XML 32 R22.htm IDEA: XBRL DOCUMENT v3.23.1
Note 16 - Segment Information
 3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

16.

  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. 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. Since the January 3, 2023 acquisition, Metal-Fab’s financial results are included in the carbon flat products segment.

 

 

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 three months ended March 31, 2023 and 2022, respectively.

 

   

For the Three Months Ended

  
   

March 31,

  

(in thousands)

  

2023

    

2022

  
Net sales                

Specialty metals flat products

   $ 166,564     $ 199,479  

Carbon flat products

     309,818       379,549  

Tubular and pipe products

     96,694       117,305  

Total net sales

   $ 573,076     $ 696,333  
                 
Depreciation and amortization                

Specialty metals flat products

   $ 984     $ 1,005  

Carbon flat products

     3,607       2,674  

Tubular and pipe products

     1,593       1,286  

Corporate

     17       17  

Total depreciation and amortization

   $ 6,201     $ 4,982  
                 
Operating income                

Specialty metals flat products

   $ 9,259     $ 34,084  

Carbon flat products

     5,946       9,875  

Tubular and pipe products

     9,741       14,582  

Corporate expenses

     (7,223 )     (5,419 )

Total operating income

   $ 17,723     $ 53,122  

Other loss, net

     11       6  

Income before interest and income taxes

     17,712       53,116  

Interest and other expense on debt

     4,223       1,998  

Income before income taxes

   $ 13,489     $ 51,118  

 

   

For the Three Months Ended

  
   

March 31,

  

(in thousands)

  

2023

    

2022

  
Capital expenditures                

Flat products segments

   $ 4,502     $ 2,023  

Tubular and pipe products

     2,913       93  

Total capital expenditures

   $ 7,415     $ 2,116  

 

   

As of

  
   

March 31,

    

December 31,

  

(in thouands)

  

2023

    

2022

  

Assets

                

Flat products segments

   $ 758,858     $ 631,607  

Tubular and pipe products

     266,322       258,412  

Corporate

     1,609       1,608  

Total assets

   $ 1,026,789     $ 891,627  

 

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.