v3.26.1
Note 12 - Industry Segment Data
 12 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

12.   INDUSTRY SEGMENT DATA

 

The Company is engaged in the metals processing, pipe manufacturing, and metals and pipe distribution business. Within the Company, there are two product groups: flat-roll and tubular. The Company’s flat-roll operations consist primarily of converting carbon steel, stainless steel and aluminum flat-roll products into sheet, plate or slit coil. Through its tubular operations, the Company purchases, processes, manufactures and markets tubular products. An immaterial amount of flat-roll segment revenue is generated by sales to foreign countries. All of the tubular segment's revenue is generated by sales within the United States.

 

Segment results are reviewed regularly by the Company’s Chief Operating Decision Makers (“CODMs”). The Company’s CODMs are comprised of the Chief Executive Officer and the Chief Financial Officer. The CODMs assess segment performance and allocate resources based on a number of factors with the most emphasis placed on earnings from operations.

 

The following is a summary of significant financial information relating to the product groups (in thousands):

 

  

For the Twelve Months Ended March 31, 2026

 
  

Flat-roll

  

Tubular

  

Other

  

Total

 

Net Sales

 $596,130  $50,783  $—  $646,913 

Cost and expenses:

                

Cost of materials sold

  483,904   34,792   —   518,696 

Processing and warehousing expense

  33,066   8,656   —   41,722 

Delivery expense

  27,712   686   —   28,398 

Commercial expense

  12,422   837   —   13,259 

Depreciation and amortization

  3,374   237   213   3,824 

General corporate expenses

  —   —   15,363   15,363 
   560,478   45,208   15,576   621,262 

EARNINGS (LOSS) FROM OPERATIONS:

  35,652   5,575   (15,576)  25,651 

Fair value adjustment of contingent consideration

              1,420 

Gain on economic hedges of risk

              3,412 

Interest expense

              (4,104)

Other income (expense)

              (7)

TOTAL EARNINGS BEFORE INCOME TAXES

             $26,372 
                 
  

For the Twelve Months Ended March 31, 2025

 
  

Flat-roll

  

Tubular

  

Other

  

Total

 

Net Sales

 $404,644  $39,956  $—  $444,600 

Cost and expenses:

                

Cost of materials sold

  334,426   31,222   —   365,648 

Processing and warehousing expense

  24,544   8,933   —   33,477 

Delivery expense

  22,563   665   —   23,228 

Commercial expense

  6,301   755   —   7,056 

Depreciation and amortization

  2,869   304   118   3,291 

General corporate expenses

  —   —   9,115   9,115 
   390,703   41,879   9,233   441,815 

Gain (loss) on disposal of property, plant and equipment

  (222)  480   —   258 
EARNINGS (LOSS) FROM OPERATIONS:  13,719   (1,443)  (9,233)  3,043 

Gain on economic hedges of risk

              7,598 

Interest expense

              (2,953)

Other income

              5 

TOTAL EARNINGS BEFORE INCOME TAXES

             $7,693 
                 
                 
                 
  

Year Ended March 31,

         
  

2026

  

2025

         

IDENTIFIABLE ASSETS:

                

Flat-roll

 $301,528  $204,890         

Tubular

  28,822   16,792         
   330,350   221,682         

General corporate assets

  6,460   5,140         

TOTAL ASSETS

 $336,810  $226,822         
                 

CAPITAL EXPENDITURES:

                

Flat-roll

 $6,150  $3,823         

Tubular

  1,011   179         

Corporate and other

  —   —         
TOTAL CAPITAL EXPENDITURES $7,161  $4,002         

 

General corporate expenses reflect general and administrative expenses not directly associated with segment operations and consist primarily of payroll expenses related to corporate functions, professional fees and services, retirement plan contribution expense, corporate insurance expenses, restricted stock plan compensation expense and office supplies. At March 31, 2026 and 2025, corporate assets consisted primarily of cash, restricted cash, leased administrative office right-of-use assets, unamortized debt issuance costs and the cash value of officers’ life insurance. Although inventory is transferred at cost between product groups, there are no sales between product groups.