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Note 15 - Segment Information
 3 Months Ended
Mar. 31, 2024
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. 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 October 2, 2023 acquisition, CTB's financial results are included in the tubular and pipe 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 months ended March 31, 2024 and 2023, respectively.

 

  

For the Three Months Ended

 
  

March 31,

 

(in thousands)

 

2024

  

2023

 

Net sales

        

Specialty metals flat products

 $129,534  $166,564 

Carbon flat products

  300,975   309,818 

Tubular and pipe products

  96,133   96,694 

Total net sales

 $526,642  $573,076 
         

Depreciation and amortization

        

Specialty metals flat products

 $988  $984 

Carbon flat products

  4,081   3,607 

Tubular and pipe products

  2,248   1,593 

Corporate

  17   17 

Total depreciation and amortization

 $7,334  $6,201 
         

Operating income

        

Specialty metals flat products

 $3,931  $9,259 

Carbon flat products

  8,657   5,946 

Tubular and pipe products

  7,627   9,741 

Corporate expenses

  (4,277)  (7,223)

Total operating income

 $15,938  $17,723 

Other loss, net

  19   11 

Income before interest and income taxes

  15,919   17,712 

Interest and other expense on debt

  4,010   4,223 

Income before income taxes

 $11,909  $13,489 

 

  

For the Three Months Ended

 
  

March 31,

 

(in thousands)

 

2024

  

2023

 

Capital expenditures

        

Flat products segments

 $3,410  $4,502 

Tubular and pipe products

  1,408   2,913 

Total capital expenditures

 $4,818  $7,415 

 

  

As of

 
  

March 31,

  

December 31,

 

(in thousands)

 

2024

  

2023

 

Assets

        

Flat products segments

 $674,903  $649,744 

Tubular and pipe products

  335,528   333,677 

Corporate

  1,348   1,414 

Total assets

 $1,011,779  $984,835 

 

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.