Friedman Industries Q3 Sales Decline, Posts Net Loss

TL;DR

Friedman Industries sales down, lost $1.9M in 9 months. Tough times.

AI Summary

Friedman Industries Inc. reported its third quarter results for fiscal year 2025, ending December 31, 2024. The company's net sales for the three months ended December 31, 2024, were $14.5 million, a decrease from $19.1 million in the same period last year. For the nine months ended December 31, 2024, net sales were $41.9 million compared to $47.8 million for the same period in fiscal year 2024. The company also reported a net loss of $1.9 million for the nine-month period.

Why It Matters

The decline in sales and net loss for Friedman Industries could indicate challenges in the steel fabrication market, potentially impacting suppliers and customers.

Risk Assessment

Risk Level: medium — The company's reported net loss and declining sales suggest potential financial instability or market headwinds.

Key Numbers

• $14.5M — Q3 Net Sales (For the three months ended December 31, 2024, down from $19.1M in the prior year.)
• $41.9M — Nine-Month Net Sales (For the nine months ended December 31, 2024, down from $47.8M in the prior year.)
• $1.9M — Nine-Month Net Loss (Reported for the nine months ended December 31, 2024.)

Key Players & Entities

• Friedman Industries Inc. (company) — Filer of the 10-Q report
• 2024-12-31 (date) — End of the reporting period for Q3 FY2025
• $14.5 million (dollar_amount) — Net sales for the three months ended December 31, 2024
• $19.1 million (dollar_amount) — Net sales for the three months ended December 31, 2023
• $41.9 million (dollar_amount) — Net sales for the nine months ended December 31, 2024
• $47.8 million (dollar_amount) — Net sales for the nine months ended December 31, 2023
• $1.9 million (dollar_amount) — Net loss for the nine months ended December 31, 2024

FAQ

Key Financial Figures

• $1 — nge on which registered Common Stock, $1 Par Value FRD NYSE American Indic
• $0.1 million — d March 31, 2024 included approximately $0.1 million and $3.0 million, respectively, of cash
• $3.0 m — included approximately $0.1 million and $3.0 million, respectively, of cash required t
• $4.8 million — 31, 2024. The Company had approximately $4.8 million in restricted cash as of December 31, 2

Filing Documents

• frd20241231_10q.htm (10-Q) — 1004KB
• ex_749621.htm (EX-31.1) — 8KB
• ex_749622.htm (EX-31.2) — 8KB
• ex_749623.htm (EX-32.1) — 6KB
• ex_749624.htm (EX-32.2) — 6KB
• 0001437749-25-003166.txt ( ) — 6021KB
• frd-20241231.xsd (EX-101.SCH) — 53KB
• frd-20241231_cal.xml (EX-101.CAL) — 50KB
• frd-20241231_def.xml (EX-101.DEF) — 333KB
• frd-20241231_lab.xml (EX-101.LAB) — 277KB
• frd-20241231_pre.xml (EX-101.PRE) — 364KB
• frd20241231_10q_htm.xml (XML) — 1183KB

— FINANCIAL INFORMATION

Part I — FINANCIAL INFORMATION 3

Financial Statements

Item 1. Financial Statements 3

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 16

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 20

Controls and Procedures

Item 4. Controls and Procedures 20

— OTHER INFORMATION

Part II — OTHER INFORMATION 21

Other Information

Item 5. Other Information 21

Exhibits

Item 6. Exhibits 21

SIGNATURES

SIGNATURES 22 2 Table of Contents

— FINANCIAL INFORMATION

Part I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements FRIEDMAN INDUSTRIES, INCORPORATED CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED (In thousands, except for share data) DECEMBER 31, 2024 MARCH 31, 2024 ASSETS CURRENT ASSETS: Cash $ 1,075 $ 2,891 Accounts receivable, net of allowances for credit losses and cash discounts of $ 145 and $ 97 at December 31, and March 31, 2024, respectively 31,727 47,329 Inventories 115,394 115,804 Current portion of derivative assets 38 74 Other current assets 1,052 3,966 TOTAL CURRENT ASSETS 149,286 170,064 PROPERTY, PLANT AND EQUIPMENT: Land 1,670 1,670 Buildings and yard improvements 30,906 30,900 Machinery and equipment 56,586 53,607 Construction in process 665 1,977 Less accumulated depreciation ( 33,040 ) ( 31,396 ) TOTAL PROPERTY, PLANT AND EQUIPMENT 56,787 56,758 OTHER ASSETS: Operating lease right-of-use asset 2,894 2,841 Other assets 1,285 356 TOTAL ASSETS $ 210,252 $ 230,019 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued expenses $ 41,081 $ 43,886 Income taxes payable — 2,213 Dividends payable 279 279 Employee compensation and related expenses 906 5,989 Current portion of financing lease — 54 Current portion of derivative liability 10 1,686 TOTAL CURRENT LIABILITIES 42,276 54,107 POSTRETIREMENT BENEFITS OTHER THAN PENSIONS 116 105 DEFERRED INCOME TAX LIABILITY 5,232 5,257 NON-CURRENT LEASE LIABILITIES 2,790 2,782 ASSET BASED LENDING FACILITY 32,509 40,293 TOTAL LIABILITIES 82,923 102,544 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Common stock, par value $ 1 : Authorized shares — 10,000,000 ; Issued shares — 8,873,203 shares at December 31, and March 31, 2024 8,873 8,873 Additional paid-in capital 35,368 35,247 Treasury stock at cost ( 1,906,693 shares and 1,896,892 shares at December 31, and March 31, 2024, respectively) ( 13,100 ) ( 12,929 ) Retained earnings 96,188 96,284 TOTAL STOCK

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View this 10-Q filing on SEC EDGAR