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Note 11 - Segment Information
 3 Months Ended
Mar. 31, 2015
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.


Commencing with the first quarter of 2015, the flat products segment has been separated into two reportable segments; carbon flat products and specialty metals flat products. The flat products segments’ assets and resources are shared by the carbon and specialty metals segments and both segments’ products are stored in the shared facilities and processed on the shared equipment. As such, total assets and capital expenditures are reported in the aggregate for the flat products segments. Due to the shared assets and resources, certain of the flat products segment expenses are allocated between the carbon flat products segment and the specialty metals flat products segment based upon an established allocation methodology. Prior year financial information has been recast to reflect the new segment reporting structure.


The Company now operates in three reportable segments; carbon flat products, specialty metals flat products, and tubular and pipe products. Through its carbon flat products segment, the Company sells and distributes large volumes of processed carbon and coated flat-rolled sheet, coil and plate products. Through its specialty metals flat products segment, the Company sells and distributes processed aluminum and stainless flat-rolled sheet and coil products, flat bar products and fabricated parts. 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 for segment reporting purposes. Corporate expenses include the unallocated expenses related to managing the entire Company (i.e., all three 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, 2015 and 2014.


   

For the Three Months Ended

 
   

March 31,

 

(in thousands)

 

2015

   

2014

 

Net sales

               

Carbon flat products

  $ 228,545     $ 239,715  

Specialty metals flat products

    52,631       46,138  

Tubular and pipe products

    64,689       61,060  

Total net sales

  $ 345,865     $ 346,913  
                 

Depreciation and amortization

               

Carbon flat products

  $ 3,161     $ 4,022  

Specialty metals flat products

    160       195  

Tubular and pipe products

    1,466       1,434  

Corporate

    25       25  

Total depreciation and amortization

  $ 4,812     $ 5,676  
                 

Operating income

               

Carbon flat products

  $ 350     $ 3,406  

Specialty metals flat products

    710       1,442  

Tubular and pipe products

    4,254       3,437  

Corporate expenses

    (1,969 )     (2,056 )

Total operating income

  $ 3,345     $ 6,229  

Other income (loss), net

    (31 )     2  

Income before interest and income taxes

    3,314       6,231  

Interest and other expense on debt

    1,563       1,754  

Income before income taxes

  $ 1,751     $ 4,477  

   

March 31,

 

(in thousands)

 

2015

   

2014

 

Capital expenditures

               

Flat products segments

  $ 1,188     $ 1,017  

Tubular and pipe products

    503       1,320  

Corporate

    -       4  

Total capital expenditures

  $ 1,691     $ 2,341  

   

As of

 
   

March 31,

   

December 31,

 

(in thouands)

 

2015

   

2014

 

Goodwill

               

Flat products segments

  $ 500     $ 500  

Tubular and pipe products

    16,451       16,451  

Total goodwill

  $ 16,951     $ 16,951  
                 

Assets

               

Flat products segments

  $ 483,796     $ 496,253  

Tubular and pipe products

    207,765       203,937  

Corporate

    533       558  

Total assets

  $ 692,094     $ 700,748  

There were no material revenue transactions between the carbon flat products, specialty metals 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.