Note 11 - Segment Information

9 Months Ended

Sep. 30, 2014

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. Our operating segments are based primarily 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.

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.

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, 2014 and 2013.

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
(in thousands)	2014			2013			2014			2013
Net sales
Flat products	$	312,776		$	248,463		$	918,834		$	791,655
Tubular and pipe products		63,841			55,527			190,743			181,203
Total net sales	$	376,617		$	303,990		$	1,109,577		$	972,858
Depreciation and amortization
Flat products	$	3,233		$	4,104		$	11,682		$	12,589
Tubular and pipe products		1,383			1,243			4,249			3,796
Corporate		25			-			75			-
Total depreciation and amortization	$	4,641		$	5,347		$	16,006		$	16,385
Operating income
Flat products	$	3,365		$	2,624		$	14,628		$	12,429
Tubular and pipe products		2,804			3,297			9,094			13,066
Corporate		(2,052	)		(1,747	)		(6,268	)		(5,715	)
Total operating income	$	4,117		$	4,174		$	17,454		$	19,780
Other income (loss), net		(20	)		(1	)		(22	)		(18	)
Income before interest and income taxes		4,097			4,173			17,432			19,762
Interest and other expense on debt		1,602			1,689			5,134			5,055
Income before income taxes	$	2,495		$	2,484		$	12,298		$	14,707

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
(in thousands)	2014		2013		2014		2013
Capital expenditures
Flat products	$	1,631	$	1,541	$	4,861	$	2,937
Tubular and pipe products		459		7,308		2,332		9,691
Corporate		-		-		21		-
Total capital expenditures	$	2,090	$	8,849	$	7,214	$	12,628

	As of
	September 30,		December 31,
(in thouands)	2014		2013
Goodwill
Flat products	$	500	$	500
Tubular and pipe products		40,287		40,287
Total goodwill	$	40,787	$	40,787
Assets
Flat products	$	543,912	$	473,397
Tubular and pipe products		228,193		223,314
Corporate		583		638
Total assets	$	772,688	$	697,349

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 are immaterial to the consolidated financial results and to the individual segments’ results.