Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 07, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'OLYMPIC STEEL INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 10,980,091 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000917470 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $4,705 | $3,186 |
Accounts receivable, net | 163,819 | 115,288 |
Inventories, net (includes LIFO debit of $3,172 as of June 30, 2014 and $3,572 as of December 31, 2013) | 310,954 | 286,371 |
Prepaid expenses and other | 9,880 | 12,786 |
Total current assets | 489,358 | 417,631 |
Property and equipment, at cost | 366,265 | 361,368 |
Accumulated depreciation | -181,197 | -170,484 |
Net property and equipment | 185,068 | 190,884 |
Goodwill | 40,787 | 40,787 |
Intangible assets, net | 34,091 | 34,535 |
Other long-term assets | 15,127 | 13,512 |
Total assets | 764,431 | 697,349 |
Liabilities | ' | ' |
Current portion of long-term debt | 3,530 | 13,090 |
Accounts payable | 147,405 | 126,012 |
Accrued payroll | 10,822 | 10,723 |
Other accrued liabilities | 16,757 | 15,808 |
Total current liabilities | 178,514 | 165,633 |
Credit facility revolver | 233,783 | 146,075 |
Long-term debt | ' | 40,104 |
Other long-term liabilities | 14,301 | 13,445 |
Deferred income taxes | 31,841 | 33,476 |
Total liabilities | 458,439 | 398,733 |
Shareholders' Equity | ' | ' |
Preferred stock | 0 | 0 |
Common stock | 125,586 | 124,118 |
Accumulated other comprehensive loss | -360 | -437 |
Retained earnings | 180,766 | 174,935 |
Total shareholders' equity | 305,992 | 298,616 |
Total liabilities and shareholders' equity | $764,431 | $697,349 |
Consolidated_Balance_Sheets_Cu1
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
LIFO debit | $3,172 | $3,572 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net sales | $386,047 | $330,804 | $732,960 | $668,868 |
Costs and expenses | ' | ' | ' | ' |
Cost of materials sold (excludes items shown seperately below) | 311,421 | 261,854 | 586,888 | 528,008 |
Warehouse and processing | 23,785 | 21,559 | 45,145 | 42,065 |
Administrative and general | 18,146 | 18,170 | 37,082 | 36,319 |
Distribution | 10,990 | 8,981 | 20,846 | 17,955 |
Selling | 6,483 | 6,371 | 13,001 | 12,957 |
Occupancy | 2,426 | 2,322 | 5,296 | 4,921 |
Depreciation | 5,466 | 5,301 | 10,921 | 10,594 |
Amortization | 222 | 222 | 444 | 444 |
Total costs and expenses | 378,939 | 324,780 | 719,623 | 653,263 |
Operating income | 7,108 | 6,024 | 13,337 | 15,605 |
Other income (loss), net | -4 | -41 | -2 | -17 |
Income before interest and income taxes | 7,104 | 5,983 | 13,335 | 15,588 |
Interest and other expense on debt | 1,779 | 1,668 | 3,532 | 3,366 |
Income before income taxes | 5,325 | 4,315 | 9,803 | 12,222 |
Income tax provision | 1,831 | 1,790 | 3,532 | 4,533 |
Net income | 3,494 | 2,525 | 6,271 | 7,689 |
Net gain on interest rate hedge | 42 | 208 | 124 | 213 |
Tax effect on interest rate hedge | -16 | -80 | -48 | -82 |
Total comprehensive income | $3,520 | $2,653 | $6,347 | $7,820 |
Earnings per share: | ' | ' | ' | ' |
Net income per share - basic (in Dollars per share) | $0.32 | $0.23 | $0.57 | $0.70 |
Weighted average shares outstanding - basic (in Shares) | 11,089 | 11,062 | 11,089 | 11,059 |
Net income per share - diluted (in Dollars per share) | $0.32 | $0.23 | $0.57 | $0.69 |
Weighted average shares outstanding - diluted (in Shares) | 11,089 | 11,072 | 11,090 | 11,067 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from (used for) operating activities: | ' | ' |
Net income | $6,271 | $7,689 |
Adjustments to reconcile net income to net cash from (used for) operating activities - | ' | ' |
Depreciation and amortization | 12,035 | 11,710 |
Loss on disposition of property and equipment | 12 | 104 |
Stock-based compensation | 1,341 | 971 |
Insurance recovery receivable | -205 | -1,787 |
Other long-term assets | -1,244 | -2,611 |
Other long-term liabilities | -703 | -816 |
17,507 | 15,260 | |
Changes in working capital: | ' | ' |
Accounts receivable | -48,326 | -28,481 |
Inventories | -24,583 | 41,236 |
Prepaid expenses and other | 2,906 | 2,682 |
Accounts payable | 26,704 | 979 |
Change in outstanding checks | -5,311 | -92 |
Accrued payroll and other accrued liabilities | 1,048 | 2,555 |
-47,562 | 18,879 | |
Net cash from (used for) operating activities | -30,055 | 34,139 |
Cash flows from (used for) investing activities: | ' | ' |
Capital expenditures | -5,124 | -3,779 |
Proceeds from disposition of property and equipment | 7 | 8 |
Net cash used for investing activities | -5,117 | -3,771 |
Cash flows from (used for) financing activities: | ' | ' |
Credit facility revolver borrowings | 318,336 | 207,012 |
Credit facility revolver repayments | -230,628 | -234,567 |
Principal payments under capital lease obligations | ' | -1,407 |
Term loan repayments | -48,854 | -4,375 |
Industrial revenue bond repayments | -810 | -785 |
Credit facility fees and expenses | -1,041 | -3 |
Proceeds from exercise of stock options (including tax benefits) and employee stock purchases | 127 | 211 |
Dividends paid | -439 | -438 |
Net cash from (used for) financing activities | 36,691 | -34,352 |
Cash and cash equivalents: | ' | ' |
Net change | 1,519 | -3,984 |
Beginning balance | 3,186 | 7,782 |
Ending balance | $4,705 | $3,798 |
Supplemental_Disclosure_of_Cas
Supplemental Disclosure of Cash Flow Information (Unaudited) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||
Cash Flow, Supplemental Disclosures [Text Block] | ' | ||||||||
2014 | 2013 | ||||||||
(unaudited) | |||||||||
Interest paid | $ | 3,015 | $ | 2,775 | |||||
Income taxes paid | $ | 2,427 | $ | 3,759 | |||||
Note_1_Basis_of_Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure Text Block [Abstract] | ' |
Business Description and Basis of Presentation [Text Block] | ' |
1. 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), without audit and reflect all normal and recurring adjustments which are, in the opinion of management, necessary to fairly state the results of the interim periods covered by this report. Year-to-date results are not necessarily indicative of 2014 annual results and these financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. All significant intercompany transactions and balances have been eliminated in consolidation. | |
The Company operates in two reportable segments; flat products and tubular and pipe products. Through its flat products segment, the Company sells and distributes large volumes of processed carbon, coated, aluminum and stainless flat-rolled sheet, coil and plate products. Through its tubular and pipe products segment, the Company distributes metal tubing, pipe, bar, valve and fittings and fabricates pressure parts supplied to various industrial markets. | |
Corporate expenses are reported as a separate line item in the segment reporting. Corporate expenses include the unallocated expenses related to managing the entire Company (i.e., both 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. |
Note_2_Accounts_Receivable
Note 2 - Accounts Receivable | 6 Months Ended |
Jun. 30, 2014 | |
Receivables [Abstract] | ' |
Financing Receivables [Text Block] | ' |
2. Accounts Receivable: | |
Accounts receivable are presented net of allowances for doubtful accounts and unissued credits of $3.4 million and $3.2 million as of June 30, 2014 and December 31, 2013, respectively. The allowance for doubtful accounts is maintained at a level considered appropriate based on historical experience and specific customer collection issues that have been identified. 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 doubtful accounts and unissued credits each quarter. |
Note_3_Inventories
Note 3 - Inventories | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
3. Inventories: | |||||||||
Inventories consisted of the following: | |||||||||
Inventory as of | |||||||||
(in thousands) | 30-Jun-14 | 31-Dec-13 | |||||||
Unprocessed | $ | 234,232 | $ | 219,401 | |||||
Processed and finished | 76,722 | 66,970 | |||||||
Totals | $ | 310,954 | $ | 286,371 | |||||
The Company values certain of its tubular and pipe products inventory at the last-in, first-out (LIFO) method. At June 30, 2014 and December 31, 2013, approximately $44.1 million, or 14.2%, of consolidated inventory, and $43.9 million, or 15.3%, of consolidated inventory, respectively, was reported under the LIFO method of accounting. The cost of the remainder of the tubular and pipe products inventory is determined using a weighted average rolling first-in, first-out (FIFO) method. | |||||||||
During the second quarter of 2014, $400 thousand of LIFO expense was recorded as the current projections anticipate increased pricing of inventory for the remainder of the year. In the first quarter of 2013, the Company made an out-of-period adjustment to record previously unrecognized LIFO adjustments, which resulted in an increase to after-tax income of $1.2 million. In the second quarter of 2013, the Company recorded $375 thousand of LIFO income. | |||||||||
If the FIFO method had been in use, inventories would have been $3.2 million lower than reported at June 30, 2014 and $3.6 million lower than reported at December 31, 2013. |
Note_4_Intangible_Assets
Note 4 - Intangible Assets | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||
Intangible Assets Disclosure [Text Block] | ' | ||||||||||||
4. Intangible Assets: | |||||||||||||
Intangible assets, net, consisted of the following as of June 30, 2014 and December 31, 2013: | |||||||||||||
As of June 30, 2014 | |||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Intangible Assets, Net | ||||||||||
Customer relationships - subject to amortization | $ | 13,332 | $ | (2,666 | ) | $ | 10,666 | ||||||
Trade name - not subject to amortization | 23,425 | - | 23,425 | ||||||||||
$ | 36,757 | $ | (2,666 | ) | $ | 34,091 | |||||||
As of December 31, 2013 | |||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Intangible Assets, Net | ||||||||||
Customer relationships - subject to amortization | $ | 13,332 | $ | (2,222 | ) | $ | 11,110 | ||||||
Trade name - not subject to amortization | 23,425 | - | 23,425 | ||||||||||
$ | 36,757 | $ | (2,222 | ) | $ | 34,535 | |||||||
The Company estimates that amortization expense for its intangible assets subject to amortization will be $889 thousand for the year ending December 31, 2014 and $889 thousand per year in each of the next five years. |
Note_5_Debt
Note 5 - Debt | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt Disclosure [Text Block] | ' | ||||||||
5. Debt: | |||||||||
The Company’s debt is comprised of the following components: | |||||||||
As of | |||||||||
June 30, | December 31, | ||||||||
(in thousands) | 2014 | 2013 | |||||||
Asset-based revolving credit facility due June 30, 2019 | $ | 233,783 | $ | - | |||||
Asset-based revolving credit facility due June 30, 2016 | - | 146,075 | |||||||
Term loan due June 30, 2016 | - | 48,854 | |||||||
Industrial revenue bond due April 1, 2018 | 3,530 | 4,340 | |||||||
Total debt | 237,313 | 199,269 | |||||||
Less current amount | (3,530 | ) | (13,090 | ) | |||||
Total long-term debt | $ | 233,783 | $ | 186,179 | |||||
On June 30, 2014, the Company amended its existing asset-based credit facility (the ABL Credit Facility). The ABL Credit Facility amendment provides for, among other things: (i) a reduction in the applicable margin for loans under the Company’s Loan and Security Agreement; (ii) a consolidation of the previous $315.0 million revolver and $44.5 million term loan into a $365 million revolving credit facility; (iii) the removal of the Company’s real estate as collateral for borrowings; and (iv) the extension of the maturity date until June 30, 2019. Revolver borrowings are limited to the lesser of a borrowing base, comprised of eligible receivables and inventories, or $365 million in the aggregate. The ABL Credit Facility matures on June 30, 2019. | |||||||||
The ABL Credit Facility requires the Company to comply with various covenants, the most significant of which include: (i) until maturity of the ABL Credit Facility, 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 ($36.5 million at June 30, 2014) then the Company must maintain a ratio of EBITDA minus certain capital expenditures and cash taxes paid to fixed charges of at least 1.00 to 1.00 for the most recent twelve fiscal month period; (ii) limitations on dividend payments; and (iii) restrictions on additional indebtedness. 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 3.00%. | |||||||||
As of June 30, 2014, the Company was in compliance with its covenants and had approximately $126 million of availability under the ABL Credit Facility. | |||||||||
As of June 30, 2014, $3.7 million of bank financing fees, including $1.0 million related to the amended ABL Credit Facility, 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. | |||||||||
In June 2012, the Company entered into a forward starting fixed rate interest rate hedge that commenced June 2013, in order to eliminate the variability of cash interest payments on $53.2 million of then outstanding LIBOR-based borrowings under the ABL Credit Facility. The hedge matures on June 1, 2016 and the notional amount is reduced monthly by $729 thousand. The hedged balance as of June 30, 2014 was $44.5 million. The interest rate hedge fixed the rate at 1.21% plus a premium ranging from 1.75% to 2.25%. Although the Company is exposed to credit loss in the event of nonperformance by the other parties to the interest rate hedge agreement, the Company anticipates performance by the counterparties. | |||||||||
As part of the Chicago Tube and Iron Company (CTI) acquisition in July 2011, the Company assumed approximately $5.9 million of Industrial Revenue Bond (IRB) indebtedness issued through the Stanly County, North Carolina Industrial Revenue and Pollution Control Authority. The bond matures in April 2018, with the option to provide principal payments annually on April 1st. On April 1, 2014, the Company paid an optional principal payment of $810 thousand. The IRB is remarketed annually and is included in “Current portion of long-term debt” on the accompanying Consolidated Balance Sheets. Interest is payable monthly, with a variable rate that resets weekly. As a security for payment of the bonds, the Company obtained a direct pay letter of credit issued by JPMorgan Chase Bank, N.A. The letter of credit reduces annually by the principal reduction amount. The interest rate at June 30, 2014 was 0.15% for the IRB debt. | |||||||||
The Company entered into an interest rate swap agreement to reduce the impact of changes in interest rates on the above IRB. At June 30, 2014, the effect of the swap agreement on the bond was to fix the rate at 3.46%. The swap agreement matures in April 2018, and is reduced annually by the amount of the optional principal payments on the bond. The Company is exposed to credit loss in the event of nonperformance by the other parties to the interest rate swap agreement. However, the Company does not anticipate nonperformance by the counterparties. |
Note_6_Derivative_Instruments
Note 6 - Derivative Instruments | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | ||||||||||||||||
6. Derivative Instruments: | |||||||||||||||||
Metals swaps | |||||||||||||||||
During 2014 and 2013, the Company entered into nickel swaps indexed to the London Metal Exchange (LME) price of nickel with third-party brokers. In the first quarter of 2014, the Company entered into carbon swaps indexed to the New York Mercantile Exchange (NYMEX) price of U.S. Midwest Domestic Hot-Rolled Coil Steel with third-party brokers. The nickel and carbon swaps are treated as derivatives for accounting purposes. The Company entered into them to mitigate its customers’ risk of volatility in the price of metals. The outstanding nickel swaps have one to twenty-three months remaining and the outstanding carbon swaps have one to six months remaining. 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. 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. The metals swaps are included in “Accounts receivable, net”, and the embedded customer derivatives are included in “Other accrued liabilities” on the Consolidated Balance Sheets at June 30, 2014. The embedded customer derivatives were included in “Accounts receivable, net”, and the metals swaps are included in “Other accrued liabilities” on the Consolidated Balance Sheets at December 31, 2013. | |||||||||||||||||
Interest rate swap | |||||||||||||||||
CTI entered into an interest rate swap to reduce the impact of changes in interest rates on its IRB. The swap agreement matures in April 2018, the same time as the IRB, and is reduced annually by the amount of the optional principal payments on the IRB. The Company is exposed to credit loss in the event of nonperformance by the other parties to the interest rate swap agreement. However, the Company does not anticipate nonperformance by the counterparties. The interest rate swap is not treated as a hedge for accounting purposes. | |||||||||||||||||
The periodic changes in fair value of the interest rate swap and cash settlement amounts associated with the interest rate swap are included in “Interest and other expense on debt” in the Consolidated Statements of Comprehensive Income. | |||||||||||||||||
Fixed rate interest rate hedge | |||||||||||||||||
In June 2012, the Company entered into a forward starting fixed rate interest rate hedge commencing July 2013 in order to eliminate the variability of cash interest payments on $53.2 million of then outstanding LIBOR-based borrowings under the ABL Credit Facility. The hedged balance as of June 30, 2014 was $44.5 million. The hedge matures on June 1, 2016 and is reduced monthly by $729 thousand. The fixed rate interest rate hedge is accounted for as a cash flow hedging instrument for accounting purposes. | |||||||||||||||||
There was no net impact from the nickel swaps or embedded customer derivative agreements to the Company’s Consolidated Statements of Comprehensive Income for the three or six months ended June 30, 2014 and 2013. The table below shows the total impact to the Company’s Consolidated Statements of Comprehensive Income through net income of the derivatives for the three and six months ended June 30, 2014 and 2013. | |||||||||||||||||
Net Gain (Loss) Recognized | |||||||||||||||||
For the Three Months | For the Six Months | ||||||||||||||||
Ended June 30, | Ended June 30, | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest rate swap (CTI) | $ | (18 | ) | $ | (71 | ) | $ | (47 | ) | $ | (113 | ) | |||||
Fixed interest rate swap (ABL) | (121 | ) | (42 | ) | (245 | ) | (42 | ) | |||||||||
Metals swaps | 1,117 | (938 | ) | 1,772 | (1,015 | ) | |||||||||||
Embedded customer derivatives | (1,117 | ) | 938 | (1,772 | ) | 1,015 | |||||||||||
Total gain (loss) | $ | (139 | ) | $ | (113 | ) | $ | (292 | ) | $ | (155 | ) | |||||
Note_7_Fair_Value_of_Financial
Note 7 - Fair Value of Financial Instruments | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||
7. Fair Value of Financial Instruments: | |||||||||||||||||
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. | |||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is an exit price concept that assumes an orderly transaction between willing market participants. 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 input, of which the first two are considered observable and the last unobservable, as follows: | |||||||||||||||||
Level 1 – Quoted prices in active markets for identical assets and liabilities. | |||||||||||||||||
Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||||
Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||||||
During the six months ended June 30, 2014, 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 June 30, 2014 since December 31, 2013. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value as of June 30, 2014 and December 31, 2013: | |||||||||||||||||
Metals swaps and embedded customer derivatives – Determined by using Level 2 inputs that include the price of nickel indexed to the LME and the price of Hot Rolled Coil Steel indexed to the NYMEX. The fair value is determined based on quoted market prices and reflects the estimated amounts the Company would pay or receive to terminate the nickel swaps. | |||||||||||||||||
Interest rate swaps – Based on the present value of the expected future cash flows, considering the risks involved, and using discount rates appropriate for the maturity date. Market observable Level 2 inputs are used to determine the present value of future cash flows. | |||||||||||||||||
The following table presents 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 June 30, 2014 | |||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Metals swaps | $ | - | $ | 842 | $ | - | $ | 842 | |||||||||
Total assets at fair value | $ | - | $ | 842 | $ | - | $ | 842 | |||||||||
Liabilities: | |||||||||||||||||
Embedded customer derivative | $ | - | $ | 842 | $ | - | $ | 842 | |||||||||
Interest rate swap (CTI) | - | 232 | - | 232 | |||||||||||||
Fixed interest rate swap (ABL) | - | 586 | - | 586 | |||||||||||||
Total liabilities recorded at fair value | $ | - | $ | 1,660 | $ | - | $ | 1,660 | |||||||||
Value of Items Not Recorded at Fair Value | |||||||||||||||||
As of June 30, 2014 | |||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | |||||||||||||||||
IRB | $ | 3,530 | $ | - | $ | - | $ | 3,530 | |||||||||
ABL Credit Facility | - | 233,783 | - | 233,783 | |||||||||||||
Total liabilities not recorded at fair value | $ | 3,530 | $ | 233,783 | $ | - | $ | 237,313 | |||||||||
The value of the items not recorded at fair value represent the carrying value of the liabilities. | |||||||||||||||||
Value of Items Recorded at Fair Value | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Embedded customer derivative | $ | - | $ | 614 | $ | - | $ | 614 | |||||||||
Total assets at fair value | $ | - | $ | 614 | $ | - | $ | 614 | |||||||||
Liabilities: | |||||||||||||||||
Metals swaps | $ | - | $ | 614 | $ | - | $ | 614 | |||||||||
Interest rate swap (CTI) | - | 279 | - | 279 | |||||||||||||
Fixed interest rate swap (ABL) | - | 710 | - | 710 | |||||||||||||
Total liabilities recorded at fair value | $ | - | $ | 1,603 | $ | - | $ | 1,603 | |||||||||
Value of Items Not Recorded at Fair Value | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | |||||||||||||||||
IRB | $ | 4,340 | $ | - | $ | - | $ | 4,340 | |||||||||
Term loan | - | 48,854 | - | 48,854 | |||||||||||||
ABL Credit Facility | - | 146,075 | - | 146,075 | |||||||||||||
Total liabilities not recorded at fair value | $ | 4,340 | $ | 194,929 | $ | - | $ | 199,269 | |||||||||
The value of the items not recorded at fair value represent the carrying value of the liabilities. | |||||||||||||||||
The fair value of the IRB is determined using Level 1 inputs. The carrying value and the fair value of the IRB that qualify as financial instruments were $3.5 million at June 30, 2014 and $4.3 million at December 31, 2013. | |||||||||||||||||
The fair values of the revolver and term loan are determined using Level 2 inputs. The carrying value of the revolver was $233.8 million at June 30, 2014. The carrying value of the revolver and the term loan were $146.1 million and $48.9 million, respectively, at December 31, 2013. The Level 2 fair value of the Company's long-term debt was estimated using prevailing market interest rates on debt with similar credit worthiness, terms and maturities. |
Note_8_Equity_Plans
Note 8 - Equity Plans | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
8. Equity Plans: | |||||||||||||||||
Stock Options | |||||||||||||||||
The following table summarizes stock option activity during the six months ended June 30, 2014: | |||||||||||||||||
Weighted Average | Aggregate Intrinsic | ||||||||||||||||
Number of | Weighted Average | Remaining | Value | ||||||||||||||
Options | Exercise Price | Contractual Term | (in thousands) | ||||||||||||||
Outstanding at December 31, 2013 | 27,172 | $ | 27.4 | ||||||||||||||
Granted | - | - | |||||||||||||||
Exercised | (7,000 | ) | 12.32 | ||||||||||||||
Canceled | - | - | |||||||||||||||
Outstanding at June 30, 2014 | 20,172 | $ | 32.63 | 2.8 (in years) | $ | - | |||||||||||
Exercisable at June 30, 2014 | 20,172 | $ | 32.63 | 2.8 (in years) | $ | - | |||||||||||
There were 7,000 and 11,667 stock options exercised during the six months ended June 30, 2014 and 2013, respectively. The total intrinsic value of stock options exercised during the six months ended June 30, 2014 and 2013 was $103 thousand $218 thousand, respectively. All stock options outstanding are vested as of June 30, 2014. | |||||||||||||||||
Restricted Stock Units and Performance Share Units | |||||||||||||||||
Pursuant to the Olympic Steel 2007 Omnibus Incentive Plan (Plan), the Company may grant stock options, stock appreciation rights, restricted shares, restricted share units, performance shares, and other stock- and cash-based awards to employees and Directors of, and consultants to, the Company and its affiliates. Under the Plan, 500,000 shares of common stock are available for equity grants. | |||||||||||||||||
On March 1, 2014 and January 2, 2013, the Compensation Committee of the Company’s Board of Directors approved the grant of 2,544 and 1,800 restricted stock units (RSUs) to each non-employee Director. Subject to the terms of the Plan and the RSU agreement, the RSUs vest after one year of service (from the date of grant). The RSUs are not converted into shares of common stock until the director either resigns or is terminated from the Board of Directors. | |||||||||||||||||
The fair value of each RSU was estimated to be the closing price of the Company’s common stock on the date of the grant, which was $27.51 and $23.41 for the grants on March 1, 2014 and January 2, 2013, respectively. | |||||||||||||||||
The Company’s Senior Management Compensation Program includes an equity component in order to encourage more ownership of common stock by the senior management. The Senior Management Compensation Program imposes stock ownership requirements upon the participants. Each participant is required to own at least 750 shares of common stock for each year that the participant participates in the Senior Management Compensation Program. Any participant that fails to meet to the stock ownership requirements will be ineligible to receive any equity awards under the Company’s equity compensation plans, including the Plan, until the participant satisfies the ownership requirements. To assist participants in meeting the stock ownership requirements, on an annual basis, if a participant purchases 500 shares of common stock on the open market, the Company will award that participant 250 shares of common stock. During the six months ended June 30, 2014 and 2013, the Company matched 7,250 and 6,000 shares, respectively. Additionally, any participant who continues to comply with the stock ownership requirements as of the five-year, 10-year, 15-year, 20-year and 25-year anniversaries of the participant’s participation in the Senior Management Compensation Program will receive a restricted stock unit award with a dollar value of $25 thousand, $50 thousand, $75 thousand, $100 thousand and $100 thousand, respectively. Restricted stock unit awards will convert into the right to receive shares of common stock upon a participant’s retirement, or earlier upon the participant’s death or disability or upon a change in control of the Company. | |||||||||||||||||
Stock-based compensation expense recognized on RSUs for the six months ended June 30, 2014 and 2013, respectively, is summarized in the following table: | |||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
RSU expense before taxes | $ | 268 | $ | 205 | $ | 521 | $ | 449 | |||||||||
RSU expense after taxes | $ | 176 | $ | 120 | $ | 333 | $ | 283 | |||||||||
Impact per basic share | $ | 0.02 | $ | 0.01 | $ | 0.03 | $ | 0.03 | |||||||||
Impact per diluted share | $ | 0.02 | $ | 0.01 | $ | 0.03 | $ | 0.03 | |||||||||
All pre-tax charges related to RSUs were included in the caption “Administrative and general” on the accompanying Consolidated Statements of Comprehensive Income. | |||||||||||||||||
The following table summarizes the activity related to RSUs for the six months ended June 30, 2014: | |||||||||||||||||
Aggregate | |||||||||||||||||
Number of | Weighted Average | Intrinsic Value | |||||||||||||||
Shares | Granted Price | (in thousands) | |||||||||||||||
Outstanding at December 31, 2013 | 230,958 | $ | 25.44 | ||||||||||||||
Granted | 34,226 | 27.69 | |||||||||||||||
Converted into shares | (1,250 | ) | 23.56 | ||||||||||||||
Forfeited | - | - | |||||||||||||||
Outstanding at June 30, 2014 | 263,934 | $ | 25.74 | $ | 286 | ||||||||||||
Vested at June 30, 2014 | 220,728 | $ | 26.08 | $ | 211 | ||||||||||||
During the six months ended June 30, 2014, 1,250 RSUs were converted into shares. No RSUs were converted into shares during the six months ended June 30, 2013. |
Note_9_Income_Taxes
Note 9 - Income Taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
9. Income Taxes: | |
For the three months ended June 30, 2014, the Company recorded an income tax provision of $1.8 million, or 34.4%, compared to $1.8 million, or 41.5%, for the three months ended June 30, 2013. | |
For the six months ended June 30, 2014, the Company recorded an income tax provision of $3.5 million, or 36.0%, compared to $4.5 million, or 37.1%, for the six months ended June 30, 2013. The lower effective tax rate for the three and six months ended June 30, 2014 was a result of a discrete foreign income tax item recorded in the second quarter of 2014 and the impact of permanent items on higher taxable income. | |
Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items that are taken into account in the relevant period. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. | |
Our quarterly tax provision and our quarterly estimate of our annual effective tax rate is subject to significant volatility due to several factors, including variability in accurately predicting our pre-tax and taxable income and loss and the mix of jurisdictions to which they relate, changes in law and relative changes of expenses or losses for which tax benefits are not recognized. Additionally, our effective tax rate can be more or less volatile based on the amount of pre-tax income. For example, the impact of discrete items and non-deductible expenses on our effective tax rate is greater when our pre-tax income is lower. |
Note_10_Shares_Outstanding_and
Note 10 - Shares Outstanding and Earnings Per Share | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings per share: [Abstract] | ' | ||||||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||||||
10. 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 Three Months Ended | For the Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Weighted average basic shares outstanding | 11,089 | 11,062 | 11,089 | 11,059 | |||||||||||||
Assumed exercise of stock options and issuance of stock awards | - | 10 | 1 | 8 | |||||||||||||
Weighted average diluted shares outstanding | 11,089 | 11,072 | 11,090 | 11,067 | |||||||||||||
Net income | $ | 3,494 | $ | 2,525 | $ | 6,271 | $ | 7,689 | |||||||||
Basic earnings per share | $ | 0.32 | $ | 0.23 | $ | 0.57 | $ | 0.7 | |||||||||
Diluted earnings per share | $ | 0.32 | $ | 0.23 | $ | 0.57 | $ | 0.69 | |||||||||
Anti-dilutive securities outstanding | 200 | 199 | 200 | 199 | |||||||||||||
Note_11_Segment_Information
Note 11 - Segment Information | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||
11. 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. Our CODM evaluates performance and allocates resources based primarily on operating income (loss). Our operating segments are based primarily on internal management reporting. | |||||||||||||||||
The Company operates in two reportable segments: flat products and tubular and pipe products. Through its flat products segment, the Company sells and distributes large volumes of processed carbon, coated, aluminum and stainless flat-rolled sheet, coil and plate products. Through its tubular and pipe products segment, the Company distributes metal tubing, pipe, bar, valve and fittings and fabricates pressure parts supplied to various industrial markets. | |||||||||||||||||
Corporate expenses are reported as a separate line item in the segment reporting. Corporate expenses include the unallocated expenses related to managing the entire Company (i.e., both 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. | |||||||||||||||||
The following table provides financial information by segment and reconciles the Company’s operating income by segment to the consolidated income before income taxes for the three and six months ended June 30, 2014 and 2013. | |||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales | |||||||||||||||||
Flat products | $ | 320,205 | $ | 267,444 | $ | 606,058 | $ | 543,192 | |||||||||
Tubular and pipe products | 65,842 | 63,360 | 126,902 | 125,676 | |||||||||||||
Total net sales | $ | 386,047 | $ | 330,804 | $ | 732,960 | $ | 668,868 | |||||||||
Depreciation and amortization | |||||||||||||||||
Flat products | $ | 4,231 | $ | 4,243 | $ | 8,449 | $ | 8,485 | |||||||||
Tubular and pipe products | 1,432 | 1,280 | 2,866 | 2,553 | |||||||||||||
Corporate | 25 | - | 50 | - | |||||||||||||
Total depreciation and amortization | $ | 5,688 | $ | 5,523 | $ | 11,365 | $ | 11,038 | |||||||||
Operating income | |||||||||||||||||
Flat products | $ | 6,415 | $ | 4,999 | $ | 11,263 | $ | 9,804 | |||||||||
Tubular and pipe products | 2,853 | 3,009 | 6,290 | 9,769 | |||||||||||||
Corporate | (2,160 | ) | (1,984 | ) | (4,216 | ) | (3,968 | ) | |||||||||
Total operating income | $ | 7,108 | $ | 6,024 | $ | 13,337 | $ | 15,605 | |||||||||
Other income (loss), net | (4 | ) | (41 | ) | (2 | ) | (17 | ) | |||||||||
Income before interest and income taxes | 7,104 | 5,983 | 13,335 | 15,588 | |||||||||||||
Interest and other expense on debt | 1,779 | 1,668 | 3,532 | 3,366 | |||||||||||||
Income before income taxes | $ | 5,325 | $ | 4,315 | $ | 9,803 | $ | 12,222 | |||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Capital expenditures | |||||||||||||||||
Flat products | $ | 2,214 | $ | 717 | $ | 3,230 | $ | 1,396 | |||||||||
Tubular and pipe products | 552 | 1,348 | 1,873 | 2,383 | |||||||||||||
Corporate | 17 | - | 21 | - | |||||||||||||
Total capital expenditures | $ | 2,783 | $ | 2,065 | $ | 5,124 | $ | 3,779 | |||||||||
As of | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
(in thouands) | 2014 | 2013 | |||||||||||||||
Goodwill | |||||||||||||||||
Flat products | $ | 500 | $ | 500 | |||||||||||||
Tubular and pipe products | 40,287 | 40,287 | |||||||||||||||
Total goodwill | $ | 40,787 | $ | 40,787 | |||||||||||||
Assets | |||||||||||||||||
Flat products | $ | 530,719 | $ | 473,397 | |||||||||||||
Tubular and pipe products | 233,103 | 223,314 | |||||||||||||||
Corporate | 609 | 638 | |||||||||||||||
Total assets | $ | 764,431 | $ | 697,349 | |||||||||||||
There were no material revenue transactions between the flat products and tubular and pipe products segments. | |||||||||||||||||
The Company sells certain products internationally, primarily in Canada, Puerto Rico and Mexico. International sales are immaterial to the consolidated financial results and to the individual segments’ results. |
Note_12_Recently_Issued_Accoun
Note 12 - Recently Issued Accounting Updates | 6 Months Ended |
Jun. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ' |
12. Recently Issued Accounting Updates: | |
In May 2014, the Financial Accounting Standards Board issued ASU No. 2014-09, “Revenue from Contracts with Customers.” This ASU is a joint project initiated by the Financial Accounting Standards Board and the International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. generally accepted accounting principles and International Financial Reporting Standards that will remove inconsistencies and weaknesses in revenue requirements; provide a more robust framework for addressing revenue issues; improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets; provide more useful information to users of financial statements through improved disclosure requirements; and simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is in the process of determining the method of adoption and assessing the impact of this ASU on its consolidated financial statements. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Consolidation, Policy [Policy Text Block] | ' |
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), without audit and reflect all normal and recurring adjustments which are, in the opinion of management, necessary to fairly state the results of the interim periods covered by this report. Year-to-date results are not necessarily indicative of 2014 annual results and these financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. All significant intercompany transactions and balances have been eliminated in consolidation. | |
Segment Reporting, Policy [Policy Text Block] | ' |
The Company operates in two reportable segments; flat products and tubular and pipe products. Through its flat products segment, the Company sells and distributes large volumes of processed carbon, coated, aluminum and stainless flat-rolled sheet, coil and plate products. Through its tubular and pipe products segment, the Company distributes metal tubing, pipe, bar, valve and fittings and fabricates pressure parts supplied to various industrial markets. | |
Corporate expenses are reported as a separate line item in the segment reporting. Corporate expenses include the unallocated expenses related to managing the entire Company (i.e., both 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. |
Note_3_Inventories_Tables
Note 3 - Inventories (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
Inventory as of | |||||||||
(in thousands) | 30-Jun-14 | 31-Dec-13 | |||||||
Unprocessed | $ | 234,232 | $ | 219,401 | |||||
Processed and finished | 76,722 | 66,970 | |||||||
Totals | $ | 310,954 | $ | 286,371 |
Note_4_Intangible_Assets_Table
Note 4 - Intangible Assets (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||
Schedule of Finite and Indefinite Lived Intangible Assets [Table Text Block] | ' | ||||||||||||
As of June 30, 2014 | |||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Intangible Assets, Net | ||||||||||
Customer relationships - subject to amortization | $ | 13,332 | $ | (2,666 | ) | $ | 10,666 | ||||||
Trade name - not subject to amortization | 23,425 | - | 23,425 | ||||||||||
$ | 36,757 | $ | (2,666 | ) | $ | 34,091 | |||||||
As of December 31, 2013 | |||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Intangible Assets, Net | ||||||||||
Customer relationships - subject to amortization | $ | 13,332 | $ | (2,222 | ) | $ | 11,110 | ||||||
Trade name - not subject to amortization | 23,425 | - | 23,425 | ||||||||||
$ | 36,757 | $ | (2,222 | ) | $ | 34,535 |
Note_5_Debt_Tables
Note 5 - Debt (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Debt [Table Text Block] | ' | ||||||||
As of | |||||||||
June 30, | December 31, | ||||||||
(in thousands) | 2014 | 2013 | |||||||
Asset-based revolving credit facility due June 30, 2019 | $ | 233,783 | $ | - | |||||
Asset-based revolving credit facility due June 30, 2016 | - | 146,075 | |||||||
Term loan due June 30, 2016 | - | 48,854 | |||||||
Industrial revenue bond due April 1, 2018 | 3,530 | 4,340 | |||||||
Total debt | 237,313 | 199,269 | |||||||
Less current amount | (3,530 | ) | (13,090 | ) | |||||
Total long-term debt | $ | 233,783 | $ | 186,179 |
Note_6_Derivative_Instruments_
Note 6 - Derivative Instruments (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||
Net Gain (Loss) Recognized | |||||||||||||||||
For the Three Months | For the Six Months | ||||||||||||||||
Ended June 30, | Ended June 30, | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest rate swap (CTI) | $ | (18 | ) | $ | (71 | ) | $ | (47 | ) | $ | (113 | ) | |||||
Fixed interest rate swap (ABL) | (121 | ) | (42 | ) | (245 | ) | (42 | ) | |||||||||
Metals swaps | 1,117 | (938 | ) | 1,772 | (1,015 | ) | |||||||||||
Embedded customer derivatives | (1,117 | ) | 938 | (1,772 | ) | 1,015 | |||||||||||
Total gain (loss) | $ | (139 | ) | $ | (113 | ) | $ | (292 | ) | $ | (155 | ) |
Note_7_Fair_Value_of_Financial1
Note 7 - Fair Value of Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||||
Value of Items Recorded at Fair Value | |||||||||||||||||
As of June 30, 2014 | |||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Metals swaps | $ | - | $ | 842 | $ | - | $ | 842 | |||||||||
Total assets at fair value | $ | - | $ | 842 | $ | - | $ | 842 | |||||||||
Liabilities: | |||||||||||||||||
Embedded customer derivative | $ | - | $ | 842 | $ | - | $ | 842 | |||||||||
Interest rate swap (CTI) | - | 232 | - | 232 | |||||||||||||
Fixed interest rate swap (ABL) | - | 586 | - | 586 | |||||||||||||
Total liabilities recorded at fair value | $ | - | $ | 1,660 | $ | - | $ | 1,660 | |||||||||
Value of Items Recorded at Fair Value | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | |||||||||||||||||
Embedded customer derivative | $ | - | $ | 614 | $ | - | $ | 614 | |||||||||
Total assets at fair value | $ | - | $ | 614 | $ | - | $ | 614 | |||||||||
Liabilities: | |||||||||||||||||
Metals swaps | $ | - | $ | 614 | $ | - | $ | 614 | |||||||||
Interest rate swap (CTI) | - | 279 | - | 279 | |||||||||||||
Fixed interest rate swap (ABL) | - | 710 | - | 710 | |||||||||||||
Total liabilities recorded at fair value | $ | - | $ | 1,603 | $ | - | $ | 1,603 | |||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | ||||||||||||||||
Value of Items Not Recorded at Fair Value | |||||||||||||||||
As of June 30, 2014 | |||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | |||||||||||||||||
IRB | $ | 3,530 | $ | - | $ | - | $ | 3,530 | |||||||||
ABL Credit Facility | - | 233,783 | - | 233,783 | |||||||||||||
Total liabilities not recorded at fair value | $ | 3,530 | $ | 233,783 | $ | - | $ | 237,313 | |||||||||
Value of Items Not Recorded at Fair Value | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | |||||||||||||||||
IRB | $ | 4,340 | $ | - | $ | - | $ | 4,340 | |||||||||
Term loan | - | 48,854 | - | 48,854 | |||||||||||||
ABL Credit Facility | - | 146,075 | - | 146,075 | |||||||||||||
Total liabilities not recorded at fair value | $ | 4,340 | $ | 194,929 | $ | - | $ | 199,269 |
Note_8_Equity_Plans_Tables
Note 8 - Equity Plans (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||
Weighted Average | Aggregate Intrinsic | ||||||||||||||||
Number of | Weighted Average | Remaining | Value | ||||||||||||||
Options | Exercise Price | Contractual Term | (in thousands) | ||||||||||||||
Outstanding at December 31, 2013 | 27,172 | $ | 27.4 | ||||||||||||||
Granted | - | - | |||||||||||||||
Exercised | (7,000 | ) | 12.32 | ||||||||||||||
Canceled | - | - | |||||||||||||||
Outstanding at June 30, 2014 | 20,172 | $ | 32.63 | 2.8 (in years) | $ | - | |||||||||||
Exercisable at June 30, 2014 | 20,172 | $ | 32.63 | 2.8 (in years) | $ | - | |||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
RSU expense before taxes | $ | 268 | $ | 205 | $ | 521 | $ | 449 | |||||||||
RSU expense after taxes | $ | 176 | $ | 120 | $ | 333 | $ | 283 | |||||||||
Impact per basic share | $ | 0.02 | $ | 0.01 | $ | 0.03 | $ | 0.03 | |||||||||
Impact per diluted share | $ | 0.02 | $ | 0.01 | $ | 0.03 | $ | 0.03 | |||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | ||||||||||||||||
Aggregate | |||||||||||||||||
Number of | Weighted Average | Intrinsic Value | |||||||||||||||
Shares | Granted Price | (in thousands) | |||||||||||||||
Outstanding at December 31, 2013 | 230,958 | $ | 25.44 | ||||||||||||||
Granted | 34,226 | 27.69 | |||||||||||||||
Converted into shares | (1,250 | ) | 23.56 | ||||||||||||||
Forfeited | - | - | |||||||||||||||
Outstanding at June 30, 2014 | 263,934 | $ | 25.74 | $ | 286 | ||||||||||||
Vested at June 30, 2014 | 220,728 | $ | 26.08 | $ | 211 |
Note_10_Shares_Outstanding_and1
Note 10 - Shares Outstanding and Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Earnings per share: [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands, except per share data) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Weighted average basic shares outstanding | 11,089 | 11,062 | 11,089 | 11,059 | |||||||||||||
Assumed exercise of stock options and issuance of stock awards | - | 10 | 1 | 8 | |||||||||||||
Weighted average diluted shares outstanding | 11,089 | 11,072 | 11,090 | 11,067 | |||||||||||||
Net income | $ | 3,494 | $ | 2,525 | $ | 6,271 | $ | 7,689 | |||||||||
Basic earnings per share | $ | 0.32 | $ | 0.23 | $ | 0.57 | $ | 0.7 | |||||||||
Diluted earnings per share | $ | 0.32 | $ | 0.23 | $ | 0.57 | $ | 0.69 | |||||||||
Anti-dilutive securities outstanding | 200 | 199 | 200 | 199 |
Note_11_Segment_Information_Ta
Note 11 - Segment Information (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales | |||||||||||||||||
Flat products | $ | 320,205 | $ | 267,444 | $ | 606,058 | $ | 543,192 | |||||||||
Tubular and pipe products | 65,842 | 63,360 | 126,902 | 125,676 | |||||||||||||
Total net sales | $ | 386,047 | $ | 330,804 | $ | 732,960 | $ | 668,868 | |||||||||
Depreciation and amortization | |||||||||||||||||
Flat products | $ | 4,231 | $ | 4,243 | $ | 8,449 | $ | 8,485 | |||||||||
Tubular and pipe products | 1,432 | 1,280 | 2,866 | 2,553 | |||||||||||||
Corporate | 25 | - | 50 | - | |||||||||||||
Total depreciation and amortization | $ | 5,688 | $ | 5,523 | $ | 11,365 | $ | 11,038 | |||||||||
Operating income | |||||||||||||||||
Flat products | $ | 6,415 | $ | 4,999 | $ | 11,263 | $ | 9,804 | |||||||||
Tubular and pipe products | 2,853 | 3,009 | 6,290 | 9,769 | |||||||||||||
Corporate | (2,160 | ) | (1,984 | ) | (4,216 | ) | (3,968 | ) | |||||||||
Total operating income | $ | 7,108 | $ | 6,024 | $ | 13,337 | $ | 15,605 | |||||||||
Other income (loss), net | (4 | ) | (41 | ) | (2 | ) | (17 | ) | |||||||||
Income before interest and income taxes | 7,104 | 5,983 | 13,335 | 15,588 | |||||||||||||
Interest and other expense on debt | 1,779 | 1,668 | 3,532 | 3,366 | |||||||||||||
Income before income taxes | $ | 5,325 | $ | 4,315 | $ | 9,803 | $ | 12,222 | |||||||||
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | ' | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Capital expenditures | |||||||||||||||||
Flat products | $ | 2,214 | $ | 717 | $ | 3,230 | $ | 1,396 | |||||||||
Tubular and pipe products | 552 | 1,348 | 1,873 | 2,383 | |||||||||||||
Corporate | 17 | - | 21 | - | |||||||||||||
Total capital expenditures | $ | 2,783 | $ | 2,065 | $ | 5,124 | $ | 3,779 | |||||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | ' | ||||||||||||||||
As of | |||||||||||||||||
June 30, | December 31, | ||||||||||||||||
(in thouands) | 2014 | 2013 | |||||||||||||||
Goodwill | |||||||||||||||||
Flat products | $ | 500 | $ | 500 | |||||||||||||
Tubular and pipe products | 40,287 | 40,287 | |||||||||||||||
Total goodwill | $ | 40,787 | $ | 40,787 | |||||||||||||
Assets | |||||||||||||||||
Flat products | $ | 530,719 | $ | 473,397 | |||||||||||||
Tubular and pipe products | 233,103 | 223,314 | |||||||||||||||
Corporate | 609 | 638 | |||||||||||||||
Total assets | $ | 764,431 | $ | 697,349 |
Supplemental_Disclosure_of_Cas1
Supplemental Disclosure of Cash Flow Information (Unaudited) (Details) - Disclosure of Supplemental Cash Flow Information (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Disclosure of Supplemental Cash Flow Information [Abstract] | ' | ' |
Interest paid | $3,015 | $2,775 |
Income taxes paid | $2,427 | $3,759 |
Note_1_Basis_of_Presentation_D
Note 1 - Basis of Presentation (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Disclosure Text Block [Abstract] | ' |
Number of Reportable Segments | 2 |
Note_2_Accounts_Receivable_Det
Note 2 - Accounts Receivable (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | $3.40 | $3.20 |
Note_3_Inventories_Details
Note 3 - Inventories (Details) (USD $) | 3 Months Ended | 3 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Mar. 31, 2013 | |
Previously Unrecognized LIFO Income [Member] | ||||
After-tax [Member] | ||||
Note 3 - Inventories (Details) [Line Items] | ' | ' | ' | ' |
LIFO Inventory Amount | $44,100,000 | ' | $43,900,000 | ' |
Percentage of LIFO Inventory | 14.20% | ' | 15.30% | ' |
Inventory, LIFO Reserve, Period Charge | -400,000 | 375,000 | ' | ' |
Inventory, LIFO Reserve, Effect on Income, Net | ' | ' | ' | 1,200,000 |
Inventory Difference Using FIFO Basis | $3,200,000 | ' | $3,600,000 | ' |
Note_3_Inventories_Details_Ste
Note 3 - Inventories (Details) - Steel Inventories (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Steel Inventories [Abstract] | ' | ' |
Unprocessed | $234,232 | $219,401 |
Processed and finished | 76,722 | 66,970 |
Totals | $310,954 | $286,371 |
Note_4_Intangible_Assets_Detai
Note 4 - Intangible Assets (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Disclosure Text Block [Abstract] | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year One | $889 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 889 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 889 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 889 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $889 |
Note_4_Intangible_Assets_Detai1
Note 4 - Intangible Assets (Details) - Intangible Assets, Net (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Note 4 - Intangible Assets (Details) - Intangible Assets, Net [Line Items] | ' | ' |
Customer Relationships, Accumulated Amortization | ($2,666) | ($2,222) |
Gross Carrying Amount | 36,757 | 36,757 |
Accumulated Amortization | -2,666 | -2,222 |
Intangible Assets, Net | 34,091 | 34,535 |
Trade Names [Member] | ' | ' |
Note 4 - Intangible Assets (Details) - Intangible Assets, Net [Line Items] | ' | ' |
Trade Name, Gross Carrying Amount | 23,425 | 23,425 |
Trade Name, Intangible Assets, Net | 23,425 | 23,425 |
Customer Relationships [Member] | ' | ' |
Note 4 - Intangible Assets (Details) - Intangible Assets, Net [Line Items] | ' | ' |
Customer Relationships, Gross Carrying Amount | 13,332 | 13,332 |
Customer Relationships, Accumulated Amortization | -2,666 | -2,222 |
Customer Relationships, Intangible Assets, Net | 10,666 | 11,110 |
Accumulated Amortization | ($2,666) | ($2,222) |
Note_5_Debt_Details
Note 5 - Debt (Details) (USD $) | 6 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jul. 31, 2011 | Jun. 30, 2014 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Apr. 01, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Availability Dollar Amount [Member] | Term Loan [Member] | Industrial Revenue Bond [Member] | Industrial Revenue Bond [Member] | Term Loan [Member] | Term Loan [Member] | Interest Rate Swap [Member] | Asset-Based Revolving Credit Facility Due June 30, 2016 [Member] | Asset-Based Revolving Credit Facility Due June 30, 2019 [Member] | Asset-Based Revolving Credit Facility Due June 30, 2019 [Member] | Asset-Based Revolving Credit Facility Due June 30, 2019 [Member] | Asset-Based Revolving Credit Facility Due June 30, 2019 [Member] | Asset-Based Revolving Credit Facility Due June 30, 2019 [Member] | Amortized Banking Fees [Member] | Amortized Banking Fees [Member] | ABL Credit Facility [Member] | ABL Credit Facility [Member] | Asset-Based Revolving Credit Facility Due June 30, 2019 [Member] | Minimum [Member] | Maximum [Member] | |||
Asset-Based Revolving Credit Facility Due June 30, 2019 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Chicago Tube and Iron Company Acquisition [Member] | Chicago Tube and Iron Company Acquisition [Member] | London Interbank Offered Rate (LIBOR) [Member] | ABL Credit Facility [Member] | ABL Credit Facility [Member] | Base Rate [Member] | Base Rate [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | ABL Credit Facility [Member] | ABL Credit Facility [Member] | ||||||||||
ABL Credit Facility [Member] | ABL Credit Facility [Member] | ABL Credit Facility [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||||||
ABL Credit Facility [Member] | ABL Credit Facility [Member] | ABL Credit Facility [Member] | ABL Credit Facility [Member] | |||||||||||||||||||
Note 5 - Debt (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | $315,000,000 | ' | ' | ' | ' | $365,000,000 | ' | ' | ' | ' | ' | ' | ' |
Other Long-term Debt | ' | ' | ' | ' | ' | ' | ' | 44,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Current Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 365,000,000 | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility Covenant Terms Monetary | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Covenant Terms, Percentage of Revolver Commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' |
Balance Required for Compliance with Revolver Commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,500,000 | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility Covenant Terms EBITDA Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.25% | 1.25% | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Remaining Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 126,000,000 | ' | ' | ' |
Prepaid Expense and Other Assets, Current | 9,880,000 | 12,786,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 3,700,000 | ' | ' | ' | ' | ' |
Amortization Term, Deferred Financing Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' |
Long-term Line of Credit | ' | ' | ' | 53,200,000 | ' | ' | 53,200,000 | ' | 44,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed Rate Interest Hedge, Notional Monthly Decrease | ' | ' | ' | ' | ' | ' | ' | ' | 729,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Fixed Interest Rate | 1.21% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Premium Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | 2.25% |
Business Combination, Consideration Transferred, Liabilities Incurred | ' | ' | ' | ' | 5,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Periodic Payment, Principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $810,000 | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage | ' | ' | ' | ' | ' | 0.15% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of Swap Interest Rate Agreement | 3.46% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_5_Debt_Details_Debt
Note 5 - Debt (Details) - Debt (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Note 5 - Debt (Details) - Debt [Line Items] | ' | ' |
Asset-based revolving credit facility | $233,783 | $146,075 |
Total debt | 237,313 | 199,269 |
Less current amount | -3,530 | -13,090 |
Total long-term debt | 233,783 | 186,179 |
Term Loan [Member] | ' | ' |
Note 5 - Debt (Details) - Debt [Line Items] | ' | ' |
Debt | ' | 48,854 |
Industrial Revenue Bond [Member] | ' | ' |
Note 5 - Debt (Details) - Debt [Line Items] | ' | ' |
Debt | 3,530 | 4,340 |
Asset-Based Revolving Credit Facility Due June 30, 2019 [Member] | ' | ' |
Note 5 - Debt (Details) - Debt [Line Items] | ' | ' |
Asset-based revolving credit facility | 233,783 | ' |
Asset-Based Revolving Credit Facility Due June 30, 2016 [Member] | ' | ' |
Note 5 - Debt (Details) - Debt [Line Items] | ' | ' |
Asset-based revolving credit facility | ' | $146,075 |
Note_6_Derivative_Instruments_1
Note 6 - Derivative Instruments (Details) (USD $) | 6 Months Ended | 6 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2012 | Jun. 30, 2014 | |
Nickel Swaps [Member] | Nickel Swaps [Member] | Carbon Swaps [Member] | Carbon Swaps [Member] | Interest Rate Swap [Member] | Term Loan [Member] | Interest Rate Swap [Member] | |
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
ABL Credit Facility [Member] | |||||||
Note 6 - Derivative Instruments (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Derivative, Remaining Maturity | '1 month | '23 months | '1 month | '6 months | ' | ' | ' |
Long-term Line of Credit (in Dollars) | ' | ' | ' | ' | ' | $53,200,000 | $44,500,000 |
Fixed Rate Interest Hedge, Notional Monthly Decrease (in Dollars) | ' | ' | ' | ' | $729,000 | ' | $729,000 |
Note_6_Derivative_Instruments_2
Note 6 - Derivative Instruments (Details) - Impact to Consolidated Statements of Operations of Derivatives (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Note 6 - Derivative Instruments (Details) - Impact to Consolidated Statements of Operations of Derivatives [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives | ($139) | ($113) | ($292) | ($155) |
Interest Rate Swap [Member] | ABL Credit Facility [Member] | ' | ' | ' | ' |
Note 6 - Derivative Instruments (Details) - Impact to Consolidated Statements of Operations of Derivatives [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives | -121 | -42 | -245 | -42 |
Interest Rate Swap [Member] | Chicago Tube and Iron Company Acquisition [Member] | ' | ' | ' | ' |
Note 6 - Derivative Instruments (Details) - Impact to Consolidated Statements of Operations of Derivatives [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives | -18 | -71 | -47 | -113 |
Metals Swap [Member] | ' | ' | ' | ' |
Note 6 - Derivative Instruments (Details) - Impact to Consolidated Statements of Operations of Derivatives [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives | 1,117 | -938 | 1,772 | -1,015 |
Embedded Derivative Financial Instruments [Member] | ' | ' | ' | ' |
Note 6 - Derivative Instruments (Details) - Impact to Consolidated Statements of Operations of Derivatives [Line Items] | ' | ' | ' | ' |
Gain (loss) on derivatives | ($1,117) | $938 | ($1,772) | $1,015 |
Note_7_Fair_Value_of_Financial2
Note 7 - Fair Value of Financial Instruments (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Industrial Revenue Bond [Member] | ' | ' |
Note 7 - Fair Value of Financial Instruments (Details) [Line Items] | ' | ' |
Long-term Debt, Fair Value | $3.50 | $4.30 |
Term Loan [Member] | ' | ' |
Note 7 - Fair Value of Financial Instruments (Details) [Line Items] | ' | ' |
Long-term Debt, Fair Value | ' | 48.9 |
Revolving Credit Facility [Member] | ' | ' |
Note 7 - Fair Value of Financial Instruments (Details) [Line Items] | ' | ' |
Long-term Debt, Fair Value | $233.80 | $146.10 |
Note_7_Fair_Value_of_Financial3
Note 7 - Fair Value of Financial Instruments (Details) - Fair Value Measurements, Recorded (Fair Value, Measurements, Recurring [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Total assets at fair value | $842 | $614 |
Liabilities: | ' | ' |
Embedded customer derivatives | 842 | 614 |
Total liabilities at fair value | 1,660 | 1,603 |
Fair Value, Inputs, Level 2 [Member] | Metals Swap [Member] | ' | ' |
Assets: | ' | ' |
Metals swaps | 842 | 614 |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | ABL Credit Facility [Member] | ' | ' |
Liabilities: | ' | ' |
Interest rate swap | 586 | 710 |
Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | Chicago Tube and Iron Company Acquisition [Member] | ' | ' |
Liabilities: | ' | ' |
Interest rate swap | 232 | 279 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Total assets at fair value | 842 | 614 |
Liabilities: | ' | ' |
Embedded customer derivatives | 842 | 614 |
Total liabilities at fair value | 1,660 | 1,603 |
Metals Swap [Member] | ' | ' |
Assets: | ' | ' |
Metals swaps | 842 | 614 |
Interest Rate Swap [Member] | ABL Credit Facility [Member] | ' | ' |
Liabilities: | ' | ' |
Interest rate swap | 586 | 710 |
Interest Rate Swap [Member] | Chicago Tube and Iron Company Acquisition [Member] | ' | ' |
Liabilities: | ' | ' |
Interest rate swap | $232 | $279 |
Note_7_Fair_Value_of_Financial4
Note 7 - Fair Value of Financial Instruments (Details) - Fair Value Measurements, Not Recorded (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
ABL Credit Facility | $233,783 | $146,075 |
Carrying Value [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total liabilities not recorded at fair value | 3,530 | 4,340 |
Carrying Value [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total liabilities not recorded at fair value | 233,783 | 194,929 |
Carrying Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total liabilities not recorded at fair value | 237,313 | 199,269 |
Industrial Revenue Bond [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long term debt | 3,530 | 4,340 |
Industrial Revenue Bond [Member] | Fair Value, Inputs, Level 2 [Member] | ABL Credit Facility [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
ABL Credit Facility | 233,783 | 146,075 |
Industrial Revenue Bond [Member] | ABL Credit Facility [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
ABL Credit Facility | 233,783 | 146,075 |
Industrial Revenue Bond [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long term debt | 3,530 | 4,340 |
Term Loan [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long term debt | ' | 48,854 |
Term Loan [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long term debt | ' | $48,854 |
Note_8_Equity_Plans_Details
Note 8 - Equity Plans (Details) (USD $) | 6 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | |||||||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 01, 2014 | Jan. 02, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 01, 2014 | Jan. 02, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Match [Member] | Match [Member] | |||
Five Year Anniversary [Member] | Ten Year Anniversary [Member] | Fifteen Year Anniversary [Member] | Twenty Year Anniversary [Member] | Twenty Five Year Anniversary [Member] | |||||||||||
Note 8 - Equity Plans (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 7,000 | 11,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value (in Dollars) | $103 | $218 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,544 | 1,800 | 34,226 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
Share Price (in Dollars per share) | ' | ' | ' | $27.51 | $23.41 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Minimum Number of Shares Per Employee | 750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Matching Purchase Requirement | 500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Match | 250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares Matched | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,250 | 6,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested (in Dollars) | ' | ' | ' | ' | ' | $25 | $50 | $75 | $100 | $100 | ' | ' | $211 | ' | ' |
Restricted Stock Units Units Number Converted | 1,250 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_8_Equity_Plans_Details_St
Note 8 - Equity Plans (Details) - Stock Option Activity (USD $) | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Stock Option Activity [Abstract] | ' | ' | ' |
Outstanding, Number of Options | 20,172 | ' | 27,172 |
Outstanding, Weighted Average Exercise Price | $32.63 | ' | $27.40 |
Outstanding, Weighted Average Remaining Contractual Term | 'minus 2 years 292 days | ' | ' |
Exercisable at June 30, 2014 | 20,172 | ' | ' |
Exercisable at June 30, 2014 | $32.63 | ' | ' |
Exercisable at June 30, 2014 | 'minus 2 years 292 days | ' | ' |
Exercised | -7,000 | -11,667 | ' |
Exercised | $12.32 | ' | ' |
Note_8_Equity_Plans_Details_St1
Note 8 - Equity Plans (Details) - Stock Based Compensation Expense Recognized on Restricted Stock Units (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
Impact per basic share | $0.32 | $0.23 | $0.57 | $0.70 |
Impact per diluted share | $0.32 | $0.23 | $0.57 | $0.69 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ' | ' | ' | ' |
RSU expense before taxes | $268 | $205 | $521 | $449 |
RSU expense after taxes | $176 | $120 | $333 | $283 |
Impact per basic share | $0.02 | $0.01 | $0.03 | $0.03 |
Impact per diluted share | $0.02 | $0.01 | $0.03 | $0.03 |
Note_8_Equity_Plans_Details_Re
Note 8 - Equity Plans (Details) - Restricted Stock Unit Activity (Restricted Stock Units (RSUs) [Member], USD $) | 0 Months Ended | 6 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 01, 2014 | Jan. 02, 2013 | Jun. 30, 2014 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Note 8 - Equity Plans (Details) - Restricted Stock Unit Activity [Line Items] | ' | ' | ' |
Outstanding, Number of Shares | ' | ' | 230,958 |
Outstanding, Weighted Average Exercise Price | ' | ' | $25.44 |
Vested at June 30, 2014 | ' | ' | 220,728 |
Vested at June 30, 2014 | ' | ' | $26.08 |
Vested at June 30, 2014 | ' | ' | $211 |
Granted | 2,544 | 1,800 | 34,226 |
Granted | ' | ' | $27.69 |
Converted into shares | ' | ' | -1,250 |
Converted into shares | ' | ' | $23.56 |
Outstanding, Number of Shares | ' | ' | 263,934 |
Outstanding, Weighted Average Exercise Price | ' | ' | $25.74 |
Outstanding, Aggregate Intrinsic value | ' | ' | $286 |
Note_9_Income_Taxes_Details
Note 9 - Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income Tax Expense (Benefit) | $1,831 | $1,790 | $3,532 | $4,533 |
Effective Income Tax Rate Reconciliation, Percent | 34.40% | 41.50% | 36.00% | 37.10% |
Note_10_Shares_Outstanding_and2
Note 10 - Shares Outstanding and Earnings Per Share (Details) - Earnings Per Share (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Earnings per share: [Abstract] | ' | ' | ' | ' |
Weighted average basic shares outstanding | 11,089 | 11,062 | 11,089 | 11,059 |
Assumed exercise of stock options and issuance of stock awards | ' | 10 | 1 | 8 |
Weighted average diluted shares outstanding | 11,089 | 11,072 | 11,090 | 11,067 |
Net income (in Dollars) | $3,494 | $2,525 | $6,271 | $7,689 |
Basic earnings per share (in Dollars per share) | $0.32 | $0.23 | $0.57 | $0.70 |
Diluted earnings per share (in Dollars per share) | $0.32 | $0.23 | $0.57 | $0.69 |
Anti-dilutive securities outstanding | 200 | 199 | 200 | 199 |
Note_11_Segment_Information_De
Note 11 - Segment Information (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Segment Reporting [Abstract] | ' |
Number of Reportable Segments | 2 |
Note_11_Segment_Information_De1
Note 11 - Segment Information (Details) - Segment Reporting Information by Revenue (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net sales | ' | ' | ' | ' |
Net sales | $386,047 | $330,804 | $732,960 | $668,868 |
Depreciation and amortization | ' | ' | ' | ' |
Depreciation and amortization | 5,688 | 5,523 | 11,365 | 11,038 |
Operating income | ' | ' | ' | ' |
Operating income | 7,108 | 6,024 | 13,337 | 15,605 |
Other income (loss), net | -4 | -41 | -2 | -17 |
Income before interest and income taxes | 7,104 | 5,983 | 13,335 | 15,588 |
Interest and other expense on debt | 1,779 | 1,668 | 3,532 | 3,366 |
Income before income taxes | 5,325 | 4,315 | 9,803 | 12,222 |
Flat Products [Member] | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' |
Net sales | 320,205 | 267,444 | 606,058 | 543,192 |
Depreciation and amortization | ' | ' | ' | ' |
Depreciation and amortization | 4,231 | 4,243 | 8,449 | 8,485 |
Operating income | ' | ' | ' | ' |
Operating income | 6,415 | 4,999 | 11,263 | 9,804 |
Tubular and Pipe Products [Member] | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' |
Net sales | 65,842 | 63,360 | 126,902 | 125,676 |
Depreciation and amortization | ' | ' | ' | ' |
Depreciation and amortization | 1,432 | 1,280 | 2,866 | 2,553 |
Operating income | ' | ' | ' | ' |
Operating income | 2,853 | 3,009 | 6,290 | 9,769 |
Corporate Segment [Member] | ' | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' |
Depreciation and amortization | 25 | ' | 50 | ' |
Operating income | ' | ' | ' | ' |
Operating income | ($2,160) | ($1,984) | ($4,216) | ($3,968) |
Note_11_Segment_Information_De2
Note 11 - Segment Information (Details) - Segment Reporting Information by Capital Expenditure (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Capital expenditures | ' | ' | ' | ' |
Capital expenditures | $2,783 | $2,065 | $5,124 | $3,779 |
Flat Products [Member] | ' | ' | ' | ' |
Capital expenditures | ' | ' | ' | ' |
Capital expenditures | 2,214 | 717 | 3,230 | 1,396 |
Tubular and Pipe Products [Member] | ' | ' | ' | ' |
Capital expenditures | ' | ' | ' | ' |
Capital expenditures | 552 | 1,348 | 1,873 | 2,383 |
Corporate Segment [Member] | ' | ' | ' | ' |
Capital expenditures | ' | ' | ' | ' |
Capital expenditures | $17 | ' | $21 | ' |
Note_11_Segment_Information_De3
Note 11 - Segment Information (Details) - Segment Reporting Information by Assets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill | ' | ' |
Goodwill | $40,787 | $40,787 |
Assets | ' | ' |
Assets | 764,431 | 697,349 |
Flat Products [Member] | ' | ' |
Goodwill | ' | ' |
Goodwill | 500 | 500 |
Assets | ' | ' |
Assets | 530,719 | 473,397 |
Tubular and Pipe Products [Member] | ' | ' |
Goodwill | ' | ' |
Goodwill | 40,287 | 40,287 |
Assets | ' | ' |
Assets | 233,103 | 223,314 |
Corporate Segment [Member] | ' | ' |
Assets | ' | ' |
Assets | $609 | $638 |