Note 11 - Segment Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

11.    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 on 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 nine months ended September 30, 2013 and 2012.

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(in thousands)	2013			2012			2013			2012
Net sales
Flat products	$	248,463		$	279,075		$	791,655		$	903,591
Tubular and pipe products		55,527			63,485			181,203			188,386
Total net sales	$	303,990		$	342,560		$	972,858		$	1,091,977
Depreciation and amortization
Flat products	$	4,104		$	3,969		$	12,589		$	11,791
Tubular and pipe products		1,243			1,207			3,796			3,512
Total depreciation and amortization	$	5,347		$	5,176		$	16,385		$	15,303
Operating income
Flat products	$	2,624		$	2,147		$	12,429		$	17,214
Tubular and pipe products		3,297			3,992			13,066			14,881
Corporate expenses		(1,747	)		(1,515	)		(5,715	)		(5,464	)
Total operating income	$	4,174		$	4,624		$	19,780		$	26,631
Other income (loss), net		(1	)		51			(18	)		90
Income before interest and income taxes		4,173			4,675			19,762			26,721
Interest and other expense on debt		1,689			2,120			5,055			6,411
Income before income taxes	$	2,484		$	2,555		$	14,707		$	20,310

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands)	2013		2012		2013		2012
Capital expenditures
Flat products	$	1,541	$	3,983	$	2,937	$	14,715
Tubular and pipe products		7,308		624		9,691		5,575
Total capital expenditures	$	8,849	$	4,607	$	12,628	$	20,290

	As of
(in thousands)	September 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	$	450,504	$	480,487
Tubular and pipe products		227,205		225,507
Total assets	$	677,709	$	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.