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Note 15 - Segment Information
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2024 and 2023, respectively.

 

  

For the Three Months Ended

  

For the Six Months Ended

 
  

June 30,

  

June 30,

 

(in thousands)

 

2024

  

2023

  

2024

  

2023

 

Net sales

                

Specialty metals flat products

 $130,873  $147,000  $260,407  $313,564 

Carbon flat products

  307,755   326,629   608,730   636,447 

Tubular and pipe products

  87,622   95,639   183,755   192,333 

Total net sales

 $526,250  $569,268  $1,052,892  $1,142,344 
                 

Depreciation and amortization

                

Specialty metals flat products

 $929  $1,023  $1,917  $2,007 

Carbon flat products

  4,112   3,716   8,193   7,323 

Tubular and pipe products

  2,168   1,716   4,416   3,309 

Corporate

  18   18   35   35 

Total depreciation and amortization

 $7,227  $6,473  $14,561  $12,674 
                 

Operating income

                

Specialty metals flat products

 $7,849  $6,679  $11,780  $15,938 

Carbon flat products

  5,361   14,695   14,018   20,641 

Tubular and pipe products

  6,497   9,371   14,124   19,112 

Corporate expenses

  (4,597)  (4,973)  (8,874)  (12,196)

Total operating income

 $15,110  $25,772  $31,048  $43,495 

Other loss, net

  21   28   40   39 

Income before interest and income taxes

  15,089   25,744   31,008   43,456 

Interest and other expense on debt

  4,393   4,203   8,403   8,426 

Income before income taxes

 $10,696  $21,541  $22,605  $35,030 

 

  

For the Six Months Ended

 
  

June 30,

 

(in thousands)

 

2024

  

2023

 

Capital expenditures

        

Flat products segments

 $10,159  $8,977 

Tubular and pipe products

  3,082   6,083 

Corporate

  -   57 

Total capital expenditures

 $13,241  $15,117 

 

  

As of

 
  

June 30,

  

December 31,

 

(in thousands)

 

2024

  

2023

 

Assets

        

Flat products segments

 $665,840  $649,744 

Tubular and pipe products

  339,175   333,677 

Corporate

  1,281   1,414 

Total assets

 $1,006,296  $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.