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Note 15 - Segment Information
 3 Months Ended
Mar. 31, 2022
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 months ended March 31, 2022 and 2021, respectively.

 

  For the Three Months Ended

March 31,

 

(in thousands)

 

2022

  

2021

 

Net sales

        

Specialty metals flat products

 $199,479  $126,320 

Carbon flat products

  379,549   246,373 

Tubular and pipe products

  117,305   90,431 

Total net sales

 $696,333  $463,124 
         

Depreciation and amortization

        

Specialty metals flat products

 $1,005  $903 

Carbon flat products

  2,674   2,923 

Tubular and pipe products

  1,286   1,391 

Corporate

  17   18 

Total depreciation and amortization

 $4,982  $5,235 
         

Operating income (loss)

        

Specialty metals flat products

 $34,084  $8,022 

Carbon flat products

  9,875   21,200 

Tubular and pipe products

  14,582   6,320 

Corporate expenses

  (5,419)  (3,952)

Total operating income

 $53,122  $31,590 

Other loss, net

  (6)  (10)

Income before interest and income taxes

  53,116   31,580 

Interest and other expense on debt

  1,998   1,655 

Income before income taxes

 $51,118  $29,925 

 

  For the Three Months Ended

March 31,

 

(in thousands)

 

2022

  

2021

 

Capital expenditures

        

Flat products segments

 $2,023  $1,561 

Tubular and pipe products

  93   725 

Corporate

  -   - 

Total capital expenditures

 $2,116  $2,286 

 

  

As of

 

(in thouands)

 March 31,

2022

  December 31,

2021

 

Assets

        

Flat products segments

 $788,202  $777,074 

Tubular and pipe products

  255,037   245,962 

Corporate

  464   536 

Total assets

 $1,043,703  $1,023,572 

 

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.