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Note 17 - Segment Information
 12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

17.

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 years ended December 31, 2020, 2019 and 2018.

 

  

For the Year Ended December 31,

 

(in thousands)

 

2020

  

2019

  

2018

 

Net sales

            

Carbon flat products

 $690,273  $926,903  $1,073,292 

Specialty metals flat products

  313,190   363,634   343,479 

Tubular and pipe products

  230,681   288,503   298,310 

Total net sales

 $1,234,144  $1,579,040  $1,715,081 
             

Depreciation and amortization

            

Carbon flat products

 $11,941  $11,624  $10,621 

Specialty metals flat products

  1,951   1,830   1,251 

Tubular and pipe products

  5,478   5,408   5,601 

Corporate

  120   168   135 

Total depreciation and amortization

 $19,490  $19,030  $17,608 
             

Operating income

            

Carbon flat products

 $(10,289) $(5,023) $44,354 

Specialty metals flat products

  11,666   14,321   15,248 

Tubular and pipe products

  9,019   18,607   11,520 

Corporate

  (9,823)  (11,295)  (14,070)

Total operating income

 $573  $16,610  $57,052 

Other loss, net

  (73)  (32)  (307)

Income before interest and income taxes

  500   16,578   56,745 

Interest and other expense on debt

  7,411   11,289   10,681 

Income (loss) before income taxes

 $(6,911) $5,289  $46,064 

 

 

  For the Year Ended December 31, 

(in thousands)

 

2020

  

2019

  

2018

 

Capital expenditures

            

Flat products

 $7,589  $6,996  $19,985 

Tubular and pipe products

  2,214   3,169   5,242 

Corporate

  -   -   488 

Total capital expenditures

 $9,803  $10,165  $25,715 
             

Assets

            

Flat products

 $404,269  $432,566    

Tubular and pipe products

  235,516   215,841    

Corporate

  820   1,148    

Total assets

 $640,605  $649,555    

 

There were no material revenue transactions between the carbon flat products, specialty metals flat products and tubular and pipe products segments for the years ended December 31, 2020, 2019 and 2018.

 

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.