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Note 10 - Segment Information
 3 Months Ended
Mar. 31, 2016
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
10.
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 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, 2016 and 2015.
 
 
 
For the Three Months Ended
 
 
 
March 31,
 
(in thousands)
 
2016
 
 
2015
 
Net sales
                
Carbon flat products
   $ 161,434     $ 228,545  
Specialty metals flat products
     45,830       52,631  
Tubular and pipe products
     51,085       64,689  
Total net sales
   $ 258,349     $ 345,865  
                 
Depreciation and amortization
                
Carbon flat products
   $ 2,954     $ 3,161  
Specialty metals flat products
     193       160  
Tubular and pipe products
     1,559       1,466  
Corporate
     25       25  
Total depreciation and amortization
   $ 4,731     $ 4,812  
                 
Operating income (loss)
                
Carbon flat products
   $ (2,178 )   $ 470  
Specialty metals flat products
     1,756       590  
Tubular and pipe products
     2,243       4,254  
Corporate expenses
     (1,786 )     (1,969 )
Total operating income
   $ 35     $ 3,345  
Other income (loss), net
     (5 )     (31 )
Income before interest and income taxes
     30       3,314  
Interest and other expense on debt
     1,285       1,563  
Income (loss) before income taxes
   $ (1,255 )   $ 1,751  
 
 
 
 
For the Three Months Ended
 
 
 
March 31,
 
(in thousands)
 
2016
 
 
2015
 
Capital expenditures
                
Flat products segments
   $ 1,234     $ 1,188  
Tubular and pipe products
     162       503  
Corporate
    -       -  
Total capital expenditures
   $ 1,396     $ 1,691  
 
 
 
As of
 
 
 
March 31,
 
 
December 31,
 
(in thouands)
 
2016
 
 
2015
 
Assets
                
Flat products segments
   $ 324,344     $ 329,885  
Tubular and pipe products
     192,870       183,129  
Corporate
     431       456  
Total assets
   $ 517,645     $ 513,470  
 
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.