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Note 17 - Segment Information
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

17.

Segment Information:

 

The Company follows the accounting guidance that requires the utilization of a “management approach” to define and report the financial results of reporting 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 Company's Chief Executive Officer serves as the CODM and evaluates performance and allocates resources based on segment operating income. The CODM uses operating income to evaluate the income generated and overall profitability created from segment assets. These financial metrics are used to make key operating decisions, such as the determinations of how capital spending is deployed between organic growth, automation and defensive projects and investment through acquisition. 

 

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 November 11, 2024 and January 3, 2023 acquisitions, Metal Work's and Metal-Fab's financial results are included in the carbon flat products segment. Since the October 2, 2023 acquisition, CTB's financial results are included in the tubular and pipe products segment. The reportable segments are defined based on the products they sell as each segment requires unique purchasing and marketing strategies. In addition, capital equipment requirements differ between segments. 

 

The Company uses segment operating income as the measure of segment income or loss. The Company believes that segment operating income is most reflective of the operational profitability or loss of its reportable segments. 

 

Segment operating income excludes certain Corporate expenses. These 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 tables provide financial information frequently shared with our CODM for the Company's reportable segments for the years ended December 31, 2024, 2023 and 2022.

 

 

 

  

For the Year Ended December 31, 2024

 
  

Specialty metals flat products

  

Carbon flat products

  

Tubular and pipe products

  

Other

  

Total

 

(in thousands)

                    

Net sales

 $496,854  $1,109,100  $335,718  $-  $1,941,672 

Cost of materials sold

  406,229   864,590   219,672   -   1,490,491 

Operating expenses

  66,978   210,666   78,525   17,023   373,192 

Depreciation

  2,863   14,679   6,936   70   24,548 

Amortization

  1,056   2,750   1,776   -   5,582 

Operating income

 $19,728  $16,415  $28,809  $(17,093) $47,859 

Other loss, net

                  93 

Interest and other expense on debt

                  16,461 

Income before income taxes

                 $31,305 
                     
  For the Year Ended December 31, 2023 
  Specialty metals flat products  Carbon flat products  Tubular and pipe products  Other  Total 

(in thousands)

                    

Net sales

 $567,728  $1,221,093  $369,342  $-  $2,158,163 

Cost of materials sold

  473,784   963,667   247,212   -   1,684,663 

Operating expenses

  67,131   208,082   73,756   20,417   369,386 

Depreciation

  2,868   12,147   6,460   70   21,545 

Amortization

  1,061   2,615   1,222   -   4,898 

Operating income

 $22,884  $34,582  $40,692  $(20,487) $77,671 

Other loss, net

                  78 

Interest and other expense on debt

                  16,006 

Income before income taxes

                 $61,587 
                     
  For the Year Ended December 31, 2022 
  Specialty metals flat products  Carbon flat products  Tubular and pipe products  Other  Total 

(in thousands)

                    

Net sales

 $776,022  $1,356,605  $427,363  $-  $2,559,990 

Cost of materials sold

  589,472   1,164,459   319,999   -   2,073,930 

Operating expenses

  88,828   156,436   67,595   19,716   332,575 

Depreciation

  2,991   10,298   3,926   70   17,285 

Amortization

  1,069   397   987   -   2,453 

Operating income

 $93,662  $25,015  $34,856  $(19,786) $133,747 

Other loss, net

                  45 

Interest and other expense on debt

                  10,080 

Income before income taxes

                 $123,622 

 

  

For the Year Ended December 31,

 

(in thousands)

 

2024

  

2023

  

2022

 

Capital expenditures

            

Flat products

 $26,562  $14,306  $15,299 

Tubular and pipe products

  2,925   7,020   4,555 

Corporate

  -   -   - 

Total capital expenditures

 $29,487  $21,326  $19,854 
             

Assets

            

Flat products

 $695,880  $649,744  $631,607 

Tubular and pipe products

  347,469   333,677   258,412 

Corporate

  1,147   1,414   1,608 

Total assets

 $1,044,496  $984,835  $891,627 

 

There were no material revenue transactions between the carbon flat products, specialty metals flat products and tubular and pipe products segments for the years ended December 31, 2024, 2023 and 2022.

 

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.