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Note 16 - Segment Information
 9 Months Ended
Sep. 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 segment 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 flat products 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 nine months ended September 30, 2020 and 2019.

 

  

For the Three Months

  

For the Nine Months

 
  

Ended September 30,

  

Ended September 30,

 

(in thousands)

 

2020

  

2019

  

2020

  

2019

 

Net sales

                

Carbon flat products

 $167,948  $215,515  $511,726  $749,921 

Specialty metals flat products

  80,904   97,563   223,887   281,718 

Tubular and pipe products

  51,069   71,152   166,984   227,661 

Total net sales

 $299,921  $384,230  $902,597  $1,259,300 
                 

Restructuring and other charges

                

Carbon flat products

 $-  $-  $3,559  $- 

Specialty metals flat products

  -   -   27   - 

Tubular and pipe products

  -   -   -   - 

Corporate

  -   -   -   - 

Total restructuring and other charges

 $-  $-  $3,586  $- 
                 

Depreciation and amortization

                

Carbon flat products

 $2,852  $2,850  $8,932  $8,624 

Specialty metals flat products

  513   441   1,457   1,403 

Tubular and pipe products

  1,344   1,309   4,076   4,056 

Corporate

  18   42   102   126 

Total depreciation and amortization

 $4,727  $4,642  $14,567  $14,209 
                 

Operating income (loss)

                

Carbon flat products

 $(1,604) $(2,301) $(12,378) $(603)

Specialty metals flat products

  2,448   4,060   7,174   10,272 

Tubular and pipe products

  744   4,462   7,274   14,553 

Corporate expenses

  (1,951)  (2,640)  (6,867)  (8,627)

Total operating income (loss)

 $(363) $3,581  $(4,797) $15,595 

Other income (loss), net

  (25)  12   (68)  (33)

Income (loss) before interest and income taxes

  (388)  3,593   (4,865)  15,562 

Interest and other expense on debt

  1,693   2,569   5,823   8,985 

Income (loss) before income taxes

 $(2,081) $1,024  $(10,688) $6,577 

 

 

 

  

For the Nine Months

 
  

Ended September 30,

 

(in thousands)

 

2020

  

2019

 

Capital expenditures

        

Flat products segments

 $6,818  $5,461 

Tubular and pipe products

  1,150   2,018 

Corporate

  -   - 

Total capital expenditures

 $7,968  $7,479 

 

  

As of

 
  

September 30,

  

December 31,

 

(in thouands)

 

2020

  

2019

 

Assets

        

Flat products segments

 $393,573  $432,566 

Tubular and pipe products

  224,839   215,841 

Corporate

  891   1,148 

Total assets

 $619,303  $649,555 

 

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