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Note 15 - Segment Information
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2025 and 2024, respectively.

 

  

For the Three Months Ended June 30, 2025

 
  

Specialty metals flat products

  

Carbon flat products

  

Tubular and pipe products

  

Other

  

Total

 

(in thousands)

                    

Net sales

 $134,706  $282,543  $79,234  $-  $496,483 

Cost of materials sold

  110,761   209,612   54,306   -   374,679 

Operating expenses

  18,063   60,386   18,974   4,793   102,216 

Depreciation

  750   4,066   1,725   18   6,559 

Amortization

  206   1,086   364   -   1,656 

Operating income

 $4,926  $7,393  $3,865  $(4,811) $11,373 

Other loss, net

                  27 

Interest and other expense on debt

                  3,956 

Income before income taxes

                 $7,390 

 

  

For the Six Months Ended June 30, 2025

 
  

Specialty metals flat products

  

Carbon flat products

  

Tubular and pipe products

  

Other

  

Total

 

(in thousands)

                    

Net sales

 $264,244  $568,783  $156,397  $-  $989,424 

Cost of materials sold

  219,561   424,951   104,667   -   749,179 

Operating expenses

  35,218   120,372   39,394   9,583   204,567 

Depreciation

  1,486   8,074   3,446   35   13,041 

Amortization

  423   2,168   880   -   3,471 

Operating income

 $7,556  $13,218  $8,010  $(9,618) $19,166 

Other loss, net

                  48 

Interest and other expense on debt

                  8,138 

Income before income taxes

                 $10,980 

 

  

For the Three Months Ended June 30, 2024

 
  

Specialty metals flat products

  

Carbon flat products

  

Tubular and pipe products

  

Other

  

Total

 

(in thousands)

                    

Net sales

 $130,873  $307,755  $87,622  $-  $526,250 

Cost of materials sold

  104,944   243,996   57,607   -   406,547 

Operating expenses

  17,151   54,286   21,350   4,579   97,366 

Depreciation

  662   3,470   1,689   18   5,839 

Amortization

  267   642   479   -   1,388 

Operating income

 $7,849  $5,361  $6,497  $(4,597) $15,110 

Other loss, net

                  21 

Interest and other expense on debt

                  4,393 

Income before income taxes

                 $10,696 

 

  

For the Six Months Ended June 30, 2024

 
  

Specialty metals flat products

  

Carbon flat products

  

Tubular and pipe products

  

Other

  

Total

 

(in thousands)

                    

Net sales

 $260,407  $608,730  $183,755  $-  $1,052,892 

Cost of materials sold

  212,534   479,611   121,940   -   814,085 

Operating expenses

  34,176   106,908   43,275   8,839   193,198 

Depreciation

  1,384   6,911   3,515   35   11,845 

Amortization

  533   1,282   901   -   2,716 

Operating income

 $11,780  $14,018  $14,124  $(8,874) $31,048 

Other loss, net

                  40 

Interest and other expense on debt

                  8,403 

Income before income taxes

                 $22,605 

 

 

 

  

For the Six Months Ended

 
  

June 30,

 

(in thousands)

 

2025

  

2024

 

Capital expenditures

        

Flat products segments

 $16,883  $10,159 

Tubular and pipe products

  634   3,082 

Total capital expenditures

 $17,517  $13,241 

 

  

As of

 
  

June 30,

  

December 31,

 

(in thousands)

 

2025

  

2024

 

Assets

        

Flat products segments

 $716,785  $695,880 

Tubular and pipe products

  357,115   347,469 

Corporate

  1,010   1,147 

Total assets

 $1,074,910  $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.