Note 13 - Industry Segment Data

12 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

13.   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,
	2022			2021
NET SALES:
Coil	$	230,438,149		$	95,264,555
Tubular		54,796,603			30,837,978
TOTAL NET SALES	$	285,234,752		$	126,102,533
OPERATING PROFIT:
Coil	$	31,790,710		$	16,466,713
Tubular		2,423,655			2,923,399
TOTAL OPERATING PROFIT		34,214,365			19,390,112
General corporate expenses		(5,694,453	)		(3,640,098	)
Interest expense		(255,320	)		(24,619	)
Other income (loss), net		(9,934,034	)		(503,422	)
TOTAL EARNINGS BEFORE INCOME TAXES	$	18,330,558		$	15,221,973
IDENTIFIABLE ASSETS:
Coil	$	115,232,245		$	56,670,109
Tubular		24,016,816			17,883,612
		139,249,061			74,553,721
General corporate assets		20,026,009			20,455,088
TOTAL ASSETS	$	159,275,070		$	95,008,809
DEPRECIATION:
Coil	$	974,119		$	653,708
Tubular		330,652			346,135
Corporate and other		15,663			13,074
	$	1,320,434		$	1,012,917
CAPITAL EXPENDITURES:
Coil	$	8,005,370		$	4,505,589
Tubular		20,709			78,061
Corporate and other		38,520			25,967
	$	8,064,599		$	4,609,617

Operating profit is total net sales less operating expenses, excluding general corporate expenses, interest expense and interest and other income (loss). 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. Other income (loss) for fiscal 2022 consisted primarily of a loss of $11,636,120 on derivative instruments not designated for hedge accounting partially offset by a $1,706,614 gain associated with the forgiveness of the Company's Paycheck Protection Program loan. Other income (loss) for fiscal 2021 consisted primarily of a $515,160 loss related to derivatives not designated for hedge accounting. At March 31, 2022 and March 31, 2021, corporate assets consisted primarily of cash, restricted cash, net deferred tax asset, income taxes recoverable and the cash value of officers’ life insurance. Although inventory is transferred at cost between product groups, there are no sales between product groups.