Ascent Industries (ACNT) 10-Q 6 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Oct. 31, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Synalloy Corporation
Entity Central Index Key	95,953
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		8,870,988
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Emerging Growth Company	false
Smaller Reporting Company	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 1,872,360	$ 14,706
Accounts receivable, less allowance for doubtful accounts of $6,000 and $35,000, respectively	49,555,481	28,704,481
Inventories, net	116,029,651	72,125,181
Prepaid expenses and other current assets	12,692,661	6,802,072
Total current assets	180,150,153	107,646,440
Non-current assets
Property, plant and equipment, net of accumulated depreciation of $54,988,727 and $50,451,436 respectively	39,880,040	35,080,009
Goodwill	9,548,992	6,003,525
Intangible assets, net of accumulated amortization of $12,326,049 and $10,568,479 respectively	10,546,951	10,880,521
Deferred charges, net	237,001	263,655
Total assets	240,363,137	159,874,150
Current liabilities
Accounts payable	46,696,068	24,256,812
Accrued expenses and other current liabilities	15,184,210	8,993,454
Total current liabilities	61,880,278	33,250,266
Long-term debt	62,782,563	25,913,557
Deferred income taxes	1,349,745	635,910
Long-term deferred gain, sale-leaseback	5,682,645	5,933,350
Long-term portion of earn-out liability	5,679,350	3,170,099
Other long-term liabilities	1,224,861	1,270,542
Total non-current liabilities	76,719,164	36,923,458
Commitments and contingencies – See Note 11
Shareholders' equity
Common stock, par value $1 per share; authorized 24,000,000 shares; issued 10,300,000 shares	10,300,000	10,300,000
Capital in excess of par value	36,413,908	35,193,152
Retained earnings	68,450,319	58,129,382
Accumulated other comprehensive loss	0	(10,864)
Shareholders' equity before treasury stock	115,164,227	103,611,670
Less cost of common stock in treasury: 1,435,228 and 1,566,769 shares, respectively	13,400,532	13,911,244
Total shareholders' equity	101,763,695	89,700,426
Total liabilities and shareholders' equity	$ 240,363,137	$ 159,874,150

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) - (Parenthetical) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Assets
Accounts receivable, allowance for doubtful accounts	$ 6,000	$ 35,000
Property, plant and equipment, accumulated depreciation	54,988,727	50,451,436
Intangible assets, accumulated amortization	$ 12,326,049	$ 10,568,479
Shareholders' equity
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	24,000,000	24,000,000
Common stock, shares issued (in shares)	10,300,000	10,300,000
Common stock in treasury, at cost (in shares)	1,435,228	1,566,769

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Net sales	$ 77,792,878	$ 54,595,924	$ 208,167,243	$ 148,310,548
Cost of sales	63,764,512	49,759,304	167,189,136	127,892,423
Gross profit	14,028,366	4,836,620	40,978,107	20,418,125
Selling, general and administrative expense	6,584,407	6,504,223	20,179,278	18,674,888
Acquisition related costs	180,671	37,402	870,888	782,397
Earn-out adjustments	(269,083)	62,804	2,192,574	145,200
Operating income	7,532,371	(1,767,809)	17,735,367	815,640
Other expense (income)
Interest expense	585,888	279,598	1,303,724	715,131
Change in fair value of interest rate swaps	(7,490)	(8,497)	(99,948)	(33,000)
Other, net	493,413	(316,158)	522,598	(316,158)
Income before income taxes	6,460,560	(1,722,752)	16,008,993	449,667
Provision for income taxes	1,425,002	(516,000)	3,461,000	125,000
Net income	$ 5,035,558	$ (1,206,752)	$ 12,547,993	$ 324,667
Net income per common share:
Basic (in dollars shares)	$ 0.57	$ (0.14)	$ 1.43	$ 0.04
Diluted (in dollars shares)	$ 0.56	$ (0.14)	$ 1.42	$ 0.04
Weighted average shares outstanding:
Basic (in shares)	8,828,523	8,716,893	8,783,876	8,696,884
Dilutive effect from stock options and grants (in shares)	105,131	0	73,928	17,030
Diluted (in shares)	8,933,654	8,716,893	8,857,804	8,713,914

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Operating activities
Net income	$ 12,547,993	$ 324,667
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation expense	4,584,005	3,916,131
Amortization expense	1,763,438	1,827,171
Amortization of debt issuance costs	73,932	40,829
Deferred income taxes	713,835	(32,978)
Gain on sale of available-for-sale securities	0	(310,043)
Earn-out adjustments	2,192,574	145,200
Payments of MUSA-Stainless earn-out liability in excess of acquisition date fair value	(194,462)	0
Provision for (reduction of) losses on accounts receivable	(29,000)	192,892
Provision for (reduction of) losses on inventories	995,033	500,338
Loss (gain) on disposal of property, plant and equipment	(17,762)	2,279
Amortization of deferred gain on sale-leaseback	(250,705)	(250,705)
Straight line lease cost	276,516	304,898
Change in fair value of interest rate swaps	(99,948)	(33,000)
Change in fair value of equity securities	522,703	0
Issuance of treasury stock for director fees	276,000	287,475
Employee stock option and grant compensation	621,699	486,740
Changes in operating assets and liabilities:
Accounts receivable	(18,655,048)	(12,476,532)
Inventories	(42,153,503)	(4,772,884)
Other assets and liabilities, net	(2,483,326)	10,179,835
Accounts payable	21,388,017	8,084,756
Accrued expenses	2,247,339	(8,046,199)
Accrued income taxes	1,396,820	(2,392,073)
Net cash used in operating activities	(14,283,850)	(2,021,203)
Investing activities
Purchases of property, plant and equipment	(4,482,427)	(3,692,571)
Proceeds from sale of property, plant and equipment	0	1,048
Purchases of equity securities	(4,970,470)	(3,831,521)
Proceeds from sale of available-for-sale securities	0	4,141,564
Acquisition of the stainless pipe and tube assets of Marcegaglia USA, Inc. (MUSA)	0	(11,953,513)
Acquisition of the galvanized pipe and tube assets of MUSA	(10,378,281)	0
Net cash used in investing activities	(19,831,178)	(15,334,993)
Financing activities
Net borrowings from line of credit	36,869,006	17,918,754
Payments on capital lease obligation	(78,369)	(91,565)
Payments of debt issuance costs	(53,146)	0
Payments on earn-out liabilities to MUSA	(1,618,767)	(518,456)
Proceeds from exercised stock options	141,852	0
Net proceeds from at-the-market offering	1,002,712	0
Tax withholdings related to net share settlements of exercised stock options	(290,606)	0
Net cash provided by financing activities	35,972,682	17,308,733
Increase in cash and cash equivalents	1,857,654	(47,463)
Cash and cash equivalents at beginning of period	14,706	62,873
Cash and cash equivalents at end of period	1,872,360	15,410
Supplemental disclosure
Interest	1,189,018	617,606
Income taxes	$ 1,292,000	$ 2,557,121

Basis of Financial Statement Pr

Basis of Financial Statement Presentation	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Financial Statement Presentation	Basis of Financial Statement Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included as required by Regulation S-X, Rule 10-01. Operating results for the nine-month period ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . For further information, refer to the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 . Certain prior period amounts have been reclassified to conform to the current period presentation, including changes in the fair value of the Company's earn-out liabilities (see "Note 8 - Fair Value Information") from "Other Expense (Income)" to "Operating Income (Loss)" on the accompanying Condensed Consolidated Statements of Operations.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards Recently Issued Accounting Standards - Adopted In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606) ". Topic 606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605), and requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted Topic 606 as of January 1, 2018 using the modified retrospective transition method. The adoption of this Topic did not have an effect on the Company's consolidated financial statements. See Note 3 for further details. In January 2016, the FASB issued ASU No. 2016-01, " Financial Instruments (Topic 825)", to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The standard is effective for all public companies for annual and interim reporting periods beginning after December 15, 2017. The standard requires equity investments (except for those under the equity method of accounting) to be measured at fair value, with changes in fair value recognized in net income. The amendments in the update supersede the guidance to classify equity securities with readily determinable fair values into different categories, and require equity securities to be measured at fair value with changes recognized in net income as opposed to other comprehensive income. The Company adopted ASU 2016-01 effective January 1, 2018 and the effects of this standard are included in the accompanying condensed consolidated financial statements for the three-month and nine -month periods ended September 30, 2018 . The Company applied the amendments by means of a cumulative effective adjustment to the balance sheet as of January 1, 2018, which resulted in a reclassification of $10,864 from Accumulated Other Comprehensive Loss to Retained Earnings. In January 2017, the FASB issued ASU No. 2017-01 “ Business Combinations (Topic 805): Clarifying the Definition of a Business. ” ASU 2017-01 provides guidance to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. If substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single asset or a group of similar assets, the assets acquired (or disposed of) are not considered a business. The Company adopted ASU 2017-01 as of January 1, 2018 on a prospective basis. The adoption of this Topic did not have an effect on the Company's consolidated financial statements as of September 30, 2018 . In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting," which amends the scope of modification accounting for share-based payment arrangements, provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. The Company adopted ASU 2017-09 as of January 1, 2018 on a prospective basis. The adoption of this Topic did not have an impact on the Company's consolidated financial statements as of September 30, 2018 . Recently Issued Accounting Standards - Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) ”, to increase the transparency and comparability of lease recognition and disclosure. The update establishes a right of use ("ROU") model which requires lessees to recognize lease contracts with a term greater than one year on the balance sheet as ROU assets and lease liabilities. Leases will be classified as either financing or operating which will determine expense classification and recognition. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. While the FASB had previously indicated that the modified retrospective approach must be applied to adopt the new standard, the FASB issued ASU No. 2018-11 in July, 2018, which provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. While the Company expects ASU 2016-02 to add material ROU assets and lease liabilities to the consolidated balance sheets related to its current land and building operating leases, it is evaluating other effects that the new standard will have on the consolidated financial statements as well as its business processes, internal controls, and accounting policies. As part of its assessment, the Company is reviewing its lease portfolio and identifying which attributes of its leases will be impacted by ASU 2016-08. Information about our undiscounted future lease payments and the timing of those payments is in Note 12, "Leases" in our 2017 Form 10-K. In August 2018, the FASB issued ASU No. 2018-13 " Fair Value Measurement (Topic 820)" . The updated guidance improves the disclosure requirements on fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The Company is currently assessing the timing and impact of adopting the updated provisions.

Revenues

Revenues	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenues	Revenues Adoption of ASC Topic 606, "Revenue from Contracts with Customers" On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. The Company operates as a manufacturer of various products, and revenue is comprised of short-term contracts with point-in-time performance obligations. As a result, the Company did not identify any differences in its recognition of revenue between Topic 606 and Topic 605. Accordingly, there was no adjustment required to opening retained earnings for the cumulative impact of adopting Topic 606 and no impact to revenues for the three-month or nine -month periods ended September 30, 2018 as a result of applying Topic 606. Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers upon shipment, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The following table presents the Company's revenues, disaggregated by product group. Substantially all of the Company's revenues are derived from contracts with customers where performance obligations are satisfied at a point-in-time. Three Months Ended Nine Months Ended Sep 30, 2018 Sep 30, 2017 Sep 30, 2018 Sep 30, 2017 Storage tank and vessel $ 9,016,796 $ 7,650,080 $ 23,864,217 $ 19,981,786 Seamless carbon steel pipe and tube 7,887,027 6,669,977 24,722,928 18,782,664 Stainless steel pipe $ 37,656,273 28,702,776 107,839,677 73,056,665 Galvanized pipe 6,464,277 — 6,464,277 — Specialty chemicals 16,768,505 11,573,091 45,276,144 36,489,433 Total revenues $ 77,792,878 $ 54,595,924 $ 208,167,243 $ 148,310,548 Arrangements with Multiple Performance Obligations Our contracts with customers may include multiple performance obligations. For such arrangements, revenue for each performance obligation is based on its standalone selling price and revenue is recognized as each performance obligation is satisfied. The Company generally determines standalone selling prices based on the prices charged to customers using the adjusted market assessment approach or expected cost plus margin. Deferred Revenues Deferred revenues are recorded when cash payments are received in advance of satisfying the performance obligation, including amounts which are refundable. The deferred revenue balance decreased $43,054 during the first nine months of 2018 to $ 141,820 as of September 30, 2018 due to receiving $1,917,775 in advance of satisfying our performance obligations during the period, offset by $1,960,829 of revenue that was recognized during the period after satisfying the performance obligations that were included in the beginning deferred revenue balance or received during the current period. Deferred revenues are included in "Accrued expenses and other current liabilities" on the accompanying Condensed Consolidated Balance Sheets. Our payment terms vary by the financial strength or location of our customer and the products offered. The length of time between invoicing and when payment is due is not significant. For certain customers, payment is required before the products or services are delivered to the customer. Practical Expedients and Elections When shipping and handling activities are performed after a customer obtains control of goods, the Company reflects shipping and handling activities as part of satisfying the obligation of providing goods to the customer. In some instances, the Company withholds various states' sales taxes upon shipments into those states. Accordingly, management makes an accounting policy election to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are imposed on and concurrent with a specific revenue-producing transaction and collected from a customer. The Company expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within selling, general, and administrative expenses. The Company does not disclose the value of unsatisfied performance obligations since contracts are expected to be completed within one year.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined by either specific identification or weighted average methods. The components of inventories are as follows: Sep 30, 2018 Dec 31, 2017 Raw materials $ 65,458,268 $ 37,748,316 Work-in-process 18,262,774 9,491,408 Finished goods 32,308,609 24,885,457 $ 116,029,651 $ 72,125,181

Stock options and restricted st

Stock options and restricted stock	9 Months Ended
	Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock options and restricted stock	Stock options and restricted stock During the first nine months of 2018 , stock options for 85,440 shares of common stock were exercised by officers or employees for an aggregate exercise price of $1,033,108 , including $891,255 relating to cashless exercises during the period. No options were exercised by employees or directors during the first nine months of 2017 . Stock compensation expense for the three and nine -month periods ended September 30, 2018 was $205,520 and $621,699 , respectively. Stock compensation expense for the three and nine -month periods ended September 30, 2017 was $156,502 and $486,740 , respectively. On February 7, 2018, the Compensation & Long-Term Incentive Committee (the "Committee") of the Company's Board of Directors approved stock grants under the Company's 2015 Stock Awards Plan to certain management employees of the Company where 65,527 shares with a market price of $12.47 per share were granted under the Plan. These stock awards vest in either 20 percent or 33 percent increments annually on a cumulative basis, beginning one year after the date of grant. In order for the awards to vest, the employee must be in the continuous employment of the Company since the date of the award. Any portion of an award that has not vested is forfeited upon termination of employment. The Company may terminate any portion of the award that has not vested upon an employee's failure to comply with all conditions of the award or the 2015 Stock Awards Plan. An employee is not entitled to any voting rights with respect to any shares not yet vested, and the shares are not transferable. On May 17, 2018, a majority of the shareholders of the Company, upon the recommendation of the Company's Board of Directors, voted to amend and restate the 2015 Stock Awards Plan to increase the authorization of issuances from 250,000 shares to 500,000 shares. The diluted earnings per share calculations exclude the effect of potentially dilutive shares when the inclusion of those shares in the calculation would have an anti-dilutive effect. For the nine -month periods ended September 30, 2018 and September 30, 2017 the Company had weighted average shares of common stock, in the form of stock grants and options, of 600 and 144,064 , respectively, which were not included in the diluted earnings per share calculation as their effect was anti-dilutive.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. The Company is no longer subject to U.S. federal examinations for years before 2014 or state income tax examinations for years before 2013. During the first nine months of 2018, the Company did not identify nor reserve for any unrecognized tax benefits. The effective tax rate was 22 percent for the three and nine-month periods ended September 30, 2018 , respectively. The effective tax rate was 30 percent and 28 percent for the three and nine-month periods ended September 30, 2017 . The prior year effective tax rate was different than the 34 percent statutory rate primarily due to state tax expense, net of federal benefit and other permanent differences, including the manufacturer's exemption. On December 22, 2017, the Tax Cuts and Jobs Act (“the Act”) was signed into law by the President of the United States, enacting significant changes to the Internal Revenue Code effective January 1, 2018. The Act included a number of provisions including, but not limited to, a permanent reduction of the U.S. corporate tax rate from a blended 35 percent to 21 percent, eliminating the deduction for domestic production activities, limiting the tax deductibility of interest expense, accelerating the expensing of certain business assets and reducing the amount of executive pay that could qualify as a tax deduction. Many effects of the Act are international in nature, such as the one-time transition tax, base erosion anti-abuse tax and the global intangible low-taxed income tax, and thus would not pertain to the Company as it has no international operations. In December 2017, the Company recorded $381,000 of income tax benefit related to adopting various provisions of the Act. Under Staff Accounting Bulletin No. 118 (“SAB 118”) our income tax benefit is provisional in nature and is subject to further clarification of the new law, including but not limited to U.S. state conformity that cannot be estimated at this time and measurement of underlying tax basis in certain business assets. The ultimate impact may differ from provisional amounts due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, and additional regulatory guidance that may be issued. Further guidance may be forthcoming from federal and state agencies, which could result in additional adjustments. The accounting is expected to be completed no later than the filing of the 2017 U.S. corporate income tax return in 2018.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Segment Information	Segment Information The following table summarizes certain information regarding segments of the Company's operations: Three Months Ended Nine Months Ended Sep 30, 2018 Sep 30, 2017 Sep 30, 2018 Sep 30, 2017 Net sales Metals Segment $ 61,024,373 $ 43,022,833 $ 162,891,099 $ 111,821,115 Specialty Chemicals Segment 16,768,505 11,573,091 45,276,144 36,489,433 $ 77,792,878 $ 54,595,924 $ 208,167,243 $ 148,310,548 Operating income (loss) Metals Segment $ 7,984,117 $ (1,263,900 ) $ 23,091,164 $ 2,659,666 Specialty Chemicals Segment 1,354,617 1,150,661 3,324,778 3,796,032 Unallocated corporate expenses 1,894,775 1,554,364 5,617,113 4,712,461 Acquisition related costs 180,671 37,402 870,888 782,397 Earn-out adjustments (269,083 ) 62,804 2,192,574 145,200 Operating income (loss) 7,532,371 (1,767,809 ) 17,735,367 815,640 Interest expense 585,888 279,598 1,303,724 715,131 Change in fair value of interest rate swaps (7,490 ) (8,497 ) (99,948 ) (33,000 ) Other loss (income), net 493,413 (316,158 ) 522,598 (316,158 ) Income before income taxes $ 6,460,560 $ (1,722,752 ) $ 16,008,993 $ 449,667 As of Sep 30, 2018 Dec 31, 2017 Identifiable assets Metals Segment $ 199,390,326 $ 130,456,857 Specialty Chemicals Segment 31,109,653 25,394,078 Corporate 9,863,158 4,023,215 $ 240,363,137 $ 159,874,150 Goodwill Metals Segment $ 8,194,262 $ 4,648,795 Specialty Chemicals Segment 1,354,730 1,354,730 $ 9,548,992 $ 6,003,525

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company makes estimates of fair value in accounting for certain transactions, in testing and measuring impairment and in providing disclosures of fair value in its condensed consolidated financial statements. The Company determines the fair values of its financial instruments for disclosure purposes by maximizing the use of observable inputs and minimizing the use of unobservable inputs. Fair value disclosures for assets and liabilities are grouped into three levels. The levels prioritize the inputs used to measure the fair value of the assets or liabilities. These levels are: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices that are observable for assets and liabilities, either directly or indirectly. These inputs include quoted prices for similar assets or liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are less active. Level 3 - Unobservable inputs that are supported by little or no market activity for assets or liabilities and includes certain pricing models, discounted cash flow methodologies and similar techniques. The Company's financial instruments include cash and cash equivalents, accounts receivable, derivative instruments, accounts payable, earn-out liabilities, revolving line of credit and equity investments. 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. Therefore, as of September 30, 2018 and December 31, 2017 , the carrying amounts for cash and cash equivalents, accounts receivable, accounts payable and the Company's revolving line of credit, which is based on a variable interest rate, approximate their fair value. During the third quarter of 2018 , the Company recorded a loss on the investment in equity securities of $493,518 which is included in "Other expense (income)" on the accompanying Condensed Consolidated Statements of Operations. The fair value of equity securities held by the Company as of September 30, 2018 and December 31, 2017 was $4,985,000 and $537,233 , respectively, and is included in “Prepaid expenses and other current assets” on the accompanying Consolidated Balance Sheets. The equity securities are classified as a Level 1 financial instrument. The Company has one interest rate swap contract, which is classified as a Level 2 financial instrument as it is not actively traded and is valued using pricing models that use observable market inputs. The fair value of the contract was an asset of $227,929 and $127,981 at September 30, 2018 and December 31, 2017 , respectively. The interest rate swap was priced using discounted cash flow techniques. Changes in its fair value were recorded to other income (expense) with corresponding offsetting entries to current assets or liabilities, as appropriate. Significant inputs to the discounted cash flow model include projected future cash flows based on projected one-month LIBOR and the average margin for companies with similar credit ratings and similar maturities. It is classified as Level 2 as it is not actively traded and is valued using pricing models that use observable market inputs. To manage the impact on earnings of fluctuating nickel prices, the Company occasionally enters into six-month forward option contracts, which are classified as Level 2. At September 30, 2018 , the Company did not have any such contracts in place. At December 31, 2017 , the Company had contracts in place with notional quantities totaling approximately 1,351,494 pounds with strike prices ranging from $3.75 to $4.64 per pound. The fair value of the option contract in place at December 31, 2017 was an asset of $9,027 . The fair value of the contracts was priced using discounted cash flows techniques based on forward curves and volatility levels by asset class determined on the basis of observable market inputs, when available. Changes in their fair value were recorded to "Other expense (income)" with corresponding offsetting entries to other current assets. The fair value of the forward option contracts approximates their carrying value. The fair value of contingent consideration liabilities ("earn-out") resulting from the 2017 MUSA-Stainless acquisition and 2018 MUSA-Galvanized acquisition are classified as Level 3. The fair value of the MUSA-Stainless earn-out was estimated by applying the Monte Carlo Simulation approach using management's projection of pounds to be shipped and future price per unit. The fair value of the MUSA-Galvanized earn-out was estimated by applying the probability-weighted expected return method, using management's projection of pounds to be shipped and future price per unit. Each quarter-end, the Company re-evaluates its assumptions for both earn-out liabilities and adjusts to reflect the updated fair values. Changes in the estimated fair value of the earn-out liabilities are reflected in the results of operations in the periods in which they are identified. Changes in the fair value of the earn-out liabilities may materially impact and cause volatility in the Company's operating results. The following table presents a summary of changes in fair value of the Company's earn-out liabilities during the period: 2017 MUSA-Stainless Earn-Out Balance at December 31, 2017 $ 4,833,850 Earn-out payments to MUSA (1,685,519 ) Change in fair value during the period 2,412,122 Balance at September 30, 2018 $ 5,560,453 2018 MUSA-Galvanized Earn-Out Balance at December 31, 2017 $ — Fair value of the earn-out liability associated with the MUSA-Galvanized acquisition 3,800,298 Earn-out payments to MUSA (127,710 ) Change in fair value during the period (219,548 ) Balance at September 30, 2018 $ 3,453,040 There were no transfers of assets or liabilities between Level 1, Level 2 and Level 3 in the three-month or nine -month periods ended September 30, 2018 or year ended December 31, 2017 . During the first nine months of 2018, there have been no changes in the fair value methodologies used by the Company.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Acquisitions	Acquisitions Acquisition of the Galvanized Pipe and Tube Assets of Marcegaglia USA, Inc. On July 1, 2018, Bristol Metals, LLC ("BRISMET"), a subsidiary of the Company's Metals Segment, acquired Marcegaglia USA, Inc.'s ("MUSA") galvanized tube assets and operations ("MUSA-Galvanized") located in Munhall, PA. The purpose of the transaction was to enhance the Company's on-going business with additional capacity and technological advantages. The transaction was funded through an increase to the Company's current credit facility (refer to Note 10). The purchase price for the transaction totaled $10,378,281 . The assets purchased and liabilities assumed from MUSA include accounts receivable, inventory, equipment, and accounts payable. The transaction is being accounted for using the acquisition method of accounting for business combinations. Under this method, the total consideration transferred to consummate the acquisition is allocated to the identifiable tangible and intangible assets acquired and liabilities assumed based on their respective fair values as of the closing date of the acquisition. The acquisition method of accounting requires extensive use of estimates and judgments to allocate the consideration transferred to the identifiable tangible and intangible assets acquired and liabilities assumed. Because the acquisition closed on July 1, 2018, the allocation of the consideration transferred in the consolidated financial statements is preliminary and will be adjusted upon completion of the final valuation of the assets acquired and liabilities assumed. Such adjustments could be significant. The final valuation is expected to be completed as soon as practicable but no later than twelve months after the closing date of the acquisition. MUSA will receive quarterly earn-out payments for a period of four years following closing. Earn-out payments will equate to three percent of BRISMET’s galvanized steel pipe and tube revenue. As of July 1, 2018, the Company forecasted earn out payments to be $4,244,939 , for which the Company established a fair value of $3,800,298 using a probability-weighted expected return method and a discount rate applicable to future revenue of five percent . In determining the appropriate discount rate to apply to the contingent payments, the risk associated with the functional form of the earn-out, and the credit risk associated with the payment of the earn-out were all considered. The fair value of the contingent consideration was estimated by applying the probability-weighted expected return method using management's estimates of pounds to be shipped and future price per unit. At September 30, 2018 the fair value of the earn-out totaled $3,453,040 with $960,189 of this liability classified as a current liability since the payments will be made quarterly. The total purchase price was allocated to the acquired net tangible and identifiable intangible assets based on their estimated fair values as of July 1, 2018 for purposes of the consolidated financial statements. These amounts are subject to change based on the results of the final valuations of assets acquired and liabilities assumed, which are expected to be completed within the twelve months following the acquisition. The fair value assigned to the customer list intangible will be amortized on an accelerated basis over 15 years. The excess of the consideration transferred over the fair value of the net tangible and identifiable intangible assets is reflected as goodwill. Goodwill consists of manufacturing cost synergies expected from combining MUSA-Galvanized's production capabilities with BRISMET's current operations. All of the goodwill recognized was assigned to the Company's Metals Segment and is expected to be deductible for income tax purposes. The preliminary allocation of the total consideration paid to the fair value of the assets acquired and liabilities assumed as of July 1, 2018 is as follows: Inventories $ 2,746,000 Accounts Receivable 2,187,141 Other current assets - production and maintenance supplies 746,729 Property, plant and equipment 4,883,847 Customer list intangible 1,424,000 Goodwill 3,545,467 Contingent consideration 3,800,298 Accounts Payable 1,051,239 Other liabilities 303,366 $ 10,378,281 MUSA-Galvanized's results of operations since acquisition are reflected in the Company's consolidated statements of operations as follows: Three Months Ended Nine Months Ended Sep 30, 2018 Sep 30, 2018 Net sales $ 6,464,277 $ 6,464,277 Income before income taxes 9,859 9,859 The following unaudited pro-forma information is provided to present a summary of the combined results of the Company's operations with MUSA-Galvanized as if the acquisition had occurred on January 1, 2017. The unaudited pro-forma financial information is for information purposes only and is not necessarily indicative of what the results would have been had the acquisition been completed on the date indicated above. Pro-Forma (Unaudited) Three Months Ended Nine Months Ended Sept 30, 2018 Sept 30, 2017 Sept 30, 2018 Sept 30, 2017 Pro-forma net sales $ 77,792,878 $ 59,731,468 $ 220,099,018 $ 167,533,174 Pro-forma net income (loss) $ 5,216,229 $ (1,505,613 ) $ 11,442,902 $ (690,066 ) Earnings (loss) per share: Basic $ 0.59 $ (0.17 ) $ 1.30 $ (0.08 ) Diluted $ 0.58 $ (0.17 ) $ 1.29 $ (0.08 ) The pro-forma calculation for the three and nine months ended September 30, 2018 excludes non-recurring acquisition costs of $180,671 and $666,357 , respectively, which were incurred by the Company during 2018. These expenditures included $252,481 for professional fees associated with the preparation of MUSA-Galvanized's historical carved out galvanized financial statements and intangible assets identification and valuation, $132,831 of travel costs, $38,661 of legal fees, $239,065 of closing costs, and $3,319 of miscellaneous other costs. Pro-forma net income was reduced for both years for the amount of amortization on MUSA-Galvanized's customer list intangible and an estimated amount of interest expense associated with the additional line of credit borrowings. Acquisition of the Stainless Pipe and Tube Assets of Marcegaglia USA, Inc. On February 28, 2017, BRISMET acquired the stainless steel pipe and tube assets of MUSA ("MUSA-Stainless") located in Munhall, PA. MUSA-Stainless' results of operations since acquisition are reflected in the Company's consolidated statements of operations as follows: Three Months Ended Nine Months Ended Sep 30, 2018 Sep 30, 2017 Sep 30, 2018 Sep 30, 2017 Net sales $ 13,553,571 $ 8,675,104 $ 39,292,813 $ 17,087,030 Income (loss) before income taxes 2,011,333 (559,078 ) 5,492,488 (114,601 )

Long-term Debt

Long-term Debt	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt On June 29, 2018, the Company amended its Credit Agreement with its bank to increase the limit of the asset based line of credit (the "Line") by $15,000,000 to a maximum of $80,000,000 . As a result of the amendment, the interest rate on the Line is now calculated using One Month LIBOR plus a spread of 1.65 percent . None of the other provisions of the Credit Agreement were changed as a result of this amendment. Pursuant to the Credit Agreement, the Company is subject to certain covenants including maintaining a minimum fixed charge coverage ratio and a limitation on the Company’s maximum amount of capital expenditures per year, which is in line with currently projected needs. At September 30, 2018 , the Company was in compliance with all debt covenants.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies The Company is from time-to-time subject to various claims, possible legal actions for product liability and other damages, and other matters arising out of the normal conduct of the Company's business. Management is not currently aware of any asserted or unasserted matters which could have a material effect on the financial condition or results of operations of the Company.

Leases

Leases	9 Months Ended
	Sep. 30, 2018
Leases [Abstract]
Leases	Leases On June 29, 2018, the Company and Store Master Funding XII, LLC, an affiliate of Store Capital Corporation (“Store”), entered into an Amended and Restated Master Lease Agreement (the “Master Lease”), pursuant to which the Company will lease the Munhall, PA facility, purchased by Store from MUSA on June 29, 2018, for the remainder of the initial term of 20 years set forth in the Master Lease, with two renewal options of ten years each. The Master Lease includes a rent escalator equal to the lesser of 1.25 times the percentage increase in the Consumer Price Index since the previous increase or 2 percent. The amount of future minimum lease payments under operating leases are as follows: Remainder of 2018 $ 711,409 2019 2,859,865 2020 2,917,062 2021 2,975,404 2022 3,034,912 2023 3,095,610 Thereafter 45,337,403

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets As a result of the July 1, 2018 MUSA-Galvanized acquisition, the Company recognized $3,545,467 in Goodwill for the excess of consideration transferred over the fair value of the acquired net tangible and identifiable intangible assets. The Company also recorded a $1,424,000 intangible asset for the fair value of the customer relationships that were acquired, to be amortized on an accelerated basis over 15 years. The balance of intangible assets subject to amortization at September 30, 2018 and December 31, 2017 is as follows: September 30, 2018 December 31, 2017 Intangible assets, gross $ 22,873,000 $ 21,449,000 Accumulated amortization of intangible assets (12,326,049 ) (10,568,479 ) Intangible assets, net $ 10,546,951 $ 10,880,521 Estimated amortization expense related to intangible assets for the next five years is as follows: Remainder of 2018 $ 615,523 2019 2,327,899 2020 2,157,765 2021 2,047,632 2022 1,814,415 2023 350,378 Thereafter 1,233,339

At the Market Offering

At the Market Offering	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
At the Market Offering	At the Market Offering On August 9, 2018, the Company entered into an Equity Distribution Agreement pursuant to which the Company may issue and sell, from time to time, shares of the Company’s common stock (the "Shares"), par value $1.00 per share, with aggregate gross sales proceeds of up to $10 million , through an “at-the-market” equity offering program under which BB&T Capital Markets, a division of BB&T Securities, LLC and Ladenburg Thalmann & Co. Inc. (the "Agents") will act as sales agents (the “ATM Program”). As of September 30, 2018, the Company had issued and sold 44,378 shares in connection with the ATM Program, with total net proceeds of $1,002,712 . The Agents received $20,470 in commission on the sales. Announcement of Dividend On August 7, 2018, the Company announced that its Board of Directors had approved a cash dividend of $0.25 per share on the issued and outstanding shares of the Common Stock of the Company, payable in December 2018 to shareholders of record of such shares. The Company estimates that it will pay out $2,216,193 in the fourth quarter related to the dividend, and recorded a liability for the full amount in "Accrued expenses and other current liabilities" on the accompanying Condensed Consolidated Balance Sheets as of September 30, 2018.

Announcement of Dividend

Announcement of Dividend	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Announcement of Dividend	At the Market Offering On August 9, 2018, the Company entered into an Equity Distribution Agreement pursuant to which the Company may issue and sell, from time to time, shares of the Company’s common stock (the "Shares"), par value $1.00 per share, with aggregate gross sales proceeds of up to $10 million , through an “at-the-market” equity offering program under which BB&T Capital Markets, a division of BB&T Securities, LLC and Ladenburg Thalmann & Co. Inc. (the "Agents") will act as sales agents (the “ATM Program”). As of September 30, 2018, the Company had issued and sold 44,378 shares in connection with the ATM Program, with total net proceeds of $1,002,712 . The Agents received $20,470 in commission on the sales. Announcement of Dividend On August 7, 2018, the Company announced that its Board of Directors had approved a cash dividend of $0.25 per share on the issued and outstanding shares of the Common Stock of the Company, payable in December 2018 to shareholders of record of such shares. The Company estimates that it will pay out $2,216,193 in the fourth quarter related to the dividend, and recorded a liability for the full amount in "Accrued expenses and other current liabilities" on the accompanying Condensed Consolidated Balance Sheets as of September 30, 2018.

Basis of Financial Statement _2

Basis of Financial Statement Presentation (Policies)	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Financial Statement Presentation	Basis of Financial Statement Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included as required by Regulation S-X, Rule 10-01. Operating results for the nine-month period ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . For further information, refer to the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 .
Reclassifications	Certain prior period amounts have been reclassified to conform to the current period presentation, including changes in the fair value of the Company's earn-out liabilities (see "Note 8 - Fair Value Information") from "Other Expense (Income)" to "Operating Income (Loss)" on the accompanying Condensed Consolidated Statements of Operations.
Recently Issued and Adopted Accounting Standards and Recently Issued Accounting Standards Not Yet Adopted	Recently Issued Accounting Standards - Adopted In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606) ". Topic 606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605), and requires entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted Topic 606 as of January 1, 2018 using the modified retrospective transition method. The adoption of this Topic did not have an effect on the Company's consolidated financial statements. See Note 3 for further details. In January 2016, the FASB issued ASU No. 2016-01, " Financial Instruments (Topic 825)", to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The standard is effective for all public companies for annual and interim reporting periods beginning after December 15, 2017. The standard requires equity investments (except for those under the equity method of accounting) to be measured at fair value, with changes in fair value recognized in net income. The amendments in the update supersede the guidance to classify equity securities with readily determinable fair values into different categories, and require equity securities to be measured at fair value with changes recognized in net income as opposed to other comprehensive income. The Company adopted ASU 2016-01 effective January 1, 2018 and the effects of this standard are included in the accompanying condensed consolidated financial statements for the three-month and nine -month periods ended September 30, 2018 . The Company applied the amendments by means of a cumulative effective adjustment to the balance sheet as of January 1, 2018, which resulted in a reclassification of $10,864 from Accumulated Other Comprehensive Loss to Retained Earnings. In January 2017, the FASB issued ASU No. 2017-01 “ Business Combinations (Topic 805): Clarifying the Definition of a Business. ” ASU 2017-01 provides guidance to evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. If substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single asset or a group of similar assets, the assets acquired (or disposed of) are not considered a business. The Company adopted ASU 2017-01 as of January 1, 2018 on a prospective basis. The adoption of this Topic did not have an effect on the Company's consolidated financial statements as of September 30, 2018 . In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting," which amends the scope of modification accounting for share-based payment arrangements, provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. The Company adopted ASU 2017-09 as of January 1, 2018 on a prospective basis. The adoption of this Topic did not have an impact on the Company's consolidated financial statements as of September 30, 2018 . Recently Issued Accounting Standards - Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) ”, to increase the transparency and comparability of lease recognition and disclosure. The update establishes a right of use ("ROU") model which requires lessees to recognize lease contracts with a term greater than one year on the balance sheet as ROU assets and lease liabilities. Leases will be classified as either financing or operating which will determine expense classification and recognition. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. While the FASB had previously indicated that the modified retrospective approach must be applied to adopt the new standard, the FASB issued ASU No. 2018-11 in July, 2018, which provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. While the Company expects ASU 2016-02 to add material ROU assets and lease liabilities to the consolidated balance sheets related to its current land and building operating leases, it is evaluating other effects that the new standard will have on the consolidated financial statements as well as its business processes, internal controls, and accounting policies. As part of its assessment, the Company is reviewing its lease portfolio and identifying which attributes of its leases will be impacted by ASU 2016-08. Information about our undiscounted future lease payments and the timing of those payments is in Note 12, "Leases" in our 2017 Form 10-K. In August 2018, the FASB issued ASU No. 2018-13 " Fair Value Measurement (Topic 820)" . The updated guidance improves the disclosure requirements on fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The Company is currently assessing the timing and impact of adopting the updated provisions.
Revenue from Contracts with Customers	On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. The Company operates as a manufacturer of various products, and revenue is comprised of short-term contracts with point-in-time performance obligations. As a result, the Company did not identify any differences in its recognition of revenue between Topic 606 and Topic 605. Accordingly, there was no adjustment required to opening retained earnings for the cumulative impact of adopting Topic 606 and no impact to revenues for the three-month or nine -month periods ended September 30, 2018 as a result of applying Topic 606. Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers upon shipment, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services.

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Sep. 30, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue by Product Group	The following table presents the Company's revenues, disaggregated by product group. Substantially all of the Company's revenues are derived from contracts with customers where performance obligations are satisfied at a point-in-time. Three Months Ended Nine Months Ended Sep 30, 2018 Sep 30, 2017 Sep 30, 2018 Sep 30, 2017 Storage tank and vessel $ 9,016,796 $ 7,650,080 $ 23,864,217 $ 19,981,786 Seamless carbon steel pipe and tube 7,887,027 6,669,977 24,722,928 18,782,664 Stainless steel pipe $ 37,656,273 28,702,776 107,839,677 73,056,665 Galvanized pipe 6,464,277 — 6,464,277 — Specialty chemicals 16,768,505 11,573,091 45,276,144 36,489,433 Total revenues $ 77,792,878 $ 54,595,924 $ 208,167,243 $ 148,310,548

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Components of Inventories	The components of inventories are as follows: Sep 30, 2018 Dec 31, 2017 Raw materials $ 65,458,268 $ 37,748,316 Work-in-process 18,262,774 9,491,408 Finished goods 32,308,609 24,885,457 $ 116,029,651 $ 72,125,181

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2018
Segment Reporting [Abstract]
Schedule of Segment Information	The following table summarizes certain information regarding segments of the Company's operations: Three Months Ended Nine Months Ended Sep 30, 2018 Sep 30, 2017 Sep 30, 2018 Sep 30, 2017 Net sales Metals Segment $ 61,024,373 $ 43,022,833 $ 162,891,099 $ 111,821,115 Specialty Chemicals Segment 16,768,505 11,573,091 45,276,144 36,489,433 $ 77,792,878 $ 54,595,924 $ 208,167,243 $ 148,310,548 Operating income (loss) Metals Segment $ 7,984,117 $ (1,263,900 ) $ 23,091,164 $ 2,659,666 Specialty Chemicals Segment 1,354,617 1,150,661 3,324,778 3,796,032 Unallocated corporate expenses 1,894,775 1,554,364 5,617,113 4,712,461 Acquisition related costs 180,671 37,402 870,888 782,397 Earn-out adjustments (269,083 ) 62,804 2,192,574 145,200 Operating income (loss) 7,532,371 (1,767,809 ) 17,735,367 815,640 Interest expense 585,888 279,598 1,303,724 715,131 Change in fair value of interest rate swaps (7,490 ) (8,497 ) (99,948 ) (33,000 ) Other loss (income), net 493,413 (316,158 ) 522,598 (316,158 ) Income before income taxes $ 6,460,560 $ (1,722,752 ) $ 16,008,993 $ 449,667 As of Sep 30, 2018 Dec 31, 2017 Identifiable assets Metals Segment $ 199,390,326 $ 130,456,857 Specialty Chemicals Segment 31,109,653 25,394,078 Corporate 9,863,158 4,023,215 $ 240,363,137 $ 159,874,150 Goodwill Metals Segment $ 8,194,262 $ 4,648,795 Specialty Chemicals Segment 1,354,730 1,354,730 $ 9,548,992 $ 6,003,525

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Summary of Changes in Fair Value of Company's Earn-Out Liability	The following table presents a summary of changes in fair value of the Company's earn-out liabilities during the period: 2017 MUSA-Stainless Earn-Out Balance at December 31, 2017 $ 4,833,850 Earn-out payments to MUSA (1,685,519 ) Change in fair value during the period 2,412,122 Balance at September 30, 2018 $ 5,560,453 2018 MUSA-Galvanized Earn-Out Balance at December 31, 2017 $ — Fair value of the earn-out liability associated with the MUSA-Galvanized acquisition 3,800,298 Earn-out payments to MUSA (127,710 ) Change in fair value during the period (219,548 ) Balance at September 30, 2018 $ 3,453,040

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2018
Business Combinations [Abstract]
Schedule of Preliminary Allocation of Total Consideration of Assets Acquired and Liabilities Assumed	The preliminary allocation of the total consideration paid to the fair value of the assets acquired and liabilities assumed as of July 1, 2018 is as follows: Inventories $ 2,746,000 Accounts Receivable 2,187,141 Other current assets - production and maintenance supplies 746,729 Property, plant and equipment 4,883,847 Customer list intangible 1,424,000 Goodwill 3,545,467 Contingent consideration 3,800,298 Accounts Payable 1,051,239 Other liabilities 303,366 $ 10,378,281
Schedule of Pro-Forma and Results of Operations Since Acquisition	MUSA-Galvanized's results of operations since acquisition are reflected in the Company's consolidated statements of operations as follows: Three Months Ended Nine Months Ended Sep 30, 2018 Sep 30, 2018 Net sales $ 6,464,277 $ 6,464,277 Income before income taxes 9,859 9,859 MUSA-Stainless' results of operations since acquisition are reflected in the Company's consolidated statements of operations as follows: Three Months Ended Nine Months Ended Sep 30, 2018 Sep 30, 2017 Sep 30, 2018 Sep 30, 2017 Net sales $ 13,553,571 $ 8,675,104 $ 39,292,813 $ 17,087,030 Income (loss) before income taxes 2,011,333 (559,078 ) 5,492,488 (114,601 ) The unaudited pro-forma financial information is for information purposes only and is not necessarily indicative of what the results would have been had the acquisition been completed on the date indicated above. Pro-Forma (Unaudited) Three Months Ended Nine Months Ended Sept 30, 2018 Sept 30, 2017 Sept 30, 2018 Sept 30, 2017 Pro-forma net sales $ 77,792,878 $ 59,731,468 $ 220,099,018 $ 167,533,174 Pro-forma net income (loss) $ 5,216,229 $ (1,505,613 ) $ 11,442,902 $ (690,066 ) Earnings (loss) per share: Basic $ 0.59 $ (0.17 ) $ 1.30 $ (0.08 ) Diluted $ 0.58 $ (0.17 ) $ 1.29 $ (0.08 )

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2018
Leases [Abstract]
Schedule of Future Minimum Lease Payments Under Operating Lease	The amount of future minimum lease payments under operating leases are as follows: Remainder of 2018 $ 711,409 2019 2,859,865 2020 2,917,062 2021 2,975,404 2022 3,034,912 2023 3,095,610 Thereafter 45,337,403

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets Subject to Amortization	The balance of intangible assets subject to amortization at September 30, 2018 and December 31, 2017 is as follows: September 30, 2018 December 31, 2017 Intangible assets, gross $ 22,873,000 $ 21,449,000 Accumulated amortization of intangible assets (12,326,049 ) (10,568,479 ) Intangible assets, net $ 10,546,951 $ 10,880,521
Schedule of Estimated Amortization Expense	Estimated amortization expense related to intangible assets for the next five years is as follows: Remainder of 2018 $ 615,523 2019 2,327,899 2020 2,157,765 2021 2,047,632 2022 1,814,415 2023 350,378 Thereafter 1,233,339

Recently Issued Accounting St_2

Recently Issued Accounting Standards - Narrative (Details) - Accounting Standards Update 2016-01	Dec. 31, 2017USD ($)
Accumulated Other Comprehensive Loss
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle	$ (10,864)
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle	$ 10,864

Revenues - Schedule of Disaggre

Revenues - Schedule of Disaggregated Revenues by Source (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Disaggregation of Revenue [Line Items]
Total revenues	$ 77,792,878	$ 54,595,924	$ 208,167,243	$ 148,310,548
Storage tank and vessel
Disaggregation of Revenue [Line Items]
Total revenues	9,016,796	7,650,080	23,864,217	19,981,786
Seamless carbon steel pipe and tube
Disaggregation of Revenue [Line Items]
Total revenues	7,887,027	6,669,977	24,722,928	18,782,664
Stainless steel pipe
Disaggregation of Revenue [Line Items]
Total revenues	37,656,273	28,702,776	107,839,677	73,056,665
Galvanized pipe
Disaggregation of Revenue [Line Items]
Total revenues	6,464,277	0	6,464,277	0
Specialty chemicals
Disaggregation of Revenue [Line Items]
Total revenues	$ 16,768,505	$ 11,573,091	$ 45,276,144	$ 36,489,433

Revenues - Narrative (Details)

Revenues - Narrative (Details)	9 Months Ended
	Sep. 30, 2018USD ($)
Revenue from Contract with Customer [Abstract]
Increase in deferred revenue balance	$ 43,054
Deferred revenue	141,820
Payments received in advance of satisfying performance obligations	1,917,775
Deferred revenue, revenue recognized in period	$ 1,960,829

Inventories (Details)

Inventories (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 65,458,268	$ 37,748,316
Work-in-process	18,262,774	9,491,408
Finished goods	32,308,609	24,885,457
Total inventories	$ 116,029,651	$ 72,125,181

Stock options and restricted _2

Stock options and restricted stock (Details) - USD ($)	May 17, 2018	Feb. 07, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense			$ 205,520	$ 156,502	$ 621,699	$ 486,740
Antidilutive securities excluded from computation of earnings per share, amount (in shares)					600	144,064
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercised (in shares)					85,440		0
Aggregate exercise price of options exercised					$ 1,033,108
Aggregate noncash exercise price of options exercised					$ 891,255
Stock Awards | 2015 Stock Awards Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity instruments other options, grants in period (in shares)		65,527
Equity instruments other than options, grants in period, weighted average grant date fair value (in dollars per share)		$ 12.47
Period after option grant before options can be exercised (in years)		1 year
Stock Awards | 2015 Stock Awards Plan | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting rate (percent)		20.00%
Number of additional shares authorized, up to (in shares)	250,000
Stock Awards | 2015 Stock Awards Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Annual vesting rate (percent)		33.00%
Number of additional shares authorized, up to (in shares)	500,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Effective tax rate		22.00%	30.00%	22.00%	28.00%
Income tax benefit	$ 381,000

Segment Information (Details)

Segment Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Net sales	$ 77,792,878	$ 54,595,924	$ 208,167,243	$ 148,310,548
Operating income (loss)	7,532,371	(1,767,809)	17,735,367	815,640
Acquisition related costs	180,671	37,402	870,888	782,397
Earn-out adjustments	(269,083)	62,804	2,192,574	145,200
Interest expense	585,888	279,598	1,303,724	715,131
Change in fair value of interest rate swaps	(7,490)	(8,497)	(99,948)	(33,000)
Other loss (income), net	493,413	(316,158)	522,598	(316,158)
Income before income taxes	6,460,560	(1,722,752)	16,008,993	449,667
Identifiable assets	240,363,137		240,363,137		$ 159,874,150
Goodwill	9,548,992		9,548,992		6,003,525
Operating segment
Segment Reporting Information [Line Items]
Net sales	77,792,878	54,595,924	208,167,243	148,310,548
Operating segment | Metals Segment
Segment Reporting Information [Line Items]
Net sales	61,024,373	43,022,833	162,891,099	111,821,115
Operating income (loss)	7,984,117	(1,263,900)	23,091,164	2,659,666
Identifiable assets	199,390,326		199,390,326		130,456,857
Goodwill	8,194,262		8,194,262		4,648,795
Operating segment | Specialty Chemicals Segment
Segment Reporting Information [Line Items]
Net sales	16,768,505	11,573,091	45,276,144	36,489,433
Operating income (loss)	1,354,617	1,150,661	3,324,778	3,796,032
Identifiable assets	31,109,653		31,109,653		25,394,078
Goodwill	1,354,730		1,354,730		1,354,730
Corporate
Segment Reporting Information [Line Items]
Unallocated corporate expenses	1,894,775	1,554,364	5,617,113	4,712,461
Identifiable assets	9,863,158		9,863,158		$ 4,023,215
Segment reconciling items
Segment Reporting Information [Line Items]
Acquisition related costs	180,671	37,402	870,888	782,397
Earn-out adjustments	(269,083)	62,804	2,192,574	145,200
Interest expense	585,888	279,598	1,303,724	715,131
Change in fair value of interest rate swaps	(7,490)	(8,497)	(99,948)	(33,000)
Other loss (income), net	$ 493,413	$ (316,158)	$ 522,598	$ (316,158)

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Narrative (Details)	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2018USD ($)financial_instrument	Sep. 30, 2018USD ($)financial_instrument	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)lb$ / lb
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain on investment in equity securities	$ 493,518	$ (522,703)	$ 0
Fair value of equity securities	$ 4,985,000	$ 4,985,000		$ 537,233
Derivative asset, number of instruments held | financial_instrument	1	1
Commodity Option | Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, fair value, gross asset				$ 9,027
Notional quantities of contracts in place | lb				1,351,494
Commodity Option | Level 2 Inputs | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative strike price (in usd per lb) | $ / lb				3.75
Commodity Option | Level 2 Inputs | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative strike price (in usd per lb) | $ / lb				4.64
Term Loan | Interest Rate Swap | Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Variable rate basis on interest rate swap		LIBOR
Term Loan | Palmer of Texas | Interest Rate Swap | Level 2 Inputs
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, fair value, gross asset	$ 227,929	$ 227,929		$ 127,981

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Summary of Changes in Fair Value of Company's Earn-Out Liability - Stainless (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Earn-out payments to MUSA	$ 1,618,767	$ 518,456
Marcegalia USA, Inc. - Stainless | Level 3 Inputs
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at December 31, 2017	4,833,850
Earn-out payments to MUSA	(1,685,519)
Change in fair value during the period	2,412,122
Balance at September 30, 2018	$ 5,560,453

Fair Value of Financial Instr_5

Fair Value of Financial Instruments - Summary of Changes in Fair Value of Company's Earn-Out Liability - Galvanized (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Earn-out payments to MUSA	$ 1,618,767	$ 518,456
Marcegalia USA, Inc. - Galvanized | Level 3 Inputs
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at December 31, 2017	0
Fair value of the earn-out liability associated with the MUSA-Galvanized acquisition	3,800,298
Earn-out payments to MUSA	(127,710)
Change in fair value during the period	(219,548)
Balance at September 30, 2018	$ 3,453,040

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) - USD ($)	Jul. 01, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Business Acquisition [Line Items]
Acquisition related costs		$ 180,671	$ 37,402	$ 870,888	$ 782,397
Marcegalia USA, Inc. - Galvanized
Business Acquisition [Line Items]
Purchase price	$ 10,378,281
Period for which earn out payments will be received	4 years
Forecasted earn out payments	$ 4,244,939
Present value of contingent liability	$ 3,800,298
Acquisition related costs		180,671		666,357
Professional fees				252,481
Travel expenses				132,831
Legal fees				38,661
Closing costs				239,065
Other miscellaneous costs				3,319
Marcegalia USA, Inc. - Galvanized | Customer Relationships
Business Acquisition [Line Items]
Useful life of finite lived intangible assets acquired	15 years
Marcegalia USA, Inc. - Galvanized | Measurement Input, Discount Rate
Business Acquisition [Line Items]
Business combination contingent consideration, fair value measurement input	0.05
Marcegalia USA, Inc. - Galvanized | Level 3 Inputs
Business Acquisition [Line Items]
Fair value of earn-out liability		3,453,040		3,453,040		$ 0
Marcegalia USA, Inc. - Galvanized | Level 3 Inputs | Other Current Liabilities
Business Acquisition [Line Items]
Fair value of earn-out liability		960,189		960,189
Marcegalia USA, Inc. - Galvanized | Maximum
Business Acquisition [Line Items]
Earn out payment, target percentage	3.00%
Marcegalia USA, Inc. - Stainless | Level 3 Inputs
Business Acquisition [Line Items]
Fair value of earn-out liability		$ 5,560,453		$ 5,560,453		$ 4,833,850

Acquisitions - Schedule of Prel

Acquisitions - Schedule of Preliminary Allocation of Total Consideration of Assets Acquired and Liabilities Assumed (Details) - USD ($)	Sep. 30, 2018	Jul. 01, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Goodwill	$ 9,548,992		$ 6,003,525
Marcegalia USA, Inc. - Galvanized
Business Acquisition [Line Items]
Inventories		$ 2,746,000
Accounts Receivable		2,187,141
Other current assets - production and maintenance supplies		746,729
Property, plant and equipment		4,883,847
Customer list intangible		1,424,000
Goodwill		3,545,467
Contingent consideration		3,800,298
Accounts Payable		1,051,239
Other liabilities		303,366
Total consideration		$ 10,378,281

Acquisitions - Schedule of Pro-

Acquisitions - Schedule of Pro-Forma Information (Details) - Marcegalia USA, Inc. - Galvanized - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Business Acquisition [Line Items]
Pro-forma net sales	$ 77,792,878	$ 59,731,468	$ 220,099,018	$ 167,533,174
Pro-forma net income (loss)	$ 5,216,229	$ (1,505,613)	$ 11,442,902	$ (690,066)
Earnings (loss) per share:
Basic (in dollars per share)	$ 0.59	$ (0.17)	$ 1.30	$ (0.08)
Diluted (in dollars per share)	$ 0.58	$ (0.17)	$ 1.29	$ (0.08)

Acquisitions - Schedule Results

Acquisitions - Schedule Results of Operations Since Acquisition (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Marcegalia USA, Inc. - Galvanized
Business Acquisition [Line Items]
Net sales	$ 6,464,277		$ 6,464,277
Income (loss) before income taxes	9,859		9,859
Marcegalia USA, Inc. - Stainless
Business Acquisition [Line Items]
Net sales	13,553,571	$ 8,675,104	39,292,813	$ 17,087,030
Income (loss) before income taxes	$ 2,011,333	$ (559,078)	$ 5,492,488	$ (114,601)

Long-term Debt - Narrative (Det

Long-term Debt - Narrative (Details) - Revolving Credit Facility - ABL Line Of Credit, Due October 30, 2020	Jun. 29, 2018USD ($)
Line of Credit Facility [Line Items]
Increase in limit on line of credit	$ 15,000,000
Maximum borrowing capacity	$ 80,000,000
London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Basis spread	1.65%

Leases - Narrative (Details)

Leases - Narrative (Details)	Jun. 29, 2018renewal_option
Leases [Abstract]
Initial term of operating lease	20 years
Number of renewal options	2
Number of years in each renewal option	10 years
Rent escalator	125.00%
Maximum rent escalator percentage	2.00%

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments (Details)	Sep. 30, 2018USD ($)
Leases [Abstract]
Remainder of 2018	$ 711,409
2,019	2,859,865
2,020	2,917,062
2,021	2,975,404
2,022	3,034,912
2,023	3,095,610
Thereafter	$ 45,337,403

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Additional Information (Details) - USD ($)	Jul. 01, 2018	Sep. 30, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Goodwill		$ 9,548,992	$ 6,003,525
Marcegalia USA, Inc. - Galvanized
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 3,545,467
Marcegalia USA, Inc. - Galvanized | Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Value of intangible assets acquired	$ 1,424,000
Useful life of finite lived intangible assets acquired	15 years

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets, gross	$ 22,873,000	$ 21,449,000
Accumulated amortization of intangible assets	(12,326,049)	(10,568,479)
Intangible assets, net	$ 10,546,951	$ 10,880,521

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Summary of Estimated Amortization Expense (Details)	Sep. 30, 2018USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2018	$ 615,523
2,019	2,327,899
2,020	2,157,765
2,021	2,047,632
2,022	1,814,415
2,023	350,378
Thereafter	$ 1,233,339

At the Market Offering (Details

At the Market Offering (Details) - USD ($)	2 Months Ended
	Sep. 30, 2018	Aug. 09, 2018	Dec. 31, 2017
Class of Stock [Line Items]
Common stock, par value (in dollars per share)	$ 1		$ 1
At-The-Market Program | BB&T Capital Markets
Class of Stock [Line Items]
Common stock, par value (in dollars per share)		$ 1
Aggregate offering price, up to		$ 10,000,000
Number of shares issued in transaction (in shares)	44,378
Value of shares issued	$ 1,002,712
Payments for commissions	$ 20,470

Announcement of Dividend (Detai

Announcement of Dividend (Details) - USD ($)	Aug. 07, 2018	Sep. 30, 2018
Equity [Abstract]
Dividends declared (in dollars per share)	$ 0.25
Accrual for dividends declared		$ 2,216,193