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Note 16 - Segment Information
 6 Months Ended
Jun. 30, 2020
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

16.

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. The CODM evaluates performance and allocates resources based primarily on operating income (loss). The 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 carbon flat products segment and the specialty metals flat products segments are at times consolidated and referred to as the flat products segments, as certain of 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, in some locations, processed on shared equipment.

 

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 compensation 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 (loss) before income taxes for the three and six months ended June 30, 2020 and 2019.

 

  

For the Three Months Ended

  

For the Six Months Ended

 
  

June 30,

  

June 30,

 

(in thousands)

 

2020

  

2019

  

2020

  

2019

 

Net sales

                

Carbon flat products

 $140,811  $255,870  $343,778  $534,406 

Specialty metals flat products

  54,495   96,058   142,983   184,155 

Tubular and pipe products

  52,990   77,223   115,915   156,509 

Total net sales

 $248,296  $429,151  $602,676  $875,070 
                 

Restructuring and other charges

                

Carbon flat products

 $3,559  $-  $3,559  $- 

Specialty metals flat products

  27   -   27   - 

Tubular and pipe products

  -   -   -   - 

Corporate

  -   -   -   - 

Total restructuring and other charges

 $3,586  $-  $3,586  $- 
                 

Depreciation and amortization

                

Carbon flat products

 $3,070  $2,960  $6,080  $5,774 

Specialty metals flat products

  447   436   944   962 

Tubular and pipe products

  1,368   1,379   2,732   2,747 

Corporate

  42   42   84   84 

Total depreciation and amortization

 $4,927  $4,817  $9,840  $9,567 
                 

Operating income (loss)

                

Carbon flat products

 $(9,428) $472  $(10,774) $1,698 

Specialty metals flat products

  1,991   3,968   4,726   6,212 

Tubular and pipe products

  2,225   4,476   6,530   10,091 

Corporate expenses

  (2,273)  (2,976)  (4,916)  (5,987)

Total operating income (loss)

 $(7,485) $5,940  $(4,434) $12,014 

Other income (loss), net

  (26)  (59)  (43)  (45)

Income (loss) before interest and income taxes

  (7,511)  5,881   (4,477)  11,969 

Interest and other expense on debt

  1,891   3,174   4,130   6,416 

Income (loss) before income taxes

 $(9,402) $2,707  $(8,607) $5,553 

 

 

 

  

For the Six Months Ended

 
  

June 30,

 

(in thousands)

 

2020

  

2019

 

Capital expenditures

        

Flat products segments

 $5,628  $3,281 

Tubular and pipe products

  555   1,140 

Corporate

  -   - 

Total capital expenditures

 $6,183  $4,421 

 

  

As of

 
  

June 30,

  

December 31,

 

(in thouands)

 

2020

  

2019

 
Assets        

Flat products segments

 $422,104  $432,566 

Tubular and pipe products

  220,070   215,841 

Corporate

  961   1,148 

Total assets

 $643,135  $649,555 

 

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 and Mexico. International sales are immaterial to the consolidated financial results and to the individual segments’ results.