Annual report pursuant to Section 13 and 15(d)

Industry Segments

v3.20.4
Industry Segments
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
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 Operations, Palmer and Specialty. The Specialty Chemicals Segment operates as one reporting unit which includes MC and CRI Tolling.
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 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) 2020 2019
Net sales    
Metals Segment $ 204,459  $ 251,078 
Specialty Chemicals Segment 51,541  54,090 
  $ 256,000  $ 305,168 
Operating (loss) income    
Metals Segment $ (24,599) $ 3,692 
Specialty Chemicals Segment 4,033  2,811 
  (20,566) 6,503 
Unallocated corporate expenses 7,917  8,357 
Acquisition related costs 845  601 
Proxy contest costs 3,105  — 
Earn-out adjustments (1,195) (747)
Gain on lease modification (171) — 
Operating loss (31,067) (1,708)
Interest expense 2,110  3,818 
Change in fair value of interest rate swap 51  141 
Other income, net (1,255) (1,904)
Loss before income taxes $ (31,973) $ (3,763)
Identifiable assets    
Metals Segment $ 141,799  $ 186,758 
Specialty Chemicals Segment 25,039  25,428 
Corporate 40,146  45,011 
  $ 206,984  $ 257,197 
Depreciation and amortization    
Metals Segment $ 8,883  $ 9,439 
Specialty Chemicals Segment 1,552  1,461 
Corporate 165  164 
  $ 10,600  $ 11,064 
Capital expenditures    
Metals Segment $ 1,761  $ 2,812 
Specialty Chemicals Segment 866  1,157 
Corporate 1,121  568 
  $ 3,748  $ 4,537 
Sales by product group
Specialty chemicals $ 51,541  $ 54,090 
Stainless steel pipe and tube 154,974  167,907 
Heavy wall seamless carbon steel pipe and tube 23,670  30,607 
Fiberglass and steel liquid storage tanks and separation equipment 5,503  28,722 
Galvanized pipe and tube 20,312  23,842 
$ 256,000  $ 305,168 
Geographic sales    
United States $ 248,470  $ 297,808 
Elsewhere 7,530  7,360 
  $ 256,000  $ 305,168