What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-11-12 compared with 2024-08-08 · 197 added, 95 removed, 381 unchanged (43% of the section changed)

3 unchanged sentences

(In thousands, except for share data)

JUNE 30, 2024

SEPTEMBER 30, 2024

MARCH 31, 2024

1 unchanged sentence

$ 2,473 $ 2,891

Accounts receivable, net of allowances for credit losses and cash discounts of $ 138 and $ 97 at June 30, and March 31, 2024, respectively

Accounts receivable, net of allowances for credit losses and cash discounts of $ 147 and $ 97 at September 30, and March 31, 2024, respectively

39,620 47,329

12 unchanged sentences

( 32,871 ) ( 31,396 )

57,043 56,758

TOTAL PROPERTY, PLANT AND EQUIPMENT 56,869 56,758

OTHER ASSETS:

24 unchanged sentences

Authorized shares — 10,000,000 ;

Issued shares — 8,873,203 shares at June 30, and March 31, 2024

Issued shares — 8,873,203 shares at September 30, and March 31, 2024

Additional paid-in capital

35,336 35,247

Treasury stock at cost ( 1,903,508 shares and 1,896,892 shares at June 30, and March 31, 2024, respectively)

Treasury stock at cost ( 1,904,258 shares and 1,896,892 shares at September 30, and March 31, 2024, respectively)

( 13,063 ) ( 12,929 )

10 unchanged sentences

THREE MONTHS ENDED

SIX MONTHS ENDED

SEPTEMBER 30,

$ 106,759 $ 130,748 $ 221,310 $ 268,046

Costs and expenses:

Cost of materials sold

Cost of materials sold (excludes items shown separately below)

88,761 110,275 184,656 217,911

Processing and warehousing expense

7,861 7,409 16,558 14,582

Delivery expense

5,381 6,521 11,432 11,966

Selling, general and administrative

3,935 4,729 8,446 10,667

Depreciation and amortization

823 759 1,618 1,508

Loss on disposal of property, plant and equipment 222 — 222 —

106,983 129,693 222,932 256,634

EARNINGS (LOSS) FROM OPERATIONS

( 224 ) 1,055 ( 1,622 ) 11,412

Gain on economic hedges of risk

194 4,402 5,569 4,832

Interest expense

EARNINGS BEFORE INCOME TAXES

( 869 ) ( 805 ) ( 1,550 ) ( 1,345 )

Other income (expense)

( 3 ) 10 — 16

EARNINGS (LOSS) BEFORE INCOME TAXES

( 902 ) 4,662 2,397 14,915

Provision for (benefit from) income taxes:

Net earnings per share:

( 219 ) 1,165 523 3,745

( 8 ) ( 16 ) ( 18 ) ( 33 )

( 227 ) 1,149 505 3,712

NET EARNINGS (LOSS)

$ ( 675 ) $ 3,513 $ 1,892 $ 11,203

Net earnings (loss) per share:

$ ( 0.10 ) $ 0.48 $ 0.27 $ 1.52

Cash dividends declared per common share

$ 0.04 $ 0.02 $ 0.08 $ 0.04

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME — UNAUDITED

1 unchanged sentence

THREE MONTHS ENDED

Other comprehensive income:

SIX MONTHS ENDED

SEPTEMBER 30,

Net earnings (loss)

Other comprehensive income (loss):

Cash flow hedges, net of tax

Comprehensive income

Comprehensive income (loss)

The accompanying notes are an integral part of these financial statements.

2 unchanged sentences

(In thousands)

THREE MONTHS ENDED JUNE 30,

SIX MONTHS ENDED SEPTEMBER 30,

OPERATING ACTIVITIES

$ 1,892 $ 11,203

Adjustments to reconcile net earnings to cash used in operating activities:

Adjustments to reconcile net earnings to cash provided by (used in) operating activities:

Depreciation and amortization

6 unchanged sentences

Deferred realized gain on derivatives

Loss on disposal of property, plant and equipment 222 —

Right-of-use asset

2 unchanged sentences

7,709 ( 2,958 )

10,753 ( 18,256 )

Other current assets

Decrease (increase) in operating liabilities:

141 ( 2,369 )

Increase (decrease) in operating liabilities:

Accounts payable and accrued expenses

1 unchanged sentence

Income taxes payable

( 2,018 ) 1,128

Contribution to retirement plan

1 unchanged sentence

( 4,740 ) ( 1,330 )

NET CASH USED IN OPERATING ACTIVITIES

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

4,724 ( 20,236 )

2 unchanged sentences

( 1,900 ) ( 2,883 )

Deposit on steel processing equipment ( 1,000 ) —

Increase in cash surrender value of officers’ life insurance

7 unchanged sentences

Cash paid for share repurchases

( 134 ) ( 4 )

Borrowings on asset based lending facility

2 unchanged sentences

( 331,424 ) ( 398,934 )

NET CASH PROVIDED BY FINANCING ACTIVITIES

INCREASE (DECREASE) IN CASH AND RESTRICED CASH

NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES

( 5,181 ) 20,892

DECREASE IN CASH AND RESTRICTED CASH

( 3,359 ) ( 2,234 )

CASH AND RESTRICTED CASH AT BEGINNING OF PERIOD

1 unchanged sentence

$ 2,538 $ 3,152

The Company did not have any restricted cash at June 30, 2024.

Cash and restricted cash at March 31, 2024 included approximately $3.0 million of cash required to collateralize open derivative positions with this amount reported in "Other current assets" on the Company's consolidated balance sheet at March 31, 2024.

Cash and restricted cash at September 30, 2024 and March 31, 2024 included approximately $0.1 million and $3.0 million, respectively, of cash required to collateralize open derivative positions.

These amounts are reported in "Other current assets" on the Company's consolidated balance sheets at September 30, 2024 and March 31, 2024.

The Company did not have any restricted cash as of September 30, 2023.

The accompanying notes are an integral part of these financial statements.

11 unchanged sentences

The Company believes this increased level of detail provides financial statement users with a better understanding of the Company's expenses.

"Cost of materials sold" represent the delivered cost of inventory sold.

"Cost of materials sold" represent the costs associated with direct materials.

"Processing and warehousing expense" represents the operating costs at our processing facilities.

2 unchanged sentences

These reclassifications had no impact on previously reported net earnings or stockholders' equity.

NOTE B — INVENTORIES

NOTE B — NEW ACCOUNTING PRONOUNCEMENTS

In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No.

2024 - 03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures:

Disaggregation of Income Statement Expenses (“ASU 2024 - 03” ).

ASU 2024 - 03 will require more detailed information about the types of expenses in commonly presented income statement captions such as “Cost of sales” and “Selling, general and administrative expenses”.

The new guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027 with early adoption permitted.

The Company is evaluating the impact that adoption of the provisions of ASU 2024 - 03 will have on its consolidated financial statements but does not expect a material impact.

NOTE C — INVENTORIES

The Company operates in two segments:

7 unchanged sentences

Tubular finished goods inventory consists of pipe the Company has manufactured.

Inventory costs include the costs of the purchased metals, inbound freight, transfer freight, certain external processing, internal processing, direct labor and applicable overhead costs.

On the Consolidated Statements of Operations, "Cost of materials sold (excludes items shown separately below)" consists of the cost of purchased metals, inbound freight, transfer freight and certain external processing costs.

A summary of inventory values by product group follows (in thousands):

June 30, 2024

September 30, 2024

March 31, 2024

6 unchanged sentences

$ 105,051 $ 115,804

NOTE C – DEBT

NOTE D — DEBT

The Company has a $ 150 million asset-based lending facility ("ABL Facility") in place with JPMorgan Chase Bank, N.A.

2 unchanged sentences

The ABL Facility matures on May 19, 2026 and is secured by substantially all of the assets of the Company.

Company can elect borrowings on a floating rate basis or a term basis.

The Company can elect borrowings on a floating rate basis or a term basis.

Floating rate borrowings accrue interest at a rate equal to the prime rate minus 1 % per annum.

6 unchanged sentences

If certain conditions precedent are satisfied, the ABL facility may be increased by up to an aggregate of $ 25 million, in minimum increments of $ 5 million.

At June 30, 2024 , the Company had a balance of approximately $ 46.1 million under the ABL Facility with an applicable interest rate of 7.5 %.

At June 30, 2024 , the Company's applicable borrowing base calculation supported access to approximately $ 112.4 million of the ABL Facility.

At September 30, 2024 , the Company had a balance of approximately $ 35.9 million under the ABL Facility with an applicable interest rate of 7.0 %.

At September 30, 2024 , the Company's applicable borrowing base calculation supported access to approximately $ 104.7 million of the ABL Facility.

The Company incurred debt issuance costs of approximately $ 0.4 million in connection with the ABL Facility.

The Company recorded these debt issuance costs as non-current other assets and is amortizing these costs on an equal monthly basis over the remaining term of the ABL facility.

NOTE D — LEASES

The Company has an operating lease for the Granite City, IL facility with an expiration date of August 31, 2028 with optional renewal provisions for up to 4 renewal terms of five years each.

NOTE E — LEASES

The Company has an operating lease for the Granite City, IL facility with an expiration date of August 31, 2028 and optional renewal provisions for up to 4 renewal terms of five years each.

The lease calls for monthly rental payments that adjust on an annual basis.

The monthly rental payment in place at June 30, 2024 and remaining in place until adjustment in September 2024 is approximately $ 13,000 per month.

The monthly rental payment in place at September 30, 2024 and remaining in place until adjustment in September 2025 is approximately $ 13,000 per month.

The anticipated execution of renewal options for this lease is included in the ROU asset and lease liability calculation.

1 unchanged sentence

The lease calls for monthly rental payments that adjust on an annual basis.

The monthly rental payment in place at June 30, 2024 and remaining in place until adjustment in March 2025 is approximately $ 11,000 per month.

The monthly rental payment in place at September 30, 2024 and remaining in place until adjustment in March 2025 is approximately $ 11,000 per month.

The Company’s lease of its office space in Longview, Texas is the only other operating lease included in the Company's ROU assets and lease liabilities.

This lease was renewed in April 2024 for a 36 month term expiring on April 30, 2027 with monthly rental payments of approximately $ 5,000 .

This lease expires on April 30, 2027 and calls for monthly rental payments of approximately $ 5,000 .

The Company’s other operating leases for items such as IT equipment and storage space are either short-term in nature or immaterial.

In October 2019, the Company acquired equipment under a 5 -year finance lease arrangement with a financed amount of approximately $ 0.5 million and a monthly payment of approximately $ 9,000 .

The components of expense related to leases for the three months ended June 30, 2024 and 2023 are as follows (in thousands):

The last payment under this lease was made in October 2024.

The components of expense related to leases for the three and six months ended September 30, 2024 and 2023 are as follows (in thousands):

Three Months Ended

Six Months Ended

September 30,

Finance lease – amortization of ROU asset

$ 27 $ 26 $ 54 $ 52

Finance lease – interest on lease liability

Operating lease expense

The following table illustrates the balance sheet classification for ROU assets and lease liabilities as of June 30, 2024 and March 31, 2024 (in thousands):

June 30, 2024

108 34 168 68

$ 135 $ 61 $ 222 $ 122

The following table illustrates the balance sheet classification for ROU assets and lease liabilities as of September 30, 2024 and March 31, 2024 (in thousands):

September 30, 2024

March 31, 2024

14 unchanged sentences

$ 2,981 $ 2,937

As of June 30, 2024 , the weighted-average remaining lease term was 19.5 years for operating leases and 0.2 years for finance leases.

The weighted average discount rate was 7.5 % for operating leases and 1.9 % fo r finance leases.

Maturities of lease liabilities as of June 30, 2024 were as follows (in thousands):

As of September 30, 2024 , the weighted-average remaining lease term was 19.4 years for operating leases.

The weighted average discount rate was 7.5 % for operating leases .

Maturities of lease liabilities as of September 30, 2024 were as follows (in thousands):

Operating Leases

5 unchanged sentences

Present value of lease liability

NOTE E — PROPERTY, PLANT AND EQUIPMENT

At June 30, 2024 , the Company's construction in process balance of approximately $ 2.3 million consisted primarily of approximately $ 1.9 million associated with a processing line upgrade at the Decatur, AL facility.

This upgrade is expected to be completed in August 2024.

The remaining construction in process balance is comprised of several smaller projects.

NOTE F — STOCK BASED COMPENSATION

NOTE F — PROPERTY, PLANT AND EQUIPMENT

At September 30, 2024 , the Company's construction in process balance of approximately $ 0.8 million consisted of several smaller projects among our facilities.

In August 2024, a processing line upgrade at the Decatur, AL facility was placed into service at a cost of approximately $ 1.9 million and a loss of approximately $ 0.2 million was recognized for disposal of the replaced equipment.

NOTE G — STOCK BASED COMPENSATION

The Company maintains the Friedman Industries, Incorporated 2016 Restricted Stock Plan (the “Plan”).

6 unchanged sentences

Because the Company accounts for forfeitures as they occur, the non-forfeitable dividends are reclassified from retained earnings to additional stock compensation for the actual forfeitures that occurred.

The following table summarizes the activity related to restricted stock units (“RSUs”) for the three months ended June 30, 2024 :

The following table summarizes the activity related to restricted stock units (“RSUs”) for the six months ended September 30, 2024 :

Weighted Average

5 unchanged sentences

( 36,000 ) 6.64

Unvested at June 30, 2024

Unvested at September 30, 2024

28,487 $ 6.61

1 unchanged sentence

Compensation expense is recognized over the requisite service period applicable to each award.

The Company recorded compensation expen se of approximately $ 0.1 million and $ 0.1 million in the three months ended June 30, 2024 and 2023 , respectively, relating to the RSUs issued under the Plan.

As of June 30, 2024 , unrecognized compensation expense related to unvested RSUs was appr oximat ely $ 0.1 mil lion which is expected to be recognized over a weighted average period of approximately 0.6 years.

As of June 30, 2024 , a total of 117,998 shares were still available to be issued under the Plan.

NOTE G — DERIVATIVE FINANCIAL INSTRUMENTS

The Company recorded compensation expen se of approximately $ 0.1 million and $ 0.2 million in the six months ended September 30, 2024 and 2023 , respectively, relating to the RSUs issued under the Plan.

As of September 30, 2024 , unrecognized compensation expense related to unvested RSUs was appr oximat ely $ 48,000 which is expected to be recognized over a weighted average period of approximately 0.4 years.

As of September 30, 2024 , a total of 117,998 shares were still available to be issued under the Plan.

NOTE H — DERIVATIVE FINANCIAL INSTRUMENTS

From time to time, we expect to utilize hot-rolled coil futures or options to reduce our exposure to commodity price risk that is inherent in our business.

For the three months ended June 30, 2024, all of the Company's hedging activities were classified as economic hedges of risk with mark-to-market ("MTM") accounting treatment.

For the three months ended June 30, 2023, the Company had hedging activities classified as cash flow hedges with hedge accounting treatment according to the requirements of ASC 815– Derivatives and Hedging and hedging activities classified as economic hedges of risk with MTM accounting treatment.

For the six months ended September 30, 2024 , all of the Company's hedging activities were classified as economic hedges of risk with mark-to-market ("MTM") accounting treatment.

For the six months ended September 30, 2023 , the Company had hedging activities classified as cash flow hedges with hedge accounting treatment according to the requirements of ASC 815– Derivatives and Hedging and hedging activities classified as economic hedges of risk with MTM accounting treatment.

By using derivatives, the Company is exposed to credit and market risk.

7 unchanged sentences

These supply agreements are not subject to mark-to-market accounting due to the Company electing the normal purchase normal sale exclusion provided in ASC 815.

At June 30, 2024 and March 31, 2024 ,the Company did not have any hot-rolled coil futures contracts designated as hedging instruments and classified as cash flow or fair value hedges.

The following table summarizes the fair value of the Company’s derivative financial instruments and the respective line in which they were recorded in the Consolidated Balance Sheet as of June 30, 2024 (in thousands):

At September 30, 2024 and March 31, 2024 , the Company did not have any hot-rolled coil futures contracts designated as hedging instruments and classified as cash flow or fair value hedges.

Asset Derivatives

16 unchanged sentences

All derivatives are presented on a gross basis on the Consolidated Balance Sheets.

During the three months ended June 30, 2024 and 2023 , the Company entered into hot-rolled coil futures contracts that were not designated as hedging instruments for accounting purposes.

During the six months ended September 30, 2024 and 2023 , the Company entered into hot-rolled coil futures contracts that were not designated as hedging instruments for accounting purposes.

Accordingly, the change in fair value related to these instruments was immediately recognized in earnings for these periods.

During the three months ended June 30, 2024 and 2023, the Company did not designate any transactions as hedging instruments for accounting purposes.

During the three months ended June 30, 2023, the Company reclassified the loss associated with previously designated cash flow hedges into earnings during the period.

The following table summarizes the pre-tax gain (loss) recognized in other comprehensive income and the loss reclassified from accumulated other comprehensive income into earnings for derivative financial instruments designated as cash flow hedges for the three months ended June 30, 2023 (in thousands):

Pre-Tax Gain (Loss) Recognized in OCI

Location of Loss Reclassified from AOCI into Net Earnings

Pre- Tax Loss Reclassified from AOCI into Net Earnings

For the three months ended June 30, 2023:

During the six months ended September 30, 2024 and 2023 , the Company did not designate any transactions as hedging instruments for accounting purposes.

During the six months ended September 30, 2023 , the Company reclassified the loss associated with previously designated cash flow hedges into earnings during the period.

Loss Reclassified from

Pre-Tax Gain (Loss) Location of Loss Reclassified AOCI into Net

Recognized in OCI from AOCI into Net Earnings Earnings

For the six months ended September 30, 2023:

Hot-rolled coil steel contracts

$ — $ ( 418 )

The following table summarizes the gain recognized in earnings for derivative instruments not designated as hedging instruments during the three months ended June 30, 2024 (in thousands):

The following table summarizes the gain recognized in earnings for derivative instruments not designated as hedging instruments during the three and six months ended September 30, 2024 (in thousands):

Gain Recognized in Earnings

2 unchanged sentences

Recognized in Earnings

June 30, 2024

September 30, 2024

Hot-rolled coil steel contracts

Gain on economic hedges of risk

The following table summarizes the gain recognized in earnings for derivative instruments not designated as hedging instruments during the three months ended June 30, 2023 (in thousands):

Gain Recognized in Earnings

Location of Gain

for the Six Months Ended

Recognized in Earnings

September 30, 2024

Hot-rolled coil steel contracts

Gain on economic hedges of risk

Gain Recognized in Earnings

Location of Gain

for the Three Months Ended

Recognized in Earnings

June 30, 2023

September 30, 2023

Hot-rolled coil steel contracts

Gain on economic hedges of risk

The notional amount (quantity) of our derivative instruments not designated as hedging instruments at June 30, 2024 consisted of 280 tons of short positions with maturity dates ranging from July 2024 to December 2024 and 220 tons of long positions with a September 2024 maturity date.

The following tables reflect the change in accumulated other comprehensive income (loss), net of tax, for the three months ended June 30, 2023 (in thousands):

Gain Recognized in Earnings

Location of Gain

for the Six Months Ended

Recognized in Earnings

September 30, 2023

Hot-rolled coil steel contracts

Gain on economic hedges of risk

The notional amount (quantity) of our derivative instruments not designated as hedging instruments at September 30, 2024 consisted of 1,820 tons of short positions with maturity dates ranging from October 2024 to June 2025 and 100 tons of long positions with maturity dates of November 2024 and January 2025.

The following tables reflect the change in accumulated other comprehensive income (loss), net of tax, for the six months ended September 30, 2023 (in thousands):

Gain (Loss) on

3 unchanged sentences

Net current period other comprehensive income

Balance at June 30, 2023

( 1 ) The loss reclassified from AOCI is presented net of tax benefits of approximately $ 0.1 million which are included in the provision for (benefit from) income taxes on the Company's Consolidated Statement of Operations for the three months ended June 30, 2023 .

The Company did not have any restricted cash at June 30, 2024 associated with open derivative positions.

At March 31, 2024 , cash of approximately $ 3.0 million was held by our clearing agent to collateralize open derivative positions with this amount reported in "Other current assets" on the Company's consolidated balance sheet at March 31, 2024 .

NOTE H — FAIR VALUE MEASUREMENTS

Balance at September 30, 2023

At September 30, 2024 and March 31, 2024 , cash of approximately $ 0.1 million and $ 3.0 million, respectively, was held by our clearing agent to collateralize our open derivative positions.

These cash requirements are included in "Other current assets" on the Company's Consolidated Balance Sheets at September 30, 2024 and March 31, 2024 .

NOTE I — FAIR VALUE MEASUREMENTS

Accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs.

4 unchanged sentences

Recurring Fair Value Measurements

At June 30, 2024 , our financial liabilities, net, measured at fair value on a recurring basis were as follows (in thousands):

At September 30, 2024 , our financial assets, net, measured at fair value on a recurring basis were as follows (in thousands):

Quoted Prices

Commodity futures – financial liabilities, net

Commodity futures – financial assets, net

$ 17 $ — $ — $ 17

5 unchanged sentences

$ ( 1,612 ) $ — $ — $ ( 1,612 )

At June 30, 2024 and March 31, 2024 , the Company did not have any fair value measurements on a non-recurring basis.

NOTE I — SEGMENT INFORMATION (in thousands)

At September 30, 2024 and March 31, 2024 , the Company did not have any fair value measurements on a non-recurring basis.

NOTE J — SEGMENT INFORMATION (in thousands)

The Company is engaged in the steel processing, pipe manufacturing and processing and steel and pipe distribution business.

5 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

$ 97,379 $ 120,527 $ 200,766 $ 245,724

6 unchanged sentences

TOTAL OPERATING PROFIT

2,087 3,158 3,568 17,236

General corporate expenses

1 unchanged sentence

Gain on economic hedges of risk

194 4,402 5,569 4,832

Interest expense

( 869 ) ( 805 ) ( 1,550 ) ( 1,345 )

TOTAL EARNINGS BEFORE INCOME TAXES

Other income (loss)

( 3 ) 10 — 16

June 30, 2024

TOTAL EARNINGS (LOSS) BEFORE INCOME TAXES

$ ( 902 ) $ 4,662 $ 2,397 $ 14,915

September 30, 2024

March 31, 2024

5 unchanged sentences

$ 209,167 $ 230,019

Operating profit is total net sales less operating expenses, excluding general corporate expenses, gain (loss) on economic hedges of risk, interest expense and other income.

Operating profit (loss) is total net sales less operating expenses, excluding general corporate expenses, gain on economic hedges of risk, interest expense and other income (loss).

General corporate expenses reflect general and administrative expenses not directly associated with segment operations and consist primarily of corporate and accounting salaries, professional fees and services, bad debts, retirement plan contribution expense, corporate insurance expenses, restricted stock plan compensation expense and office supplies.

At June 30, 2024 and March 31, 2024 , corporate assets consist primarily of cash, restricted cash, unamortized debt issuance costs and the cash value of officers’ life insurance.

At September 30, 2024 and March 31, 2024 , corporate assets consist primarily of cash, restricted cash, leased administrative office right-of-use assets, unamortized debt issuance costs and the cash value of officers’ life insurance.

Although inventory is transferred at cost between product groups, there are no sales between product groups.

NOTE J — REVENUE

NOTE K — REVENUE

Revenue is generated primarily from contracts to manufacture or process steel products.

14 unchanged sentences

Manufactured Pipe.

The following table disaggregates our revenue by product for each of our reportable business segments for the three months ended June 30, 2024 and 2023 , respectively (in thousands):

The following table disaggregates our revenue by product for each of our reportable business segments for the three and six months ended September 30, 2024 and 2023 , respectively (in thousands):

Three Months Ended

Six Months Ended

September 30,

Flat-Roll Segment:

3 unchanged sentences

1,147 1,332 2,700 2,556

97,379 120,527 200,766 245,724

Tubular Segment:

2 unchanged sentences

9,380 10,221 20,544 22,322

NOTE K — STOCKHOLDERS’ EQUITY

The following tables reflect the changes in stockholders’ equity for each of the three months ended June 30, 2024 and June 30, 2023 (in thousands):

NOTE L — STOCKHOLDERS’ EQUITY

The following tables reflect the changes in stockholders’ equity for each of the six months ended September 30, 2024 and September 30, 2023 (in thousands):

Comprehensive

10 unchanged sentences

$ 8,873 $ — $ 35,294 $ ( 13,052 ) $ 98,572 $ 129,687

— — — — ( 675 ) ( 675 )

Paid in capital – restricted stock units

— — 42 — — 42

Repurchase of shares

— — — ( 11 ) — ( 11 )

Cash dividends ($ 0.04 per share)

— — — — ( 279 ) ( 279 )

BALANCE AT SEPTEMBER 30, 2024

$ 8,873 $ — $ 35,336 $ ( 13,063 ) $ 97,618 $ 128,764

Comprehensive

10 unchanged sentences

$ 8,869 $ — $ 35,083 $ ( 7,778 ) $ 87,195 $ 123,369

NOTE L — OTHER COMPREHENSIVE INCOME

The following table summarizes the tax effects on each component of Other Comprehensive Income for the three months ended June 30, 2023 (in thousands):

Three Months Ended June 30, 2023

— — — — 3,513 3,513

Paid in capital – restricted stock units

— — 78 — — 78

Repurchase of shares

— — — ( 3 ) — ( 3 )

Cash dividends ($ 0.02 per share)

— — — — ( 148 ) ( 148 )

BALANCE AT SEPTEMBER 30, 2023

$ 8,869 $ — $ 35,161 $ ( 7,781 ) $ 90,560 $ 126,809

NOTE M — OTHER COMPREHENSIVE INCOME

The following table summarizes the tax effects on each component of Other Comprehensive Income for the six months ended September 30, 2023 (in thousands):

Six Months Ended September 30, 2023

Cash flow hedges

2 unchanged sentences

$ 418 $ ( 101 ) $ 317

NOTE M — EARNINGS PER SHARE

NOTE N — EARNINGS PER SHARE

Basic and dilutive net earnings per share is computed based on the following information (in thousands, except for share data):

Three Months Ended

Six Months Ended

September 30,

Numerator (basic and diluted)

Net earnings (loss)

$ ( 675 ) $ 3,513 $ 1,892 $ 11,203

Allocation to unvested restricted stock units

Net earnings attributable to common shareholders

Net earnings (loss) attributable to common shareholders

$ ( 676 ) $ 3,472 $ 1,884 $ 11,072

2 unchanged sentences

6,939,416 7,288,906 6,939,312 7,288,906

For the three months ended June 30, 2024 and 2023 , the Company allocated dividends and undistributed earnings to the unvested restricted stock units.

For the six months ended September 30, 2024 and 2023 , the Company allocated dividends and undistributed earnings to the unvested restricted stock units.

As the restricted stock qualifies as participating securities, the following restricted stock units were not accounted in the computation of weighted average diluted common shares outstanding under the two -class method:

Three Months Ended

Six Months Ended

September 30,

Restricted Stock Units

24,049 72,910 22,997 67,712

NOTE N — SUPPLEMENTAL CASH FLOW INFORMATION

The Company paid interest o f approximately $ 0.7 million and $ 0.5 million during the three months ended June 30, 2024 and 2023, respectively.

Additionally, the Company paid income taxes of approximately $ 113,000 and $ 47,000 during the three months ended June 30, 2024 and 2023, respectively.

NOTE O — INCOME TAXES

For the three months ended June 30, 2024 and three months ended June 30, 2023 , the Company recorded an income tax provisions of approximately $ 0.7 million and $ 2.6 million, respectively.

For the three months ended June 30, 2024 , the effective tax rate differed from the federal statutory rate due primarily to the inclusion of state tax expenses in the provision with this impact partially reduced by the tax effect of restricted stock vesting during the quarter.

For the three months ended June 30, 2023 , the effective tax rate differed from the federal statutory rate due primarily to the inclusion of state tax expenses in the provision.

NOTE O — SUPPLEMENTAL CASH FLOW INFORMATION

The Company paid interest o f approximately $ 1.6 million and $ 1.2 million during the six months ended September 30, 2024 and 2023 , respectively.

Additionally, the Company paid income taxes of approximately $ 2.9 million and $ 2.7 million during the six months ended September 30, 2024 and 2023 , respectively.

NOTE P — INCOME TAXES

For the six months ended September 30, 2024 and six months ended September 30, 2023 , the Company recorded income tax provisions of approximately $ 0.5 million and $ 3.7 million, respectively.

For the six months ended September 30, 2024 , the effective tax rate differed from the federal statutory rate due primarily to the inclusion of state tax expenses in the provision with this impact partially reduced by the tax effect of restricted stock vesting during the period.

For the six months ended September 30, 2023 , the effective tax rate differed from the federal statutory rate due primarily to the inclusion of state tax expenses in the provision.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements