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Note 17 - Segment Information
 12 Months Ended
Dec. 31, 2016
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
17
.
SEGMENT INFORMATION:
 
The operating segments reported below are based on the nature of the products sold and the manufacturing process used by the Company and are the segments of the Company for which separate financial information is available and for which operating results are regularly evaluated by the Company’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. Management evaluates segment performance based on operating income.
 
The Company’s Water Transmission segment manufactures large-diameter, high-pressure steel pipeline systems for use in water infrastructure applications, which are primarily related to drinking water systems. These products are also used for hydroelectric power systems, wastewater systems and other applications. In addition, the Water Transmission segment makes products for industrial plant piping systems and certain structural applications.
 
The Company’s Tubular Products segment manufactures and markets smaller diameter, electric resistance welded steel pipe used in a wide range of applications, including energy, construction, agricultural and industrial systems. On
March
 
30,
2014
the Company completed the sale of substantially all of the assets and liabilities associated with the OCTG business conducted by the Company’s Tubular Products segment at its former manufacturing facilities in Bossier City, Louisiana and Houston, Texas, excluding the real property located in Houston, Texas. The Company’s Tubular Products segment’s remaining manufacturing facility is located in Atchison, Kansas. The Atchison facility operated at reduced levels from
April
2015
to
January
2016,
when the Company idled the facility to reduce operating expenses until market conditions improve or a sale is completed.
 
Based on the location of the customer, the Company sold principally all products in the United States and Canada. In
2016,
one
customer in the Water Transmission segment accounted for
27%
of total Net sales. No customer accounted for
10%
or more of total Net sales in
2015.
One customer in the Water Transmission segment accounted for
16%
and
one
customer in the Tubular Products segment accounted for
10%
of total Net sales from continuing operations in
2014.
 
 
 
Year Ended December 31,
 
 
 
2016
 
 
2015
 
 
2014
 
 
 
(in thousands)
 
Net sales from continuing operations:
                        
Water Transmission
   $
149,387
    $
173,160
    $
238,545
 
Tubular Products
    
6,869
     
63,448
     
164,753
 
Total
   $
156,256
    $
236,608
    $
403,298
 
                         
Gross profit (loss) from continuing operations:
                        
Water Transmission
   $
(317
 )   $
606
    $
39,601
 
Tubular Products
    
(2,908
 )    
(13,231
 )    
975
 
Total
   $
(3,225
 )   $
(12,625
 )   $
40,576
 
                         
Operating income (loss) from continuing operations:
                        
Water Transmission (1)
   $
1,049
    $
(11,592
 )   $
31,490
 
Tubular Products (2)
    
(3,336
 )    
(15,699
 )    
(16,677
 )
     
(2,287
 )    
(27,291
 )    
14,813
 
Corporate
    
(11,246
 )    
(12,919
 )    
(14,619
 )
Total
   $
(13,533
 )   $
(40,210
 )   $
194
 
                         
Net sales from continuing operations by geographic region:
                        
United States
   $
144,280
    $
224,691
    $
383,344
 
Canada
    
11,976
     
11,917
     
19,954
 
Total
   $
156,256
    $
236,608
    $
403,298
 
 
(1)
Operating income for Water Transmission for
2016
includes restructuring expenses of
$1.0
million and gain on sale of facility of
$7.9
million. Operating loss for Water Transmission for
2015
includes the write-off of goodwill of
$5.3
million.
(2)
Operating loss for Tubular Products for
2014
includes the write-off of goodwill of
$16.1
million.
 
The following includes discontinued operations within Tubular Products in
2014:
 
 
 
Year Ended December 31,
 
 
 
2016
 
 
2015
 
 
2014
 
 
 
(in thousands)
 
Depreciation and amortization expense:
                        
Water Transmission
   $
8,750
    $
7,318
    $
8,716
 
Tubular Products
    
776
     
1,859
     
5,090
 
     
9,526
     
9,177
     
13,806
 
Corporate
    
443
     
438
     
340
 
Total
   $
9,969
    $
9,615
    $
14,146
 
                         
Capital expenditures:
                        
Water Transmission
   $
2,072
    $
6,313
    $
6,190
 
Tubular Products
    
-
     
1,879
     
7,526
 
     
2,072
     
8,192
     
13,716
 
Corporate
    
220
     
323
     
573
 
Total
   $
2,292
    $
8,515
    $
14,289
 
 
 
 
December 31,
 
 
 
2016
 
 
2015
 
 
 
(in thousands)
 
Total assets:
                
Water Transmission
   $
170,486
    $
185,607
 
Tubular Products
    
40,402
     
48,785
 
     
210,888
     
234,392
 
Corporate
    
30,667
     
24,988
 
Total
   $
241,555
    $
259,380
 
 
All property and equipment is located in the United States, except for
$4.1
 million and
$4.3
 million of Water Transmission property and equipment which is located in Mexico as of
December
 
31,
2016
and
2015,
respectively.