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Note 15 - Segment Information
 9 Months Ended
Sep. 30, 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: specialty metals flat products, carbon flat products, and tubular and pipe products. The specialty metals flat products segment and the carbon 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 specialty metals and carbon 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 and six months ended June 30, 2021 and 2020, respectively.

 

  

For the Three Months Ended

  

For the Nine Months Ended

 
  

September 30,

  

September 30,

 

(in thousands)

 

2021

  

2020

  

2021

  

2020

 

Net sales

                

Specialty metals flat products

 $164,179  $80,904  $428,533  $223,887 

Carbon flat products

  404,596   167,948   976,480   511,726 

Tubular and pipe products

  99,691   51,069   282,654   166,984 

Total net sales

 $668,466  $299,921  $1,687,667  $902,597 
                 

Restructuring and other charges

                

Specialty metals flat products

 $-  $-  $-  $27 

Carbon flat products

  -   -   -   3,559 

Tubular and pipe products

  -   -   -   - 

Corporate

  -   -   -   - 

Total restructuring and other charges

 $-  $-  $-  $3,586 
                 

Depreciation and amortization

                

Specialty metals flat products

 $858  $513  $2,662  $1,457 

Carbon flat products

  2,698   2,852   8,570   8,932 

Tubular and pipe products

  1,239   1,344   4,035   4,076 

Corporate

  18   18   54   102 

Total depreciation and amortization

 $4,813  $4,727  $15,321  $14,567 
                 

Operating income (loss)

                

Specialty metals flat products

 $24,663  $2,448  $46,387  $7,174 

Carbon flat products

  37,164   (1,604)  88,797   (12,378)

Tubular and pipe products

  2,354   744   11,713   7,274 

Corporate expenses

  (2,021)  (1,951)  (10,711)  (6,867)

Total operating income (loss)

 $62,160  $(363) $136,186  $(4,797)

Other income (loss), net

  (15)  (25)  (24)  (68)

Income (loss) before interest and income taxes

  62,145   (388)  136,162   (4,865)

Interest and other expense on debt

  1,947   1,693   5,618   5,823 

Income (loss) before income taxes

 $60,198  $(2,081) $130,544  $(10,688)

 

  

For the Nine Months Ended

 
  

September 30,

 

(in thousands)

 

2021

  

2020

 

Capital expenditures

        

Flat products segments

 $6,172  $6,818 

Tubular and pipe products

  1,566   1,150 

Corporate

  -   - 

Total capital expenditures

 $7,738  $7,968 

 

 

  

As of

 
  

September 30,

  

December 31,

 

(in thouands)

 

2021

  

2020

 

Assets

        

Flat products segments

 $721,133  $404,269 

Tubular and pipe products

  249,566   235,516 

Corporate

  607   820 

Total assets

 $971,306  $640,605 

 

There were no material revenue transactions between the specialty metals products, carbon flat products and tubular and pipe products segments.  On September 17, 2021, the Company sold substantially all of the assets related to its Detroit operation.  The Detroit operation was primarily included in the carbon flat-rolled segment. 

 

 

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.