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Note 15 - Segment Information
 3 Months Ended
Mar. 31, 2025
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 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 determination 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 segment, 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. 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 the 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 three months ended March 31, 2025 and 2024, respectively.

 

 

  

For the Three Months Ended March 31, 2025

 
  

Specialty metals flat products

  

Carbon flat products

  

Tubular and pipe products

  

Other

  

Total

 

(in thousands)

                    

Net sales

 $129,538  $286,240  $77,163  $-  $492,941 

Cost of materials sold

  108,800   215,339   50,361   -   374,500 

Operating expenses

  17,155   59,986   20,420   4,790   102,351 

Depreciation

  736   4,008   1,721   17   6,482 

Amortization

  217   1,082   516   -   1,815 

Operating income

 $2,630  $5,825  $4,145  $(4,807) $7,793 

Other loss, net

                  21 

Interest and other expense on debt

                  4,182 

Income before income taxes

                 $3,590 
                     
  

For the Three Months Ended March 31, 2024

 
  

Specialty metals flat products

  

Carbon flat products

  

Tubular and pipe products

  

Other

  

Total

 

(in thousands)

                    

Net sales

 $129,534  $300,975  $96,133  $-  $526,642 

Cost of materials sold

  107,590   235,615   64,333   -   407,538 

Operating expenses

  17,025   52,622   21,925   4,260   95,832 

Depreciation

  722   3,441   1,826   17   6,006 

Amortization

  266   640   422   -   1,328 

Operating income

 $3,931  $8,657  $7,627  $(4,277) $15,938 

Other loss, net

                  19 

Interest and other expense on debt

                  4,010 

Income before income taxes

                 $11,909 
                     

 

 

  

For the Three Months Ended

 
  

March 31,

 

(in thousands)

 

2025

  

2024

 

Capital expenditures

        

Flat products segments

 $8,474  $3,410 

Tubular and pipe products

  357   1,408 

Total capital expenditures

 $8,831  $4,818 

 

  

As of

 
  

March 31,

  

December 31,

 

(in thousands)

 

2025

  

2024

 

Assets

        

Flat products segments

 $710,454  $695,880 

Tubular and pipe products

  353,189   347,469 

Corporate

  1,079   1,147 

Total assets

 $1,064,722  $1,044,496 

 

There were no material revenue transactions between the specialty metals flat 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.