Note 12 - Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

12. Segment Information:

The Company follows 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 internal management reporting.

The Company 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.

Commencing with the first quarter of 2013, corporate expenses are reported as a separate line item in the segment reporting. Corporate expenses include the unallocated expenses related to managing the entire Company (i.e. both segments), including payroll expenses for certain personnel, expenses related to being a publicly traded entity such as board of directors expenses, audit expenses, and various other professional fees. Prior to 2013, these expenses were included in the flat products segment’s operating results. The 2012 financial information below has been revised to reflect the new reporting structure.

The following table provides financial information by segment and reconciles the Company’s operating income by segment to the consolidated income before income taxes for the three and six months ended June 30, 2013 and 2012.

		For the Three Months Ended June 30,						For the Six Months Ended June 30,
(in thousands)		2013			2012			2013			2012
Net sales
	Flat products	$	267,444		$	307,887		$	543,192		$	624,516
	Tubular and pipe products		63,360			59,478			125,676			124,901
Total net sales		$	330,804		$	367,365		$	668,868		$	749,417
Depreciation and amortization
	Flat products	$	4,243		$	3,952		$	8,485		$	7,822
	Tubular and pipe products		1,280			1,183			2,553			2,305
Total depreciation and amortization		$	5,523		$	5,135		$	11,038		$	10,127
Operating income
	Flat products	$	4,999		$	7,273		$	9,804		$	15,067
	Tubular and pipe products		3,009			4,445			9,769			10,889
	Corporate expenses		(1,984	)		(1,974	)		(3,968	)		(3,949	)
Total operating income		$	6,024		$	9,744		$	15,605		$	22,007
Other income (loss), net			(41	)		5			(17	)		39
Income before interest and income taxes			5,983			9,749			15,588			22,046
Interest and other expense on debt			1,668			2,183			3,366			4,291
Income before income taxes		$	4,315		$	7,566		$	12,222		$	17,755

		For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)		2013		2012		2013		2012
Capital expenditures
	Flat products	$	717	$	5,286	$	1,396	$	10,732
	Tubular and pipe products		1,348		2,428		2,383		4,951
Total capital expenditures		$	2,065	$	7,714	$	3,779	$	15,683

		As of
(in thousands)		June 30, 2013		December 31, 2012
Goodwill
	Flat products	$	500	$	500
	Tubular and pipe products		40,287		40,287
Total goodwill		$	40,787	$	40,787
Assets
	Flat products	$	459,240	$	480,487
	Tubular and pipe products		223,690		225,507
Total assets		$	682,930	$	705,994

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

The Company sells certain products internationally, primarily in North, Central and South America. International sales are immaterial to the consolidated financial results and to the individual segments’ results.