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Note 15 - Segment Information
 3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

15.

  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 before income taxes for the three months ended March 31, 2021 and 2020, respectively.

 

  

For the Three Months Ended

 
  

March 31,

 

(in thousands)

 

2021

  

2020

 

Net sales

        

Specialty metals flat products

 $126,320  $88,488 

Carbon flat products

  246,373   202,967 

Tubular and pipe products

  90,431   62,925 

Total net sales

 $463,124  $354,380 
         

Depreciation and amortization

        

Specialty metals flat products

 $903  $497 

Carbon flat products

  2,923   3,010 

Tubular and pipe products

  1,391   1,364 

Corporate

  18   42 

Total depreciation and amortization

 $5,235  $4,913 
         

Operating income (loss)

        

Specialty metals flat products

 $8,022  $2,735 

Carbon flat products

  21,200   (1,346)

Tubular and pipe products

  6,320   4,305 

Corporate expenses

  (3,952)  (2,643)

Total operating income

 $31,590  $3,051 

Other income (loss), net

  (10)  (17)

Income before interest and income taxes

  31,580   3,034 

Interest and other expense on debt

  1,655   2,239 

Income before income taxes

 $29,925  $795 

 

 

  

For the Three Months Ended

  

March 31,

(in thousands)

 

2021

  

2020

Capital expenditures

       

Flat products segments

 $1,561  $3,981

Tubular and pipe products

  725   254

Corporate

  -   -

Total capital expenditures

 $2,286  $4,235

 

 

  

As of

  

March 31,

  

December 31,

(in thouands)

 

2020

  

2020

Assets

       

Flat products segments

 $495,002  $404,269

Tubular and pipe products

  242,607   235,516

Corporate

  750   820

Total assets

 $738,359  $640,605

 

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