Quarterly report pursuant to Section 13 or 15(d)

Industry Segments

v3.22.2
Industry Segments
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Industry Segments Industry Segments
The Company's business is divided into two reportable operating segments, the Metals Segment and the Specialty Chemicals Segment. The Metals Segment operates as three reporting units that include Bristol Metals, LLC ("BRISMET") and American Stainless Tubing, LLC ("ASTI") (collectively "Welded Pipe & Tube"), Palmer of Texas Tanks, Inc. ("Palmer"), and Specialty Pipe & Tube, Inc. ("Specialty"). As discussed in Note 4, the Company permanently ceased operations at Palmer as of December 31, 2021 and have classified the remaining assets as held for sale. The results of operations for this business are included within the Metals Segment for all periods presented in this quarterly report. The Metals Segment serves markets through pipe and tube and customers in the appliance, architectural, automotive and commercial transportation, brewery, chemical, petrochemical, pulp and paper, mining, power generation (including nuclear), water and waste-water treatment, liquid natural gas ("LNG"), food processing, pharmaceutical, oil and gas and other industries.
The Specialty Chemicals Segment operates as one reporting unit which includes Manufacturers Chemicals, LLC ("MC"), a wholly-owned subsidiary of Manufacturers Soap and Chemical Company ("MS&C"), CRI Tolling, LLC ("CRI") and DanChem Technologies, Inc ("DanChem"). The Specialty Chemicals Segment produces specialty products for the pulp and paper, coatings, adhesives, sealants and elastomers (CASE), textile, automotive, household, industrial and institutional ("HII"), agricultural, water and waste-water treatment, construction, oil and gas and other industries.
The following table summarizes certain information regarding segments of the Company's operations:
Three Months Ended June 30, Six Months Ended June 30,
(in thousands) 2022 2021 2022 2021
Net sales
Metals Segment $ 87,182  $ 68,097  $ 175,679  $ 123,311 
Specialty Chemicals Segment 29,020  14,990  56,741  29,554 
$ 116,202  $ 83,087  $ 232,420  $ 152,865 
Operating income (loss)
Metals Segment $ 12,934  $ 7,504  $ 27,426  $ 10,081 
Specialty Chemicals Segment 2,627  (414) 5,014  642 
Unallocated corporate expenses 3,322  1,360  6,351  3,127 
Acquisition costs and other 157  —  688  — 
Proxy contest costs and recoveries —  632  —  168 
Earn-out adjustments
 (109) 1,044  (7) 1,270 
Operating income 12,191  4,054  25,408  6,158 
Interest expense 407  353  810  739 
Loss on extinguishment of debt —  —  —  223 
Change in fair value of interest rate swap —  —  —  (2)
Other, net (23) —  (58) 162 
Income before income taxes $ 11,807  $ 3,701  $ 24,656  $ 5,036 
As of
(in thousands) June 30, 2022 December 31, 2021
Identifiable assets
Metals Segment $ 196,429  $ 160,625 
Specialty Chemicals Segment 78,013  72,908 
Corporate 31,999  32,469 
$ 306,441  $ 266,002