Friedman Industries, Inc - FRD STOCK NEWS

Friedman Industries (NYSE: FRD) announced a filing delay for its Form 10-Q for the quarter ending June 30, 2022. The company received a Filing Delinquency Notification from NYSE American, granting six months to correct the issue. Failure to comply may lead to an additional six-month extension. The delay is attributed to ongoing accounting matters related to a recent acquisition. To address future filing requirements, the company plans to hire additional accounting personnel in September and October 2022.

Friedman Industries (FRD) reported a net loss of $7.46 million ($1.11 loss per share) for Q4 2022, contrasting with a net profit of $10.40 million in Q4 2021. Sales rose to $75.09 million from $49.21 million, driven by a volatile steel market. For FY 2022, net earnings reached $14.07 million ($2.04 EPS), up from $11.42 million in FY 2021. The company acquired Plateplus facilities, boosting capacity, with Q1 FY 2023 estimated sales volume increasing significantly to 104,500 tons. However, a delay in filing the Form 10-K was noted due to audit procedures.

Friedman Industries transitioned to an accelerated filer status effective March 31, 2022, after its public float reached approximately $76 million, exceeding the SEC threshold of $75 million. Consequently, the Company had a Form 10-K filing deadline of June 14, 2022. However, it filed a Form NT 10-K on that date, indicating a delay due to ongoing drafting and audit processes. The Company expects to file its Form 10-K by July 22, 2022. This delay was influenced by the recent acquisition of Plateplus, Inc. and COVID-19 cases affecting staff.

Friedman Industries (NYSE: FRD) announced a cash dividend of $0.02 per share on June 28, 2022. This payment will be made on August 12, 2022 to shareholders recorded by July 22, 2022. This marks the company's 202nd consecutive quarterly dividend, having consistently distributed dividends since becoming publicly traded in 1972.

The Board aims to maintain a stable dividend level and may increase it as financial conditions improve, although future payments are not guaranteed.

Friedman Industries has acquired two strategic facilities from Plateplus, enhancing its position in the North American steel service market. The acquisition, finalized on April 30, 2022, was valued at $63.8 million in cash and stock. Key benefits include expanded processing capabilities and increased volume, expected to more than double the annual output of its coil product segment. The deal also strengthens customer relationships and supply chain efficiencies, leveraging logistics advantages. Friedman anticipates immediate profitability from the transition of Plateplus's business operations to its facilities.

Friedman Industries, a Texas-based pipe manufacturing firm, announced a cash dividend of $0.02 per share, set for payment on May 27, 2022. Shareholders of record as of April 29, 2022 will receive this dividend, marking the company's 201st consecutive quarterly payout. Since its public trading debut in 1972, Friedman has consistently paid dividends. The Board aims to sustain this level while considering financial conditions and growth plans. However, future payments are not guaranteed.

The Company reported a net loss of $2.96 million for Q3 2021, significantly down from net earnings of $2.13 million in Q3 2020. Sales rose to $51.66 million, driven by increased average selling prices despite a decline in sales volume. Hot-rolled coil futures impacted results, leading to a net loss of $12.99 million from hedging. The Company is optimistic about its new Sinton, Texas facility, expecting operations to start by August 2022 with anticipated EBITDA of $4.5 to $5.5 million annually, contributing positively to future margins.

The Board of Directors of Friedman Industries declared a cash dividend of $0.02 per share on December 14, 2021. This dividend will be paid on February 11, 2022, to shareholders of record by January 14, 2022. This marks the company's 200th consecutive quarterly cash dividend, having paid dividends every quarter since going public in 1972. The Board aims to maintain a stable dividend level for the foreseeable future, with potential increases based on financial and operational performance.

The Company reported a record net earnings of $13,177,614 ($1.91 diluted EPS) for the fiscal second quarter ending September 30, 2021, on sales of $92,570,895, compared to a net loss of $250,005 for the same period in 2020. Earnings were driven by historic increases in hot-rolled steel prices, approximately 280% higher than the previous year. Both coil and tubular segments contributed to profits, with coil segment sales soaring to $78,323,927. The company also broke ground on a $21 million new facility in Sinton, Texas, expected to significantly boost production.