XML 39 R22.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Industry Segments | 12 Months Ended
--- | ---
Dec. 31, 2017
Segment Reporting [Abstract] |
Industry Segments | Industry Segments The Company's business is divided into two operating segments: Metals and Specialty Chemicals. The Company identifies such segments based on products and services, long-term financial performance and end markets targeted. The Metals Segment operates as three reporting units including Synalloy Metals, Inc., a wholly-owned subsidiary which owns 100 percent of BRISMET, Palmer and Specialty, both wholly-owned subsidiaries of the Company. BRISMET manufactures pipe and tube from stainless steel and other alloys, Palmer produces fiberglass and steel storage tanks and Specialty is a master distributor of seamless carbon pipe and tube. The Metal Segment's products, some of which are custom-produced to individual orders and required for corrosive and high-purity processes, are used principally by the chemical, petrochemical, pulp and paper, mining, power generation (including nuclear), water and wastewater treatment, liquid natural gas, brewery, food processing, petroleum, pharmaceutical and other industries. Products include pipe, storage tanks, pressure vessels and a variety of other components. The Specialty Chemicals Segment operates as one reporting unit which includes MS&C, a wholly owned subsidiary of the Company which owns 100 percent of MC, and CRI Tolling, a wholly owned subsidiary of the Company. The Specialty Chemicals Segment manufactures a wide variety of specialty chemicals for the carpet, chemical, paper, metals, mining, agricultural, fiber, paint, textile, automotive, petroleum, cosmetics, mattress, furniture, janitorial and other industries. MC manufactures lubricants, surfactants, defoamers, reaction intermediaries and sulfated fats and oils. CRI Tolling provides chemical tolling manufacturing resources to global and regional companies and contracts with other chemical companies to manufacture certain pre-defined products. The chief operating decision maker evaluates performance and determines resource allocations based on a number of factors, the primary measure being operating income (loss). The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Segment operating income is the segment's total revenue less operating expenses, excluding interest expense and income taxes. Identifiable assets, all of which are located in the United States, are those assets used in operations by each segment. During 2015, the Company recorded an impairment charge of $17,158,249 of the total Metals Segment's goodwill as a result of the annual impairment analysis performed in the fourth quarter; see Note 4. The Metals Segment's identifiable assets did not include any goodwill in 2016. In relation to the acquisition of the stainless pipe and tube assets of MUSA (see Note 18), the Metals Segment recognized goodwill of $4,648,795 in 2017. The Specialty Chemicals Segment's identifiable assets include goodwill of $1,354,730 in 2017 and 2016. Centralized data processing and accounting expenses are allocated to the two segments based upon estimates of their percentage of usage. Unallocated corporate expenses include environmental charges of $37,748, $48,000 and $1,332 for 2017, 2016 and 2015, respectively. Corporate assets consist principally of cash, certain investments and equipment. The Metals Segment had one customer that accounted for approximately 14 percent of revenues in 2015. There were no customers representing more than ten percent of the Metals Segment's revenues in 2017 or 2016. The Specialty Chemicals Segment has one customer that accounted for approximately 23 percent, 25 percent and 31 percent of revenues for 2017, 2016 and 2015. The concentration of sales to this customer declined in 2016 as a result of this customer moving production of the certain products previously produced and sold by the Specialty Chemicals Segment in house. The loss of this customer would have a material adverse effect on the revenues of the Specialty Chemicals Segment and the Company. In order to establish stronger business relationships, the Metals Segment uses only a few raw material suppliers. Nine suppliers furnish about 80 percent of total dollar purchases of raw materials, with one supplier furnishing 40 percent. However, the Company does not believe that the loss of this supplier would have a materially adverse effect on the Company as raw materials are readily available from a number of different sources, and the Company anticipates no difficulties in fulfilling its requirements. For the Specialty Chemicals Segment, most raw materials are generally available from numerous independent suppliers and about 52 percent of total purchases are from its top 15 suppliers. While some raw material needs are met by a sole supplier or only a few suppliers, the Company anticipates no difficulties in fulfilling its raw material requirements. Segment Information: All values are for continuing operations only.
| 2017 |  | 2016 |  | 2015
Net sales |  |  |  |  |
Metals Segment | $ | 152,957,195 |  |  | $ | 90,214,537 |  |  | $ | 114,908,258 |
Specialty Chemicals Segment | 48,190,487 |  |  | 48,351,245 |  |  | 60,552,180 |
| $ | 201,147,682 |  |  | $ | 138,565,782 |  |  | $ | 175,460,438 |
Operating income (loss) |  |  |  |  |  |  |  |
Metals Segment | $ | 5,424,624 |  |  | $ | (4,820,374 | ) |  | $ | 2,821,879 |
Goodwill impairment | — |  |  | — |  |  | (17,158,249 | )
Business interruption proceeds | — |  |  | — |  |  | 1,246,024 |
Gain (loss) on sale-leaseback | 239,604 |  |  | (2,166,136 | ) |  | — |
Total Metals Segment | 5,664,228 |  |  | (6,986,510 | ) |  | (13,090,346 | )
Specialty Chemicals Segment | 4,295,576 |  |  | 4,887,143 |  |  | 5,664,843 |
Gain (loss) on sale-leaseback | 94,669 |  |  | (205,642 | ) |  | — |
Total Specialty Chemicals Segment | 4,390,245 |  |  | 4,681,501 |  |  | 5,664,843 |
| 10,054,473 |  |  | (2,305,009 | ) |  | (7,425,503 | )
Unallocated straight line lease cost | 397,071 |  |  | 101,633 |  |  | — |
Unallocated corporate expenses | 6,116,768 |  |  | 5,733,529 |  |  | 5,105,935 |
Acquisition related costs | 794,983 |  |  | 106,227 |  |  | 499,761 |
Operating income (loss) | 2,745,651 |  |  | (8,246,398 | ) |  | (13,031,199 | )
Interest expense | 985,366 |  |  | 932,572 |  |  | 1,352,806 |
Change in fair value of interest rate swap | (96,696 | ) |  | 12,997 |  |  | 41,580 |
Earn-out adjustments | 688,523 |  |  | — |  |  | (4,897,448 | )
Casualty insurance gain | — |  |  | — |  |  | (923,470 | )
Other income, net | (310,043 | ) |  | — |  |  | (134,389 | )
Income (loss) before income taxes | $ | 1,478,501 |  |  | $ | (9,191,967 | ) |  | $ | (8,470,278 | )
Identifiable assets |  |  |  |  |  |  |  |
Metals Segment | $ | 130,456,857 |  |  | $ | 109,689,477 |  |  |
Specialty Chemicals Segment | 25,394,078 |  |  | 22,907,672 |  |  |
Corporate | 4,023,215 |  |  | 6,040,914 |  |  |
| $ | 159,874,150 |  |  | $ | 138,638,063 |  |  |
Depreciation and amortization |  |  |  |  |  |  |  |
Metals Segment | $ | 6,280,681 |  |  | $ | 5,132,506 |  |  | $ | 5,172,251 |
Specialty Chemicals Segment | 1,302,579 |  |  | 1,449,437 |  |  | 1,376,167 |
Corporate | 154,552 |  |  | 113,047 |  |  | 85,973 |
| $ | 7,737,812 |  |  | $ | 6,694,990 |  |  | $ | 6,634,391 |
Capital expenditures |  |  |  |  |  |  |  |
Metals Segment | $ | 3,405,552 |  |  | $ | 2,198,535 |  |  | $ | 7,398,517 |
Specialty Chemicals Segment | 1,649,967 |  |  | 475,703 |  |  | 3,439,260 |
Corporate | 223,089 |  |  | 370,173 |  |  | 67,453 |
| $ | 5,278,608 |  |  | $ | 3,044,411 |  |  | $ | 10,905,230 |
Sales by product group |  |  |  |  |
Specialty chemicals | $ | 48,190,487 |  |  | $ | 48,351,245 |  |  | $ | 60,552,180 |
Stainless steel pipe | 100,523,823 |  |  | 56,065,642 |  |  | 77,849,443 |
Seamless carbon steel pipe and tube | 25,103,641 |  |  | 14,913,133 |  |  | 18,013,326 |
Liquid storage tanks and separation equipment | 27,599,731 |  |  | 19,235,762 |  |  | 19,045,489 |
| $ | 201,417,682 |  |  | $ | 138,565,782 |  |  | $ | 175,460,438 |
Geographic sales |  |  |  |  |  |  |  |
United States | $ | 196,172,279 |  |  | $ | 132,313,157 |  |  | $ | 167,185,319 |
Elsewhere | 4,975,403 |  |  | 6,252,625 |  |  | 8,275,119 |
| $ | 201,147,682 |  |  | $ | 138,565,782 |  |  | $ | 175,460,438 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration