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Note 15 - Segment Information
 12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

15.

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 CODM to assess performance and make operating and resource allocation decisions. The Company’s CODM evaluates performance and allocates resources based primarily on operating income (loss). The Company’s 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. In recent years, the Company has increased its participation in the stainless and aluminum markets, which the Company refers to as specialty metals. As a result, based on how the CODM is expected to make decisions, assess performance and allocate resources in the future, the Company is expect to disclose three reportable segments beginning in the first quarter of 2015. The segments will be flat products, tubular and pipe products, and specialty metals.


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 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, 2014, 2013 and 2012. The Company assesses the performance of the segments based on operating income.


   

For the Year Ended

 
   

December 31,

 

(in thousands)

 

2014

   

2013

   

2012

 

Net sales

                       

Flat products

  $ 1,191,731     $ 1,026,769     $ 1,138,063  
Tubular and pipe products     244,539       236,562       245,638  

Total net sales

  $ 1,436,270     $ 1,263,331     $ 1,383,701  
                         

Depreciation and amortization

                       

Flat products

  $ 15,055     $ 16,883     $ 16,065  
Tubular and pipe products     5,624       5,308       4,795  
Corporate     101       50       -  

Total depreciation and amortization

  $ 20,780     $ 22,241     $ 20,860  
                         

Operating income

                       

Flat products

  $ 12,415     $ 12,106     $ 13,613  
Tubular and pipe products     10,185       14,981       17,997  
Corporate     (7,972 )     (7,432 )     (6,578 )
Goodwill impairment (a)     (23,836 )     -       (6,583 )

Total operating income (loss)

  $ (9,208 )   $ 19,655     $ 18,449  

Asset impairment charge of joint venture real estate

    -       -       (36 )

Other income (loss), net

    (126 )     (28 )     83  

Income (loss) before interest and income taxes

    (9,334 )     19,627       18,496  

Interest and other expense on debt

    6,780       6,703       8,357  

Income (loss) before income taxes

  $ (16,114 )   $ 12,924     $ 10,139  

(a)

The goodwill impairment in 2014 related to the tubular and pipe products segment. The goodwill impairment in 2012 related the to flat products segment's Southern region.


(in thousands)   2014     2013     2012  

Capital expenditures

                       

Flat products

  $ 4,540     $ 3,794     $ 17,004  

Tubular and pipe products

    3,273       11,616       6,369  

Corporate

    21       688       -  

Total capital expenditures

  $ 7,834     $ 16,098     $ 23,373  
                         

Goodwill

                       

Flat products

  $ 500     $ 500          

Tubular and pipe products

    16,451       40,287          

Total goodwill

  $ 16,951     $ 40,787          
                         

Assets

                       

Flat products

  $ 496,253     $ 473,397          

Tubular and pipe products

    203,937       223,314          

Corporate

    558       638          

Total assets

  $ 700,748     $ 697,349          

There were no material revenue transactions between the flat products and tubular and pipe products segments for the years ended December 31, 2014, 2013 and 2012.


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.