Note 18 - Segment Information

12 Months Ended

Dec. 31, 2023

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 Company's Chief Executive Officer serves as the CODM. 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. Since the January 3, 2023 acquisition, Metal-Fab's financial results are included in the carbon flat products segment and since the October 2, 2023 acquisition, CTB's financial results are included in the tubular and pipe products segment.

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 years ended December 31, 2023, 2022 and 2021.

	For the Year Ended December 31,
(in thousands)	2023			2022			2021
Net sales
Specialty metals flat products	$	567,728		$	776,022		$	585,751
Carbon flat products		1,221,093			1,356,605			1,344,150
Tubular and pipe products		369,342			427,363			382,352
Total net sales	$	2,158,163		$	2,559,990		$	2,312,253
Depreciation and amortization
Specialty metals flat products	$	3,929		$	4,060		$	3,692
Carbon flat products		14,762			10,695			11,286
Tubular and pipe products		7,682			4,913			5,267
Corporate		70			70			71
Total depreciation and amortization	$	26,443		$	19,738		$	20,316
Operating income
Specialty metals flat products	$	22,884		$	93,662		$	70,544
Carbon flat products		34,582			25,015			110,074
Tubular and pipe products		40,692			34,856			7,353
Corporate		(20,487	)		(19,786	)		(15,505	)
Total operating income	$	77,671		$	133,747		$	172,466
Other loss, net		78			45			36
Income before interest and income taxes		77,593			133,702			172,430
Interest and other expense on debt		16,006			10,080			7,631
Income before income taxes	$	61,587		$	123,622		$	164,799

	For the Year Ended December 31,
(in thousands)	2023		2022		2021
Capital expenditures
Flat products	$	14,306	$	15,299	$	8,797
Tubular and pipe products		7,020		4,555		2,214
Total capital expenditures	$	21,326	$	19,854	$	11,011
Assets
Flat products	$	649,744	$	631,607	$	777,074
Tubular and pipe products		333,677		258,412		245,962
Corporate		1,414		1,608		536
Total assets	$	984,835	$	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, 2023, 2022 and 2021.

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.