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What changed in FRIEDMAN INDUSTRIES INC's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of FRIEDMAN INDUSTRIES INC's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+23 added−23 removedSource: 10-K (2024-06-11) vs 10-K (2023-07-14)

Top changes in FRIEDMAN INDUSTRIES INC's 2024 10-K

23 paragraphs added · 23 removed · 22 edited across 4 sections

Item 1. Business

Business — how the company describes what it does

16 edited+1 added−1 removed11 unchanged
Biggest changeAll of the Company's employees are based in the United States. Talent Management and Diversity The Company's success and growth depend in large part on our ability to attract, develop, and retain a diverse population of talented employees at all levels of our organization.
Biggest changeHuman Capital Employee Base At March 31, 2024, the Company had 268 full-time employees, with all of them based in the United States. Talent Management and Diversity The Company's success and growth depend in large part on our ability to attract, develop, and retain a diverse population of talented employees at all levels of our organization.
The Company makes shipments of coil products based on which facility offers the desired product or, if the product is available at multiple facilities, based on other factors, such as customer location, freight conditions and the ability of the facility to fulfill the order on a timely basis.
The Company makes shipments of products based on which facility offers the desired product or, if the product is available at multiple facilities, based on other factors, such as customer location, freight conditions and the ability of the facility to fulfill the order on a timely basis.
Executive Officers of the Company The following table sets forth as of March 31, 2023, for each executive officer of the Company, the name, age, officer positions and arrangements with other persons regarding his selection as an officer, if any, and the period during which such officer has served in such capacity: Name Age Position, Offices with the Company and Other Arrangements, if any Michael J.
Executive Officers of the Company The following table sets forth as of March 31, 2024, for each executive officer of the Company, the name, age, officer positions and arrangements with other persons regarding his selection as an officer, if any, and the period during which such officer has served in such capacity: Name Age Position, Offices with the Company and Other Arrangements, if any Michael J.
More information about the Plateplus transaction can be found in Note 2 of the Consolidated Financial Statements included in the Company’s Annual Report to Shareholders for the fiscal year ended March 31, 2023. The facility in Sinton is a newly constructed facility that commenced operations during October 2022.
More information about the Plateplus transaction can be found in Note 2 of the Consolidated Financial Statements included in the Company’s Annual Report to Shareholders for the fiscal year ended March 31, 2024. The facility in Sinton is a newly constructed facility that commenced operations during October 2022.
At March 31, 2023, the sales force was comprised of the Vice President and General Manager – Tubular Division and two sales personnel. Competition The Company is engaged in a non-seasonal, highly-competitive business. The Company competes with other processors of hot-rolled steel coils, tubular manufacturers, steel distributors and brokers.
At March 31, 2024, the sales force was comprised of the Vice President and General Manager – Tubular Division and two sales personnel. Competition The Company is engaged in a non-seasonal, highly-competitive business. The Company competes with other processors of hot-rolled steel coils, tubular manufacturers, steel distributors and brokers.
Significant financial information relating to the Company’s business segments for the last two years is contained in Note 13of the Consolidated Financial Statements included in the Company’s Annual Report to Shareholders for the fiscal year ended March 31, 2023, which financial statements are incorporated herein by reference in Item 8 hereof.
Significant financial information relating to the Company’s business segments for the last two years is contained in Note 13of the Consolidated Financial Statements included in the Company’s Annual Report to Shareholders for the fiscal year ended March 31, 2024, which financial statements are incorporated herein by reference in Item 8 hereof.
Coil Products The coil product segment consists of the operation of five hot-rolled coil processing facilities located in Hickman, Arkansas; Decatur, Alabama; East Chicago, Indiana; Granite City, Illinois and Sinton, Texas. The facilities in Granite City and East Chicago were acquired on April 30, 2022 from Plateplus, Inc ("Plateplus").
Flat-Roll Products The flat-roll product segment consists of the operation of five hot-rolled coil processing facilities located in Hickman, Arkansas; Decatur, Alabama; East Chicago, Indiana; Granite City, Illinois and Sinton, Texas. The facilities in Granite City and East Chicago were acquired on April 30, 2022 from Plateplus, Inc ("Plateplus").
Coil products are sold on a wholesale, rapid-delivery basis in competition with other processors of hot-rolled steel coils. Shipments are made via unaffiliated truckers or by rail. The coil segment purchases its inventory from a limited number of suppliers. Loss of any of these suppliers could have a material adverse effect on the Company’s business.
Flat-roll products are sold on a wholesale, rapid-delivery basis in competition with other processors of hot-rolled steel coils. Shipments are made via unaffiliated truckers or by rail. The flat-roll segment purchases its inventory from a limited number of suppliers. Loss of any of these suppliers could have a material adverse effect on the Company’s business.
The vast majority of the coil product segment's revenue is generated from sales of Company owned inventory but the segment also generates revenue from the processing or storage of customer owned coils on a fee basis. The coil processing facilities are substantially similar with respect to products produced.
The vast majority of flat-roll product segment revenue is generated from sales of Company owned inventory but the segment also generates revenue from the processing or storage of customer owned coils on a fee basis. The coil processing facilities are substantially similar with respect to products produced.
Taylor 64 President and Chief Executive Officer since September 2019; formerly Interim President and Interim Chief Executive Officer since February 2019; Chairman of the Board of Directors since June 2017; member of the Board of Directors since December 2016 Alex LaRue 37 Chief Financial Officer – Secretary and Treasurer since March 2018; formerly Vice President — Secretary and Treasurer since 2014; formerly Assistant Vice President — Secretary and Treasurer since 2013; formerly Controller — Texas Tubular Products since 2011 3
Taylor 65 President and Chief Executive Officer since September 2019; formerly Interim President and Interim Chief Executive Officer since February 2019; Chairman of the Board of Directors since June 2017; member of the Board of Directors since December 2016 Alex LaRue 38 Chief Financial Officer – Secretary and Treasurer since March 2018; formerly Vice President — Secretary and Treasurer since 2014; formerly Assistant Vice President — Secretary and Treasurer since 2013; formerly Controller — Texas Tubular Products since 2011 3
The Company sells its tubular products nationally to approximately 95 customers. The Company’s principal customers for these products are steel and pipe distributors. In fiscal years 2023 and 2022, no individual tubular customer accounted for 10% or more of the Company’s total sales. The Company sells all of its tubular products through its own sales force.
Tubular Products. The Company sells its tubular products nationally to approximately 92 customers. The Company’s principal customers for these products are steel and pipe distributors. In fiscal years 2024 and 2023, no individual tubular customer accounted for 10% or more of the Company’s total sales. The Company sells all of its tubular products through its own sales force.
The Company’s principal customers for these products and services are steel distributors and customers manufacturing steel products such as steel buildings, railroad cars, barges, tanks and containers, trailers, component parts and other fabricated steel products. In fiscal years 2023 and 2022, sales of coil products to O'Neal Steel accounted for approximately 15% and 11% of the Company's total sales, respectively.
The Company’s principal customers for these products and services are steel distributors and customers manufacturing steel products such as steel buildings, railroad cars, barges, tanks and containers, trailers, component parts and other fabricated steel products. In fiscal years 2024 and 2023, sales of flat-roll products to O'Neal Steel accounted for approximately 16% and 15% of the Company's total sales, respectively.
Loss of any of these suppliers could have a material adverse effect on the Company’s business. 2 Marketing The following table sets forth the approximate percentage of total sales contributed by each group of products and services during each of the Company’s last two fiscal years: Product and Service Groups Fiscal 2023 Fiscal 2022 Coil Products 89 % 81 % Tubular Products 11 % 19 % Coil Products.
Loss of any of these suppliers could have a material adverse effect on the Company’s business. 2 Marketing The following table sets forth the approximate percentage of total sales contributed by each group of products and services during each of the Company’s last two fiscal years: Product and Service Groups Fiscal 2024 Fiscal 2023 Flat-Roll Products 92 % 89 % Tubular Products 8 % 11 % Flat-Roll Products.
The Company sells coil products and processing or storage services to approximately 520 customers located primarily in the midwestern, southwestern and southeastern regions of the United States.
The Company sells flat-roll products and processing or storage services to approximately 480 customers located primarily in the midwestern, southwestern and southeastern regions of the United States.
No other individual coil products customer accounted for 10% or more of the Company's total sales for either of the two fiscal years. The Company sells all of its coil products through its own sales force. At March 31, 2023, the sales force was comprised of the Vice President of Sales – Coil Divisions and 23 sales personnel. Tubular Products.
No other individual flat-roll products customer accounted for 10% or more of the Company's total sales for either of the two fiscal years. The Company sells all of its flat-roll products through its own sales force. At March 31, 2024, the sales force was comprised of the Vice President of Sales – Flat Roll Division and 25 sales personnel.
Item 1. Business General Friedman Industries, Incorporated (the “Company”), a Texas corporation incorporated in 1965, is a manufacturer and processor of steel products and operates in two reportable segments: coil products and tubular products.
Item 1. Business General Friedman Industries, Incorporated (the “Company”), a Texas corporation incorporated in 1965, is a manufacturer and processor of steel products and operates in two reportable segments: flat-roll products and tubular products. The flat-roll segment was previously referred to as the coil segment.
Removed
Human Capital Employee Base At March 31, 2023, the Company had 234 full-time employees and 1 part-time employee, of which 59 were salaried and 176 were hourly wage earners. At March 31, 2022, the Company had 98 full-time employees and 1 part-time employee, of which 22 were salaried and 77 were hourly wage earners.
Added
The Company is now using flat-roll to describe the segment due to it being a more common term used in the Company's industry.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeProperties The principal real properties of the Company are described in the following table: Location Approximate Size Ownership Lone Star, Texas Plant — Texas Tubular Products 161,000 sq. feet Owned(1) Offices — Texas Tubular Products 12,200 sq. feet Owned(1) Land — Texas Tubular Products 122.4 acres Owned(1) Longview, Texas Offices 5,100 sq. feet Leased(2) Hickman, Arkansas Plant and Warehouse — Coil Products 64,600 sq. feet Owned(1) Offices — Coil Products 2,500 sq. feet Owned(1) Land — Coil Products 26.2 acres Owned(1) Decatur, Alabama Plant and Warehouse — Coil Products 48,000 sq. feet Owned(1) Offices — Coil Products 2,000 sq. feet Owned(1) Land — Coil Products 47.3 acres Owned(1) Sinton, Texas Plant and Warehouse 70,000 sq. feet Leasehold Improvement (3) Offices — Coil Products 3,100 sq. feet Leasehold Improvement (3) Land — Coil Products 26.5 acres Leased (3) East Chicago, Indiana Plant and Warehouse 150,900 sq. feet Owned (1) Offices — Coil Products 3,200 sq. feet Owned (1) Land — Coil Products 5.0 acres Owned (1) Granite City, Illinois Plant and Warehouse 321,000 sq. feet Leasehold Improvement (4) Offices — Coil Products 4,400 sq. feet Leasehold Improvement (4) Land — Coil Products 31.1 acres Leased(4) (1) All of the Company’s owned real properties, plants and offices are held in fee and are not subject to any mortgage or deed of trust.
Biggest changeProperties The principal real properties of the Company are described in the following table: Location Approximate Size Ownership Lone Star, Texas Plant — Texas Tubular Products 161,000 sq. feet Owned(1) Offices — Texas Tubular Products 12,200 sq. feet Owned(1) Land — Texas Tubular Products 122.4 acres Owned(1) Longview, Texas Offices — Administrative 5,100 sq. feet Leased(2) Hickman, Arkansas Plant and Warehouse — Flat Roll Products 64,600 sq. feet Owned(1) Offices — Flat Roll Products 2,500 sq. feet Owned(1) Land — Flat Roll Products 26.2 acres Owned(1) Decatur, Alabama Plant and Warehouse — Flat Roll Products 48,000 sq. feet Owned(1) Offices — Flat Roll Products 2,000 sq. feet Owned(1) Land — Flat Roll Products 47.3 acres Owned(1) Sinton, Texas Plant and Warehouse — Flat Roll Products 70,000 sq. feet Leasehold Improvement (3) Offices — Flat Roll Products 3,100 sq. feet Leasehold Improvement (3) Land — Flat Roll Products 26.5 acres Leased (3) East Chicago, Indiana Plant and Warehouse — Flat Roll Products 150,900 sq. feet Owned (1) Offices — Flat Roll Products 3,200 sq. feet Owned (1) Land — Flat Roll Products 5.0 acres Owned (1) Granite City, Illinois Plant and Warehouse — Flat Roll Products 321,000 sq. feet Leasehold Improvement (4) Offices — Flat Roll Products 4,400 sq. feet Leasehold Improvement (4) Land — Flat Roll Products 31.1 acres Leased (4) The Woodlands, Texas Offices — Administrative 5,000 sq. feet Leased (5) (1) All of the Company’s owned real properties, plants and offices are held in fee and are not subject to any mortgage or deed of trust.
(2) The office lease is with a non-affiliated party, expires on April 30, 2024, and requires a monthly rental payment by the Company of approximately $5,000. (3) The associated lease is a 99 year lease with Steel Dynamics Inc. that calls for an annual rental payment of $1 and has an expiration date of February 19, 2120.
(2) The office lease is with a non-affiliated party, expires on April 30, 2027, and requires a monthly rental payment of approximately $5,000. (3) The associated lease is a 99 year lease with Steel Dynamics Inc. that calls for an annual rental payment of $1 and has an expiration date of February 19, 2120.
(4) The associated lease is with America's Central Port District and was assigned to the Company during the acquisition of this facility. The lease expires on August 31, 2023 and requires a quarterly rental payment of approximately $19,000. The Company is in the process of extending this lease .
(4) The associated lease is with America's Central Port District. The lease expires on August 31, 2028 and requires a monthly rental payment of approximately $13,000. (5) The office lease is with a non-affiliated party, expires on February 28, 2029, requires a monthly rental payment of approximately $11,400 and a monthly payment of proportionate operating costs of approximately $4,800.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe approximate number of shareholders of record of Common Stock of the Company as of April 28, 2023 was 170. Because many of the Company’s common shares are held by brokers and other institutions on behalf of shareholders, the Company is unable to estimate the total number of individual shareholders represented by these record holders.
Biggest changeThe approximate number of shareholders of record of Common Stock of the Company as of April 26, 2024 was 156. Because many of the Company’s common shares are held by brokers and other institutions on behalf of shareholders, the Company is unable to estimate the total number of individual shareholders represented by these record holders.
Reference is hereby made to the sections of the Company’s Annual Report to Shareholders for the fiscal year ended March 31, 2023, entitled “Description of Business — Range of High and Low Sales Prices of Common Stock” and “Description of Business — Cash Dividends Declared Per Share of Common Stock”, which sections are hereby incorporated herein by reference.
Reference is hereby made to the sections of the Company’s Annual Report to Shareholders for the fiscal year ended March 31, 2024, entitled “Description of Business — Range of High and Low Sales Prices of Common Stock” and “Description of Business — Cash Dividends Declared Per Share of Common Stock”, which sections are hereby incorporated herein by reference.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeItem 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Information with respect to Item 7 is hereby incorporated herein by reference from the section of the Company’s Annual Report to Shareholders for the fiscal year ended March 31, 2023, entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations”.
Biggest changeItem 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Information with respect to Item 7 is hereby incorporated herein by reference from the section of the Company’s Annual Report to Shareholders for the fiscal year ended March 31, 2024, entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations”.

Other FRD 10-K year-over-year comparisons