Note 18 - Segment Information

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

18. 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. The operating segments are based primarily on internal management reporting.

The Company operates in three reportable segments; specialty metals flat products, carbon flat products, and tubular and pipe products. The specialty metals flat products segment and the carbon flat products segment 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 specialty metals and carbon flat products 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 (loss) before income taxes for the years ended December 31, 2022, 2021 and 2020.

	For the Year Ended December 31,
(in thousands)	2022			2021			2020
Net sales
Specialty metals flat products	$	776,022		$	585,751		$	313,190
Carbon flat products		1,356,605			1,344,150			690,273
Tubular and pipe products		427,363			382,352			230,681
Total net sales	$	2,559,990		$	2,312,253		$	1,234,144
Depreciation and amortization
Specialty metals flat products	$	4,060		$	3,692		$	1,951
Carbon flat products		10,695			11,286			11,941
Tubular and pipe products		4,913			5,267			5,478
Corporate		70			71			120
Total depreciation and amortization	$	19,738		$	20,316		$	19,490
Operating income
Specialty metals flat products	$	93,662		$	70,544		$	11,666
Carbon flat products		25,015			110,074			(10,289	)
Tubular and pipe products		34,856			7,353			9,019
Corporate		(19,786	)		(15,505	)		(9,823	)
Total operating income	$	133,747		$	172,466		$	573
Other loss, net		45			36			73
Income before interest and income taxes		133,702			172,430			500
Interest and other expense on debt		10,080			7,631			7,411
Income (loss) before income taxes	$	123,622		$	164,799		$	(6,911	)

		For the Year Ended December 31,
(in thousands)	2022		2021		2020
Capital expenditures
Flat products	$	15,299	$	8,797	$	7,589
Tubular and pipe products		4,555		2,214		2,214
Corporate		-		-		-
Total capital expenditures	$	19,854	$	11,011	$	9,803
Assets
Flat products	$	631,607	$	777,074
Tubular and pipe products		258,412		245,962
Corporate		1,608		536
Total assets	$	891,627	$	1,023,572

There were no material revenue transactions between the carbon flat products, specialty metals flat products and tubular and pipe products segments for the years ended December 31, 2022, 2021 and 2020.

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.