Friedman Industries, Incorporated Announces Third Quarter Results
Friedman Industries (NYSE American: FRD) reported Q3 fiscal 2024 results with sales of $94.1 million and a net loss of $1.2 million ($0.17 loss per share), compared to net earnings of $1.2 million ($0.16 earnings per share) on sales of $116.0 million in Q3 2023.
The company faced challenging conditions with industry-wide pricing pressure and reduced sales volume due to political uncertainty and holidays. However, sales order activity increased following the presidential election, with quarter-end sales backlog volume up 11% year-over-year. The flat-roll segment recorded operating profits of $1.3 million on sales of $86.1 million, while the tubular segment posted a $0.2 million operating loss on sales of $7.9 million.
The company maintains a strong financial position with working capital of $107 million and generated operating cash flow of $2.7 million during the quarter, reducing debt by 9%.
Friedman Industries (NYSE American: FRD) ha riportato i risultati del Q3 dell'anno fiscale 2024, con vendite di $94,1 milioni e una perdita netta di $1,2 milioni ($0,17 di perdita per azione), rispetto agli utili netti di $1,2 milioni ($0,16 di utili per azione) su vendite di $116,0 milioni nel Q3 2023.
L'azienda ha affrontato condizioni difficili a causa di una pressione sui prezzi a livello di settore e di un volume di vendite ridotto a causa dell'incertezza politica e delle festività. Tuttavia, l'attività degli ordini di vendita è aumentata dopo le elezioni presidenziali, con il volume degli ordini inevasi alla fine del trimestre in crescita dell'11% rispetto all'anno precedente. Il segmento delle lastre piane ha registrato profitti operativi di $1,3 milioni su vendite di $86,1 milioni, mentre il segmento tubolare ha riportato una perdita operativa di $0,2 milioni su vendite di $7,9 milioni.
L'azienda mantiene una solida posizione finanziaria con un capitale circolante di $107 milioni e ha generato un flusso di cassa operativo di $2,7 milioni durante il trimestre, riducendo il debito del 9%.
Friedman Industries (NYSE American: FRD) informó los resultados del tercer trimestre del año fiscal 2024, con ventas de $94,1 millones y una pérdida neta de $1,2 millones ($0,17 de pérdida por acción), en comparación con ganancias netas de $1,2 millones ($0,16 de ganancias por acción) sobre ventas de $116,0 millones en el tercer trimestre de 2023.
La empresa enfrentó condiciones desafiantes debido a la presión de precios en toda la industria y un volumen de ventas reducido por la incertidumbre política y las festividades. Sin embargo, la actividad de órdenes de venta aumentó tras las elecciones presidenciales, con el volumen de pedidos pendientes al final del trimestre en aumento del 11% interanual. El segmento de productos laminados en frío registró beneficios operativos de $1,3 millones sobre ventas de $86,1 millones, mientras que el segmento tubular reportó una pérdida operativa de $0,2 millones sobre ventas de $7,9 millones.
La empresa mantiene una fuerte posición financiera con un capital de trabajo de $107 millones y generó un flujo de caja operativo de $2,7 millones durante el trimestre, reduciendo la deuda en un 9%.
프리드먼 인더스트리(Friedman Industries) (NYSE American: FRD)는 2024 회계연도 제3분기 실적을 보고하며 매출 9,410만 달러와 순손실 120만 달러($0.17의 주당 손실)를 기록했습니다. 이는 2023년 제3분기 매출 1,160만 달러 대비 순이익 120만 달러($0.16의 주당 이익)와 비교됩니다.
회사는 산업 전반에 걸친 가격 압박과 정치적 불확실성 및 휴일로 인한 판매량 감소로 어려운 상황에 직면했습니다. 그러나 대선 이후 판매 주문 활동이 증가했으며 분기 말 판매 백로그 볼륨은 전년 대비 11% 증가했습니다. 평판 롤 부문은 매출 8,610만 달러에 대해 130만 달러의 운영 이익을 기록했으며, 관 부문은 매출 790만 달러에 대해 20만 달러의 운영 손실을 기록했습니다.
회사는 1억 700만 달러의 운영 자본을 보유하고 있으며, 분기 동안 270만 달러의 운영 현금 흐름을 생성하여 부채를 9% 줄였습니다.
Friedman Industries (NYSE American: FRD) a annoncé ses résultats pour le troisième trimestre de l'exercice 2024, avec des ventes de 94,1 millions de dollars et une perte nette de 1,2 million de dollars (0,17 $ de perte par action), comparativement à un bénéfice net de 1,2 million de dollars (0,16 $ de bénéfice par action) pour des ventes de 116,0 millions de dollars au troisième trimestre 2023.
L'entreprise a fait face à des conditions difficiles en raison de la pression des prix dans l'ensemble de l'industrie et d'un volume de ventes réduit dû à l'incertitude politique et aux congés. Cependant, l'activité des commandes a augmenté après les élections présidentielles, avec un volume de commandes en attente à la fin du trimestre en hausse de 11 % par rapport à l'année précédente. Le segment des tôles plates a enregistré des bénéfices opérationnels de 1,3 million de dollars sur des ventes de 86,1 millions de dollars, tandis que le segment tubulaire a affiché une perte opérationnelle de 0,2 million de dollars sur des ventes de 7,9 millions de dollars.
L'entreprise maintient une forte position financière avec un fonds de roulement de 107 millions de dollars et a généré un flux de trésorerie d'exploitation de 2,7 millions de dollars au cours du trimestre, réduisant sa dette de 9 %.
Friedman Industries (NYSE American: FRD) berichtete über die Ergebnisse des dritten Quartals des Geschäftsjahres 2024 mit einem Umsatz von 94,1 Millionen US-Dollar und einem Nettoverlust von 1,2 Millionen US-Dollar (0,17 US-Dollar Verlust pro Aktie), im Vergleich zu einem Nettogewinn von 1,2 Millionen US-Dollar (0,16 US-Dollar Gewinn pro Aktie) bei einem Umsatz von 116,0 Millionen US-Dollar im dritten Quartal 2023.
Das Unternehmen sah sich herausfordernden Bedingungen mit branchenweiten Preisdruck und einem reduzierten Verkaufsvolumen aufgrund politischer Unsicherheiten und Feiertagen gegenüber. Nach den Präsidentschaftswahlen nahm jedoch die Auftragslage zu, und das Verkaufsrückstand am Ende des Quartals stieg im Jahresvergleich um 11%. Das Flachstahlsegment verzeichnete einen operativen Gewinn von 1,3 Millionen US-Dollar bei einem Umsatz von 86,1 Millionen US-Dollar, während das Rohrsegment einen operativen Verlust von 0,2 Millionen US-Dollar bei einem Umsatz von 7,9 Millionen US-Dollar auswies.
Das Unternehmen hält eine starke Finanzlage mit einem Working Capital von 107 Millionen US-Dollar und erzielte im Quartal einen operativen Cashflow von 2,7 Millionen US-Dollar, wodurch die Schulden um 9% gesenkt wurden.
- 11% increase in sales backlog volume year-over-year
- Operating cash flow of $2.7 million in Q3
- 9% debt reduction during the quarter
- Strong working capital position of $107 million
- Flat-roll segment maintained profitability with $1.3 million operating profit
- Net loss of $1.2 million compared to $1.2 million profit in prior year
- Sales declined 18.9% to $94.1 million from $116.0 million year-over-year
- Flat-roll segment operating profit decreased from $8.7 million to $1.3 million
- Average selling price per ton decreased from $960 to $813 in flat-roll segment
- Tubular segment losses increased to $0.2 million from $0.1 million
Insights
The Q3 FY2025 results reveal a complex picture for Friedman Industries, with concerning short-term performance but promising forward indicators. The 18.9% year-over-year revenue decline to
Segment analysis shows structural challenges: The flat-roll segment, contributing
The company's financial management deserves attention: The
Two positive indicators stand out: First, the
The surge in post-election orders and management's positive outlook on HRC prices could signal an inflection point. However, the key to near-term performance will be the company's ability to translate higher volumes into improved margins while maintaining cost discipline, particularly in processing and warehousing expenses which showed minimal efficiency gains year-over-year.
LONGVIEW, Texas, Feb. 07, 2025 (GLOBE NEWSWIRE) -- Friedman Industries, Incorporated (NYSE American: FRD) announced today its results of operations for the third fiscal quarter ended December 31, 2024.
December 31, 2024 Quarter Highlights:
- Sales of approximately
$94.1 million - Working capital balance at quarter-end of approximately
$107 million - Operating cash flow of approximately
$2.7 million during the quarter - Debt reduced
9% during the quarter - Quarter-end sales backlog volume
11% higher compared to prior year
“We continued to experience challenging conditions during the third fiscal quarter,” said Michael Taylor, President and Chief Executive Officer. “Our margins were adversely affected by continued industry-wide pricing pressure and sales volume was dampened by political uncertainty and the holidays. On an encouraging note, our sales order activity surged following the presidential election and our latest commercial initiatives. We have seen continued strength in new order activity. At quarter-end, our sales backlog volume was
For the quarter ended December 31, 2024 (the “2024 quarter”), the Company recorded a net loss of approximately
The table below provides our unaudited statements of operations for the three- and nine-month periods ended December 31, 2024 and 2023:
| SUMMARY OF OPERATIONS (unaudited) | ||||||||||||||||
| (In thousands, except for per share data) | ||||||||||||||||
| Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net Sales | $ | 94,074 | $ | 115,973 | $ | 315,384 | $ | 384,019 | ||||||||
| Cost and expenses: | ||||||||||||||||
| Cost of materials sold (excludes items shown separately below) | 78,509 | 91,972 | 263,165 | 309,157 | ||||||||||||
| Processing and warehousing expense | 7,472 | 7,370 | 24,030 | 22,678 | ||||||||||||
| Delivery expense | 4,941 | 5,469 | 16,373 | 17,435 | ||||||||||||
| Selling, general and administrative expense | 3,887 | 4,235 | 12,333 | 14,902 | ||||||||||||
| Depreciation and amortization | 827 | 754 | 2,445 | 2,262 | ||||||||||||
| 95,636 | 109,800 | 318,346 | 366,434 | |||||||||||||
| Gain on disposal of property, plant and equipment | 375 | - | 153 | - | ||||||||||||
| Earnings (loss) from operations | (1,187 | ) | 6,173 | (2,809 | ) | 17,585 | ||||||||||
| Gain (loss) on economic hedges of risk | 264 | (4,126 | ) | 5,833 | 706 | |||||||||||
| Interest expense | (632 | ) | (790 | ) | (2,182 | ) | (2,135 | ) | ||||||||
| Other income | 3 | 1 | 3 | 17 | ||||||||||||
| Earnings (loss) before income taxes | (1,552 | ) | 1,258 | 845 | 16,173 | |||||||||||
| Income tax expense (benefit) | (400 | ) | 74 | 105 | 3,786 | |||||||||||
| Net earnings (loss) | $ | (1,152 | ) | $ | 1,184 | $ | 740 | $ | 12,387 | |||||||
| Net earnings (loss) per share: | ||||||||||||||||
| Basic | $ | (0.17 | ) | $ | 0.16 | $ | 0.11 | $ | 1.69 | |||||||
| Diluted | $ | (0.17 | ) | $ | 0.16 | $ | 0.11 | $ | 1.69 | |||||||
The table below provides summarized unaudited balance sheets as of December 31, 2024 and March 31, 2024:
| SUMMARIZED BALANCE SHEETS (unaudited) | |||
| (In thousands) | |||
| December 31, 2024 | March 31, 2024 | ||
| ASSETS: | |||
| Current Assets | 149,286 | 170,064 | |
| Noncurrent Assets | 60,966 | 59,955 | |
| Total Assets | 210,252 | 230,019 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY: | |||
| Current Liabilities | 42,276 | 54,107 | |
| Noncurrent Liabilities | 40,647 | 48,437 | |
| Total Liabilities | 82,923 | 102,544 | |
| Total Stockholders' Equity | 127,329 | 127,475 | |
| Total Liabilities and Stockholders' Equity | 210,252 | 230,019 | |
FLAT-ROLL SEGMENT OPERATIONS
Flat-roll product segment sales for the 2024 quarter totaled approximately
TUBULAR SEGMENT OPERATIONS
Tubular product segment sales for the 2024 quarter totaled approximately
HEDGING ACTIVITIES
We utilize hot-rolled coil (“HRC”) futures to manage price risk on unsold inventory and longer-term fixed price sales agreements. We typically account for our hedging activities under mark-to-market (“MTM”) accounting treatment and all hedging decisions are intended to protect the value of our inventory and produce more consistent financial results over price cycles. With MTM accounting treatment it is possible that hedging related gains or losses might be recognized in a different period than the corresponding improvement or contraction in our physical margins. For the 2024 quarter, we recognized a gain on hedging activities of approximately
OUTLOOK
The Company expects sales volume for the fourth quarter of fiscal 2025 to be higher than the third quarter volume due to stronger order activity and the impact of holidays on third quarter volume. HRC prices were stable at the start of the fourth quarter but began to increase at the time of this release. Most industry participants anticipate prices to increase further during the second half of the quarter. The Company expects fourth quarter sales margins to improve compared to the third quarter.
“Friedman remains in a strong financial position and ready to capitalize on both short-term and long-term opportunities” Taylor said. “I see favorable long-term demand for the industry and our products and believe we have a team uniquely qualified to recognize Friedman’s fullest potential.”
ABOUT FRIEDMAN INDUSTRIES
Friedman Industries, Incorporated (“Company”), headquartered in Longview, Texas, is a manufacturer and processor of steel products with operating plants in Hickman, Arkansas; Decatur, Alabama; East Chicago, Indiana; Granite City, Illinois; Sinton, Texas and Lone Star, Texas. The Company has two reportable segments: flat-roll products and tubular products. The flat-roll product segment consists of the operations in Hickman, Decatur, East Chicago, Granite City and Sinton where the Company processes hot-rolled steel coils. The Hickman, East Chicago and Granite City facilities operate temper mills and corrective leveling cut-to-length lines. The Sinton and Decatur facilities operate stretcher leveler cut-to-length lines. The tubular product segment consists of the operations in Lone Star where the Company manufactures electric resistance welded pipe and distributes pipe through its Texas Tubular Products division.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, and such statements involve risk and uncertainty. Forward-looking statements include those preceded by, followed by or including the words “will,” “expect,” “intended,” “anticipated,” “believe,” “project,” “forecast,” “propose,” “plan,” “estimate,” “enable,” and similar expressions, including, for example, statements about our business strategy, our industry, our future profitability, growth in the industry sectors we serve, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions, future production capacity and product quality. These forward-looking statements may include, but are not limited to, everything under the header “Outlook” above, including sales volumes, margins, hedging results, and potential price increases, expectations as to financial results during the Company’s upcoming fiscal quarters, future changes in the Company’s financial condition or results of operations, future production capacity, product quality and proposed expansion plans. Forward-looking statements may be made by management orally or in writing including, but not limited to, this news release.
Forward-looking statements are not guarantees of future performance. These statements are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. Although forward-looking statements reflect our current beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements.
Actual results and trends in the future may differ materially depending on a variety of factors including, but not limited to, changes in the demand for and prices of the Company’s products, changes in government policy regarding steel, changes in the demand for steel and steel products in general and the Company’s success in executing its internal operating plans, changes in and availability of raw materials, our ability to satisfy our take or pay obligations under certain supply agreements, unplanned shutdowns of our production facilities due to equipment failures or other issues, increased competition from alternative materials and risks concerning innovation, new technologies, products and increasing customer requirements. Accordingly, undue reliance should not be placed on our forward-looking statements. Such risks and uncertainty are also addressed in our Management’s Discussion and Analysis of Financial Condition and Results of Operations and other sections of the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including the Company’s Annual Report on Form 10-K and its other Quarterly Reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except to the extent law requires.
For further information, please refer to the Company's Form 10-Q as filed with the SEC on February 7, 2025 or contact Alex LaRue, Chief Financial Officer – Secretary and Treasurer, at (903)758-3431.
FAQ
What were FRD's Q3 2024 financial results?
How much did FRD reduce its debt in Q3 2024?
What was FRD's sales backlog performance in Q3 2024?
What were FRD's flat-roll segment operating results in Q3 2024?
How much operating cash flow did FRD generate in Q3 2024?
