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Note 11 - Segment Information
 9 Months Ended
Sep. 30, 2016
Notes to Financial Statements  
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 three reportable segments; carbon flat products, specialty metals flat products, and tubular and pipe 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. 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 and nine months ended September 30, 2016 and 2015.
 
 
 
 
For the Three Months Ended
 
 
For the Nine Months Ended
 
 
 
September 30,
 
 
September 30,
 
(in thousands)
 
2016
 
 
2015
 
 
2016
 
 
2015
 
Net sales
                                
Carbon flat products
   $ 169,372     $ 176,656     $ 503,928     $ 614,408  
Specialty metals flat products     49,539       46,470       144,898       151,816  
Tubular and pipe products     49,344       53,796       151,386       171,814  
Total net sales
   $ 268,255     $ 276,922     $ 800,212     $ 938,038  
                                 
Depreciation and amortization
                                
Carbon flat products
   $ 2,795     $ 2,905     $ 8,737     $ 9,213  
Specialty metals flat products     203       175       586       525  
Tubular and pipe products     1,372       1,527       4,499       4,480  
Corporate     25       25       76       76  
Total depreciation and amortization
   $ 4,395     $ 4,632     $ 13,898     $ 14,294  
                                 
Operating income (loss)
                                
Carbon flat products
   $ (3,613 )   $ (1,100 )   $ (122 )   $ (929 )
Specialty metals flat products     3,003       (358 )     7,326       (340 )
Tubular and pipe products     2,773       3,685       7,149       10,443  
Corporate     (2,136 )     (1,774 )     (5,952 )     (5,323 )
Goodwill and intangible asset impairment (a)     -       -       -       (24,451 )
Total operating income (loss)
  $ 27     $ 453     $ 8,401     $ (20,600 )
Other income (loss), net
     21       (84 )     (42 )     (141 )
Income (loss) before interest and income taxes
     48       369       8,359       (20,741 )
Interest and other expense on debt
     1,336       1,405       3,895       4,439  
Income (loss) before income taxes
   $ (1,288 )   $ (1,036 )   $ 4,464     $ (25,180 )
 
(a) The goodwill and intangible asset impairments relate to the Company's tubular and pipe products segment.
 
 
 
 
 
For the Three Months Ended
 
 
For the Nine Months Ended
 
 
 
September 30,
 
 
September 30,
 
(in thousands)
 
2016
 
 
2015
 
 
2016
 
 
2015
 
Capital expenditures                                
Flat products
   $ 1,145     $ 1,148     $ 3,930     $ 3,254  
Tubular and pipe products
     593       636       1,405       2,763  
Corporate
    -       -       -       -  
Total capital expenditures   $ 1,738     $ 1,784     $ 5,335     $ 6,017  
 
 
 
 
As of
 
 
 
September 30,
 
 
December 31,
 
(in thousands)
 
2016
 
 
2015
 
Total assets                
Flat products segments
   $ 357,184     $ 329,885  
Tubular and pipe products
     192,403       183,129  
Corporate
     380       456  
Total assets   $ 549,967     $ 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.