Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 24, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 0-23320 | ||
Entity Registrant Name | OLYMPIC STEEL, INC. | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Tax Identification Number | 34-1245650 | ||
Entity Address, Address Line One | 22901 Millcreek Boulevard, Suite 650 | ||
Entity Address, City or Town | Highland Hills | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 44122 | ||
City Area Code | 216 | ||
Local Phone Number | 292-3800 | ||
Title of 12(b) Security | Common stock, without par value | ||
Trading Symbol | ZEUS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 247,852,213 | ||
Entity Common Stock, Shares Outstanding (in shares) | 11,129,932 | ||
Auditor Firm ID | 248 | ||
Auditor Name | GRANT THORNTON LLP | ||
Auditor Location | Cleveland, Ohio | ||
Entity Central Index Key | 0000917470 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net sales | $ 2,559,990 | $ 2,312,253 | $ 1,234,144 |
Costs and expenses | |||
Cost of materials sold (excludes items shown separately below) | 2,073,930 | 1,802,052 | 979,099 |
Warehouse and processing | 104,668 | 103,017 | 83,091 |
Administrative and general | 114,004 | 104,617 | 71,451 |
Distribution | 60,529 | 55,404 | 44,728 |
Selling | 40,174 | 41,881 | 26,050 |
Occupancy | 13,200 | 12,500 | 9,662 |
Depreciation | 17,285 | 17,952 | 17,936 |
Amortization | 2,453 | 2,364 | 1,554 |
Total costs and expenses | 2,426,243 | 2,139,787 | 1,233,571 |
Operating income | 133,747 | 172,466 | 573 |
Other loss, net | 45 | 36 | 73 |
Income before interest and income taxes | 133,702 | 172,430 | 500 |
Interest and other expense on debt | 10,080 | 7,631 | 7,411 |
Income (loss) before income taxes | 123,622 | 164,799 | (6,911) |
Income tax provision (benefit) | 32,691 | 43,748 | (1,316) |
Net income (loss) | 90,931 | 121,051 | (5,595) |
Gain (loss) on cash flow hedges | 4,409 | 2,960 | (2,579) |
Tax effect of hedges | 1,102 | 740 | (645) |
Total comprehensive income (loss) | $ 94,238 | $ 123,271 | $ (7,529) |
Net income (loss) per share - basic (in dollars per share) | $ 7.87 | $ 10.53 | $ (0.49) |
Weighted average shares outstanding - basic (in shares) | 11,551 | 11,492 | 11,447 |
Net income (loss) per share - diluted (in dollars per share) | $ 7.87 | $ 10.52 | $ (0.49) |
Weighted average shares outstanding - diluted (in shares) | 11,559 | 11,503 | 11,447 |
Dividends declared per share of common stock (in dollars per share) | $ 0.36 | $ 0.08 | $ 0.08 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 12,189 | $ 9,812 |
Accounts receivable, net | 219,789 | 284,570 |
Inventories, net (includes LIFO reserves of $20,301 and of $19,736 as of December 31, 2022 and 2021, respectively) | 416,931 | 485,029 |
Prepaid expenses and other | 9,197 | 9,989 |
Total current assets | 658,106 | 789,400 |
Property and equipment, at cost | 429,810 | 413,396 |
Accumulated depreciation | (281,478) | (266,340) |
Net property and equipment | 148,332 | 147,056 |
Goodwill | 10,496 | 10,496 |
Intangible assets, net | 32,035 | 33,653 |
Other long-term assets | 14,434 | 15,241 |
Right-of use assets, net | 28,224 | 27,726 |
Total assets | 891,627 | 1,023,572 |
Liabilities | ||
Accounts payable | 101,446 | 148,649 |
Accrued payroll | 40,334 | 44,352 |
Other accrued liabilities | 16,824 | 25,395 |
Current portion of lease liabilities | 6,098 | 5,940 |
Total current liabilities | 164,702 | 224,336 |
Credit facility revolver | 165,658 | 327,764 |
Other long-term liabilities | 12,619 | 15,006 |
Deferred income taxes | 10,025 | 9,890 |
Lease liabilities | 22,655 | 22,137 |
Total liabilities | 375,659 | 599,133 |
Commitments and contingencies (Note 14) | ||
Shareholders' Equity | ||
Preferred stock, without par value, 5,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, without par value, 20,000 shares authorized; 11,130 and 11,124 issued; 11,130 and 11,124 shares outstanding | 134,724 | 133,427 |
Treasury stock, at cost, 0 and 0 shares held | 0 | 0 |
Accumulated other comprehensive income (loss) | 1,311 | (1,996) |
Retained earnings | 379,933 | 293,008 |
Total shareholders' equity | 515,968 | 424,439 |
Total liabilities and shareholders' equity | $ 891,627 | $ 1,023,572 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ / shares in Thousands, $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
LIFO Debit | $ 20,301 | $ 19,736 |
Preferred Stock, No Par Value (in dollars per share) | $ 0 | $ 0 |
Preferred Stock, Shares Authorized (in shares) | 5,000 | 5,000 |
Preferred Stock, Shares Issued (in shares) | 0 | 0 |
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 | 0 |
Common Stock, No Par Value (in dollars per share) | $ 0 | $ 0 |
Common Stock, Shares Authorized (in shares) | 20,000 | 20,000 |
Common Stock, Shares, Issued (in shares) | 11,130 | 11,124 |
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 11,130 | 11,124 |
Treasury Stock, Shares, Total (in shares) | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Adjustments to reconcile net income (loss) to net cash from (used for) operating activities. | |||
Net income (loss) | $ 90,931 | $ 121,051 | $ (5,595) |
Adjustments to reconcile net income (loss) to net cash from (used for) operating activities - | |||
Depreciation and amortization | 20,206 | 20,954 | 20,008 |
(Gain) loss on disposition of property and equipment | (2,185) | (22) | 2,026 |
Gain on disposition of Detroit operation (before expenses of $2,569) | 0 | (6,068) | 0 |
Stock-based compensation | 1,297 | 1,045 | 1,215 |
Intangibles and other long-term assets | 1,304 | 6,796 | (4,349) |
Deferred income taxes and other long-term liabilities | 235 | (6,231) | 1,220 |
Net Cash Provided by (Used in) Operating Activities, Excluding Changes in Working Capital | 111,788 | 137,525 | 14,525 |
Changes in working capital: | |||
Accounts receivable | 64,781 | (131,459) | (14,790) |
Inventories | 68,098 | (241,899) | 37,186 |
Prepaid expenses and other | 792 | (4,850) | 2,112 |
Accounts payable | (52,274) | 60,538 | 23,333 |
Change in outstanding checks | 5,071 | (1,189) | (6,893) |
Accrued payroll and other accrued liabilities | (12,403) | 34,960 | 6,179 |
Increase (Decrease) in Operating Capital, Total | 74,065 | (283,899) | 47,127 |
Net cash from (used for) operating activities | 185,853 | (146,374) | 61,652 |
Cash flows from (used for) investing activities: | |||
Acquisitions | 0 | (12,105) | (19,500) |
Capital expenditures | (19,854) | (11,011) | (9,803) |
Proceeds from sale of Detroit property and equipment | 0 | 9,506 | 0 |
Proceeds from disposition of property and equipment | 3,293 | 146 | 1,154 |
Net cash used for investing activities | (16,561) | (13,464) | (28,149) |
Cash flows from (used for) financing activities: | |||
Credit facility revolver borrowings | 685,269 | 757,788 | 339,538 |
Credit facility revolver repayments | (847,375) | (590,632) | (371,854) |
Principal payments under finance lease obligation | (703) | (828) | (242) |
Credit facility fees and expenses | (100) | (1,325) | (124) |
Repurchase of common stock | 0 | 0 | (145) |
Dividends paid | (4,006) | (886) | (885) |
Net cash from (used for) financing activities | (166,915) | 164,117 | (33,712) |
Cash and cash equivalents: | |||
Net change | 2,377 | 4,279 | (209) |
Beginning balance | 9,812 | 5,533 | 5,742 |
Ending balance | 12,189 | 9,812 | 5,533 |
Interest paid | 9,635 | 6,843 | 7,002 |
Income taxes paid | $ 33,404 | $ 46,548 | $ 1 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Amount of operating expense attributable to sale of operations | $ 2,569 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2019 | $ 131,647 | $ (335) | $ (2,281) | $ 179,321 | $ 308,352 |
Net income (loss) | 0 | 0 | 0 | (5,595) | (5,595) |
Payment of dividends | 0 | 0 | 0 | (885) | (885) |
Stock-based compensation | 735 | 480 | 0 | 1,215 | |
Stock repurchase | 0 | (145) | 0 | 0 | (145) |
Change in fair value of hedges | 0 | 0 | (1,934) | 0 | (1,934) |
Other | 0 | 0 | 0 | 2 | 2 |
Balance at Dec. 31, 2020 | 132,382 | 0 | (4,215) | 172,843 | 301,010 |
Net income (loss) | 0 | 0 | 0 | 121,051 | 121,051 |
Payment of dividends | 0 | 0 | 0 | (886) | (886) |
Stock-based compensation | 1,045 | 0 | 0 | 0 | 1,045 |
Change in fair value of hedges | 0 | 0 | 2,220 | 0 | 2,220 |
Other | 0 | 0 | (1) | 0 | (1) |
Balance at Dec. 31, 2021 | 133,427 | 0 | (1,996) | 293,008 | 424,439 |
Net income (loss) | 0 | 0 | 0 | 90,931 | 90,931 |
Payment of dividends | 0 | 0 | 0 | (4,006) | (4,006) |
Stock-based compensation | 1,297 | 0 | 0 | 0 | 1,297 |
Change in fair value of hedges | 0 | 0 | 3,307 | 0 | 3,307 |
Balance at Dec. 31, 2022 | $ 134,724 | $ 0 | $ 1,311 | $ 379,933 | $ 515,968 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 1. Summary of Significant Accounting Policies : Nature of Business 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. 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. Due to the shared assets and resources, certain of the flat products segment expenses are allocated between the specialty metals flat products segment and the carbon flat products segment based upon an established allocation methodology. The specialty metals flat products segment sells and distributes processed aluminum and stainless flat-rolled sheet and coil products, flat bar products and fabricated parts. On October 1, 2021, the Company acquired substantially all of the net assets of Shaw Stainless & Alloy, Inc. (Shaw), based in Powder Springs, Georgia. Shaw is a full-line distributor of stainless steel sheet, pipe, tube, bar and angles. Shaw also manufactures and distributes stainless steel bollards and water treatment systems. Through the acquisition of Action Stainless & Alloys, Inc. (Action Stainless) on December 14, 2020, the specialty metals flat products segment expanded its geographic footprint and enhanced its product offerings in stainless steel and aluminum plate, sheet, angles, rounds, flat bar, tubing and pipe. Action Stainless offers a range of processing capabilities, including plasma, laser and waterjet cutting and computer numerical control (CNC) machining. The acquisition includes Shaw's stainless-steel distribution and fabrication businesses as well as its architectural and barrier defense businesses. The carbon flat products segment sells and distributes large volumes of processed carbon and coated flat-rolled sheet, coil and plate products, fabricated parts and fabricated products, including self-dumping metal hoppers and steel and stainless-steel dump inserts for pickup truck and service truck beds. On September 17, 2021, the Company sold substantially all of the assets related to its Detroit operation. The Detroit operation was primarily focused on the distribution of carbon flat-rolled steel to domestic automotive manufacturers and their suppliers. With the recent acquisition of Metal-Fab, Inc. (Metal-Fab) on January 3, 2023, the carbon flat products segment will further expand the Company’s product offerings to include the manufacture of venting, micro air and clean air products for residential, commercial and industrial applications. The tubular and pipe products segment, which consists of the Chicago Tube and Iron subsidiary (CTI), distributes metal tubing, pipe, bar, valves and fittings and fabricates pressure parts supplied to various industrial markets. 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 payroll expenses for certain personnel, expenses related to being a publicly traded entity such as board of directors’ expenses, audit expenses, and various other professional fees. Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements have been prepared from the financial records of Olympic Steel, Inc. and its wholly-owned subsidiaries (collectively, Olympic or the Company), after elimination of intercompany accounts and transactions. Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Concentration Risks The Company is a major customer of flat-rolled coil and plate and tubular and pipe steel for many of its principal suppliers, but is not dependent on any one supplier. The Company purchased approximately 39%, 51% and 56% of its total steel requirements from its three largest suppliers in 2022, 2021 and 2020, respectively. The Company has a diversified customer and geographic base, which reduces the inherent risk and cyclicality of its business. The concentration of net sales to the Company’s top 20 customers approximated 26%, 23% and 25% of consolidated net sales in 2022, 2021 and 2020, respectively. In addition, the Company’s largest customer accounted for approximately 3%, 2% and 2% of consolidated net sales in 2022, 2021 and 2020, respectively. Sales to industrial machinery and equipment manufacturers and their fabricators accounted for 52%, 47% and 45% of consolidated net sales in 2022, 2021, and 2020, respectively. Cash and Cash Equivalents Cash equivalents consist of short-term highly liquid investments, with a three month or less maturity, which are readily convertible into cash. The Company maintains cash levels in bank accounts that, at times, may exceed federally-insured limits. The Company has not experienced significant loss, and believe we are not exposed to significant risk of loss, in these accounts. Fair Market Value Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the liability in an orderly transaction between market participants on the measurement date. Valuation techniques must maximize the use of observable inputs and minimize the use of unobservable inputs. To measure fair value, the Company applies a fair value hierarchy that is based on three levels of inputs, of which the first two are considered observable and the last unobservable, as follows: Level 1 Level 2 Level 3 Financial instruments, such as cash and cash equivalents, accounts receivable, accounts payable and the credit facility, are stated at their carrying value, which is a reasonable estimate of fair value. The fair value of marketable securities is based on quoted market prices. Allowance for Credit Losses The Company’s allowance for credit losses is maintained at a level considered appropriate based on historical experience and specific customer collection issues that the Company has identified. Estimations are based upon the application of a historical collection rate to the outstanding accounts receivable balance, which remains fairly level from year to year, and judgments about the probable effects of economic conditions on certain customers, which can fluctuate significantly from year to year. The Company cannot guarantee that the rate of future credit losses will be similar to past experience. The Company considers all available information when assessing the adequacy of the allowance for credit losses each quarter. Inventory Valuation Non-LIFO inventories are stated at the lower of its cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. LIFO inventories are stated at the lower of cost or market. Market is the estimated selling price in the ordinary course of business, less reasonable predictable costs of completion. Inventory costs include the costs of the purchased metals, inbound freight, external and internal processing and applicable labor and overhead costs. Costs of the Company’s specialty metals and carbon flat products segments’ inventories, including flat-rolled sheet, coil and plate products are determined using the specific identification method. Certain of the Company’s tubular and pipe products inventory is stated under the LIFO method. At December 31, 2022 and December 31, 2021, approximately $46.3 million, or 11.1% of consolidated inventory, and $55.4 million, or 11.4% of consolidated inventory, respectively, was reported under the LIFO method of accounting. The cost of the remainder of tubular and pipe product segment’s inventory is determined using a weighted average rolling first-in, first-out (FIFO) method. On the Consolidated Statements of Comprehensive Income (Loss), “Cost of materials sold (exclusive of items shown separately below)” consists of the cost of purchased metals, inbound and internal transfer freight, external processing costs, and LIFO income or expense. Property and Equipment, and Depreciation Property and equipment are stated at cost. Depreciation is provided using the straight-line method over the estimated useful lives of the assets ranging from two to 30 years. The Company capitalizes the costs of obtaining or developing internal-use software, including directly related payroll costs. The Company amortizes those costs over five years, beginning when the software is ready for its intended use. Intangible Assets and Recoverability of Long-lived Assets The Company performs an annual impairment test of indefinite-lived intangible assets in the fourth quarter, or more frequently if changes in circumstances or the occurrence of events indicate potential impairment. Events or changes in circumstances that could trigger an impairment review include significant nonperformance relative to the expected historical or projected future operating results, significant changes in the manner of the use of the acquired assets or the strategy for the overall business or significant negative industry or economic trends. Management uses judgment to determine whether to use a qualitative analysis or a quantitative fair value measurement for each of the Company’s reporting units that carry intangible assets. If a quantitative fair value measurement is used, the fair value of each indefinite-lived intangible asset is compared to its carrying value and an impairment charge is recorded if the carrying value exceeds the fair value. The Company estimates the fair value of indefinite-lived intangible assets using a discounted cash flow methodology. Management’s assumptions used for the calculations are based on historical results, projected financial information and recent economic events. Actual results could differ from these estimates under different assumptions or conditions, which could adversely affect the reported value of intangible assets. The Company evaluates the recoverability of long-lived assets and the related estimated remaining lives whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Events or changes in circumstances that could trigger an impairment review include significant underperformance relative to the expected historical or projected future operating results, significant changes in the manner of the use of the acquired assets or the strategy for the overall business or significant negative industry or economic trends. The Company records an impairment or change in useful life whenever events or changes in circumstances indicate that the carrying amount may not be recoverable or the useful life has changed. Income Taxes The Company records, as an offset to the estimated effect of temporary differences between the tax basis of assets and liabilities and the reported amounts in its consolidated balance sheets, the tax effect of operating loss and tax credit carryforwards. If the Company determines that it will not be able to fully realize a deferred tax asset, it will record a valuation allowance to reduce such deferred tax asset to its realizable value. The Company recognizes interest accrued related to unrecognized tax benefits in income tax expense. Penalties, if incurred, would be recognized as a component of administrative and general expense. The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company had no material unrecognized tax benefits as of or during the year ended December 31, 2022. The Company expects no significant increases or decrease in unrecognized tax benefits due to changes in tax positions within one year of December 31, 2022. Revenue Recognition The Company's contracts with customers are comprised of purchase orders with standard terms and conditions. Occasionally the Company may also have longer-term agreements with customers. Substantially all of the contracts with customers require the delivery of metals, which represent single performance obligations that are satisfied upon transfer of control of the product to the customer. Transfer of control is assessed based on the use of the product distributed and rights to payment for performance under the contract terms. Transfer of control and revenue recognition for substantially all of the Company’s sales occur upon shipment or delivery of the product, which is when title, ownership and risk of loss pass to the customer and is based on the applicable shipping terms. The shipping terms depend on the customer contract. An invoice for payment is issued at time of shipment and terms are generally net 30 days. The Company has certain fabrication contracts in one business unit for which revenue is recognized over time as performance obligations are achieved. This fabrication business is immaterial to the Company's consolidated results. Sales returns and allowances are treated as reductions to sales and are provided for based on historical experience and current estimates and are immaterial to the consolidated financial statements. Shipping and Handling Fees and Costs Amounts charged to customers for shipping and other transportation services are included in net sales. The distribution expense line on the accompanying Consolidated Statements of Comprehensive Income (Loss) is entirely comprised of all shipping and other transportation costs incurred by the Company in shipping goods to its customers. Stock-Based Compensation The Company records compensation expense for stock awards issued to employees and directors. For additional information, see Note 13, Equity Plans. Impact of Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”. The objective of this ASU is to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this ASU are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Then in December 2022, the FASB issued ASU No. 2022-06 “Deferral of the Sunset Date of Topic 848” which amends and extends the sunset date to December 31, 2024. We plan to adopt this ASU in the first quarter of 2023 for the modification of the interest rate hedge, however, we do not expect the adoption during the first quarter of 2023 to have a material impact on our Consolidated Financial Statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The objective of this ASU is to simplify the accounting for income taxes by removing certain exceptions to general principles in ASC 740 and by clarifying and amending existing guidance within U.S. generally accepted accounting principles. ASU 2019-12 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Different components of the guidance require retrospective, modified retrospective or prospective adoption, and early adoption is permitted. The adoption of this ASU during the first quarter of 2021 did not have a material impact on the Company’s Consolidated Financial Statements. |
Note 2 - Acquisitions
Note 2 - Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 2. Acquisitions On October 1, 2021, the Company acquired substantially all of the net assets of Shaw, based in Powder Springs, Georgia, for $12.1 million. Shaw is a full-line distributor of stainless steel sheet, pipe, tube, bar and angles. Shaw also manufactures and distributes stainless steel bollards and water treatment systems. The acquisition includes Shaw's stainless-steel distribution and fabrication businesses as well as its architectural and barrier defense businesses. As of the effective date of the acquisition, Shaw’s results are included in the Company’s specialty metals flat products segment. Upon the acquisition, the Company entered into an amendment to its credit facility to include the eligible assets of Shaw as collateral. On December 14, 2020, the Company acquired substantially all of the net assets of Action Stainless, based outside of Dallas, Texas, for $19.5 million. Action Stainless is a full line distributor of stainless steel and aluminum plate, sheet, angles, rounds, flat bar, tubing and pipe and offers a wide range of processing capabilities including plasma, laser and waterjet cutting and CNC machining. As of the effective date of the acquisition, Action Stainless results are included in the Company’s specialty metals flat products segment. Upon the acquisition, the Company entered into an amendment to its credit facility to include the eligible assets of Action Stainless as collateral. The acquisitions are not considered significant and thus pro forma information has not been provided. The acquisitions were accounted for as business combinations and the assets and liabilities were valued at fair market value. The table below summarizes the final purchase price allocation of the fair market values of the assets acquired and liabilities assumed. Shaw Action Stainless As of As of Details of Acquisition (in thousands) October 1, 2021 December 14, 2020 Assets acquired Accounts receivable, net $ 1,510 $ 3,239 Inventories 3,129 3,656 Property and equipment 1,886 10,610 Prepaid expenses and other 5,986 204 Goodwill 5,262 1,894 Intangible assets 2,750 4,410 Total assets acquired 20,523 24,013 Total liabilities assumed (8,418 ) (4,513 ) Cash paid $ 12,105 $ 19,500 The purchase price allocations presented above are based upon management’s estimate of the fair value of the acquired assets and assumed liabilities using Level 3 valuation techniques including income, cost and market approaches. The fair value estimates involve the use of estimates and assumptions, including, but not limited to, the timing and amounts of future cash flows, revenue growth rates, discount rates, and royalty rates. The total liabilities assumed for Action Stainless include an immaterial earn-out amount. |
Note 3 - Disposition of Assets
Note 3 - Disposition of Assets | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Sale of Operation, Disclosure [Text Block] | 3. Disposition of Assets On September 17, 2021, the Company sold substantially all of the assets related to its Detroit operation to Venture Steel (U.S.), Inc. for $58.4 million plus a working capital adjustment of $12.6 million, which was settled on February 8, |
Note 4 - Revenue Recognition
Note 4 - Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 4. Revenue Recognition The Company provides metals processing, distribution and delivery of large volumes of processed carbon, coated flat-rolled sheet, coil and plate products, aluminum, and stainless flat-rolled products, prime tin mill products, flat bar products, metal tubing, pipe, bar, valves, fittings, and fabricated parts. The Company's contracts with customers are comprised of purchase orders with standard terms and conditions. Occasionally the Company may also have longer-term agreements with customers. Substantially all of the contracts with customers require the delivery of metals, which represent single performance obligations that are satisfied at a point in time upon transfer of control of the product to the customer. Transfer of control is assessed based on the use of the product distributed and rights to payment for performance under the contract terms. Transfer of control and revenue recognition for substantially all of the Company’s sales occur upon shipment or delivery of the product, which is when title, ownership and risk of loss pass to the customer and is based on the applicable shipping terms. The shipping terms depend on the customer contract. An invoice for payment is issued at time of shipment and terms are generally net 30 days. The Company has certain fabrication contracts in one business unit for which revenue is recognized over time as performance obligations are achieved. This fabrication business is not material to the Company's consolidated results. Within the metals industry, revenue is frequently disaggregated by products sold. The tables below disaggregates the Company’s revenues by segment and products sold for the year ended December 31, 2022, 2021 and 2020, respectively. Disaggregated Revenue by Products Sold For the Twelve Months Ended December 31, 2022 Carbon flat products Specialty metals flat products Tubular and pipe products Total Hot Rolled 29.8 % - - 29.8 % Plate 13.3 % - - 13.3 % Cold Rolled 4.7 % - - 4.7 % Coated 4.5 % - - 4.5 % Specialty - 30.3 % - 30.3 % Pipe & Tube - - 16.7 % 16.7 % Other 0.7 % - - 0.7 % Total 53.0 % 30.3 % 16.7 % 100.0 % Disaggregated Revenue by Products Sold For the Twelve Months Ended December 31, 2021 Carbon flat products Specialty metals flat products Tubular and pipe products Total Hot Rolled 31.4 % - - 31.4 % Plate 10.4 % - - 10.4 % Cold Rolled 7.0 % - - 7.0 % Coated 7.7 % - - 7.7 % Specialty - 25.3 % - 25.3 % Pipe & Tube - - 16.5 % 16.5 % Other 1.6 % 0.1 % - 1.7 % Total 58.1 % 25.4 % 16.5 % 100.0 % Disaggregated Revenue by Products Sold For the Twelve Months Ended December 31, 2020 Carbon flat products Specialty metals flat products Tubular and pipe products Total Hot Rolled 29.7 % - - 29.7 % Plate 9.6 % - - 9.6 % Cold Rolled 5.9 % - - 5.9 % Coated 9.6 % - - 9.6 % Specialty - 23.5 % - 23.5 % Pipe & Tube - - 18.7 % 18.7 % Other 1.1 % 1.9 % - 3.0 % Total 55.9 % 25.4 % 18.7 % 100.0 % |
Note 5 - Accounts Receivable
Note 5 - Accounts Receivable | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Financing Receivables [Text Block] | 5. Accounts Receivable: Accounts receivable are presented net of allowances for credit losses and unissued credits of $4.3 million and $4.4 million as of December 31, 2022 and 2021, respectively. Credit loss expense totaled $2.2 million, $1.3 million and $1.2 million in 2022, 2021 and 2020, respectively. The allowance for credit losses is maintained at a level considered appropriate based on historical experience, specific customer collection issues that have been identified, current market conditions and estimates for supportable forecasts when appropriate. Estimations are based upon a calculated percentage of accounts receivable, which remains fairly level from year to year, and judgments about the probable effects of economic conditions on certain customers, which can fluctuate significantly from year to year. The Company cannot guarantee that the rate of future credit losses will be similar to past experience. The Company considers all available information when assessing the adequacy of its allowance for credit losses and unissued credits. |
Note 6 - Inventories
Note 6 - Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 6. Inventories : Inventories consisted of the following: As of December 31, (in thousands) 2022 2021 Unprocessed $ 356,588 $ 417,595 Processed and finished 60,343 67,434 Total $ 416,931 $ 485,029 During 2022, the Company recorded $0.6 million of LIFO expense as a result of increased metals pricing during 2022. The LIFO expense decreased the Company’s inventory balance and increased its cost of materials sold. During 2021, the Company recorded $21.9 million of LIFO expense as a result of increased metals pricing during 2021. The LIFO expense decreased the Company’s inventory balance and increased its cost of materials sold. Our pipe and tubular inventory quantities were reduced during 2022 and 2021 resulting in a liquidation of LIFO inventory layers (a LIFO decrement). A LIFO decrement results in the erosion of layers created in earlier years, and, therefore, a LIFO layer is not created for years that have decrements. For the years ended December 31, 2022 and 2021, the effect of the LIFO decrement impacted cost of materials sold by an immaterial amount. If the FIFO method had been in use, inventories would have been $20.3 million and $19.7 million higher than reported at December 31, 2022 and 2021, respectively. |
Note 7 - Property and Equipment
Note 7 - Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 7. Property and Equipment: Property and equipment consists of the following: (in thousands) Depreciable Lives December 31, 2022 December 31, 2021 Land - $ 15,058 $ 15,238 Land improvements 5 - 10 4,160 3,780 Buildings and improvements 7 - 30 141,585 141,979 Machinery and equipment 2 - 15 221,375 210,410 Furniture and fixtures 3 - 7 6,829 6,229 Computer software and equipment 2 - 5 25,338 25,053 Vehicles 2 - 5 4,049 3,054 Financing lease - 3,144 2,710 Construction in progress - 8,272 4,943 429,810 413,396 Less accumulated depreciation (281,478 ) (266,340 ) Net property and equipment $ 148,332 $ 147,056 Leasehold improvements are included with buildings and improvements and are depreciated over the life of the lease or seven years, whichever is less. Construction in progress as of December 31, 2022 primarily consisted of payments for additional processing equipment, equipment and building upgrades to our existing facilities that were not yet placed into service. Construction in progress as of December 31, 2021, primarily consisted of payments for additional processing equipment at our existing facilities that were not yet placed into service. |
Note 8 - Goodwill and Intangibl
Note 8 - Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 8. Goodwill and Intangible Assets : The Company’s intangible assets were recorded in connection with its acquisitions of Shaw in 2021, Action Stainless in 2020, EZ Dumper® hydraulic dump inserts and McCullough Industries in 2019, Berlin Metals, LLC in 2018 and Chicago Tube and Iron (CTI) in 2011. The intangible assets were evaluated on the premise of highest and best use to a market participant, primarily utilizing the income approach valuation methodology. Goodwill, by reportable unit, was as follows as of December 31, 2022 and December 31, 2021, respectively. The goodwill is deductible for tax purposes. (in thousands) Carbon Flat Products Specialty Metals Flat Products Tubular and Pipe Products Total Balance as of December 31, 2020 $ 1,065 $ 4,058 $ - $ 5,123 Acquisitions - 5,373 - 5,373 Impairments - - - - Balance as of December 31, 2021 1,065 9,431 - 10,496 Acquisitions - - - - Impairments - - - - Balance as of December 31, 2022 $ 1,065 $ 9,431 $ - $ 10,496 Intangible assets, net, consisted of the following as of December 31, 2022 and 2021, respectively: As of December 31, 2022 (in thousands) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Customer relationships - subject to amortization $ 22,559 $ (12,100 ) $ 10,459 Covenant not to compete - subject to amortization 509 (301 ) 208 Trade name - not subject to amortization 21,368 - 21,368 $ 44,436 $ (12,401 ) $ 32,035 As of December 31, 2021 (in thousands) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Customer relationships - subject to amortization $ 22,559 $ (10,552 ) $ 12,007 Covenant not to compete - subject to amortization 509 (231 ) 278 Trade name - not subject to amortization 21,368 - 21,368 $ 44,436 $ (10,783 ) $ 33,653 The useful life of the customer relationships was determined to be ten to 15 years, based primarily on the consistent and predictable revenue source associated with the existing customer base, the present value of which extends through the amortization period. The useful life of the non-compete agreements was determined to be the length of the non-compete agreements, which range from one five During 2022 and 2021, a qualitative test was performed for goodwill and the other indefinitely lived intangible assets and no indication of impairment was identified. The Company estimates that amortization expense for its intangible assets subject to amortization will be approximately $1.6 million per year for the next three years, $1.2 million for the next year and $0.7 million per year thereafter. |
Note 9 - Leases
Note 9 - Leases | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 9. Leases : The Company leases warehouses and office space, industrial equipment, office equipment, vehicles, industrial gas tanks and forklifts from other parties and leases land and warehouse space to third parties. The Company determines if a contract contains a lease when the contract conveys the right to control the use of identified assets for a period of time in exchange for consideration. Upon identification and commencement of a lease, the Company establishes a right-of-use (ROU) asset and a lease liability. Operating leases are included in ROU assets, current portion of lease liabilities, and lease liabilities on the accompanying Consolidated Balance Sheets. Financing leases are included in property, plant and equipment, other accrued liabilities and other long-term liabilities. The Company has remaining lease terms ranging from one year to 16 years, some of these include options to renew the lease for up to five years. The total lease term is determined by considering the initial term per the lease agreement, which is adjusted to include any renewal options that the Company is reasonably certain to exercise as well as any period that the Company has control over the space before the stated initial term of the agreement. If the Company determines a reasonable certainty of exercising termination or early buyout options, then the lease terms are adjusted to account for these facts. The Company leases one warehouse from a related party. The Company’s Executive Chairman of the Board owns 50% of an entity that owns one of the Cleveland warehouses and leases it to the Company at a fair market value annual rental of $0.2 million. The lease expires on December 31, 2023 with three five-year ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Lease expense is recognized on a straight-line basis over the lease term. The components of lease expense were as follows for the years ended December 31, 2022, 2021 and 2020: (in thousands) 2022 2021 2020 Operating lease cost $ 7,446 $ 6,952 $ 7,089 Finance lease cost Amortization 720 721 254 Interest on lease liabilities 67 71 54 $ 787 $ 792 $ 308 Supplemental cash flow information related to leases was as follows for the years ended December 31, 2022, 2021 and 2020: (in thousands) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,268 $ 6,830 $ 6,996 Operating cash flows from finance leases 67 71 54 Financing cash flows from finance leases 703 828 242 Total cash paid for amounts included in the measurement of lease liabilities $ 8,038 $ 7,729 $ 7,292 Supplemental balance sheet information related to leases was as follows: (in thousands) 2022 2021 Operating leases Operating lease $ 45,987 $ 42,023 Operating lease accumulated amortization (17,763 ) (14,297 ) Operating lease right of use asset, net $ 28,224 $ 27,726 Operating lease current liabilities 6,098 5,940 Operating lease liabilities 22,655 22,137 $ 28,753 $ 28,077 (in thousands) 2022 2021 Finance leases Finance lease $ 3,144 $ 2,710 Finance lease accumulated depreciation (1,585 ) (965 ) Finance lease, net $ 1,559 $ 1,745 Finance lease current liabilities 594 661 Finance lease liabilities 1,025 1,115 $ 1,619 $ 1,776 Weighted average remaining lease term (in years) 2022 2021 Operating leases 6 6 Finance leases 3 4 Weighted average discount rate Operating leases 3.41 % 3.44 % Finance leases 3.56 % 3.42 % Maturities of lease liabilities were as follows: (in thousands) Operating Lease Finance Lease Year Ending December 31, 2023 $ 7,100 $ 640 2024 6,342 531 2025 5,121 336 2026 4,215 157 2027 3,317 41 Thereafter 5,734 3 Total future minimum lease payments $ 31,829 $ 1,708 Less remaining imputed interest (3,076 ) (89 ) Total $ 28,753 $ 1,619 |
Note 10 - Debt
Note 10 - Debt | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 10. Debt: The Company’s debt is comprised of the following components: As of December 31, (in thousands) 2022 2021 Asset-based revolving credit facility due June 16, 2026 $ 165,658 $ 327,764 Total debt 165,658 327,764 Less current amount - - Total long-term debt $ 165,658 $ 327,764 The Company’s asset-based credit facility (the ABL Credit Facility) is collateralized by the Company’s accounts receivable, inventory and personal property. The $625 million ABL Credit Facility consists of: (i) a revolving credit facility of up to $595 million, including a $20 million sub-limit for letters of credit, and (ii) a first in, last out revolving credit facility of up to $30 million. Under the terms of the ABL Credit Facility, the Company may, subject to the satisfaction of certain conditions, request additional commitments under the revolving credit facility in the aggregate principal amount of up to $200 million to the extent that existing or new lenders agree to provide such additional commitments, and add real estate as collateral at the Company’s discretion. The ABL Facility matures on June 16, 2026. The ABL Credit Facility contains customary representations and warranties and certain covenants that limit the ability of the Company to, among other things: (i) incur or guarantee additional indebtedness; (ii) pay distributions on, redeem or repurchase capital stock or redeem or repurchase subordinated debt; (iii) make investments; (iv) sell assets; (v) enter into agreements that restrict distributions or other payments from restricted subsidiaries to the Company; (vi) incur or suffer to exist liens securing indebtedness; (vii) consolidate, merge or transfer all or substantially all of their assets; and (viii) engage in transactions with affiliates. In addition, the ABL Credit Facility contains a financial covenant which provides that: (i) if any commitments or obligations are outstanding and the Company’s availability is less than the greater of $30 million or 10.0% of the aggregate amount of revolver commitments ($ 47.5 47.5 The Company has the option to borrow under its revolver based on the agent’s base rate plus a premium ranging from 0.00% to 0.25% or the London Interbank Offered Rate (LIBOR) plus a premium ranging from 1.25% to 2.75%. As of December 31, 2022, the Company was in compliance with its covenants and had approximately $305.6 million of availability under the ABL Credit Facility. As of December 31, 2022 and December 31, 2021, $1.2 million and $1.6 million, respectively, of bank financing fees were included in “Prepaid expenses and other” and “Other long-term assets” on the accompanying Consolidated Balance Sheets. The financing fees are being amortized over the five-year term of the ABL Credit Facility and are included in “Interest and other expense on debt” on the accompanying Consolidated Statements of Comprehensive Income (Loss). Scheduled Debt Maturities, Interest, Debt Carrying Values The Company’s principal payments over the next five years, as of December 31, 2022, are detailed in the table below: (in thousands) 2023 2024 2025 2026 2027 Total ABL Credit Facility $ - $ - $ - $ 165,658 $ - $ 165,658 Total principal payments $ - $ - $ - $ 165,658 $ - $ 165,658 The overall effective interest rate for all debt, exclusive of deferred financing fees and deferred commitment fees, amounted to 3.2%, 2.5% and 3.3% in 2022, 2021 and 2020, respectively. Interest paid totaled $9.6 million, $6.8 million and $7.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. Average total debt outstanding was $280.4 million, $255.8 million and $188.4 million in 2022, 2021 and 2020, respectively. |
Note 11 - Derivative Instrument
Note 11 - Derivative Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 11. Derivative Instruments: Metals swaps During 2022, 2021 and 2020, the Company entered into nickel swaps indexed to the London Metal Exchange (LME) price of nickel with third-party brokers. The nickel swaps are treated as derivatives for accounting purposes and were included in “Other accrued liabilities” and “Prepaid expenses and other” on the Consolidated Balance Sheets at December 31, 2021. There were no outstanding metal swaps at December 31, 2022. The Company entered into the swaps to mitigate its customers’ risk of volatility in the price of metals. The swaps are settled with the brokers at maturity. The economic benefit or loss arising from the changes in fair value of the swaps is contractually passed through to the customer. The primary risk associated with the metals swaps is the ability of customers or third-party brokers to honor their agreements with the Company related to derivative instruments. If the customer or third-party brokers are unable to honor their agreements, the Company’s risk of loss is the fair value of the metals swaps. While these derivatives are intended to help the Company manage risk, they have not been designated as hedging instruments. The periodic changes in fair value of the metals and embedded customer derivative instruments are included in “Cost of materials sold” in the Consolidated Statements of Comprehensive Income (Loss). The Company recognizes derivative positions with both the customer and the third party for the derivatives and classifies cash settlement amounts associated with them as part of “Cost of materials sold” in the Consolidated Statements of Comprehensive Income (Loss). The cumulative change in fair value of the metals swaps that had not yet settled as of December 31, 2021 were included in “Accounts Receivable, net” and the embedded customer derivatives are included in “Other accrued liabilities” on the Consolidated Balance Sheets. There were no outstanding cumulative changes in fair value of the metal swaps that have not yet settled at December 31, 2022. Fixed rate interest rate hedge On January 10, 2019, the Company entered into a five-year There was no net impact from the nickel swaps or embedded customer derivative agreements to the Company’s Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2022, 2021 and 2020. The table below shows the total impact to the Company’s Consolidated Statements of Comprehensive Income (Loss) through “Net income (loss)” of the derivatives for the years ended December 31, 2022, 2021 and 2020. Net Gain (Loss) Recognized (in thousands) 2022 2021 2020 Fixed interest rate hedge $ (664 ) $ (1,880 ) $ (1,520 ) Metals swaps 633 418 55 Embedded customer derivatives (633 ) (418 ) (55 ) Total loss $ (664 ) $ (1,880 ) $ (1,520 ) |
Note 12 - Fair Value of Assets
Note 12 - Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 12. Fair Value of Assets and Liabilities: The Company’s financial instruments include cash and cash equivalents, short-term trade receivables, derivative instruments, accounts payable and debt instruments. For short-term instruments, other than those required to be reported at fair value on a recurring basis and for which additional disclosures are included below, management concluded the historical carrying value is a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization. During 2022 and 2021, there were no transfers of financial assets between Levels 1, 2 or 3 fair value measurements. There have been no changes in the methodologies used at December 31, 2022. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value as of December 31, 2022: Metals swaps and embedded customer derivatives Fixed rate interest rate hedge The following tables present information about the Company’s assets and liabilities that were measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized by the Company: Value of Items Recorded at Fair Value As of December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed interest rate hedge $ - $ 1,748 $ - $ 1,748 Total assets at fair value $ - $ 1,748 $ - $ 1,748 Value of Items Recorded at Fair Value As of December 31, 2021 (in thousands) Level 1 Level 2 Level 3 Total Assets: Metal Swaps $ - $ 2,286 $ - $ 2,286 Total assets at fair value $ - $ 2,286 $ - $ 2,286 Liabilities: Metal Swaps $ - $ 2,178 $ - $ 2,178 Fixed interest rate hedge - 2,661 - $ 2,661 Total liabilities recorded at fair value $ - $ 4,839 $ - $ 4,839 The value of the items not recorded at fair value represent the carrying value of the liabilities. The carrying value of the ABL Credit Facility was $165.7 million and $327.8 million at December 31, 2022 and 2021, respectively. Management believes that the ABL Credit Facility’s carrying value approximates its fair value due to the variable interest rate on the ABL Credit Facility. |
Note 13 - Equity Plans
Note 13 - Equity Plans | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | 13. Equity Plans: Restricted Stock Units and Performance Share Units Pursuant to the Amended and Restated Olympic Steel 2007 Omnibus Incentive Plan (the Incentive Plan), the Company may grant stock options, stock appreciation rights, restricted shares, restricted share units (RSUs), performance shares, and other stock- and cash-based awards to employees and directors of, and consultants to, the Company and its affiliates. Since adoption of the Incentive Plan, 1,400,000 shares of common stock have been authorized for equity grants. On an annual basis, the compensation committee of the Company’s Board of Directors awards RSUs to each non-employee director as part of their annual compensation. The annual awards for 2022 and 2021 per director were $ 80,000. one Prior to 2021, under the Incentive Plan, each eligible participant was awarded RSUs with a dollar value equal to 10% of the participant’s base salary, up to an annual maximum of $17,500. The RSUs have a five-year In January 2022, the Company adopted a new C-Suite Long-Term Incentive Plan (the C-Suite Plan) that operates under the Senior Manager Stock Incentive Plan. Under the C-Suite Plan, the Chief Executive Officer, the Chief Financial Officer and the President and Chief Operating Officer are eligible for participation. In each calendar year, the Committee may award eligible participants a long-term incentive of both a restricted stock unit (RSU) grant and a performance stock unit (PSU) grant. Additionally, the Committee may offer a long-term cash incentive (split equally between service and performance-based portions) to supplement both the RSU and PSU grants in order to arrive at the total long-term award target. The total long-term award target is $1.1 million for the Chief Executive Officer, $0.3 million for the Chief Financial Officer and $0.6 million for the President and Chief Operating Officer. The PSUs will vest if the return on net assets, calculated as EBITDA divided by Average Accounts Receivable, Inventory and Property and Equipment, exceeds 5 percent. Each RSU and service-based cash incentive vests three years after the grant date. Each vested RSU will convert into the right to receive one share of common stock. During 2022, a total of 20,000 RSUs and 20,000 PSUs were granted to the participants under the C-Suite Plan, and $0.5 million and $0.5 million, respectively, were granted in service-based and performance-based cash awards. If the return on net assets falls below 5 percent, no performance-based incentive will be awarded. The maximum performance-based award is achieved if return on net assets exceeds ten percent, and is capped at 150% of the grant. The performance-based awards granted in 2022 are expected to vest at 150% of the grant. All pre-tax charges related to the long-term cash incentives were included in the caption “Administrative and general” on the accompanying Consolidated Statements of Comprehensive Income (Loss). The total remaining estimated compensation cost of non-vested awards total $0.9 million and the weighted average remaining vesting period is 2 years as of December 31, 2022. Stock-based compensation expense recognized on RSUs for the years ended December 31, 2022, 2021 and 2020, respectively, is summarized in the following table: For the years ended December 31, (in thousands) 2022 2021 2020 RSU expense before taxes of the Plan $ 1,297 $ 1,045 $ 1,265 RSU expense after taxes 954 767 1,024 All pre-tax charges related to RSUs and PSUs were included in the caption “Administrative and general” on the accompanying Consolidated Statements of Comprehensive Income (Loss). The total compensation cost of non-vested awards totaled $1.3 million and the weighted average remaining vesting period is 1.2 years as of December 31, 2022. The following table summarizes the activity related to RSUs and PSUs for the year ended December 31, 2022, 2021 and 2020: 2022 2021 2020 Number of Shares Weighted Average Estimated Fair Value Number of Shares Weighted Average Estimated Fair Value Number of Shares Weighted Average Estimated Fair Value Beginning balance 576,867 $ 18.29 610,540 $ 18.14 636,086 $ 19.25 Granted 55,558 25.56 20,604 23.29 70,588 11.92 Converted into shares (5,841 ) 18.16 (49,191 ) 18.67 (94,161 ) 20.27 Forfeited (9,066 ) 17.52 (5,086 ) 17.55 (1,973 ) 18.14 Outstanding at December 31 617,518 $ 18.95 576,867 $ 18.29 610,540 $ 18.14 Vested at December 31 423,941 $ 19.24 370,771 $ 18.78 375,692 $ 18.88 No RSUs were used to fund the Supplemental Executive Retirement Plan, or SERP, in 2022, 2021 or 2020. Phantom Stock Units In January 2022, the Company adopted a new Senior Manager Phantom Stock Plan (the “Phantom Stock Plan”) that operates under the Senior Manager Stock Incentive Plan. Under the Phantom Stock Plan, certain senior managers are eligible to participate in the plan. The Phantom Stock Plan supersedes any previous stock incentive programs offered to the eligible participants. Each year, eligible participants will receive an award of Phantom Stock Units (“Phantom Units”) of up to $30 thousand. The number of Phantom Units granted on the Grant Date is determined by dividing the amount of the Phantom Units granted by the closing price of a share of the Company’s common stock on the Grant Date. Each Phantom Unit Award under this plan shall vest 3 years after the Grant Date (“the Vesting Date”). Upon vesting, the Company will pay the Participant in cash, the value of the vested Phantom Units multiplied by the closing price of a share of the Company’s common stock on the Vesting Date. Pre-tax charges related to Phantom Stock Units for the year ended December 31, 2022, totaled $0.3 million and were included in the caption “Administrative and general” on the accompanying Consolidated Statements of Comprehensive Income (Loss). The total estimated remaining compensation cost of non-vested awards total $0.7 million and the weighted average remaining vesting period is 2 years as of December 31, 2022. |
Note 14 - Commitments and Conti
Note 14 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 14. Commitments and Contingencies : The Company is party to various legal actions that it believes are ordinary in nature and incidental to the operation of its business. In the opinion of management, the outcome of the proceedings to which the Company is currently a party will not have a material adverse effect upon its results of operations, financial condition or cash flows. In the normal course of business, the Company periodically enters into agreements that incorporate indemnification provisions. While the maximum amount to which the Company may be exposed under such agreements cannot be estimated, it is the opinion of management that these indemnifications are not expected to have a material adverse effect on the Company’s results of operations or financial condition. At December 31, 2022, approximately 179 of the hourly plant personnel are represented by seven separate collective bargaining units. The table below shows the expiration dates of the collective bargaining agreements. Facility Expiration date Hammond, Indiana November 30, 2024 Locust, North Carolina March 4, 2025 St. Paul, Minnesota May 25, 2025 Romeoville, Illinois May 31, 2025 Minneapolis (coil), Minnesota September 30, 2025 Indianapolis, Indiana January 29, 2026 Minneapolis (plate), Minnesota April 1, 2027 |
Note 15 - Income Taxes
Note 15 - Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 15. Income Taxes: The components of the Company’s provision (benefit) for income taxes from continuing operations were as follows: As of December 31, (in thousands) 2022 2021 2020 Current: Federal $ 27,865 $ 36,592 $ 321 International 102 85 103 State and local 5,691 7,739 59 33,658 44,416 483 Deferred (967 ) (668 ) (1,799 ) Income tax provision (benefit) $ 32,691 $ 43,748 $ (1,316 ) The components of the Company’s deferred income taxes at December 31 are as follows: (in thousands) 2022 2021 Deferred tax assets: Inventory (excluding LIFO reserve) $ 2,176 $ 2,198 Net operating loss and tax credit carryforwards 1,029 1,375 Allowance for credit losses 833 626 Accrued expenses 6,114 5,288 Lease liabilities 7,916 8,568 Interest rate hedge - 665 Other 214 205 Deferred tax assets before valuation allowance 18,282 18,925 Valuation allowance (919 ) (1,197 ) Total deferred tax assets 17,363 17,728 Deferred tax liabilities: LIFO reserve (3,451 ) (3,500 ) Property and equipment (12,194 ) (12,293 ) Lease right of use assets (7,769 ) (8,483 ) Interest rate hedge (437 ) - Intangibles (3,537 ) (3,342 ) Total deferred tax liabilities (27,388 ) (27,618 ) Deferred tax liabilities, net $ (10,025 ) $ (9,890 ) The net deferred tax liability increased by $1.1 million related to the fixed interest rate hedge, which is recorded in “Other Comprehensive Income (Loss)” in the Consolidated Statements of Comprehensive Income (Loss). The following table summarizes the activity related to the Company’s gross unrecognized tax benefits: (in thousands) 2022 2021 2020 Balance as of January 1 $ 228 $ 28 $ 28 Change in tax due to tax law - - - Increases related to current year tax positions - 8 8 (Decrease) Increase related to prior year tax positions (8 ) 200 - Decreases related to lapsing of statute of limitations - (8 ) (8 ) Balance as of December 31 $ 220 $ 228 $ 28 It is expected that the amount of unrecognized tax benefits will not materially change in the next twelve months. The tax years 2019 through 2021 remain open to examination by major taxing jurisdictions to which the Company is subject. The Company recognized interest related to uncertain tax positions in the income tax provision. The following table reconciles the U.S. federal statutory rate to the Company’s effective tax rate: 2022 2021 2020 U.S. federal statutory rate in effect 21.0 % 21.0 % 21.0 % State and local taxes, net of federal benefit 4.5 % 4.5 % 1.0 % Meals and entertainment 0.2 % 0.1 % (1.8 %) Tax credits (0.1 %) (0.1 %) 2.0 % Stock based compensation 0.0 % 0.0 % (3.4 %) All other, net 0.8 % 1.0 % 0.2 % Effective income tax rate 26.4 % 26.5 % 19.0 % Income taxes paid in 2022, 2021 and 2020 totaled $33.4 million, $46.5 million and $1 thousand, respectively. Some subsidiaries of the Company’s consolidated group file state tax returns on a separate company basis and have state net operating loss carryforwards expiring over the next fifteen to 20 years. A valuation allowance is recorded to reduce certain deferred tax assets to the amount that is more likely than not to be realized. The valuation allowances recorded as of December 31, 2022 and 2021 were related to certain state net operating losses and totaled $0.9 million and $1.2 million, respectively. |
Note 16 - Shares Outstanding an
Note 16 - Shares Outstanding and Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 16. Shares Outstanding and Earnings Per Share: Earnings per share have been calculated based on the weighted average number of shares outstanding as set forth below: For the years ended December 31, (in thousands, except per share data) 2022 2021 2020 Weighted average basic shares outstanding 11,551 11,492 11,447 Assumed exercise of stock options and issuance of stock awards 8 11 - Weighted average diluted shares outstanding 11,559 11,503 11,447 Net income (loss) $ 90,931 $ 121,051 $ (5,595 ) Basic earnings (loss) per share $ 7.87 $ 10.53 $ (0.49 ) Diluted earnings (loss) per share $ 7.87 $ 10.52 $ (0.49 ) Unvested RSUs and PSUs 194 206 235 |
Note 17 - Equity Programs
Note 17 - Equity Programs | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Treasury Stock [Text Block] | 17. Equity Programs: Stock Repurchase Program On October 2, 2015, the Company announced that its Board of Directors authorized a stock repurchase program of up to 550,000 shares of the Company’s issued and outstanding common stock, which could include open market repurchases, negotiated block transactions, accelerated stock repurchases or open market solicitations for shares, all or some of which may be affected through Rule 10b5-1 plans. Any of the repurchased shares are held in the Company’s treasury, or canceled and retired as the Board of Directors may determine from time to time. Any repurchases of common stock are subject to the covenants contained in the ABL Credit Facility. Under the ABL Credit Facility, the Company may repurchase common stock and pay dividends up to $15.0 million in the aggregate during any trailing twelve months without restrictions. Purchases of common stock or dividend payments in excess of $15.0 million in the aggregate require the Company to (i) maintain availability in excess of 20.0% of the aggregate revolver commitments ($95.0 million at December 31, 2022) or (ii) to maintain availability equal to or greater than 15.0% of the aggregate revolver commitments ($71.3 million at December 31, 2022) and the Company must maintain a pro-forma ratio of EBITDA minus certain capital expenditures and cash taxes paid to fixed charges of at least 1.00 to 1.00. As of December 31, 2022, 360,212 shares remain authorized for repurchase under the program. There were no shares repurchased during 2022 or 2021. During 2020, the Company repurchased 15,000 shares for an aggregate cost of $0.1 million. At-the-Market Equity Program On September 3, 2021, the Company commenced an at-the-market (ATM) equity program under its shelf registration statement, which allows it to sell and issue up to $50 million in shares of its common stock from time to time. The Company entered into an Equity Distribution Agreement on September 3, 2021 with KeyBanc Capital Markets Inc. (KeyBanc) relating to the issuance and sale of shares of common stock pursuant to the program. KeyBanc is not required to sell any specific amount of securities but will act as the Company’s sales agent using commercially reasonable efforts consistent with its normal trading and sales practices, on mutually agreed terms between KeyBanc and the Company. KeyBanc will be entitled to compensation for shares sold pursuant to the program of 2.0% of the gross proceeds of any shares of common stock sold under the Equity Distribution Agreement. No shares were sold under the ATM program during 2022 or 2021. |
Note 18 - Segment Information
Note 18 - Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
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 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. 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 (loss) before income taxes for the years ended December 31, 2022, 2021 and 2020. For the Year Ended December 31, (in thousands) 2022 2021 2020 Net sales Specialty metals flat products $ 776,022 $ 585,751 $ 313,190 Carbon flat products 1,356,605 1,344,150 690,273 Tubular and pipe products 427,363 382,352 230,681 Total net sales $ 2,559,990 $ 2,312,253 $ 1,234,144 Depreciation and amortization Specialty metals flat products $ 4,060 $ 3,692 $ 1,951 Carbon flat products 10,695 11,286 11,941 Tubular and pipe products 4,913 5,267 5,478 Corporate 70 71 120 Total depreciation and amortization $ 19,738 $ 20,316 $ 19,490 Operating income Specialty metals flat products $ 93,662 $ 70,544 $ 11,666 Carbon flat products 25,015 110,074 (10,289 ) Tubular and pipe products 34,856 7,353 9,019 Corporate (19,786 ) (15,505 ) (9,823 ) Total operating income $ 133,747 $ 172,466 $ 573 Other loss, net 45 36 73 Income before interest and income taxes 133,702 172,430 500 Interest and other expense on debt 10,080 7,631 7,411 Income (loss) before income taxes $ 123,622 $ 164,799 $ (6,911 ) For the Year Ended December 31, (in thousands) 2022 2021 2020 Capital expenditures Flat products $ 15,299 $ 8,797 $ 7,589 Tubular and pipe products 4,555 2,214 2,214 Corporate - - - Total capital expenditures $ 19,854 $ 11,011 $ 9,803 Assets Flat products $ 631,607 $ 777,074 Tubular and pipe products 258,412 245,962 Corporate 1,608 536 Total assets $ 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, 2022, 2021 and 2020. 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. |
Note 19 - Retirement Plans
Note 19 - Retirement Plans | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | 19. Retirement Plans : The Company’s retirement plans consist of 401(k) plans covering union and non-union employees, a multi-employer pension plan covering certain CTI employees and a SERP covering certain executive officers of the Company. The 401(k) retirement plans allow eligible employees to contribute up to the statutory maximum. The Company’s non-union 401(k) matching contribution is determined annually by the Board of Directors and is based on a percentage of eligible employees’ earnings and contributions. For the 401(k) retirement plans, the Company matched one-half one-half In 2005, the Board of Directors adopted a SERP, which has been amended from time to time. Contributions to the SERP are based on: (i) a portion of the participants’ compensation multiplied by a factor of 6.5% or 13% depending on participant; and (ii) for certain participants a portion of the participants’ compensation multiplied by a factor, which is contingent upon the Company’s return on invested capital. Benefits are subject to a vesting schedule of up to seven The Company, through its CTI subsidiary, contributes to a multiemployer pension plan. CTI contributes to the Multiemployer Plan under the terms of a collective bargaining agreement that covers certain of its union employees, and which expires May 31, 2025. CTI contributions to the Multiemployer Plan were immaterial for the years ended December 31, 2022, 2021 and 2020. Retirement plan expense, which includes all Company 401(k), SERP defined contributions and the Multiemployer Plan, amounted to $4.1 million, $3.8 million and $2.0 million for the years ended December 31, 2022, 2021 and 2020, respectively. As part of the COVID-19 related cost reduction efforts, the Company suspended contributions into the SERP for 2020. The fair values of the Company's SERP assets as of December 31, 2022 and 2021 were $7.7 million and $8.7 million, respectively, and are measured at Net Asset Value (NAV) as a practical expedient to estimate fair value and therefore are not classified in the fair value hierarchy. Under the practical expedient approach, the NAV is based on the fair value of the underlying investments held by each fund less its liabilities. This practical expedient would not be used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV. The fair value of the SERP assets are included in Other Long Term Assets on the Consolidated Balance Sheets. |
Note 20 - Related-party Transac
Note 20 - Related-party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 20. Related-Party Transactions : The Company’s Executive Chairman of the Board owns 50% of an entity that owns one of the Cleveland warehouses and leases it to the Company at a fair market value annual rental of $0.2 million. The lease expires on December 31, 2023 with three five-year renewal options. |
Note 21 - Subsequent Events
Note 21 - Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 21. Subsequent Events : On January 3, 2023, the Company purchased all of the outstanding shares of capital stock of Metal-Fab for a cash purchase price of $131.0 million, subject to a final working capital adjustment. Metal-Fab, headquartered in Wichita, Kansas, is a manufacturer of venting, micro air and clean air products for residential, commercial and industrial applications. The acquisition will be accounted for as a business combination and the assets and liabilities valued at fair market value. Metal-Fab will be included within the Company’s carbon flat-products segment in the Company’s first quarter of 2023 financial results. In connection with the Metal-Fab acquisition, the Company entered into a Sixth Amendment to Third Amended and Restated Loan and Security Agreement, which increased the availability under our existing ABL Credit Facility from $475.0 million to $625.0 million. In addition, the amendment allows the Company to include the eligible assets of Metal-Fab in its borrowing base and updated the reference rate from LIBOR to Secured Overnight Financing Rate (SOFR). Additionally, the Company amended its fixed interest rate hedge from LIBOR to SOFR. This change to the interest rate hedge fixes the rate at 2.42%, down from 2.57%. The Company has the option to borrow under its revolver based on the agent’s base rate plus a premium ranging from 0.00% to 0.25% or SOFR plus a premium ranging from 1.25% to 2.75%. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Schedule II Valuation and Qualifying Accounts (in thousands) Additions Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Period Year Ended December 31, 2020 Allowance for credit losses $ 1,965 $ 1,154 $ - $ (1,393 ) $ 1,726 Tax valuation reserve $ 2,215 $ 87 $ - $ - $ 2,302 Year Ended December 31, 2021 Allowance for credit losses $ 1,726 $ 1,250 $ - $ (474 ) $ 2,502 Tax valuation reserve $ 2,302 $ 236 $ - $ (1,341 ) $ 1,197 Year Ended December 31, 2022 Allowance for credit losses $ 2,502 $ 2,184 $ - $ (855 ) $ 3,831 Tax valuation reserve $ 1,197 $ - $ - $ (278 ) $ 919 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Nature of Business, Policy [Policy Text Block] | Nature of Business |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation and Basis of Presentation |
Use of Estimates, Policy [Policy Text Block] | Accounting Estimates |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration Risks |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents |
Fair Value Measurement, Policy [Policy Text Block] | Fair Market Value Level 1 Level 2 Level 3 |
Accounts Receivable [Policy Text Block] | Allowance for Credit Losses |
Inventory, Policy [Policy Text Block] | Inventory Valuation |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment, and Depreciation |
Impairment or Disposal of Long-Lived Assets, Including Intangible Assets, Policy [Policy Text Block] | Intangible Assets and Recoverability of Long-lived Assets |
Income Tax, Policy [Policy Text Block] | Income Taxes |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition |
Contract with Customer Liabilities, Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Fees and Costs |
Share-Based Payment Arrangement [Policy Text Block] | Stock-Based Compensation |
New Accounting Pronouncements, Policy [Policy Text Block] | Impact of Recently Issued Accounting Pronouncements |
Note 2 - Acquisitions (Tables)
Note 2 - Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Shaw Action Stainless As of As of Details of Acquisition (in thousands) October 1, 2021 December 14, 2020 Assets acquired Accounts receivable, net $ 1,510 $ 3,239 Inventories 3,129 3,656 Property and equipment 1,886 10,610 Prepaid expenses and other 5,986 204 Goodwill 5,262 1,894 Intangible assets 2,750 4,410 Total assets acquired 20,523 24,013 Total liabilities assumed (8,418 ) (4,513 ) Cash paid $ 12,105 $ 19,500 |
Note 4 - Revenue Recognition (T
Note 4 - Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Disaggregated Revenue by Products Sold For the Twelve Months Ended December 31, 2022 Carbon flat products Specialty metals flat products Tubular and pipe products Total Hot Rolled 29.8 % - - 29.8 % Plate 13.3 % - - 13.3 % Cold Rolled 4.7 % - - 4.7 % Coated 4.5 % - - 4.5 % Specialty - 30.3 % - 30.3 % Pipe & Tube - - 16.7 % 16.7 % Other 0.7 % - - 0.7 % Total 53.0 % 30.3 % 16.7 % 100.0 % Disaggregated Revenue by Products Sold For the Twelve Months Ended December 31, 2021 Carbon flat products Specialty metals flat products Tubular and pipe products Total Hot Rolled 31.4 % - - 31.4 % Plate 10.4 % - - 10.4 % Cold Rolled 7.0 % - - 7.0 % Coated 7.7 % - - 7.7 % Specialty - 25.3 % - 25.3 % Pipe & Tube - - 16.5 % 16.5 % Other 1.6 % 0.1 % - 1.7 % Total 58.1 % 25.4 % 16.5 % 100.0 % Disaggregated Revenue by Products Sold For the Twelve Months Ended December 31, 2020 Carbon flat products Specialty metals flat products Tubular and pipe products Total Hot Rolled 29.7 % - - 29.7 % Plate 9.6 % - - 9.6 % Cold Rolled 5.9 % - - 5.9 % Coated 9.6 % - - 9.6 % Specialty - 23.5 % - 23.5 % Pipe & Tube - - 18.7 % 18.7 % Other 1.1 % 1.9 % - 3.0 % Total 55.9 % 25.4 % 18.7 % 100.0 % |
Note 6 - Inventories (Tables)
Note 6 - Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | As of December 31, (in thousands) 2022 2021 Unprocessed $ 356,588 $ 417,595 Processed and finished 60,343 67,434 Total $ 416,931 $ 485,029 |
Note 7 - Property and Equipme_2
Note 7 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | (in thousands) Depreciable Lives December 31, 2022 December 31, 2021 Land - $ 15,058 $ 15,238 Land improvements 5 - 10 4,160 3,780 Buildings and improvements 7 - 30 141,585 141,979 Machinery and equipment 2 - 15 221,375 210,410 Furniture and fixtures 3 - 7 6,829 6,229 Computer software and equipment 2 - 5 25,338 25,053 Vehicles 2 - 5 4,049 3,054 Financing lease - 3,144 2,710 Construction in progress - 8,272 4,943 429,810 413,396 Less accumulated depreciation (281,478 ) (266,340 ) Net property and equipment $ 148,332 $ 147,056 |
Note 8 - Goodwill and Intangi_2
Note 8 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | (in thousands) Carbon Flat Products Specialty Metals Flat Products Tubular and Pipe Products Total Balance as of December 31, 2020 $ 1,065 $ 4,058 $ - $ 5,123 Acquisitions - 5,373 - 5,373 Impairments - - - - Balance as of December 31, 2021 1,065 9,431 - 10,496 Acquisitions - - - - Impairments - - - - Balance as of December 31, 2022 $ 1,065 $ 9,431 $ - $ 10,496 |
Schedule of Finite and Indefinite Lived Intangible Assets [Table Text Block] | As of December 31, 2022 (in thousands) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Customer relationships - subject to amortization $ 22,559 $ (12,100 ) $ 10,459 Covenant not to compete - subject to amortization 509 (301 ) 208 Trade name - not subject to amortization 21,368 - 21,368 $ 44,436 $ (12,401 ) $ 32,035 As of December 31, 2021 (in thousands) Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Customer relationships - subject to amortization $ 22,559 $ (10,552 ) $ 12,007 Covenant not to compete - subject to amortization 509 (231 ) 278 Trade name - not subject to amortization 21,368 - 21,368 $ 44,436 $ (10,783 ) $ 33,653 |
Note 9 - Leases (Tables)
Note 9 - Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Lease, Cost [Table Text Block] | (in thousands) 2022 2021 2020 Operating lease cost $ 7,446 $ 6,952 $ 7,089 Finance lease cost Amortization 720 721 254 Interest on lease liabilities 67 71 54 $ 787 $ 792 $ 308 |
Lease, Payment [Table Text Block] | (in thousands) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,268 $ 6,830 $ 6,996 Operating cash flows from finance leases 67 71 54 Financing cash flows from finance leases 703 828 242 Total cash paid for amounts included in the measurement of lease liabilities $ 8,038 $ 7,729 $ 7,292 |
Lease, Balance Sheet Information [Table Text Block] | (in thousands) 2022 2021 Operating leases Operating lease $ 45,987 $ 42,023 Operating lease accumulated amortization (17,763 ) (14,297 ) Operating lease right of use asset, net $ 28,224 $ 27,726 Operating lease current liabilities 6,098 5,940 Operating lease liabilities 22,655 22,137 $ 28,753 $ 28,077 (in thousands) 2022 2021 Finance leases Finance lease $ 3,144 $ 2,710 Finance lease accumulated depreciation (1,585 ) (965 ) Finance lease, net $ 1,559 $ 1,745 Finance lease current liabilities 594 661 Finance lease liabilities 1,025 1,115 $ 1,619 $ 1,776 Weighted average remaining lease term (in years) 2022 2021 Operating leases 6 6 Finance leases 3 4 Weighted average discount rate Operating leases 3.41 % 3.44 % Finance leases 3.56 % 3.42 % |
Operating and Finance Lease, Liability, Maturity [Table Text Block] | (in thousands) Operating Lease Finance Lease Year Ending December 31, 2023 $ 7,100 $ 640 2024 6,342 531 2025 5,121 336 2026 4,215 157 2027 3,317 41 Thereafter 5,734 3 Total future minimum lease payments $ 31,829 $ 1,708 Less remaining imputed interest (3,076 ) (89 ) Total $ 28,753 $ 1,619 |
Note 10 - Debt (Tables)
Note 10 - Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | As of December 31, (in thousands) 2022 2021 Asset-based revolving credit facility due June 16, 2026 $ 165,658 $ 327,764 Total debt 165,658 327,764 Less current amount - - Total long-term debt $ 165,658 $ 327,764 |
Schedule of Maturities of Long-Term Debt [Table Text Block] | (in thousands) 2023 2024 2025 2026 2027 Total ABL Credit Facility $ - $ - $ - $ 165,658 $ - $ 165,658 Total principal payments $ - $ - $ - $ 165,658 $ - $ 165,658 |
Note 11 - Derivative Instrume_2
Note 11 - Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | Net Gain (Loss) Recognized (in thousands) 2022 2021 2020 Fixed interest rate hedge $ (664 ) $ (1,880 ) $ (1,520 ) Metals swaps 633 418 55 Embedded customer derivatives (633 ) (418 ) (55 ) Total loss $ (664 ) $ (1,880 ) $ (1,520 ) |
Note 12 - Fair Value of Asset_2
Note 12 - Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Value of Items Recorded at Fair Value As of December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Assets: Fixed interest rate hedge $ - $ 1,748 $ - $ 1,748 Total assets at fair value $ - $ 1,748 $ - $ 1,748 Value of Items Recorded at Fair Value As of December 31, 2021 (in thousands) Level 1 Level 2 Level 3 Total Assets: Metal Swaps $ - $ 2,286 $ - $ 2,286 Total assets at fair value $ - $ 2,286 $ - $ 2,286 Liabilities: Metal Swaps $ - $ 2,178 $ - $ 2,178 Fixed interest rate hedge - 2,661 - $ 2,661 Total liabilities recorded at fair value $ - $ 4,839 $ - $ 4,839 |
Note 13 - Equity Plans (Tables)
Note 13 - Equity Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | For the years ended December 31, (in thousands) 2022 2021 2020 RSU expense before taxes of the Plan $ 1,297 $ 1,045 $ 1,265 RSU expense after taxes 954 767 1,024 |
Share-Based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | 2022 2021 2020 Number of Shares Weighted Average Estimated Fair Value Number of Shares Weighted Average Estimated Fair Value Number of Shares Weighted Average Estimated Fair Value Beginning balance 576,867 $ 18.29 610,540 $ 18.14 636,086 $ 19.25 Granted 55,558 25.56 20,604 23.29 70,588 11.92 Converted into shares (5,841 ) 18.16 (49,191 ) 18.67 (94,161 ) 20.27 Forfeited (9,066 ) 17.52 (5,086 ) 17.55 (1,973 ) 18.14 Outstanding at December 31 617,518 $ 18.95 576,867 $ 18.29 610,540 $ 18.14 Vested at December 31 423,941 $ 19.24 370,771 $ 18.78 375,692 $ 18.88 |
Note 15 - Income Taxes (Tables)
Note 15 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | As of December 31, (in thousands) 2022 2021 2020 Current: Federal $ 27,865 $ 36,592 $ 321 International 102 85 103 State and local 5,691 7,739 59 33,658 44,416 483 Deferred (967 ) (668 ) (1,799 ) Income tax provision (benefit) $ 32,691 $ 43,748 $ (1,316 ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | (in thousands) 2022 2021 Deferred tax assets: Inventory (excluding LIFO reserve) $ 2,176 $ 2,198 Net operating loss and tax credit carryforwards 1,029 1,375 Allowance for credit losses 833 626 Accrued expenses 6,114 5,288 Lease liabilities 7,916 8,568 Interest rate hedge - 665 Other 214 205 Deferred tax assets before valuation allowance 18,282 18,925 Valuation allowance (919 ) (1,197 ) Total deferred tax assets 17,363 17,728 Deferred tax liabilities: LIFO reserve (3,451 ) (3,500 ) Property and equipment (12,194 ) (12,293 ) Lease right of use assets (7,769 ) (8,483 ) Interest rate hedge (437 ) - Intangibles (3,537 ) (3,342 ) Total deferred tax liabilities (27,388 ) (27,618 ) Deferred tax liabilities, net $ (10,025 ) $ (9,890 ) |
Schedule of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns Roll Forward [Table Text Block] | (in thousands) 2022 2021 2020 Balance as of January 1 $ 228 $ 28 $ 28 Change in tax due to tax law - - - Increases related to current year tax positions - 8 8 (Decrease) Increase related to prior year tax positions (8 ) 200 - Decreases related to lapsing of statute of limitations - (8 ) (8 ) Balance as of December 31 $ 220 $ 228 $ 28 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2022 2021 2020 U.S. federal statutory rate in effect 21.0 % 21.0 % 21.0 % State and local taxes, net of federal benefit 4.5 % 4.5 % 1.0 % Meals and entertainment 0.2 % 0.1 % (1.8 %) Tax credits (0.1 %) (0.1 %) 2.0 % Stock based compensation 0.0 % 0.0 % (3.4 %) All other, net 0.8 % 1.0 % 0.2 % Effective income tax rate 26.4 % 26.5 % 19.0 % |
Note 16 - Shares Outstanding _2
Note 16 - Shares Outstanding and Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the years ended December 31, (in thousands, except per share data) 2022 2021 2020 Weighted average basic shares outstanding 11,551 11,492 11,447 Assumed exercise of stock options and issuance of stock awards 8 11 - Weighted average diluted shares outstanding 11,559 11,503 11,447 Net income (loss) $ 90,931 $ 121,051 $ (5,595 ) Basic earnings (loss) per share $ 7.87 $ 10.53 $ (0.49 ) Diluted earnings (loss) per share $ 7.87 $ 10.52 $ (0.49 ) Unvested RSUs and PSUs 194 206 235 |
Note 18 - Segment Information (
Note 18 - Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | For the Year Ended December 31, (in thousands) 2022 2021 2020 Net sales Specialty metals flat products $ 776,022 $ 585,751 $ 313,190 Carbon flat products 1,356,605 1,344,150 690,273 Tubular and pipe products 427,363 382,352 230,681 Total net sales $ 2,559,990 $ 2,312,253 $ 1,234,144 Depreciation and amortization Specialty metals flat products $ 4,060 $ 3,692 $ 1,951 Carbon flat products 10,695 11,286 11,941 Tubular and pipe products 4,913 5,267 5,478 Corporate 70 71 120 Total depreciation and amortization $ 19,738 $ 20,316 $ 19,490 Operating income Specialty metals flat products $ 93,662 $ 70,544 $ 11,666 Carbon flat products 25,015 110,074 (10,289 ) Tubular and pipe products 34,856 7,353 9,019 Corporate (19,786 ) (15,505 ) (9,823 ) Total operating income $ 133,747 $ 172,466 $ 573 Other loss, net 45 36 73 Income before interest and income taxes 133,702 172,430 500 Interest and other expense on debt 10,080 7,631 7,411 Income (loss) before income taxes $ 123,622 $ 164,799 $ (6,911 ) |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | For the Year Ended December 31, (in thousands) 2022 2021 2020 Capital expenditures Flat products $ 15,299 $ 8,797 $ 7,589 Tubular and pipe products 4,555 2,214 2,214 Corporate - - - Total capital expenditures $ 19,854 $ 11,011 $ 9,803 Assets Flat products $ 631,607 $ 777,074 Tubular and pipe products 258,412 245,962 Corporate 1,608 536 Total assets $ 891,627 $ 1,023,572 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Summary of Valuation Allowance [Table Text Block] | Additions Description Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Period Year Ended December 31, 2020 Allowance for credit losses $ 1,965 $ 1,154 $ - $ (1,393 ) $ 1,726 Tax valuation reserve $ 2,215 $ 87 $ - $ - $ 2,302 Year Ended December 31, 2021 Allowance for credit losses $ 1,726 $ 1,250 $ - $ (474 ) $ 2,502 Tax valuation reserve $ 2,302 $ 236 $ - $ (1,341 ) $ 1,197 Year Ended December 31, 2022 Allowance for credit losses $ 2,502 $ 2,184 $ - $ (855 ) $ 3,831 Tax valuation reserve $ 1,197 $ - $ - $ (278 ) $ 919 |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
LIFO Inventory Amount | $ 46.3 | $ 55.4 | ||
Percentage of LIFO Inventory | 11.10% | 11.40% | ||
Maximum [Member] | ||||
Property, Plant and Equipment, Useful Life | 30 years | |||
Steel Requirements [Member] | Supplier Concentration Risk [Member] | Three Largest Suppliers [Member] | ||||
Concentration Risk, Percentage | 39% | 51% | 56% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Top 20 [Member] | ||||
Concentration Risk, Percentage | 23% | 26% | 25% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Largest Customer [Member] | ||||
Concentration Risk, Percentage | 3% | 2% | 2% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Industrial Machinery and Equipment Manufacturers and Fabricators [Member] | ||||
Concentration Risk, Percentage | 52% | 47% | 45% |
Note 2 - Acquisitions (Details
Note 2 - Acquisitions (Details Textual) - USD ($) $ in Millions | Oct. 01, 2021 | Dec. 14, 2020 |
Shaw Stainless & Alloy, Inc [Member] | ||
Business Combination, Consideration Transferred, Total | $ 12.1 | |
Action Stainless & Alloys, Inc. [Member] | ||
Business Combination, Consideration Transferred, Total | $ 19.5 |
Note 2 - Acquisitions - Purchas
Note 2 - Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Oct. 01, 2021 | Dec. 14, 2020 |
Goodwill | $ 10,496 | $ 10,496 | ||
Shaw Stainless & Alloy, Inc [Member] | ||||
Accounts receivable, net | $ 1,510 | |||
Inventories | 3,129 | |||
Property and equipment | 1,886 | |||
Prepaid expenses and other | 5,986 | |||
Goodwill | 5,262 | |||
Intangible assets | 2,750 | |||
Total assets acquired | 20,523 | |||
Total liabilities assumed | (8,418) | |||
Cash paid | $ 12,105 | |||
Action Stainless & Alloys, Inc. [Member] | ||||
Accounts receivable, net | $ 3,239 | |||
Inventories | 3,656 | |||
Property and equipment | 10,610 | |||
Prepaid expenses and other | 204 | |||
Goodwill | 1,894 | |||
Intangible assets | 4,410 | |||
Total assets acquired | 24,013 | |||
Total liabilities assumed | (4,513) | |||
Cash paid | $ 19,500 |
Note 3 - Disposition of Assets
Note 3 - Disposition of Assets (Details Textual) $ in Millions | Sep. 17, 2021 USD ($) |
Sale of Operations, Consideration Received or Receivable | $ 58.4 |
Estimated Working Capital Adjustment | 12.6 |
Sale of Operations, Property and Equipment | 9.5 |
Sale of Operations, Gain (Loss) on Sale of Operations, Before Tax | $ 3.5 |
Note 4 - Revenue Recognition -
Note 4 - Revenue Recognition - Disaggregation of Revenues, Percentage (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Hot Rolled | 100% | 100% | 100% |
Hot Rolled Products [Member] | |||
Hot Rolled | 29.80% | 31.40% | 29.70% |
Plate Products [Member] | |||
Hot Rolled | 13.30% | 10.40% | 9.60% |
Cold Rolled Products [Member] | |||
Hot Rolled | 4.70% | 7% | 5.90% |
Coated Products [Member] | |||
Hot Rolled | 4.50% | 7.70% | 9.60% |
Specialty [Member] | |||
Hot Rolled | 30.30% | 25.30% | 23.50% |
Tube Products [Member] | |||
Hot Rolled | 16.70% | 16.50% | 18.70% |
Product and Service, Other [Member] | |||
Hot Rolled | 0.70% | 1.70% | 3% |
Carbon Flat Products [Member] | |||
Hot Rolled | 53% | 58.10% | 55.90% |
Carbon Flat Products [Member] | Hot Rolled Products [Member] | |||
Hot Rolled | 29.80% | 31.40% | 29.70% |
Carbon Flat Products [Member] | Plate Products [Member] | |||
Hot Rolled | 13.30% | 10.40% | 9.60% |
Carbon Flat Products [Member] | Cold Rolled Products [Member] | |||
Hot Rolled | 4.70% | 7% | 5.90% |
Carbon Flat Products [Member] | Coated Products [Member] | |||
Hot Rolled | 4.50% | 7.70% | 9.60% |
Carbon Flat Products [Member] | Specialty [Member] | |||
Hot Rolled | 0% | 0% | 0% |
Carbon Flat Products [Member] | Tube Products [Member] | |||
Hot Rolled | 0% | 0% | 0% |
Carbon Flat Products [Member] | Product and Service, Other [Member] | |||
Hot Rolled | 0.70% | 1.60% | 1.10% |
Specialty Metals Flat Products [Member] | |||
Hot Rolled | 30.30% | 25.40% | 25.40% |
Specialty Metals Flat Products [Member] | Hot Rolled Products [Member] | |||
Hot Rolled | 0% | 0% | 0% |
Specialty Metals Flat Products [Member] | Plate Products [Member] | |||
Hot Rolled | 0% | 0% | 0% |
Specialty Metals Flat Products [Member] | Cold Rolled Products [Member] | |||
Hot Rolled | 0% | 0% | 0% |
Specialty Metals Flat Products [Member] | Coated Products [Member] | |||
Hot Rolled | 0% | 0% | 0% |
Specialty Metals Flat Products [Member] | Specialty [Member] | |||
Hot Rolled | 30.30% | 25.30% | 23.50% |
Specialty Metals Flat Products [Member] | Tube Products [Member] | |||
Hot Rolled | 0% | 0% | 0% |
Specialty Metals Flat Products [Member] | Product and Service, Other [Member] | |||
Hot Rolled | 0% | 0.10% | 1.90% |
Tubular and Pipe Products [Member] | |||
Hot Rolled | 16.70% | 16.50% | 18.70% |
Tubular and Pipe Products [Member] | Hot Rolled Products [Member] | |||
Hot Rolled | 0% | 0% | 0% |
Tubular and Pipe Products [Member] | Plate Products [Member] | |||
Hot Rolled | 0% | 0% | 0% |
Tubular and Pipe Products [Member] | Cold Rolled Products [Member] | |||
Hot Rolled | 0% | 0% | 0% |
Tubular and Pipe Products [Member] | Coated Products [Member] | |||
Hot Rolled | 0% | 0% | 0% |
Tubular and Pipe Products [Member] | Specialty [Member] | |||
Hot Rolled | 0% | 0% | 0% |
Tubular and Pipe Products [Member] | Tube Products [Member] | |||
Hot Rolled | 16.70% | 16.50% | 18.70% |
Tubular and Pipe Products [Member] | Product and Service, Other [Member] | |||
Hot Rolled | 0% | 0% | 0% |
Note 5 - Accounts Receivable (D
Note 5 - Accounts Receivable (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss, Current | $ 4.3 | $ 4.4 | |
Accounts Receivable, Credit Loss Expense (Reversal) | $ 2.2 | $ 1.3 | $ 1.2 |
Note 6 - Inventories (Details T
Note 6 - Inventories (Details Textual) - USD ($) $ in Millions | 11 Months Ended | 12 Months Ended | |
Nov. 23, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Inventory, LIFO Reserve, Period Charge | $ 21.9 | $ 0.6 | |
Inventory Difference Using FIFO Basis | $ 20.3 | $ 19.7 |
Note 6 - Inventories - Steel In
Note 6 - Inventories - Steel Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Unprocessed | $ 356,588 | $ 417,595 |
Processed and finished | 60,343 | 67,434 |
Total | $ 416,931 | $ 485,029 |
Note 7 - Property and Equipme_3
Note 7 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property and equipment, at cost | $ 429,810 | $ 413,396 |
Financing lease | 3,144 | 2,710 |
Accumulated depreciation | (281,478) | (266,340) |
Net property and equipment | $ 148,332 | 147,056 |
Maximum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 30 years | |
Land [Member] | ||
Property and equipment, at cost | $ 15,058 | 15,238 |
Land Improvements [Member] | ||
Property and equipment, at cost | $ 4,160 | 3,780 |
Land Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 5 years | |
Land Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 10 years | |
Building and Building Improvements [Member] | ||
Property and equipment, at cost | $ 141,585 | 141,979 |
Building and Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 7 years | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 30 years | |
Machinery and Equipment [Member] | ||
Property and equipment, at cost | $ 221,375 | 210,410 |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 2 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 15 years | |
Furniture and Fixtures [Member] | ||
Property and equipment, at cost | $ 6,829 | 6,229 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 3 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 7 years | |
Software and Software Development Costs [Member] | ||
Property and equipment, at cost | $ 25,338 | 25,053 |
Software and Software Development Costs [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 2 years | |
Software and Software Development Costs [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 5 years | |
Vehicles [Member] | ||
Property and equipment, at cost | $ 4,049 | 3,054 |
Vehicles [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 2 years | |
Vehicles [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life (Year) | 5 years | |
Construction in Progress [Member] | ||
Property and equipment, at cost | $ 8,272 | $ 4,943 |
Note 8 - Goodwill and Intangi_3
Note 8 - Goodwill and Intangible Assets (Details Textual) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | $ 1.6 |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 1.6 |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 1.6 |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 1.2 |
Finite-Lived Intangible Asset, Expected Amortization, Year Five | $ 0.7 |
Customer Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Noncompete Agreements [Member] | Maximum [Member] | |
Finite-Lived Intangible Asset, Useful Life | 5 years |
Noncompete Agreements [Member] | Minimum [Member] | |
Finite-Lived Intangible Asset, Useful Life | 1 year |
Note 8 - Goodwill and Intangi_4
Note 8 - Goodwill and Intangible Assets - Goodwill, by Reportable Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance | $ 10,496 | $ 5,123 |
Acquisitions | 0 | 5,373 |
Impairments | 0 | 0 |
Balance | 10,496 | 10,496 |
Carbon Flat Products [Member] | ||
Balance | 1,065 | 1,065 |
Acquisitions | 0 | 0 |
Impairments | 0 | 0 |
Balance | 1,065 | 1,065 |
Specialty Metals Flat Products [Member] | ||
Balance | 9,431 | 4,058 |
Acquisitions | 0 | 5,373 |
Impairments | 0 | 0 |
Balance | 9,431 | 9,431 |
Tubular and Pipe Products [Member] | ||
Balance | 0 | 0 |
Acquisitions | 0 | 0 |
Impairments | 0 | 0 |
Balance | $ 0 | $ 0 |
Note 8 - Goodwill and Intangi_5
Note 8 - Goodwill and Intangible Assets - Intangible Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accumulated amortization | $ (12,401) | $ (10,783) |
Intangible assets, gross | 44,436 | 44,436 |
Intangible assets, net | 32,035 | 33,653 |
Trade Names [Member] | ||
Trade name - not subject to amortization | 21,368 | 21,368 |
Customer Relationships [Member] | ||
Finite-lived intangible assets, gross | 22,559 | 22,559 |
Accumulated amortization | (12,100) | (10,552) |
Finite-lived intangible assets, net | 10,459 | 12,007 |
Noncompete Agreements [Member] | ||
Finite-lived intangible assets, gross | 509 | 509 |
Accumulated amortization | (301) | (231) |
Finite-lived intangible assets, net | $ 208 | $ 278 |
Note 9 - Leases (Details Textua
Note 9 - Leases (Details Textual) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Chief Executive Officer [Member] | Related Entity That Owns Cleveland Warehouse [Member] | |
Equity Method Investment, Ownership Percentage | 50% |
Affiliated Entity [Member] | Cleveland Warehouse [Member] | |
Operating Lease, Annual Expense | $ 0.2 |
Lessee, Operating Lease, Renewal Term | 5 years |
Maximum [Member] | |
Lessee, Operating Lease, Remaining Lease Term | 16 years |
Note 9 - Leases - Lease Cost (D
Note 9 - Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating lease cost | $ 7,446 | $ 6,952 | $ 7,089 |
Amortization | 720 | 721 | 254 |
Interest on lease liabilities | 67 | 71 | 54 |
Finance Lease, Cost | $ 787 | $ 792 | $ 308 |
Note 9 - Leases - Lease Payment
Note 9 - Leases - Lease Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating cash flows from operating leases | $ 7,268 | $ 6,830 | $ 6,996 |
Operating cash flows from finance leases | 67 | 71 | 54 |
Financing cash flows from finance leases | 703 | 828 | 242 |
Total cash paid for amounts included in the measurement of lease liabilities | $ 8,038 | $ 7,729 | $ 7,292 |
Note 9 - Leases - Balance Sheet
Note 9 - Leases - Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating lease | $ 45,987 | $ 42,023 |
Property and equipment, at cost | $ 429,810 | $ 413,396 |
Operating leases (Year) | 6 years | 6 years |
Operating lease accumulated amortization | $ (17,763) | $ (14,297) |
Accumulated depreciation | $ (281,478) | $ (266,340) |
Finance leases (Year) | 3 years | 4 years |
Operating lease right of use asset, net | $ 28,224 | $ 27,726 |
Operating leases | 3.41% | 3.44% |
Current portion of lease liabilities | $ 6,098 | $ 5,940 |
Finance leases | 3.56% | 3.42% |
Operating lease liabilities | $ 22,655 | $ 22,137 |
Operating Lease, Liability, Total | 28,753 | 28,077 |
Other Accrued Liabilities [Member] | ||
Finance lease current liabilities | 594 | 661 |
Other Noncurrent Liabilities [Member] | ||
Finance lease liabilities | 1,025 | 1,115 |
Other Accrued Liabilities and Other Long-term Liabilities [Member] | ||
Finance Lease, Liability, Total | 1,619 | 1,776 |
Assets Held Under Finance Leases [Member] | ||
Property and equipment, at cost | 3,144 | 2,710 |
Accumulated depreciation | (1,585) | (965) |
Finance lease, net | $ 1,559 | $ 1,745 |
Note 9 - Leases - Maturities of
Note 9 - Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating lease, 2023 | $ 7,100 | |
Finance lease, 2023 | 640 | |
Operating lease, 2024 | 6,342 | |
Finance lease, 2024 | 531 | |
Operating lease, 2025 | 5,121 | |
Finance lease, 2025 | 336 | |
Operating lease, 2026 | 4,215 | |
Finance lease, 2026 | 157 | |
Operating lease, 2027 | 3,317 | |
Finance lease, 2027 | 41 | |
Operating lease, thereafter | 5,734 | |
Finance lease, thereafter | 3 | |
Operating lease, total future minimum lease payments | 31,829 | |
Finance lease, total future minimum lease payments | 1,708 | |
Operating lease, less remaining imputed interest | (3,076) | |
Finance lease, less remaining imputed interest | (89) | |
Operating lease, total | 28,753 | $ 28,077 |
Current Portion and Lease Liabilities [Member] | ||
Operating lease, total | 28,753 | |
Other Accrued Liabilities and Other Long-term Liabilities [Member] | ||
Finance lease, total | $ 1,619 | $ 1,776 |
Note 10 - Debt (Details Textual
Note 10 - Debt (Details Textual) $ in Thousands | 12 Months Ended | ||||
Dec. 14, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jun. 16, 2021 USD ($) | |
Debt Issuance Costs, Net, Total | $ 1,200 | $ 1,600 | |||
Interest Paid, Excluding Capitalized Interest, Operating Activities | 9,635 | 6,843 | $ 7,002 | ||
Long-Term Debt, Gross | $ 280,400 | $ 255,800 | $ 188,400 | ||
All Debt, Excluding Deferred Financing Fees and Deferred Commitment Fees [Member] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 3.20% | 2.50% | 3.30% | ||
ABL Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 625,000 | $ 475,000 | |||
ABL Credit Facility [Member] | Asset Based Revolving Credit Facility Due June 16, 2026 [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 595,000 | ||||
Letters of Credit, Maximum Borrowing Capacity | 20,000 | ||||
Maximum First In, Last Out Revolving Credit Facility | 30,000 | ||||
Line of Credit Facility, Additional Commitments, Maximum | $ 200,000 | ||||
Line Of Credit Facility Covenant Terms Monetary | $ 30,000 | ||||
Line of Credit Facility Covenant Terms Percentage of Revolver Commitments | 10% | ||||
Balance Required for Compliance with Revolver Commitments | 47,500 | ||||
Line of Credit Facility Covenant Terms Percentage of Aggregate Borrowing Base | 10% | ||||
Line of Credit Facility Covenant Terms Aggregate Borrowing Base | $ 47,500 | ||||
Line of Credit Facility Covenant Terms EBITDA Ratio | 1 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 305,600 | ||||
ABL Credit Facility [Member] | Asset Based Revolving Credit Facility Due June 16, 2026 [Member] | Base Rate [Member] | Minimum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0% | ||||
ABL Credit Facility [Member] | Asset Based Revolving Credit Facility Due June 16, 2026 [Member] | Base Rate [Member] | Maximum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||
ABL Credit Facility [Member] | Asset Based Revolving Credit Facility Due June 16, 2026 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||
ABL Credit Facility [Member] | Asset Based Revolving Credit Facility Due June 16, 2026 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% |
Note 10 - Debt - Summary of Deb
Note 10 - Debt - Summary of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Asset-based revolving credit facility due June 16, 2026 | $ 165,658 | $ 327,764 |
Total debt | 165,658 | 327,764 |
Less current amount | 0 | 0 |
Total long-term debt | $ 165,658 | $ 327,764 |
Note 10 - Debt - Principal Paym
Note 10 - Debt - Principal Payments Over the Next 5 Years and Thereafter (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Long-term debt 2023 | $ 0 | |
Long-term debt 2024 | 0 | |
Long-term debt 2025 | 0 | |
Long-term debt 2026 | 165,658 | |
Long-term debt 2027 | 0 | |
Long-term debt, total | 165,658 | $ 327,764 |
ABL Credit Facility [Member] | ||
Long-term debt 2023 | 0 | |
Long-term debt 2024 | 0 | |
Long-term debt 2025 | 0 | |
Long-term debt 2026 | 165,658 | |
Long-term debt 2027 | 0 | |
Long-term debt, total | $ 165,658 |
Note 11 - Derivative Instrume_3
Note 11 - Derivative Instruments (Details Textual) - Interest Rate Swap [Member] - USD ($) $ in Millions | Jan. 10, 2019 | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative, Term of Contract | 5 years | ||
Derivative, Notional Amount | $ 75 | ||
Derivative, Fixed Interest Rate | 2.57% | ||
Other Noncurrent Liabilities [Member] | |||
Derivative Liability, Total | $ 1.7 | $ 2.7 |
Note 11 - Derivative Instrume_4
Note 11 - Derivative Instruments - Impact from Derivatives on Consolidated Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fixed interest rate hedge | $ (664) | $ (1,880) | $ (1,520) |
Interest Rate Swap [Member] | |||
Fixed interest rate hedge | (664) | (1,880) | (1,520) |
Metal Swaps [Member] | |||
Fixed interest rate hedge | 633 | 418 | 55 |
Embedded Customer Derivatives [Member] | |||
Fixed interest rate hedge | $ (633) | $ (418) | $ (55) |
Note 12 - Fair Value of Asset_3
Note 12 - Fair Value of Assets and Liabilities (Details Textual) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Revolving Credit Facility [Member] | ||
Long-Term Debt, Fair Value | $ 165.7 | $ 327.8 |
Note 12 - Fair Value of Asset_4
Note 12 - Fair Value of Assets and Liabilities - Fair Value Measurements, Recorded (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Total assets at fair value | $ 1,748 | $ 2,286 |
Total liabilities recorded at fair value | 4,839 | |
Fair Value, Inputs, Level 1 [Member] | ||
Total assets at fair value | 0 | 0 |
Total liabilities recorded at fair value | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Total assets at fair value | 1,748 | 2,286 |
Total liabilities recorded at fair value | 4,839 | |
Fair Value, Inputs, Level 3 [Member] | ||
Total assets at fair value | 0 | 0 |
Total liabilities recorded at fair value | 0 | |
Metal Swaps [Member] | ||
Fixed interest rate hedge | 2,286 | |
Derivative Liability, Total | 2,178 | |
Metal Swaps [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fixed interest rate hedge | 0 | |
Derivative Liability, Total | 0 | |
Metal Swaps [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fixed interest rate hedge | 2,286 | |
Derivative Liability, Total | 2,178 | |
Metal Swaps [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fixed interest rate hedge | 0 | |
Derivative Liability, Total | 0 | |
Interest Rate Swap [Member] | ||
Fixed interest rate hedge | 1,748 | |
Derivative Liability, Total | 2,661 | |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fixed interest rate hedge | 0 | |
Derivative Liability, Total | 0 | |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fixed interest rate hedge | 1,748 | |
Derivative Liability, Total | 2,661 | |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fixed interest rate hedge | $ 0 | |
Derivative Liability, Total | $ 0 |
Note 13 - Equity Plans (Details
Note 13 - Equity Plans (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jan. 01, 2020 | Jan. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
C-Suite Long-Term Incentive Plan [Member] | |||||
Minimum Return on Assets for Performance-Based Incentives | 5% | ||||
Performance-Based Award Cap, Percentage of Grant | 150% | ||||
President and Chief Operating Officer [Member] | C-Suite Long-Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Amount Per Employee | $ 600,000 | ||||
Chief Executive Officer [Member] | C-Suite Long-Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Amount Per Employee | 1,100,000 | ||||
Chief Financial Officer [Member] | C-Suite Long-Term Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Amount Per Employee | $ 300,000 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,300,000 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 2 months 12 days | ||||
RSU expense before taxes of the Plan | $ 1,297,000 | $ 1,045,000 | $ 1,265,000 | ||
Restricted Stock Units (RSUs) [Member] | Senior Management Stock Incentive Program [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 5 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Participant's Base Salary | 10% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Amount Per Employee | $ 17,500 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | ||||
Restricted Stock Units (RSUs) [Member] | C-Suite Long-Term Incentive Plan [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 20,000 | ||||
Restricted Stock Units (RSUs) [Member] | Non-Employee Director [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Value | $ 80,000 | $ 80,000 | |||
Restricted Stock Units (RSUs) [Member] | Non-Employee Director [Member] | Share-Based Payment Arrangement, Tranche One [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 1 year | ||||
Restricted Stock Units (RSUs) [Member] | President and Chief Operating Officer [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 15,694 | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected to Vest, Percentage of Grant Value | 150% | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 900,000 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years | ||||
Performance Shares [Member] | C-Suite Long-Term Incentive Plan [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 20,000 | ||||
Minimum Percentage of EBITDA Divided by Average Accounts Receivable, Inventory and Property, Plant and Equipment to Vest | 5% | ||||
Service Based Cash Awards [Member] | C-Suite Long-Term Incentive Plan [Member] | |||||
Deferred Compensation Arrangement with Individual, Cash Award Granted, Amount | $ 500,000 | ||||
Performance-Based Cash Awards [Member] | C-Suite Long-Term Incentive Plan [Member] | |||||
Deferred Compensation Arrangement with Individual, Cash Award Granted, Amount | $ 500,000 | ||||
Phantom Share Units (PSUs) [Member] | Phantom Stock Plan [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 3 years | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 700,000 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years | ||||
Phantom Share Units (PSUs) [Member] | Phantom Stock Plan [Member] | General and Administrative Expense [Member] | |||||
RSU expense before taxes of the Plan | $ 300,000 | ||||
Phantom Share Units (PSUs) [Member] | Phantom Stock Plan [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Annual Grant Value | $ 30,000 | ||||
Common Stock [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant | 1,400,000 |
Note 13 - Equity Plans - Stock-
Note 13 - Equity Plans - Stock-based Compensation Expense Recognized on Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
RSU expense before taxes of the Plan | $ 1,297 | $ 1,045 | $ 1,265 |
RSU expense after taxes | $ 954 | $ 767 | $ 1,024 |
Note 13 - Equity Plans - Restri
Note 13 - Equity Plans - Restricted Stock Unit Activity (Details) - Restricted Stock Unites and Performance Stock Units [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Beginning balance (in shares) | 576,867 | 610,540 | 636,086 |
Beginning balance (in dollars per share) | $ 18.29 | $ 18.14 | $ 19.25 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period | 55,558 | 20,604 | 70,588 |
Granted (in dollars per share) | $ 25.56 | $ 23.29 | $ 11.92 |
Converted into shares (in shares) | (5,841) | (49,191) | (94,161) |
Converted into shares (in dollars per share) | $ 18.16 | $ 18.67 | $ 20.27 |
Forfeited (in shares) | (9,066) | (5,086) | (1,973) |
Forfeited (in dollars per share) | $ 17.52 | $ 17.55 | $ 18.14 |
Outstanding at December 31 (in shares) | 617,518 | 576,867 | 610,540 |
Outstanding at December 31 (in dollars per share) | $ 18.95 | $ 18.29 | $ 18.14 |
Vested at December 31 (in shares) | 423,941 | 370,771 | 375,692 |
Vested at December 31 (in dollars per share) | $ 19.24 | $ 18.78 | $ 18.88 |
Note 14 - Commitments and Con_2
Note 14 - Commitments and Contingencies (Details Textual) | Dec. 31, 2022 |
Entity Number of Employees | 179 |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Increase (Decrease) in Deferred Tax Liability From Fixed Interest Rate Hedge | $ 1,100 | ||
Income Taxes Paid, Net, Total | 33,404 | $ 46,548 | $ 1 |
Deferred Tax Assets, Valuation Allowance | 919 | 1,197 | |
State and Local Jurisdiction [Member] | |||
Deferred Tax Assets, Valuation Allowance | $ 900 | $ 1,200 |
Note 15 - Income Taxes - Provis
Note 15 - Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Federal | $ 27,865 | $ 36,592 | $ 321 |
International | 102 | 85 | 103 |
State and local | 5,691 | 7,739 | 59 |
Current Income Tax Expense (Benefit), Total | 33,658 | 44,416 | 483 |
Deferred | (967) | (668) | (1,799) |
Income tax provision (benefit) | $ 32,691 | $ 43,748 | $ (1,316) |
Note 15 - Income Taxes - Deferr
Note 15 - Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Inventory (excluding LIFO reserve) | $ 2,176 | $ 2,198 |
Net operating loss and tax credit carryforwards | 1,029 | 1,375 |
Allowance for credit losses | 833 | 626 |
Accrued expenses | 6,114 | 5,288 |
Lease liabilities | 7,916 | 8,568 |
Interest rate hedge | 0 | 665 |
Other | 214 | 205 |
Deferred tax assets before valuation allowance | 18,282 | 18,925 |
Valuation allowance | (919) | (1,197) |
Total deferred tax assets | 17,363 | 17,728 |
Deferred tax liabilities: | ||
LIFO reserve | (3,451) | (3,500) |
Property and equipment | (12,194) | (12,293) |
Lease right of use assets | (7,769) | (8,483) |
Interest rate hedge | (437) | 0 |
Intangibles | (3,537) | (3,342) |
Total deferred tax liabilities | (27,388) | (27,618) |
Deferred tax liabilities, net | $ (10,025) | $ (9,890) |
Note 15 - Income Taxes - Unreco
Note 15 - Income Taxes - Unrecognized Tax Benefits Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance | $ 228 | $ 28 | $ 28 |
Change in tax due to tax law | 0 | 0 | 0 |
Increases related to current year tax positions | 0 | 8 | 8 |
(Decrease) Increase related to prior year tax positions | (8) | ||
(Decrease) Increase related to prior year tax positions | 200 | 0 | |
Decreases related to lapsing of statute of limitations | 0 | (8) | (8) |
Balance | $ 220 | $ 228 | $ 28 |
Note 15 - Income Taxes - Tax Ra
Note 15 - Income Taxes - Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. federal statutory rate in effect | 21% | 21% | 21% |
State and local taxes, net of federal benefit | 4.50% | 4.50% | 1% |
Meals and entertainment | 0.20% | 0.10% | (1.80%) |
Tax credits | (0.10%) | (0.10%) | 2% |
Stock based compensation | 0% | 0% | (3.40%) |
All other, net | 0.80% | 1% | 0.20% |
Effective income tax rate | 26.40% | 26.50% | 19% |
Note 16 - Shares Outstanding _3
Note 16 - Shares Outstanding and Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted average basic shares outstanding (in shares) | 11,551 | 11,492 | 11,447 |
Assumed exercise of stock options and issuance of stock awards (in shares) | 8 | 11 | 0 |
Weighted average diluted shares outstanding (in shares) | 11,559 | 11,503 | 11,447 |
Net income (loss) | $ 90,931 | $ 121,051 | $ (5,595) |
Basic earnings (loss) per share (in dollars per share) | $ 7.87 | $ 10.53 | $ (0.49) |
Diluted earnings (loss) per share (in dollars per share) | $ 7.87 | $ 10.52 | $ (0.49) |
Unvested RSUs and PSUs (in shares) | 194 | 206 | 235 |
Note 17 - Equity Programs (Deta
Note 17 - Equity Programs (Details Textual) $ in Thousands | 12 Months Ended | |||
Oct. 02, 2015 USD ($) shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2022 USD ($) shares | Sep. 03, 2021 USD ($) | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | shares | 550,000 | |||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | shares | 360,212 | |||
Treasury Stock, Shares, Acquired | shares | 15,000 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 145 | |||
At-the-Market Equity Program [Member] | ||||
Stock Issuance Program, Authorized Amount | $ 50,000 | |||
Stock Issuance Program, Gross Proceeds, Percent | 2% | |||
ABL Credit Facility [Member] | ||||
Unrestricted Common Stock Purchases, Maximum, Value | $ 15,000 | |||
ABL Credit Facility [Member] | Stock Repurchases Value Exceeds 5.0 Million, Option 1 [Member] | Minimum [Member] | ||||
Line of Credit Facility Covenant Terms Percentage of Revolver Commitments | 20% | |||
Balance Required for Compliance with Revolver Commitments | $ (95,000) | |||
ABL Credit Facility [Member] | Stock Repurchases Value Exceeds 5.0 Million, Option 2 [Member] | Minimum [Member] | ||||
Line of Credit Facility Covenant Terms Percentage of Revolver Commitments | 15% | |||
Balance Required for Compliance with Revolver Commitments | $ (71,300) | |||
Line of Credit Facility Covenant Terms EBITDA Ratio | 1 |
Note 18 - Segment Information -
Note 18 - Segment Information - Segment Reporting Information by Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net sales | $ 2,559,990 | $ 2,312,253 | $ 1,234,144 |
Depreciation and amortization | 19,738 | 20,316 | 19,490 |
Operating income (loss) | 133,747 | 172,466 | 573 |
Other loss, net | 45 | 36 | 73 |
Income before interest and income taxes | 133,702 | 172,430 | 500 |
Interest and other expense on debt | 10,080 | 7,631 | 7,411 |
Income (loss) before income taxes | 123,622 | 164,799 | (6,911) |
Specialty Metals Flat Products [Member] | |||
Net sales | 776,022 | 585,751 | 313,190 |
Depreciation and amortization | 4,060 | 3,692 | 1,951 |
Operating income (loss) | 93,662 | 70,544 | 11,666 |
Carbon Flat Products [Member] | |||
Net sales | 1,356,605 | 1,344,150 | 690,273 |
Depreciation and amortization | 10,695 | 11,286 | 11,941 |
Operating income (loss) | 25,015 | 110,074 | (10,289) |
Tubular and Pipe Products [Member] | |||
Net sales | 427,363 | 382,352 | 230,681 |
Depreciation and amortization | 4,913 | 5,267 | 5,478 |
Operating income (loss) | 34,856 | 7,353 | 9,019 |
Corporate Segment [Member] | |||
Depreciation and amortization | 70 | 71 | 120 |
Operating income (loss) | $ (19,786) | $ (15,505) | $ (9,823) |
Note 17 - Segment Information -
Note 17 - Segment Information - Segment Reporting Information by Capital Expenditures and Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Capital expenditures | $ 19,854 | $ 11,011 | $ 9,803 |
Assets | 891,627 | 1,023,572 | |
Flat Products Segment [Member] | |||
Capital expenditures | 15,299 | 8,797 | 7,589 |
Assets | 631,607 | 777,074 | |
Tubular and Pipe Products [Member] | |||
Capital expenditures | 4,555 | 2,214 | 2,214 |
Assets | 258,412 | 245,962 | |
Corporate Segment [Member] | |||
Capital expenditures | 0 | 0 | $ 0 |
Assets | $ 1,608 | $ 536 |
Note 19 - Retirement Plans (Det
Note 19 - Retirement Plans (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Contribution Plan, Administrative Expense | $ 4.1 | $ 3.8 | $ 2 |
Supplemental Employee Retirement Plan [Member] | |||
Defined Contribution Plan Vesting Period | 7 years | ||
Defined Benefit Plan, Plan Assets, Amount, Ending Balance | $ 7.7 | $ 8.7 | |
Supplemental Employee Retirement Plan [Member] | Minimum [Member] | |||
Defined Contribution Plan, Compensation Percentage Multiplier | 6.50% | ||
Supplemental Employee Retirement Plan [Member] | Maximum [Member] | |||
Defined Contribution Plan, Compensation Percentage Multiplier | 13% | ||
Non-union Flat Rolled Segments’ 401K Retirement Plan [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 6% | ||
Action Stainless & Alloy’s 401(k) Retirement Plans [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4% | ||
Action Stainless & Alloy’s 401(k) Retirement Plans [Member] | First Step of Percent Match [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3% | ||
Action Stainless & Alloy’s 401(k) Retirement Plans [Member] | Second Step of Percent Match [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 2% |
Note 20 - Related-party Trans_2
Note 20 - Related-party Transactions (Details Textual) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Chief Executive Officer [Member] | Related Entity That Owns Cleveland Warehouse [Member] | |
Equity Method Investment, Ownership Percentage | 50% |
Affiliated Entity [Member] | Cleveland Warehouse [Member] | |
Operating Lease, Annual Expense | $ 0.2 |
Note 21 - Subsequent Events (De
Note 21 - Subsequent Events (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||||
Jan. 03, 2023 | Jan. 03, 2023 | Dec. 31, 2022 | Jun. 16, 2021 | Jan. 10, 2019 | |
Interest Rate Swap [Member] | |||||
Derivative, Fixed Interest Rate | 2.57% | ||||
ABL Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 625 | $ 475 | |||
ABL Credit Facility [Member] | Asset Based Revolving Credit Facility Due June 16, 2026 [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 595 | ||||
ABL Credit Facility [Member] | Asset Based Revolving Credit Facility Due June 16, 2026 [Member] | Base Rate [Member] | Minimum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0% | ||||
ABL Credit Facility [Member] | Asset Based Revolving Credit Facility Due June 16, 2026 [Member] | Base Rate [Member] | Maximum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||
Subsequent Event [Member] | Interest Rate Swap [Member] | |||||
Derivative, Fixed Interest Rate | 2.42% | 2.42% | |||
Subsequent Event [Member] | ABL Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 625 | $ 625 | |||
Subsequent Event [Member] | ABL Credit Facility [Member] | Asset Based Revolving Credit Facility Due June 16, 2026 [Member] | Base Rate [Member] | Minimum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0% | ||||
Subsequent Event [Member] | ABL Credit Facility [Member] | Asset Based Revolving Credit Facility Due June 16, 2026 [Member] | Base Rate [Member] | Maximum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||
Subsequent Event [Member] | ABL Credit Facility [Member] | Asset Based Revolving Credit Facility Due June 16, 2026 [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Minimum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||
Subsequent Event [Member] | ABL Credit Facility [Member] | Asset Based Revolving Credit Facility Due June 16, 2026 [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Maximum [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||
Metal-Fab [Member] | Subsequent Event [Member] | |||||
Payments to Acquire Businesses, Gross | $ 131 |
Schedule II - Valuation and Q_3
Schedule II - Valuation and Qualifying Accounts - Summary of Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
Balance at Beginning of Period | $ 2,502 | $ 1,726 | $ 1,965 |
Additions Charged to Costs and Expenses | 2,184 | 1,250 | 1,154 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (855) | (474) | (1,393) |
Balance at End of Period | 3,831 | 2,502 | 1,726 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | |||
Balance at Beginning of Period | 1,197 | 2,302 | 2,215 |
Additions Charged to Costs and Expenses | 0 | 236 | 87 |
Additions Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (278) | (1,341) | 0 |
Balance at End of Period | $ 919 | $ 1,197 | $ 2,302 |