Friedman Industries, Incorporated Announces Third Quarter Results

LONGVIEW, Texas, Feb. 14, 2018 (GLOBE NEWSWIRE) — Friedman Industries, Incorporated (NYSE American:FRD), headquartered in Longview, Texas, is a manufacturer and processor of steel products with operating plants in Hickman, Arkansas; Decatur, Alabama and Lone Star, Texas. The Company has two reportable segments; coil products and tubular products. The coil product segment consists of the operations in Hickman and Decatur where the Company processes hot-rolled steel coils using temper mills and cut-to-length lines. The tubular product segment consists of the operations in Lone Star where the Company manufactures electric resistance welded pipe, provides pipe finishing services and distributes pipe.  

The Company announced today its results of operations for the third quarter. For the quarter ended December 31, 2017, the Company recorded net earnings of $122,929 ($0.02 diluted earnings per share) on sales of $28,033,521. During the quarter ended December 31, 2016, the Company recorded a net loss of $236,625 ($0.03 diluted loss per share) on sales of $15,988,745.

 

             
SUMMARY OF OPERATIONS (unaudited)            
                 
     Three Months Ended December 31,     Nine Months Ended December 31, 
      2017     2016       2017     2016  
                 
Net Sales   $   28,033,521   $   15,988,745     $   77,194,500   $   56,700,015  
                 
Total costs and              
other income     27,367,683       16,359,724         75,842,238       60,348,772  
                 
Earnings (loss) before              
income taxes     665,838       (370,979 )       1,352,262       (3,648,757 )
                 
Income taxes     542,909       (134,354 )       748,674       (1,347,031 )
                 
                 
Net earnings (loss) $   122,929   $   (236,625 )   $   603,588   $   (2,301,726 )
                 
Weighted average shares outstanding:            
Basic       7,009,444       6,799,444         7,009,444       6,799,444  
Diluted       7,009,444       6,799,444         7,009,444       6,799,444  
                 
Net earnings (loss) per share:            
Basic   $   0.02   $   (0.03 )   $   0.09   $   (0.34 )
Diluted   $   0.02   $   (0.03 )   $   0.09   $   (0.34 )
                             

Results before income taxes improved from a loss before income taxes of $370,979 for the quarter ended December 31, 2016 to earnings before income taxes of $665,838 for the quarter ended December 31, 2017. In the 2017 quarter, net earnings were negatively impacted by approximately $240,500 in deferred tax expense recognized for provisional adjustments related to the tax reform enacted by the U.S. government during the quarter. The improved results for the 2017 quarter were primarily attributable to increased sales volume for both the coil segment and tubular segment.

For further information, please refer to the Company’s Form 10-Q as filed with the U.S. Securities and Exchange Commission on February 14, 2018 or contact Alex LaRue, Vice President – Secretary and Treasurer, at (903)758-3431.

 

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