Note 15 - Segment Information

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

15. 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. The CODM evaluates performance and allocates resources based primarily on operating income (loss). The operating segments are based primarily on internal management reporting.

The Company operates in

three

reportable segments; carbon flat products, specialty metals flat products, and tubular and pipe products. The carbon flat products segment and the specialty metals flat products segments are at times consolidated and referred to as the flat products segments, as certain of the flat products segments’ assets and resources are shared by the carbon and specialty metals segments and both segments’ products are stored in the shared facilities and, in some locations, processed on shared equipment.

Corporate expenses are reported as a separate line item for segment reporting purposes. Corporate expenses include the unallocated expenses related to managing the entire Company (i.e., all

three

segments), including compensation 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

months ended

March 31, 2020

and

2019,

respectively.

	For the Three Months Ended
	March 31,
(in thousands)	2020			2019
Net sales
Carbon flat products	$	202,967		$	278,536
Specialty metals flat products		88,488			88,097
Tubular and pipe products		62,925			79,286
Total net sales	$	354,380		$	445,919
Depreciation and amortization
Carbon flat products	$	3,010		$	2,814
Specialty metals flat products		497			526
Tubular and pipe products		1,364			1,368
Corporate		42			42
Total depreciation and amortization	$	4,913		$	4,750
Operating income (loss)
Carbon flat products	$	(1,346	)	$	1,226
Specialty metals flat products		2,735			2,244
Tubular and pipe products		4,305			5,615
Corporate expenses		(2,643	)		(3,011	)
Total operating income	$	3,051		$	6,074
Other income (loss), net		(17	)		14
Income before interest and income taxes		3,034			6,088
Interest and other expense on debt		2,239			3,242
Income before income taxes	$	795		$	2,846

	For the Three Months Ended
	March 31,
(in thousands)	2020		2019
Capital expenditures
Flat products segments	$	3,981	$	1,598
Tubular and pipe products		254		801
Corporate		-		-
Total capital expenditures	$	4,235	$	2,399

	As of
	March 31,		December 31,
(in thouands)	2020		2019
Assets
Flat products segments	$	456,058	$	432,566
Tubular and pipe products		220,854		215,841
Corporate		1,055		1,148
Total assets	$	677,967	$	649,555

There were

no

material revenue transactions between the carbon flat products, specialty metals products, and tubular and pipe products segments.

The Company sells certain products internationally, primarily in Canada and Mexico. International sales are immaterial to the consolidated financial results and to the individual segments’ results.