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Note 11 - Segment Information
 3 Months Ended
Mar. 31, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

11.

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 primarily 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. 


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.


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 three months ended March 31, 2014 and 2013.


       
   

For the Three Months Ended

March 31,

 

(in thousands)

 

2014

   

2013

 

Net sales

               

Flat products

  $ 285,853     $ 275,747  

Tubular and pipe products

    61,060       62,317  

Total net sales

  $ 346,913     $ 338,064  
                 

Depreciation and amortization

               

Flat products

  $ 4,217     $ 4,242  

Tubular and pipe products

    1,434       1,273  

Corporate

    25       -  

Total depreciation and amortization

  $ 5,676     $ 5,515  
                 

Operating income

               

Flat products

  $ 4,848     $ 4,805  

Tubular and pipe products

    3,437       6,759  

Corporate expenses

    (2,056 )     (1,983 )

Total operating income

  $ 6,229     $ 9,581  

Other income, net

    2       23  

Income before interest and income taxes

    6,231       9,604  

Interest and other expense on debt

    1,754       1,698  

Income before income taxes

  $ 4,477     $ 7,906  

       
   

For the Three Months Ended

March 31,

 

(in thousands)

 

2014

   

2013

 

Capital expenditures

               

Flat products

  $ 1,017     $ 679  

Tubular and pipe products

    1,320       1,035  

Corporate

    4       -  

Total capital expenditures

  $ 2,341     $ 1,714  

       
   

As of

 

(in thouands)

 

March 31,

2014

   

December 31,

2013

 

Goodwill

               

Flat products

  $ 500     $ 500  

Tubular and pipe products

    40,287       40,287  

Total goodwill

  $ 40,787     $ 40,787  
                 

Assets

               

Flat products

  $ 497,012     $ 473,397  

Tubular and pipe products

    229,833       223,314  

Corporate

    642       638  

Total assets

  $ 727,487     $ 697,349  

There were no material revenue transactions between the flat products and tubular and pipe products segments.


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