Note K - Revenue

9 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

NOTE K — REVENUE

Revenue is generated primarily from contracts to manufacture or process steel products. Most of the Company’s revenue is generated by sales of material out of the Company’s inventory, but a portion of the Company’s revenue is derived from processing of customer owned material. Generally, the Company’s performance obligations are satisfied, control of our products is transferred, and revenue is recognized at a single point in time, when title transfers to our customer for product shipped or when services are provided. Revenues are recorded net of any sales incentives. Shipping and other transportation costs charged to customers are treated as fulfillment activities and are recorded in both revenue and cost of sales at the time control is transferred to the customer. Costs related to obtaining sales contracts are incidental and expensed when incurred. Because customers are invoiced at the time title transfers and the Company’s rights to consideration are unconditional at that time, the Company does not maintain contract asset balances. Additionally, the Company does not maintain contract liability balances, as performance obligations are satisfied prior to customer payment for product. The Company offers industry standard payment terms.

The Company has two reportable segments: Coil and Tubular. Coil primarily generates revenue from cutting to length hot-rolled steel coils. Coil segment revenue consists of three main product types: Prime Coil, Non-Standard Coil and Customer Owned Coil. Tubular primarily generates revenue from the manufacture, distribution and processing of steel pipe. Tubular segment revenue consists of three main product or service types: Manufactured Pipe, Mill Reject Pipe and Pipe Finishing Services. In March 2020, U.S. Steel announced the idling of their Lone Star Tubular Operations which was the Company's sole supplier of mill reject pipe. U.S. Steel's facility was idled as announced and the Company's receipts of mill reject pipe ceased in August 2020. At December 31, 2021, the Company had approximately 3,000 tons of mill reject inventory and believes the balance will be substantially sold within 6 months. The Company expects the idling to have a negative impact on operations as mill reject pipe inventory is sold out. The Company did not generate any revenue from pipe finishing services during either of the three month or nine month periods ended December 31, 2021 or December 31, 2020. The pipe finishing facility is currently idled due to market conditions. The following table disaggregates our revenue by product for each of our reportable business segments for the three and nine months ended December 31, 2021 and 2020, respectively:

	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2021		2020		2021		2020
Coil Segment:
Prime Coil	$	39,588,438	$	19,541,188	$	164,096,180	$	49,897,886
Non-standard Coil		1,852,272		1,886,099		7,704,262		5,028,237
Customer Owned Coil		354,876		244,860		1,013,801		634,894
	$	41,795,586	$	21,672,147	$	172,814,243	$	55,561,017
Tubular Segment:
Manufactured Pipe	$	6,906,450	$	5,082,314	$	27,889,886	$	17,540,498
Mill Reject Pipe		2,953,907		1,747,588		9,439,148		3,786,814
	$	9,860,357	$	6,829,902	$	37,329,034	$	21,327,312