| Industry Segments |
Industry Segments The Company's business is divided into two operating segments: Metals and Specialty Chemicals. The Company identifies such segments based on products and services, long-term financial performance and end markets targeted. The Metals Segment operates as three reporting units including Welded Pipe & Tube, Palmer and Specialty. The Specialty Chemicals Segment operates as one reporting unit which includes MC, CRI and DanChem.
The chief operating decision maker evaluates performance and determines resource allocations based on a number of factors, the primary measure being operating income (loss). The accounting policies of the segments are the same as those described in the summary of significant accounting policies.
Segment operating income (loss) is the segment's total revenue less operating expenses. Identifiable assets, all of which are located in the U.S., are those assets used in operations by each segment. Centralized data processing and accounting expenses are allocated to the two segments based upon estimates of their percentage of usage. Corporate assets consist principally of cash, certain investments and equipment.
The following table summarizes certain information regarding segments of the Company's operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (in thousands) |
2021 |
|
2020 |
|
|
| Net sales |
|
|
|
|
|
| Metals Segment |
$ |
267,238 |
|
|
$ |
204,459 |
|
|
|
| Specialty Chemicals Segment |
67,477 |
|
|
51,541 |
|
|
|
| |
$ |
334,715 |
|
|
$ |
256,000 |
|
|
|
| Operating income (loss) |
|
|
|
|
|
| Metals Segment |
$ |
33,561 |
|
|
$ |
(24,599) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Specialty Chemicals Segment |
3,656 |
|
|
4,033 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
37,217 |
|
|
(20,566) |
|
|
|
|
|
|
|
|
|
| Unallocated corporate expenses |
6,828 |
|
|
7,917 |
|
|
|
| Acquisition costs and other |
1,001 |
|
|
845 |
|
|
|
| Proxy contest costs and recoveries |
168 |
|
|
3,105 |
|
|
|
| Earn-out adjustments |
1,872 |
|
|
(1,195) |
|
|
|
| Gain on lease modification |
— |
|
|
(171) |
|
|
|
| Operating income (loss) |
27,348 |
|
|
(31,067) |
|
|
|
| Interest expense |
1,486 |
|
|
2,110 |
|
|
|
| Change in fair value of interest rate swap |
(2) |
|
|
51 |
|
|
|
| Loss on extinguishment of debt |
223 |
|
|
— |
|
|
|
| Other income, net |
143 |
|
|
(1,255) |
|
|
|
| Income (loss) before income taxes |
$ |
25,498 |
|
|
$ |
(31,973) |
|
|
|
|
|
|
|
|
|
| Identifiable assets |
|
|
|
|
|
| Metals Segment |
$ |
160,625 |
|
|
$ |
141,799 |
|
|
|
| Specialty Chemicals Segment |
72,908 |
|
|
25,039 |
|
|
|
| Corporate |
32,469 |
|
|
40,146 |
|
|
|
|
|
|
|
|
|
| |
$ |
266,002 |
|
|
$ |
206,984 |
|
|
|
| Depreciation and amortization |
|
|
|
|
|
| Metals Segment |
$ |
8,206 |
|
|
$ |
8,883 |
|
|
|
| Specialty Chemicals Segment |
2,005 |
|
|
1,552 |
|
|
|
| Corporate |
130 |
|
|
165 |
|
|
|
| |
$ |
10,341 |
|
|
$ |
10,600 |
|
|
|
| Capital expenditures |
|
|
|
|
|
| Metals Segment |
$ |
1,011 |
|
|
$ |
1,761 |
|
|
|
| Specialty Chemicals Segment |
486 |
|
|
866 |
|
|
|
| Corporate |
— |
|
|
1,121 |
|
|
|
| |
$ |
1,497 |
|
|
$ |
3,748 |
|
|
|
| Sales by product group |
|
|
|
|
|
| Fiberglass and steel liquid storage tanks and separation equipment |
$ |
1,343 |
|
|
$ |
5,503 |
|
|
|
| Heavy wall seamless carbon steel pipe and tube |
40,539 |
|
|
23,670 |
|
|
|
| Stainless steel pipe and tube |
186,651 |
|
|
154,974 |
|
|
|
| Galvanized pipe and tube |
38,705 |
|
|
20,312 |
|
|
|
| Specialty chemicals |
67,477 |
|
|
51,541 |
|
|
|
|
$ |
334,715 |
|
|
$ |
256,000 |
|
|
|
| Geographic sales |
|
|
|
|
|
| United States |
$ |
325,335 |
|
|
$ |
248,470 |
|
|
|
| Elsewhere |
9,380 |
|
|
7,530 |
|
|
|
| |
$ |
334,715 |
|
|
$ |
256,000 |
|
|
|
|