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Note 15 - Segment Information
 9 Months Ended
Sep. 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 nine months ended September 30, 2025 and 2024, respectively.

 

  

For the Three Months Ended September 30, 2025

 
  

Specialty metals flat products

  

Carbon flat products

  

Tubular and pipe products

  

Other

  

Total

 

(in thousands)

                    

Net sales

 $140,870  $268,214  $81,571  $-  $490,655 

Cost of materials sold

  113,982   202,670   56,377   -   373,029 

Operating expenses

  19,616   59,299   19,058   4,413   102,386 

Depreciation

  654   3,879   1,704   -   6,237 

Amortization

  205   1,089   445   -   1,739 

Operating income

 $6,413  $1,277  $3,987  $(4,413) $7,264 

Other loss, net

                  14 

Interest and other expense on debt

                  4,144 

Income before income taxes

                 $3,106 

 

  

For the Nine Months Ended September 30, 2025

 
  

Specialty metals flat products

  

Carbon flat products

  

Tubular and pipe products

  

Other

  

Total

 

(in thousands)

                    

Net sales

 $405,114  $836,997  $237,968  $-  $1,480,079 

Cost of materials sold

  333,543   627,621   161,044   -   1,122,208 

Operating expenses

  54,834   179,671   58,452   13,996   306,953 

Depreciation

  2,140   11,953   5,150   35   19,278 

Amortization

  628   3,257   1,325   -   5,210 

Operating income

 $13,969  $14,495  $11,997  $(14,031) $26,430 

Other loss, net

                  62 

Interest and other expense on debt

                  12,282 

Income before income taxes

                 $14,086 

 

  

For the Three Months Ended September 30, 2024

 
  

Specialty metals flat products

  

Carbon flat products

  

Tubular and pipe products

  

Other

  

Total

 

(in thousands)

                    

Net sales

 $125,693  $264,849  $79,454  $-  $469,996 

Cost of materials sold

  103,450   208,093   51,601   -   363,144 

Operating expenses

  16,302   52,294   19,193   4,020   91,809 

Depreciation

  699   3,366   1,658   17   5,740 

Amortization

  306   662   526   -   1,494 

Operating income

 $4,936  $434  $6,476  $(4,037) $7,809 

Other loss, net

                  26 

Interest and other expense on debt

                  3,880 

Income before income taxes

                 $3,903 

 

  

For the Nine Months Ended September 30, 2024

 
  

Specialty metals flat products

  

Carbon flat products

  

Tubular and pipe products

  

Other

  

Total

 

(in thousands)

                    

Net sales

 $386,100  $873,579  $263,209  $-  $1,522,888 

Cost of materials sold

  315,984   687,704   173,541   -   1,177,229 

Operating expenses

  50,478   159,202   62,468   12,859   285,007 

Depreciation

  2,083   10,277   5,173   52   17,585 

Amortization

  839   1,944   1,427   -   4,210 

Operating income

 $16,716  $14,452  $20,600  $(12,911) $38,857 

Other loss, net

                  66 

Interest and other expense on debt

                  12,283 

Income before income taxes

                 $26,508 

 

 

 

  

For the Nine Months Ended

 
  

September 30,

 

(in thousands)

 

2025

  

2024

 

Capital expenditures

        

Flat products segments

 $23,965  $18,458 

Tubular and pipe products

  1,033   3,850 

Total capital expenditures

 $24,998  $22,308 

 

  

As of

 
  

September 30,

  

December 31,

 

(in thousands)

 

2025

  

2024

 

Assets

        

Flat products segments

 $728,754  $695,880 

Tubular and pipe products

  360,345   347,469 

Corporate

  959   1,147 

Total assets

 $1,090,058  $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.