted		0.24		0.09		(0.15	)

Consolidated Statement of Operations, Nine Months Ended December 31, 2018
Earnings before income taxes		5,782,409		8,289,004		2,506,595
Income tax provision		1,412,796		2,023,422		610,626
Net earnings		4,369,614		6,265,582		1,895,968

Net earnings per share:
Basic		0.62		0.89		0.27
Diluted		0.62		0.89		0.27