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Note 15 - Segment Information
 9 Months Ended
Sep. 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 nine months ended September 30, 2024 and 2023, respectively.

 

  

For the Three Months Ended

  

For the Nine Months Ended

 
  

September 30,

  

September 30,

 

(in thousands)

 

2024

  

2023

  

2024

  

2023

 

Net sales

                

Specialty metals flat products

 $125,693  $132,763  $386,100  $446,327 

Carbon flat products

  264,849   304,478   873,579   940,925 

Tubular and pipe products

  79,454   89,170   263,209   281,503 

Total net sales

 $469,996  $526,411  $1,522,888  $1,668,755 
                 

Depreciation and amortization

                

Specialty metals flat products

 $1,005  $871  $2,922  $2,878 

Carbon flat products

  4,028   3,568   12,221   10,891 

Tubular and pipe products

  2,184   1,729   6,600   5,038 

Corporate

  17   17   52   52 

Total depreciation and amortization

 $7,234  $6,185  $21,795  $18,859 
                 

Operating income

                

Specialty metals flat products

 $4,936  $4,668  $16,716  $20,606 

Carbon flat products

  434   9,949   14,452   30,590 

Tubular and pipe products

  6,476   10,033   20,600   29,145 

Corporate expenses

  (4,037)  (3,765)  (12,911)  (15,961)

Total operating income

 $7,809  $20,885  $38,857  $64,380 

Other loss, net

  26   28   66   67 

Income before interest and income taxes

  7,783   20,857   38,791   64,313 

Interest and other expense on debt

  3,880   3,953   12,283   12,379 

Income before income taxes

 $3,903  $16,904  $26,508  $51,934 

 

  

For the Nine Months Ended

 
  

September 30,

 

(in thousands)

 

2024

  

2023

 

Capital expenditures

        

Flat products segments

 $18,458  $12,711 

Tubular and pipe products

  3,850   6,593 

Corporate

  -   260 

Total capital expenditures

 $22,308  $19,564 

 

  

As of

 
  

September 30,

  

December 31,

 

(in thousands)

 

2024

  

2023

 

Assets

        

Flat products segments

 $666,508  $649,744 

Tubular and pipe products

  344,289   333,677 

Corporate

  1,214   1,414 

Total assets

 $1,012,011  $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.