XML 34 R22.htm IDEA: XBRL DOCUMENT v3.23.3
Note 16 - Segment Information
 9 Months Ended
Sep. 30, 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 before income taxes for the three and nine months ended September 30, 2023 and 2022, respectively.

 

  

For the Three Months Ended

  

For the Nine Months Ended

 
  

September 30,

  

September 30,

 

(in thousands)

 

2023

  

2022

  

2023

  

2022

 

Net sales

                

Specialty metals flat products

 $132,763  $188,301  $446,327  $614,744 

Carbon flat products

  304,478   336,259   940,925   1,086,473 

Tubular and pipe products

  89,170   109,877   281,503   338,729 

Total net sales

 $526,411  $634,437  $1,668,755  $2,039,946 
                 

Depreciation and amortization

                

Specialty metals flat products

 $871  $1,024  $2,878  $3,037 

Carbon flat products

  3,568   2,513   10,891   7,885 

Tubular and pipe products

  1,729   1,112   5,038   3,620 

Corporate

  17   17   52   52 

Total depreciation and amortization

 $6,185  $4,666  $18,859  $14,594 
                 

Operating income

                

Specialty metals flat products

 $4,668  $15,072  $20,606  $85,629 

Carbon flat products

  9,949   1,732   30,590   27,225 

Tubular and pipe products

  10,033   7,095   29,145   28,977 

Corporate expenses

  (3,765)  (4,813)  (15,961)  (15,758)

Total operating income

 $20,885  $19,086  $64,380  $126,073 

Other loss, net

  28   17   67   38 

Income before interest and income taxes

  20,857   19,069   64,313   126,035 

Interest and other expense on debt

  3,953   3,007   12,379   7,276 

Income before income taxes

 $16,904  $16,062  $51,934  $118,759 

 

  

For the Nine Months Ended

 
  

September 30,

 

(in thousands)

 

2023

  

2022

 

Capital expenditures

        

Flat products segments

 $12,711  $11,063 

Tubular and pipe products

  6,593   2,900 

Corporate

  260   - 

Total capital expenditures

 $19,564  $13,963 

 

  

As of

 
  

September 30,

  

December 31,

 

(in thousands)

 

2023

  

2022

 

Assets

        

Flat products segments

 $708,766  $631,607 

Tubular and pipe products

  282,300   258,412 

Corporate

  1,740   1,608 

Total assets

 $992,806  $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.