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Note 15 - Segment Information
 9 Months Ended
Sep. 30, 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 and nine months ended September 30, 2022 and 2021, respectively.

 

   

For the Three Months Ended

    

For the Nine Months Ended

  
   

September 30,

    

September 30,

  

(in thousands)

  

2022

    

2021

    

2022

    

2021

  

Net sales

                                

Specialty metals flat products

   $ 188,301     $ 164,179     $ 614,744     $ 428,533  

Carbon flat products

     336,259       404,596       1,086,473       976,480  

Tubular and pipe products

     109,877       99,691       338,729       282,654  

Total net sales

   $ 634,437     $ 668,466     $ 2,039,946     $ 1,687,667  
                                 

Depreciation and amortization

                                

Specialty metals flat products

   $ 1,024     $ 858     $ 3,037     $ 2,662  

Carbon flat products

     2,513       2,698       7,885       8,570  

Tubular and pipe products

     1,112       1,239       3,620       4,035  

Corporate

     17       18       52       54  

Total depreciation and amortization

   $ 4,666     $ 4,813     $ 14,594     $ 15,321  
                                 

Operating income

                                

Specialty metals flat products

   $ 15,072     $ 24,663     $ 85,629     $ 46,387  

Carbon flat products

     1,732       37,164       27,225       88,797  

Tubular and pipe products

     7,095       2,354       28,977       11,713  

Corporate expenses

     (4,813 )     (2,021 )     (15,758 )     (10,711 )

Total operating income

   $ 19,086     $ 62,160     $ 126,073     $ 136,186  

Other income (loss), net

     (17 )     (15 )     (38 )     (24 )

Income before interest and income taxes

     19,069       62,145       126,035       136,162  

Interest and other expense on debt

     3,007       1,947       7,276       5,618  

Income before income taxes

   $ 16,062     $ 60,198     $ 118,759     $ 130,544  

 

   

For the Nine Months Ended

  
   

September 30,

  

(in thousands)

  

2022

    

2021

  

Capital expenditures

                

Flat products segments

   $ 11,063     $ 6,172  

Tubular and pipe products

     2,900       1,566  

Corporate

     -       -  

Total capital expenditures

   $ 13,963     $ 7,738  

 

   

As of

  
   

September 30,

    

December 31,

  

(in thousands)

  

2022

    

2021

  

Assets

                

Flat products segments

   $ 774,536     $ 777,074  

Tubular and pipe products

     262,130       245,962  

Corporate

     318      

536

  

Total assets

   $ 1,036,984     $ 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.