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Note 11 - Segment Information
 6 Months Ended
Jun. 30, 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 and fabricated parts. 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 and six months ended June 30, 2015 and 2014.


   

For the Three Months Ended

    

For the Six Months Ended

  
   

June 30,

    

June 30,

  

(in thousands)

  

2015

    

2014

    

2015

    

2014

  

Net sales

                                

Carbon flat products

   $ 209,207     $ 263,209     $ 437,752     $ 502,924  

Specialty metals flat products

     52,715       56,996       105,346       103,134  

Tubular and pipe products

     53,329       65,842       118,018       126,902  

Total net sales

   $ 315,251     $ 386,047     $ 661,116     $ 732,960  
                                 

Depreciation and amortization

                                

Carbon flat products

   $ 3,147     $ 4,023     $ 6,308     $ 8,047  

Specialty metals flat products

     190       207       350       402  

Tubular and pipe products

     1,488       1,432       2,953       2,866  

Corporate

     25       25       51       50  

Total depreciation and amortization

   $ 4,850     $ 5,687     $ 9,662     $ 11,365  
                                 

Operating income (loss)

                                

Carbon flat products

   $ (602 )   $ 5,513     $ (251 )   $ 8,919  

Specialty metals flat products

     (270 )     902       440       2,344  

Tubular and pipe products

     2,504       2,853       6,758       6,290  

Corporate expenses

     (1,579 )     (2,160 )     (3,549 )     (4,216 )

Goodwill and intangible asset impairment (a)

     (24,451 )     -       (24,451 )     -  

Total operating income (loss)

  $ (24,398 )   $ 7,108     $ (21,053 )   $ 13,337  

Other income (loss), net

     (26 )     (4 )     (58 )     (2 )

Income (loss) before interest and income taxes

     (24,424 )     7,104       (21,111 )     13,335  

Interest and other expense on debt

     1,471       1,779       3,033       3,532  

Income (loss) before income taxes

   $ (25,895 )   $ 5,325     $ (24,144 )   $ 9,803  

(a) The goodwill and intangible asset impairments relate to the Company's tubular and pipe products segment.

 

 

   

For the Three Months Ended

    

For the Six Months Ended

  
   

June 30,

    

June 30,

  

(in thousands)

  

2015

    

2014

    

2015

    

2014

  

Capital expenditures

                                

Flat products segments

   $ 918     $ 2,214     $ 2,106     $ 3,230  

Tubular and pipe products

     1,624       552       2,127       1,873  

Corporate

    -       17       -       21  

Total capital expenditures

   $ 2,542     $ 2,783     $ 4,233     $ 5,124  

   

As of

  
   

June 30,

    

December 31,

  

(in thousands)

  

2015

    

2014

  

Goodwill

                

Flat products segments

   $ 500     $ 500  

Tubular and pipe products

     -       16,451  

Total goodwill

   $ 500     $ 16,951  
                 

Assets

                

Flat products segments

   $ 430,037     $ 496,253  

Tubular and pipe products

     181,796       203,937  

Corporate

     507       558  

Total assets

   $ 612,340     $ 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.