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Note 17 - Segment Information
 12 Months Ended
Dec. 31, 2013
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

17.    Segment Information:


The Company follows the accounting guidance that requires the utilization of a “management approach” to define and report the financial results of operating segments. The management approach defines operating segments along the lines used by the Company’s chief operating decision maker (CODM) to assess performance and make operating and resource allocation decisions. Our CODM evaluates performance and allocates resources based primarily on operating income (loss). Our operating segments are based on internal management reporting.


The Company operates in two reportable segments: flat products and tubular and pipe products. Through its flat products segment, the Company sells and distributes large volumes of processed carbon, coated, aluminum and stainless flat-rolled sheet, coil and plate products. Through its tubular and pipe products segment, the Company distributes metal tubing, pipe, bar, valve and fittings and fabricates pressure parts supplied to various industrial markets.


Commencing with the first quarter of 2013, corporate expenses are reported as a separate line item in the segment reporting. Corporate expenses include the unallocated expenses related to managing the entire Company (i.e., both segments), including payroll expenses for certain personnel, expenses related to being a publicly traded entity such as board of directors expenses, audit expenses, and various other professional fees. Prior to 2013, these expenses were included in the flat products segment’s operating results. The 2012 and 2011 financial information below has been revised to reflect the new reporting structure.


The following table provides financial information by segment and reconciles the Company’s operating income by segment to the consolidated income before income taxes for the years ended December 31, 2013, 2012 and 2011. The Company assesses the performance of the segments based on operating income.


(in thousands)

 

2013

   

2012

   

2011

 

Net sales

                       

Flat products

  $ 1,026,769     $ 1,138,063     $ 1,143,708  

Tubular and pipe products

    236,562       245,638       118,164  

Total net sales

  $ 1,263,331     $ 1,383,701     $ 1,261,872  
                         

Depreciation and amortization

                       

Flat products

  $ 16,883     $ 16,065     $ 13,800  

Tubular and pipe products

    5,308       4,795       2,246  

Corporate

    50       -       -  

Total depreciation and amortization

  $ 22,241     $ 20,860     $ 16,046  
                         

Operating income

                       

Flat products

  $ 12,106     $ 7,030     $ 44,302  

Tubular and pipe products

    14,981       17,997       7,206  

Corporate

    (7,432 )     (6,578 )     (7,040 )

Total operating income

  $ 19,655     $ 18,449     $ 44,468  

Asset impairment charge of joint venture real estate

    -       (36 )     (953 )

Other income (loss), net

    (28 )     83       (77 )

Income before interest and income taxes

    19,627       18,496       43,438  

Interest and other expense on debt

    6,703       8,357       5,953  

Income before income taxes

  $ 12,924     $ 10,139     $ 37,485  

(in thousands)

 

2013

   

2012

   

2011

 

Capital expenditures

                       

Flat products

  $ 3,794     $ 17,004     $ 38,849  

Tubular and pipe products

    11,616       6,369       638  

Corporate

    688       -       -  

Total capital expenditures

  $ 16,098     $ 23,373     $ 39,487  
                         

Goodwill

                       

Flat products

  $ 500     $ 500          

Tubular and pipe products

    40,287       40,287          

Total goodwill

  $ 40,787     $ 40,787          
                         

Assets

                       

Flat products

  $ 473,397     $ 480,487          

Tubular and pipe products

    223,314       225,507          

Corporate

    638       -          

Total assets

  $ 697,349     $ 705,994          

There were no material revenue transactions between the flat products and tubular and pipe products segments for the years ended December 31, 2013, 2012 and 2011.


The Company sells certain products internationally, primarily in Canada, Puerto Rico and Mexico. International sales have been immaterial to the consolidated financial results and to the individual segment’s results.