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Segment Reporting
 3 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting
The Company distributes and performs processing on both metals and plastics. Although the distribution processes are similar, the customer markets, supplier bases and types of products are different. Additionally, the Company’s Chief Executive Officer, the chief operating decision-maker, reviews and manages these two businesses separately. As such, these businesses are considered reportable segments and are reported accordingly.
In its Metals segment, the Company’s marketing strategy focuses on distributing highly engineered specialty grades and alloys of metals as well as providing specialized processing services designed to meet very precise specifications. Core products include alloy, aluminum, stainless, nickel, titanium and carbon. Inventories of these products assume many forms such as plate, sheet, extrusions, round bar, hexagon bar, square and flat bar, tubing and coil. Depending on the size of the facility and the nature of the markets it serves, service centers are equipped as needed with bar saws, plate saws, oxygen and plasma arc flame cutting machinery, trepanning machinery, boring machinery, honing equipment, water-jet cutting, stress relieving and annealing furnaces, surface grinding equipment and sheet shearing equipment. This segment also performs various specialized fabrications for its customers through pre-qualified subcontractors that thermally process, turn, polish and straighten alloy and carbon bar.
The Company’s Plastics segment consists exclusively of a wholly-owned subsidiary that operates as Total Plastics, Inc. (“TPI”) headquartered in Kalamazoo, Michigan, and its wholly-owned subsidiaries. The Plastics segment stocks and distributes a wide variety of plastics in forms that include plate, rod, tube, clear sheet, tape, gaskets and fittings. Processing activities within this segment include cut-to-length, cut-to-shape, bending and forming according to customer specifications. The Plastics segment’s diverse customer base consists of companies in the retail (point-of-purchase), automotive, marine, office furniture and fixtures, safety products, life sciences applications, and general manufacturing industries. TPI has locations throughout the upper northeast and midwest regions of the U.S. and one facility in Florida from which it services a wide variety of users of industrial plastics.
The accounting policies of all segments are the same as described in Note 1, “Basis of Presentation and Significant Accounting Policies” in the Company’s Annual Report on Form 10-K, as amended, for the year ended December 31, 2012. Management evaluates the performance of its business segments based on operating income.
Segment information for the three months ended June 30, 2013 and 2012 is as follows:
 
Net
Sales
 
Operating
(Loss) Income
 
Capital
Expenditures
 
Depreciation &
Amortization
2013
 
 
 
 
 
 
 
Metals segment
$
239,450

 
$
(2,576
)
 
$
3,520

 
$
6,211

Plastics segment
33,960

 
720

 
309

 
422

Other (a)
—

 
(1,907
)
 
—

 
—

Consolidated
$
273,410

 
$
(3,763
)
 
$
3,829

 
$
6,633

2012
 
 
 
 
 
 
 
Metals segment
$
297,244

 
$
11,901

 
$
1,668

 
$
6,117

Plastics segment
32,148

 
1,064

 
370

 
357

Other (a)
—

 
(3,405
)
 
—

 
—

Consolidated
$
329,392

 
$
9,560

 
$
2,038

 
$
6,474

Segment information for the six months ended June 30, 2013 and 2012 is as follows:
 
 
Net
Sales
 
Operating
(Loss) Income
 
Capital
Expenditures
 
Depreciation &
Amortization
2013
 
 
 
 
 
 
 
Metals segment
$
497,830

 
$
(2,851
)
 
$
4,647

 
$
12,376

Plastics segment
68,294

 
1,901

 
789

 
828

Other (a)
—

 
(3,786
)
 
—

 
—

Consolidated
$
566,124

 
$
(4,736
)
 
$
5,436

 
$
13,204

2012
 
 
 
 
 
 
 
Metals segment
$
629,136

 
$
32,012

 
$
3,320

 
$
12,423

Plastics segment
63,172

 
1,601

 
771

 
664

Other (a)
—

 
(5,897
)
 
—

 
—

Consolidated
$
692,308

 
$
27,716

 
$
4,091

 
$
13,087



(a)
“Other” – Operating income includes the costs of executive, legal and finance departments, which are shared by both the Metals and Plastics segments.
Below are reconciliations of segment data to consolidated loss before income taxes for the three months ended June 30, 2013 and 2012:
 
 
June 30,
 
2013
 
2012
Operating (loss) income
$
(3,763
)
 
$
9,560

Interest expense, net
(10,090
)
 
(9,964
)
Interest expense - unrealized loss on debt conversion option
—

 
(4,257
)
Other income (expense)
745

 
(691
)
Loss before income taxes and equity in earnings of joint venture
(13,108
)
 
(5,352
)
Equity in earnings of joint venture
1,494

 
1,733

Consolidated loss before income taxes
$
(11,614
)
 
$
(3,619
)

Below are reconciliations of segment data to consolidated loss before income taxes for the six months ended June 30, 2013 and 2012:
 
June 30,
 
2013
 
2012
Operating (loss) income
$
(4,736
)
 
$
27,716

Interest expense, net
(20,278
)
 
(20,157
)
Interest expense - unrealized loss on debt conversion option
—

 
(15,597
)
Other income (expense)
(1,554
)
 
(249
)
Loss before income taxes and equity in earnings of joint venture
(26,568
)
 
(8,287
)
Equity in earnings of joint venture
2,963

 
4,741

Consolidated loss before income taxes
$
(23,605
)
 
$
(3,546
)


Segment information for total assets is as follows:
 
 
June 30,
2013
 
December 31,
2012
Metals segment
$
659,643

 
$
693,803

Plastics segment
58,399

 
56,149

Other (a)
38,727

 
38,854

Consolidated
$
756,769

 
$
788,806

(a) 
“Other” — Total assets consist of the Company's investment in joint venture.