Note 17 - Segment Information

12 Months Ended

Dec. 31, 2012

Segment Reporting Disclosure [Text Block]

17.  Segment Information:

The Company evaluated its reportable segments in connection with its acquisition of CTI, and followed the accounting guidance that requires the utilization of a “management approach” to define and report the financial results of operating 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.  Our CODM evaluates performance and allocates resources based primarily on operating income (loss).  Our operating segments are based primarily on internal management reporting.

The Company now operates in two reportable segments: flat products and tubular and pipe products.  Through its flat products segment, the Company sells and distributes large volumes of processed carbon, coated, aluminum and stainless flat-rolled sheet, coil and plate products.  Through its tubular and pipe products segment, the Company distributes metal tubing, pipe, bar, valve and fittings and fabricates pressure parts supplied to various industrial markets.

The tubular and pipe products segment is a result of the July 1, 2011 acquisition of CTI.  As a result, the segment data for the twelve months ended December 31, 2011 only includes six months of tubular and pipe products segment data.

The following table provides financial information by segment and reconciles the Company’s operating income by segment to the consolidated net income for the years ended December 31, 2012, 2011 and 2010.  The Company assesses the performance of the segments based on operating income.

(in thousands)	2012			2011		2010
Net sales
Flat products	$	1,138,063		$	1,143,708	$	805,043
Tubular and pipe products		245,638			118,164		-
Total net sales	$	1,383,701		$	1,261,872	$	805,043
Depreciation and amortization
Flat products	$	16,065		$	13,800	$	13,303
Tubular and pipe products		4,795			2,246		-
Total depreciation and amortization	$	20,860		$	16,046	$	13,303
Operating income
Flat products	$	452		$	37,262	$	6,102
Tubular and pipe products		17,997			7,206		-
Total operating income	$	18,449		$	44,468	$	6,102
Asset impairment charge of joint venture real estate		36			953		-
Other (income) and expense, net		(83	)		77		-
Income before financing costs and income taxes		18,496			43,438		6,102
Interest and other expense on debt		8,357			5,953		2,305
Income before income taxes	$	10,139		$	37,485	$	3,797

(in thousands)	2012		2011		2010
Capital expenditures
Flat products	$	17,004	$	38,849	$	17,846
Tubular and pipe products		6,369		638		-
Total capital expenditures	$	23,373	$	39,487	$	17,846
Goodwill
Flat products	$	500	$	7,083	$	7,083
Tubular and pipe products		40,287		40,171		-
Total goodwill	$	40,787	$	47,254	$	7,083
Assets
Flat products	$	480,487	$	494,179	$	429,438
Tubular and pipe products		225,507		213,320		-
Total assets	$	705,994	$	707,499	$	429,438

There were no material revenue transactions between the flat products and tubular and pipe products segments.

The Company sells certain products internationally, primarily in Canada, Puerto Rico and Mexico.  International sales have been immaterial to the consolidated financial results and to the individual segment’s results.