Note 9 - Industry Segment Data

12 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

9

.   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
	20 20			2019
NET SALES:
Coil	$	99,762,892		$	124,555,478
Tubular		42,339,432			62,599,015
TOTAL NET SALES	$	142,102,324		$	187,154,493
OPERATING PROFIT (LOSS):
Coil	$	1,252,669		$	6,414,396
Tubular		(5,564,882	)		2,328,871
TOTAL OPERATING PROFIT (LOSS)		(4,312,213	)		8,743,267
General corporate expenses		(2,540,443	)		(2,342,279	)
Interest expense		(4,806	)		(17,546	)
Interest and other income		19,260			440,503
TOTAL EARNINGS (LOSS) BEFORE INCOME TAXES	$	(6,838,202	)	$	6,823,945
IDENTIFIABLE ASSETS:
Coil	$	35,894,510		$	43,104,205
Tubular		23,659,457			31,519,755
		59,553,967			74,623,960
General corporate assets		17,790,121			11,978,022
TOTAL ASSETS	$	77,344,088		$	86,601,982
DEPRECIATION:
Coil	$	836,730		$	551,241
Tubular		675,048			782,327
Corporate and other		13,183			6,924
	$	1,524,961		$	1,340,492
CAPITAL EXPENDITURES:
Coil	$	4,060,911		$	396,299
Tubular		841,817			377,400
Corporate and other		32,633			34,290
	$	4,935,361		$	807,989

Operating profit (loss) 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, retirement plan contribution expense, corporate insurance expenses, restricted stock plan compensation expense and office supplies. At

March 31, 2020

and

March 31, 2019,

corporate assets consisted 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.